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SC – Indian Driving Licence Valid under Indo-Nepal Treaty for cross-border accident

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The vehicle bound from Durg to Nepal suffered collision with a hill resulting in death of three persons.

Before the journey to Nepal, the owner had obtained special permit from RTO under Section 88(8) of the Motor Vehicles Act.

The Tribunal fastened the liability on the owner of the vehicle.  However, the High Court had shifted the liability to the Insurance Company.

6.2 Whether the driving license possessed by the driver authorized him to drive the vehicle in Nepal at the time of the incident?

Article 7 of the Treaty of Peace and Friendship between India and Nepal, signed on 31st July 1950, grants nationals of one country the same privileges as nationals of the other “in the matters of residence, ownership of property, participation in trade and commerce, movement and other privileges of a similar nature”. Authorizations and licenses carried by Indian nationals, including a valid driving license, issued in India, are recognized for the purposes of such movement. Appellant-insurer has not adduced any evidence to show that the driving license possessed by the driver and verified by the Authorities was not valid in Nepal. In that view of the matter, there is no reason why liability should not be fastened upon them.

Judgment dated 20.7.2026 of the Supreme Court of India in SLP (Civil) No.20645 of 2025 of The Oriental Insurance Co. Ltd  Vs.  Durg Roadways Private Limited and others

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