Separate Licence for Light Motor Vehicles and Transport Vehicles | Judgement Pronouncement

Validity of ‘Light Motor Vehicle’ Licence to Drive ‘Transport Vehicle’

Judges: D.Y. Chandrachud CJI, P.S. Narasimha J, Hrishikesh Roy J, Manoj Misra J, Pankaj Mithal J

Today the Supreme Court held that holders of the Light Motor Vehicle Licences (LMV) can drive Transport Vehicles weighing under 7500 kg. The Court also upheld Mukund Dewangan v Oriental Insurance Company Limited (2017) which was referred to the Constitution Bench for not considering some key provisions in the Motor Vehicles Act, 1988 (MVA).

The Court was tasked with balancing the concerns of road safety with the livelihoods of thousands of gig workers who use their LMV licences to drive Transport Vehicles. The Appellants argued that safety risks could arise if drivers who are untrained to drive Transport Vehicles, got behind the wheel. During the hearing, the Court had noted that mandating LMV licence holders to undergo fresh training to obtain new licences would impact the livelihoods of these gig workers, if such a transition was not done with care. The Judgement comes as a relief for gig workers, who may continue business as usual.

Justice Hrishikesh Roy, who read out the judgement in Court today, opened with a quote of Comedian George Carlin, “Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?” As he ended the pronouncement, he advised that drivers must be responsible and not be an “idiot or a maniac.”

Background

In Mukund Dewangan v Oriental Insurance Company Limited, (2017) the Supreme Court was asked to decide if ‘unladen’ Transport Vehicles under Section 10(2)(e) which are less than 7500 kg would be considered a LMV under Section 10(2)(d). That is, would a person holding a licence to drive a light motor vehicle need a separate licence to drive a Transport Vehicle which was less than 7500 kg before any goods were loaded on it? A three-judge bench held that “a transport vehicle and omnibus, the gross vehicle weight of either of which does not exceed 7500 kg would be a light motor vehicle.”

In March 2022, the matter was revisited when the appellants, Bajaj Allianz General Insurance claimed that Mukund Dewangan was wrong. They argued that LMV and Transport Vehicle licences are governed by distinct regulatory standards within the provisions of the MVA and the Central Motor Vehicles Rules, 1989. These include differences in age eligibility, required medical clearance and specific training requirements for both distinct vehicle categories. 

On 8 March 2022, a three-judge bench of (then) Justice U.U. Lalit, S.R. Bhat and P.S. Narasimha referred the case to a larger bench to review the points omitted by the Court in Mukund Dewangan. The case was listed before a five-judge bench led by Chief Justice D.Y. Chandrachud, and Justices Hrishikesh Roy, P.S. Narasimha, Pankaj Mithal and Manoj Misra

“No glaring error” in Mukund Dewangan

The Court acknowledged that Mukund Dewangan had not analysed the provisions that distinguish Transport Vehicles and LMV. It had also failed to notice Section 31(2) and (3) which specify transport and non-transport vehicles, and that the difference was more nuanced than a weight based distinction. The Bench, however, found that the Court in Mukund Dewangan gave “due consideration to the important statutory provisions.” 

The Bench found that a harmonious interpretation would lead them to the same conclusion as Mukul Dewangan, “but fortified with additional reasoning.” Justice Roy stated that the overlooked provision would not change the outcome of the case.

No distinct concerns of safety 

Driving is a complex task, the Bench said. It demands a high level of focus, knowledge of road signs and traffic regulations, the ability to handle the vehicle deftly and proficiency in handling varied road conditions, for both transport vehicles and non-transport vehicles.

Further, the Bench noted that none of the parties in this case had produced any empirical data indicating that LMV licence holders driving Transport Vehicles had significantly caused accidents in India. 

Justice Roy added that the judgement aligns with both the objectives of MVA — to promote road safety and ensure timely compensation/relief for accident victims. The Court noted that this interpretation would prevent insurance companies from taking a technical plea to deny a legitimate claim for an insured vehicle of less than 7500 kg driven by LMV licence holders. 

However, noting that there are inconsistencies in the MVA regarding overlap between Transport Vehicles and LMVs, the Bench directed the Union government to propose amendments that offer clarifications.

The judgement clarified that LMV licence holders can only drive Transport Vehicles under 7500 kg. Special eligibility requirements and safety considerations will continue to apply for e-rickshaws, e-cars, and vehicles carrying hazardous goods.

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