Citation : 2026 Latest Caselaw 1468 MP
Judgement Date : 12 February, 2026
NEUTRAL CITATION NO. 2026:MPHC-GWL:5698
1 MA-2936-2017
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR
BEFORE
HON'BLE SHRI JUSTICE HIRDESH
ON THE 12th OF FEBRUARY, 2026
MISC. APPEAL No. 2936 of 2017
AYUB KHAN AND OTHERS
Versus
SUSHEELA KHATIK AND OTHERS
Appearance:
Shri Ashok Kumar Yadav - Advocate for the appellants.
Shri Ram Vilas Sharma-Advocate for respondent No.5/Insurance
Company.
ORDER
This Miscellaneous Appeal has been preferred under Section 173(1) of the Motor Vehicles Act, 1988 by the appellants (owner and driver of the offending vehicle) challenging the award dated 01.08.2017 passed by the Second Additional Motor Accident Claims Tribunal, Shivpuri (M.P.) in Claim Case No. 500005/2016 (hereinafter referred to as "the Claims Tribunal"), whereby the Claims Tribunal directed the Insurance Company to
pay compensation to the claimants with liberty to recover the same from the owner and driver of the offending vehicle.
2. The date of the accident and the finding recorded by the Claims Tribunal regarding negligence are not in dispute.
3. Learned counsel for the appellants submitted that though it is true that at the time of the accident the offending vehicle did not possess a valid
NEUTRAL CITATION NO. 2026:MPHC-GWL:5698
2 MA-2936-2017 fitness certificate and there is no specific term or condition in the insurance policy requiring the vehicle to have a fitness certificate. It is contended that the Claims Tribunal erred in treating the absence of fitness certificate as breach of the terms and conditions of the insurance policy. In support of his submissions, reliance has been placed on the decision in Oriental Insurance Co. Ltd. vs. Manoj and Others, 2014 (1) ACCD 174 (MP) . It is, therefore, prayed that the impugned award be modified.
4.Per contra, learned counsel for the respondent/Insurance Company supported the impugned award and prayed for dismissal of the appeal.
5.Heard learned counsel for the parties and perused the record of the Claims Tribunal.
6. It is undisputed that at the time of the accident, the offending vehicle
did not possess a valid fitness certificate. It is also not in dispute that the insurance policy does not expressly mention the requirement of a fitness certificate.
7. In the case of Pareed Pillai Vs Oriental Insurance Company Ltd, 2019 (1) ACJ 16, held as under :-
13. Fitness of the vehicle to be plied on the road as a 'transport vehicle' is very important, especially in relation to the lives and limbs of the persons travelling in the vehicle, the pedestrians, other vehicles and properties of persons who are also using the road. It is with this intent, that a specific provision has been incorporated under the Statute as Section 84, prescribing the general conditions attached to all permits. Clause (a) of Section 84 reads as follows :
84. General conditions attaching to all permits-
The following shall be conditions of every permit-
(a) that the vehicle to which the permit relates carries valid certificate of fitness issued under section 56 and is at all times so maintained as to comply with the requirements of this Act and the rules made thereunder;
14. It is pertinent to note, that power is conferred upon the
NEUTRAL CITATION NO. 2026:MPHC-GWL:5698
3 MA-2936-2017 Transport Authority who has granted the 'Permit' to cancel the Permit MACA No. 2030 of 2015 and connected cases or suspend the same on the grounds specified under Section 86; among which Clause (a) is in respect of the breach involving any conditions specified in Section 84 or any condition contained in the Permit. Section 86 (1) (a) and (c), to the extent, it is relevant here, is extracted below :
86. Cancellation and suspension of permits-
(1)The Transport Authority which granted a permit may cancel the permit or may suspend it for such period as it thinks fit-
(a) on the breach of any condition specified in section 84 or of any condition contained in the permit, or
(b) xxxxx
(c) if the holder of the permit ceases to own the vehicle covered by the permit, or
15. As mentioned above, fitness of a vehicle, to be used as a transport vehicle, is of paramount importance. The necessity to have 'Fitness Certificate' is prescribed under Section 56 of the Act.
