{"id":240108,"date":"2020-12-04T09:25:01","date_gmt":"2020-12-04T03:55:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=240108"},"modified":"2020-12-11T12:00:50","modified_gmt":"2020-12-11T06:30:50","slug":"chh-hc-s-66-mv-act-necessitates-permit-for-a-passenger-carrying-commercial-vehicle-to-make-insurance-company-liable-for-compensation-appeal-partly-allowed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/04\/chh-hc-s-66-mv-act-necessitates-permit-for-a-passenger-carrying-commercial-vehicle-to-make-insurance-company-liable-for-compensation-appeal-partly-allowed\/","title":{"rendered":"Chh HC | S. 66 MV Act necessitates \u2018permit\u2019 for a passenger carrying commercial vehicle to make insurance company liable for compensation; Appeal partly allowed"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Chattisgarh High Court:<\/strong> A Division Bench of P. R. Ramchandra Menon and Parth Prateem Sahu JJ., allowed the appeal partly and modified the impugned award.<\/p>\n<p style=\"text-align: justify;\">The facts of the case are such that on 04-07-2012, claimant while returning with his friend form Masturi to his village Tikari on Tata Magic (hereinafter referred to as &#8216;offending vehicle&#8217;), met with an accident and turned turtle wherein the claimant and other passengers suffered grievous injuries. An application was filed under Section 166 of the Motor Vehicles Act, 1988 i.e M.V. Act seeking compensation and Rs 6, 50,000 was granted vide award dated 06-01-2014 passed by the 6th Additional Motor Accident Claims Tribunal, Bilaspur, Chhattisgarh i.e. MACT. Aggrieved by the same, instant appeal was filed by the insurance company\/ appellants under Section 173 challenging the impugned award.<\/p>\n<p style=\"text-align: justify;\">Counsel for the appellants submitted that that on the date of accident, there was no valid and effective driving licence with driver of the offending vehicle, there was no valid permit, fitness and registration and thereby there was breach of conditions of insurance policy, hence, the Insurance Company is not liable to indemnity the injured. It was also submitted that MACT while deciding the issue with regard to breach of conditions of insurance policy has only taken into consideration the issue of driving licence and decided the issue but did not consider the ground of permit raised by appellant\/Insurance Company specifically, though recorded in the impugned award.<\/p>\n<p style=\"text-align: justify;\">Counsel for the respondents submitted that MACT after taking into consideration the entire pleading and evidence placed on record, has passed just and proper award, which does not call for any interference.<\/p>\n<p style=\"text-align: justify;\">During investigations, permit was not produced and the owner of the offending vehicle did not present himself as witness before court though filed reply to the claim petition. It was further found on examination of other witnesses that insurance policy was issued for the offending vehicle and the vehicle was insured as &#8216;Passenger Carrying Commercial Vehicle&#8217;, for which, permit is necessary.<\/p>\n<p style=\"text-align: justify;\">Section 66 (1) of the M.V. Act provides for the necessity for permits, which reads as under for easy reference:<\/p>\n<p style=\"text-align: justify;\"><strong><em>\u201c66. Necessity for permits.-(1) No owner of a motor vehicle shall use or permit the use of the vehicle as a transport vehicle in any public place whether or not such vehicle is actually carrying any passengers or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or any prescribed authority authorising him the use of the vehicle in that place in the manner in which the vehicle is being used:<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><em>Provided that a stage carriage permit shall, subject to any conditions that may be specified in the permit, authorise the use of the vehicle as a contract carriage:<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><em>Provided further that a stage carriage permit may, subject to any conditions that may be specified in the permit, authorise the use of the vehicle as a goods carriage either when carrying passengers or not:<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><em>Provided also that a goods carriage permit shall, subject to any conditions that may be specified in the permit, authorise the holder to use the vehicle for the carriage of goods for or in connection with a trade or business carried on by him.\u201d<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\">The Court observed that from perusal of aforementioned provisions of Section 166 of the M.V. Act, the requirement of permit has been made mandatory for use of the vehicle as &#8216;Transport Vehicle&#8217; in any public place for carrying passengers or goods.<\/p>\n<p style=\"text-align: justify;\">The Court thus held that MACT erred in not considering that non-applicants 1 and 2 i.e. driver and owner of the offending vehicle failed to produce permit of the offending vehicle and in absence of it, there will be breach of conditions of insurance policy.<\/p>\n<p style=\"text-align: justify;\">In view of above, appellant\/Insurance Company is exonerated from its liability to satisfy the amount of compensation and the liability to satisfy the amount of compensation shall be upon non-applicants No.1 and 2 i.e. driver and owner of the offending vehicle. The Court further directed the insurance company to pay the amount as the insurance of the vehicle is not denied, it is insured as &#8216;Passenger Carrying Vehicle&#8217; and later the insurance company must recover the same amount from the owner and driver of the offending vehicle.<\/p>\n<p style=\"text-align: justify;\">In view of the above, appeal allowed partly and disposed off.