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Issues: (i) Whether the driver of the autorickshaw was holding an effective and valid driving licence for the vehicle involved; (ii) whether the insurer could be made liable to satisfy the award with liberty to recover the amount from the owner.
Issue (i): Whether the driver of the autorickshaw was holding an effective and valid driving licence for the vehicle involved?
Analysis: The vehicle was a three-wheeled commercial vehicle and, on the material on record, fell within the category of a transport vehicle. A licence issued for a vehicle other than a transport vehicle and effective for a period of twenty years indicated that the driver was not authorised to drive a transport vehicle. The statutory scheme under Sections 3, 10, 14(2)(a) and 41(4) of the Motor Vehicles Act, 1988, read with the relevant classification notification, required a valid authorisation for the type of vehicle being driven.
Conclusion: The driver was not holding an effective driving licence for the transport vehicle involved.
Issue (ii): Whether the insurer could be made liable to satisfy the award with liberty to recover the amount from the owner?
Analysis: Although the licence was ineffective for the transport vehicle, the Court exercised its constitutional power to mould the relief so that the claimants were not prejudiced. The insurer was directed to satisfy the award in the first instance and recover the amount from the owner.
Conclusion: The insurer was directed to satisfy the award and was granted liberty to recover the amount from the owner.
Final Conclusion: The appeal succeeded, the impugned judgment was set aside, and the award was directed to be satisfied by the insurer with a right of recovery against the owner.
Ratio Decidendi: A driver must hold a licence specifically authorising him to drive the class of vehicle involved, and where the licence does not cover the transport vehicle category, the Court may still direct the insurer to satisfy the award and recover the amount from the owner in exercise of its equitable powers.
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