Himachal Pradesh High Court
National Insurance Company Ltd vs Smt. Tikma Devi & Others on 21 July, 2026
Author: Virender Singh
Bench: Virender Singh
1 2026:HHC:30105
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.
.
FAO (MV) No. 226 of 2017 a/w
FAO (MV) Nos. 227, 228, 229 of 2017 &
FAO (MV) No. 376 of 2019
Reserved on : 01.07.2026
Decided on : 21.07.2026
Uploaded on : 22.07.2026
of
FAO (MV) No. 226 of 2017
rt
National Insurance Company Ltd. ...Appellant
Versus
Smt. Tikma Devi & Others ...Respondents
FAO (MV) No. 227 of 2017
National Insurance Company Ltd. ...Appellant
Versus
Dole Ram & Others ...Respondents
FAO (MV) No. 228 of 2017
National Insurance Company Ltd. ...Appellant
Versus
Smt. Gumti Devi & Others ...Respondents
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FAO (MV) No. 229 of 2017
.
National Insurance Company Ltd. ...Appellant
Versus
Dhani Ram & Others ...Respondents
of
FAO (MV) No. 376 of 2019
National Insurance Company Ltd. ...Appellant
rt Versus
Hira Singh & Others ...Respondents
Coram
The Hon'ble Mr. Justice Virender Singh, Judge.
Whether approved for reporting? Yes.
For the appellant: Mr. Ashwani K. Sharma,
Senior Advocate, with Ms.
Mamta, Advocate, in all the
appeals.
For the respondents: Ms. Leena Guleria, Advocate,
for respondents No. 1 to 4, in
FAO (MV) No. 226 of 2017.
Mr. Sunil Kumar, Advocate,
for respondent No. 1, in FAO
(MV) Nos. 227, 228 & 229 of
2017.
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Respondent No. 1 exÂparte in
FAO (MV) No. 376 of 2019.
.
Mr. Lokesh Thakur, Advocate,
vice Mr. G.R. Palsra, