Driving Licence Not Fake Merely Because It Was Not Converted To Smart Card: Delhi High Court

The Delhi High Court has held that a driving licence cannot be treated as fake merely because it was in a booklet form and had not been converted into a smart card.

Justice Neena Bansal Krishna thus dismissed an appeal filed by an insurance company against a decree in favour of the insured.

The bench upheld the trial court's decision directing The New India Assurance Company Ltd. to pay ₹13,77,500 along with interest at 12% per annum to M/s Kapoor Diesels Garage Pvt. Ltd. towards the loss of a truck destroyed in an accident.

The respondent company had insured its truck for the period between September 16, 2013 and September 15, 2014. The vehicle met with an accident on July 11, 2014, resulting in total loss and the death of the driver.

While the insurance claim was duly filed, the insurer rejected it on the ground that the driver's licence, issued by the Nagaland Transport Authority, was “fake” as it was in booklet form instead of a smart card, allegedly in violation of a notification mandating smart card licences.

The High Court rejected the insurer's contention, noting that the relevant notification dated August 1, 2014 only required conversion of booklet licences into smart cards by December 1, 2014.

Since the accident occurred on July 11, 2014, well before the deadline, the driver still had a valid window to convert the licence. Therefore, merely being in booklet form could not render the licence fake.

“The driver had the window till 01.12.2014 to convert his booklet driving licence into the smart card. Merely because it was in a booklet form and not a smart card, the driving licence cannot be termed as fake. Such interpretation is absolutely contrary to the Notification dated 01.08.2014 of the Transport Authority, Nagaland,” it said.

The Court further emphasised that the burden to prove breach of policy conditions lies on the insurer, which was not discharged in the present case.

Thus finding no merit in the appeal, the Court upheld the trial court's decree and ruled that the repudiation of the insurance claim was unjustified.

Appearance: Mr. J.P.N. Shahi and Mr. Divyanshu Kumar, Advocates for Appellant; Mr. Daljeet Singh, Advocate for Respondent

Case title: The New India Assurance Company Ltd v. M/S Kapoor Diesels Garage Pvt Ltd

Case no.: RFA 131/2023

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