Sub- section (1) of Section 56 clearly stipulates that, a transport vehicle [subject to the provisions of Section 59 (power to fix the age limit of motor vehicle) and Section 60 (registration of the vehicles belonging to the Central Government)] shall not be deemed to be validly registered for the purpose of Section 39, unless it carries a 'Certificate of Fitness' as prescribed. By virtue of Section 84 (a), as mentioned MACA No. 2030 of 2015 and connected cases already, it is a mandatory requirement of every Permit, that the vehicle to which the Permit relates, shall carry valid 'Certificate of Fitness' issued under Section 56 at all time, absence of which will automatically lead to a situation that the vehicle will not be deemed as having a Permit [if it is not having a 'Fitness Certificate' on a given date]. Using a motor vehicle in an unsafe condition in any public place itself is an offence under Section 190 of the Act. Separate penalty is prescribed under Section 192 for driving or using the motor vehicle in contravention of Section 39 of the Act [i.e. without registration]; which at the first instance by fine upto Rs.5000/- [not less than Rs. 2000/-] and for the second or subsequent offences, it may be with imprisonment, which may extend to one year or fine upto Rs.10,000/- [not less than Rs.5000/-] or with both; of course, conferring power upon the Court to impose a lesser punishment, for reasons to be recorded. Similarly, separate punishment is provided for using vehicles without 'Permit' as provided under Section 192A [first offence with fine upto Rs.5000/- which shall not be less than Rs.2000/- and for any subsequent offence with imprisonment upto one year [which shall not be less than 3 months or with fine upto Rs.10.000/- which shall not be less than Rs.5000/-] or with both; here again conferring power on the Court to impose lesser punishment, for MACA No. 2030 of 2015 and connected cases reasons to be recorded. Reference is made to the above provisions only to illustrate the utmost requirement to have a valid 'Registration, Permit and Fitness Certificate'.
NEUTRAL CITATION NO. 2026:MPHC-GWL:5698
4 MA-2936-2017
16. Importance of the fitness/road worthiness of a vehicle, right from the time of registration of the vehicle, is further discernible from Rule 47 of the Central Motor Vehicles Rules 1989 [referred to as Central Rules]. The said Rule deals with application for registration of motor vehicles, which, among other things, stipulates that it shall be accompanied by various documents. Under sub-rule (1) (g), it is mandatory to produce road worthiness certificate in Form 22 from the manufacturers [Form 22A from the body builders]. On completing the formalities/procedures, 'Certificate of Registration' is to be issued in terms of Rule 48 of the Central Rules in Form 23/23A, as the case may be. The said Rule contains a proviso, insisting that, when Certificate of Registration pertains to a transport vehicle, it shall be handed over to the registered owner only after recording the Certificate of Fitness in Form 38. Validity of the Certificate of Fitness is only to the extent as envisaged under Rule 62 of the Central Rules, which mandates, as per the proviso, that the renewal of a Fitness Certificate shall be made only after the Inspecting Officer or authorised Testing Station as referred to in sub Section 1 of Section 56 MACA No. 2030 of 2015 and connected cases of the Act has carried out the test specified in the table given therein.
17. The stipulations under the above provisions clearly substantiate the importance and necessity to have a valid Fitness Certificate to the transport vehicle at all times. The above prescription converges on the point that Certificate of Registration, existence of valid Permit and availability of Fitness Certificate, all throughout, are closely interlinked in the case of a transport vehicle and one requirement cannot be segregated from the other. The transport vehicle should be completely fit and road worthy, to be plied on the road, which otherwise may cause threat to the lives and limbs of passengers and the general public, apart from damage to property. Only if the transport vehicle is having valid Fitness Certificate, would the necessary Permit be issued in terms of Section 66 of the Act and by virtue of the mandate under Section 56 of the Act, no transport vehicle without Fitness Certificate will be deemed as a validly registered vehicle for the purpose of Section 39 of the Act, which stipulates that nobody shall drive or cause the motor vehicle to be driven without valid registration in public place or such other place, as the case may be. These requirements are quite 'fundamental' in nature; unlike a case where a transport vehicle carrying more passengers than the permitted capacity or a goods carriage carrying MACA No. 2030 of 2015 and connected cases excess quantity of goods than the permitted extent or a case where a transport vehicle was plying through a deviated route than the one shown in the route permit which instances could rather be branded as 'technical violations'. In other words, when a transport vehicle is not having a Fitness Certificate, it will be deemed as having no Certificate of Registration and when such vehicle is not having Permit or Fitness Certificate, nobody can drive such vehicle and no owner can permit the use of any such vehicle compromising with the lives,
NEUTRAL CITATION NO. 2026:MPHC-GWL:5698
5 MA-2936-2017 limbs, properties of the passengers/general public. Obviously, since the safety of passengers and general public was of serious concern and consideration for the law makers, appropriate and adequate measures were taken by incorporating relevant provisions in the Statute, also pointing out the circumstances which would constitute offence; providing adequate penalty. This being the position, such lapse, if any, can only be regarded as a fundamental breach and not a technical breach and any interpretation to the contrary, will only negate the intention of the law makers.
8. In view of the aforesaid statutory provisions and the law laid down,
this Court is of the considered opinion that absence of a valid fitness
certificate on the time of accident amounts to a fundamental breach
and not a technical breach.
9. The Claims Tribunal has rightly held that non-possession of a
valid fitness certificate amounts to breach of the terms and conditions
of the insurance policy. Consequently, the direction issued to the
Insurance Company to satisfy the award with liberty to recover the
amount from the owner and driver of the offending vehicle is just and
proper.
10. In view of the foregoing discussion, no interference is warranted
in the impugned award passed by the Claims Tribunal.
11. Accordingly, the Miscellaneous Appeal is dismissed. No order as to costs.
(HIRDESH) JUDGE Prachi
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