K. Kannan, J.@mdashThe appeal filed by the insurance company is on an issue of liability, for the driver was not duly licenced. He had a licence
to drive a car and scooter but he was driving a public service vehicle carrying 15 passengers. Any public service vehicle which is a transport
vehicle would require special endorsement u/s 3 of the Motor Vehicle Act. The driver cannot be under the circumstances taken to be having an
effective driving licence to secure a full indemnity for the owner. The need for a transport vehicle endorsement has been laid down in New India
Assurance Co. Ltd. Vs. Prabhu Lal, and provision for a right of recovery was considered recently by the judgment of the Supreme Court in a
situation requiring a transport vehicle endorsement in S. Iyyapan Vs. United India Insurance Company Ltd. and Another, The award of the
Tribunal, casting liability on the insurance company without providing for a right of recovery against the owner and driver was, therefore, not in
confirmity with law. The award stands modified to allow for the insurer to satisfy the amount with the claimants and recover the same from the
owner and driver. The appeal is allowed to the above extent.
