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Motor Accident Compensation LawSupreme Court of India

M/S Chatha Service Station v. Lalmati Devi

Civil Appeal · 2025 INSC 468Decided 8 Apr 2025
C.A. No.-005089-005092 - 2025
Justice Sudhanshu Dhulia · Justice K. Vinod Chandran

Background

An oil tanker, driven rashly and negligently, killed a cyclist and a pedestrian who were the breadwinners of the claimants' families. The Motor Accidents Claims Tribunal awarded compensation but directed the insurance company to first pay the claimants and then recover the amount from the tanker's owner and driver, because the driver, though he held a licence to drive transport vehicles generally, lacked the special endorsement required under Rule 9 of the Central Motor Vehicles Rules for driving vehicles carrying dangerous/hazardous goods (the tanker was carrying oil).

Decision Breakdown

The vehicle owner argued that the missing endorsement was a mere technical or "venial" breach that shouldn't let the insurer avoid or shift liability, especially since the accident was caused by rash driving, not by mishandling of the hazardous cargo. The Supreme Court disagreed, holding that Rule 9's training syllabus is not confined to spill/hazard handling. It substantially covers defensive and advanced driving skills specific to such heavy, dangerous-goods vehicles. The Court also rejected a training certificate produced late (at the appeal stage, without a serial number or official seal) as unreliable and inadmissible under Order 41 Rule 27 CPC. It dismissed the appeal, affirming the direction that the insurer pay the claimants and then recover the amount from the owner and driver.

Lesson Learnt

For vehicles carrying hazardous or dangerous goods, the special driving-licence endorsement is treated as a genuine safety requirement, not paperwork: its absence can let an insurer pay accident victims and then recover the money from the vehicle owner and driver.

M/S Chatha Service Station v. Lalmati Devi – Legal Case Shots | LegalAware