[Oriental Insurance Company Ltd. v. Sudhir Kumar, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/SL3B7eZT\"><b>2020 SCC OnLine Chh 835<\/b><\/a>, decided on 23-09-2020]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #ff0000;\">Arunima Bose, Editorial Assistant has put this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chattisgarh High Court: A Division Bench of P. R. Ramchandra Menon and Parth Prateem Sahu JJ., allowed the appeal partly and modified <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[44310,31265,29785,30951,3277,31551],"class_list":["post-240108","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-commercial-vehicles","tag-insurance-policy","tag-law","tag-mact","tag-motor_vehicle","tag-mv-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chh HC | S. 66 MV Act necessitates \u2018permit\u2019 for a passenger carrying commercial vehicle to make insurance company liable for compensation; Appeal partly allowed | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/04\/chh-hc-s-66-mv-act-necessitates-permit-for-a-passenger-carrying-commercial-vehicle-to-make-insurance-company-liable-for-compensation-appeal-partly-allowed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chh HC | S. 66 MV Act necessitates \u2018permit\u2019 for a passenger carrying commercial vehicle to make insurance company liable for compensation; Appeal partly allowed\" \/>\n<meta property=\"og:description\" content=\"Chattisgarh High Court: A Division Bench of P. 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Award revised","author":"Editor","date":"October 31, 2020","format":false,"excerpt":"Karnataka High Court: Ashok G. Nijagannavar, J., upheld the compensation order but revised the rate of interest to meet the ends of justice. The facts of the case are such that the claimant was travelling as an inmate of the autorickshaw and sustained injuries in the motor vehicle accident pursuant\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":265592,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/19\/motor-accident-case-mv-act-injury-compensation-bombay-high-court\/","url_meta":{"origin":240108,"position":1},"title":"[Motor Accident Case] Determination of a just compensation cannot be equated to be a bonanza: Bom HC","author":"Bhumika Indulia","date":"April 19, 2022","format":false,"excerpt":"Bombay High Court: Addressing a dispute with regard to the percentage of permanent disability and determination of compensation, Shrikant D. Kulkarni, J., remarked that determination of a just compensation cannot be equated to be a bonanza. The Appellant was serving as a cleaner on the appellant\u2019s vehicle which was punctured\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":208065,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/14\/ph-hc-appeal-against-compensation-under-mv-act-dismissed-as-insurer-fails-to-show-drivers-license-was-invalid\/","url_meta":{"origin":240108,"position":2},"title":"P&#038;H HC | Appeal against compensation under MV Act dismissed as insurer fails to show driver&#8217;s license was invalid \u00a0","author":"Bhumika Indulia","date":"January 14, 2019","format":false,"excerpt":"Punjab and Haryana High Court: This appeal was filed before a Single Judge Bench of Lisa Gill, J., by the Insurance Company challenging its liability to pay compensation to the claimants which was awarded by the Motor Accident Claims Tribunal. Facts of the case were that the claim petition was\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":301200,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/11\/mv-act-compensation-jharkhand-hc-directs-truck-owner-compensate-gratuitous-passenger\/","url_meta":{"origin":240108,"position":3},"title":"MV Act Compensation | Jharkhand High Court directs Truck owner to compensate gratuitous passenger","author":"Ridhi","date":"September 11, 2023","format":false,"excerpt":"The claimant was a passenger travelling in the truck, but the claimant did not state about any of his loaded goods in the statement or having taken the truck on hire","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"jharkhand high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":201123,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/01\/lrs-of-deceased-cannot-maintain-claim-under-section-166-mv-act-if-accident-occurred-on-deceaseds-own-fault-or-rash-and-negligent-driving-sc\/","url_meta":{"origin":240108,"position":4},"title":"LRs of deceased cannot maintain claim under Section 166 MV Act if accident occurred on deceased\u2019s own fault or rash and negligent driving: SC","author":"Bhumika Indulia","date":"September 1, 2018","format":false,"excerpt":"Supreme Court: The Bench of N.V. Ramana and S. Abdul Nazeer, JJ. allowed an appeal filed by the appellant (insurer) against the judgment and order of Tripura High Court whereby the insurer was directed to pay compensation to the respondents (legal representatives of the deceased) as awarded by the Motor\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":153054,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/08\/30\/transporter-being-an-agent-of-the-owner-of-property-cannot-claim-compensation-under-s-166-mv-act-for-damage-to-property\/","url_meta":{"origin":240108,"position":5},"title":"Transporter being an agent of the owner of property cannot claim compensation under S. 166, MV Act for damage to property","author":"Saba","date":"August 30, 2017","format":false,"excerpt":"Karnataka High Court: While delivering the judgment in a miscellaneous first appeal filed under Section 173(1) of the Motor Vehicles Act, 1988, a Single Judge Bench of Raghvendra S. Chauhan, J. set aside the impugned judgment and award passed by the IInd Additional District and Sessions Judge whereby he directed\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/240108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=240108"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/240108\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=240108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=240108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=240108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}