Driving Licence Valid For 30-Days After Expiry: Punjab & Haryana High Court Dismisses Insurer's Appeal Seeking Recovery Rights

The Punjab & Haryana High Court has dismissed an appeal filed by an Insurance Company challenging a 2003 award of the Motor Accident Claims Tribunal (MACT), Jind, which had fastened liability upon the insurer without granting recovery rights. The insurer sought recovery rights on the ground that the driver of the offending vehicle did not possess a valid driving licence on the date of the accident.Justice Varinder Aggarwal said, "once the statutory grace period is applied, the position becomes entirely clear that the licence of respondent No.3 was subsisting on the date and time of the accident. The expiry of the licence on 04.06.2001, read with the thirty-day extension provided under law, leaves no room for doubt that the accident having occurred on 04.07.2001 at 10:45 AM fell well within the period of its legal efficacy. In such circumstances, the plea of the Insurance Company thus lacks merit."The Insurance Company contended that the driver's licence (Ex. R-1) had expired on 04.06.2001, while the accident occurred on 04.07.2001. The licence was renewed only on 06.08.2001. On this basis, the insurer argued that the driver was not “duly licensed” on the date of the accident and that the Tribunal erred in not granting it the right to recover compensation from the owner.Counsel for the vehicle owner opposed the appeal, submitting that the insurer's argument was contrary to the statutory scheme under the Motor Vehicles Act, 1988. Relying on the proviso to Section 14, it was argued that a driving licence remains legally effective for 30 days beyond its expiry. Since the licence expired on 04.06.2001, the statutory period began on 05.06.2001 and the 30th day fell on 04.07.2001—the very date of the accident.Therefore, the driver was legally licensed at the time of occurrence and no breach of policy conditions occurred, it was contended.Reproducing the statutory proviso (Section 14 of the Motor Vehicles Act, 1988), the Court held that the grace period explicitly extends the legal effectiveness of an expired licence for thirty days. Applying this to the present case, the Court concluded that the accident at 10:45 AM on 04.07.2001 occurred squarely within the statutory window.The Court also relied on its earlier judgment in State of Haryana & Anr. v. Karkor & Ors. (FAO No. 2975 of 2005, decided on 24.05.2018), where it was held that an insurer cannot claim recovery rights during the statutory grace period. A similar view had been taken by the Allahabad High Court in Oriental Insurance Co. Ltd. v. Santosh Kumari, 2018 (4) ADJ 527.Holding that the insurer's plea “lacks merit,” the Court affirmed the MACT award and refused to grant recovery rights, noting that the licence was legally effective at the time of the accident.Mr. Harjinder Singh, Advocate, for the appellant.Mr. M.K.Sood, Advocate,for the Respondent No.4-Insurance CompanyTitle: National Insurance Company Limited v. Satbir and OthersClick here to read order

Driving Licence Valid For 30-Days After Expiry: Punjab & Haryana High Court Dismisses Insurer's Appeal Seeking Recovery Rights

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