Supreme Court permits LMV licence holders eligible to drive transport vehicles upto 7,500 kg

In a transformative decision, the Supreme Court has ruled that individuals holding a Light Motor Vehicle (LMV) licence can legally operate transport vehicles with a weight cap of 7,500 kg.

This judgement, passed by a five-judge Constitution bench headed by Chief Justice D.Y. Chandrachud, seeks to clear ambiguities in India’s vehicle licensing framework and is expected to curtail insurance companies’ frequent claim rejections based on drivers' licence categories.

The bench, which included Justices Hrishikesh Roy, P.S. Narasimha, Pankaj Mithal, and Manoj Misra, specified that drivers with LMV licences do not need additional authorizations to operate transport vehicles within this weight limit.

Justice Roy, delivering the court’s unanimous verdict, emphasized those vehicles less than 7,500 kg are within the permissible scope for LMV licence holders, thus reaffirming the ruling in the 2017 Mukund Dewangan case. “The overlap between LMVs and transport vehicles is substantial, and the statute must be interpreted in a practical, workable manner,” the bench noted, adding that separate eligibility criteria remain for hazardous goods transport.

Addressing road safety concerns, the bench observed that over 1.7 lakh fatalities occur annually on Indian roads due to various causes, such as speeding, negligent driving, and lack of compliance with traffic laws, rather than solely due to LMV drivers operating transport vehicles.

“There is no empirical evidence indicating that LMV drivers handling light transport vehicles significantly contribute to road accidents,” the bench stated, noting that the causes are often linked to reckless behaviors like mobile phone use while driving and neglect of safety measures like seat belts and helmets.

The bench underscored the evolving nature of transportation, with technologies like driverless cars and app-based ride services altering conventional practices. This shift, the court noted, necessitates a flexible licensing framework to accommodate modern realities.

“Our judgement prevents insurance companies from rejecting legitimate claims purely on technical grounds, especially when the vehicle in question is within the 7,500 kg threshold,” the court affirmed.

The judgement further encouraged legislative action to address existing gaps in the Motor Vehicles Act (MV Act), with Attorney General R. Venkataramani informing the court that amendments to the Act were nearing completion. “A comprehensive statutory update will ensure greater clarity and address issues in the current licensing regime,” the court expressed.

In addition to clarifying licensing for commercial drivers, the court acknowledged the livelihood concerns of transport vehicle drivers who operate vehicles under 7,500 kg on LMV licences.

This decision, which upholds the 2017 precedent, is likely to enhance stability for such drivers within the industry.

The legal debate originated from the Supreme Court’s 2017 Mukund Dewangan judgement, where a three-judge bench ruled that transport vehicles under 7,500 kg are included in the LMV category.

This precedent, later integrated into regulations by the Centre, was revisited when a three-judge panel led by then-Justice U.U. Lalit raised concerns over specific legal provisions.

A total of 76 petitions, including one by Bajaj Allianz General Insurance, were filed, prompting the Constitution bench to reassess the issue last year.

This ruling is expected to significantly impact ongoing and future insurance claims, particularly in cases where transport vehicles driven by LMV-licensed individuals are involved in accidents.

The decision also signals the Supreme Court's pro-insured stance in disputes over insurance claims, providing relief to commercial drivers and bringing a clearer structure to the licensing regime.

(With inputs from PTI)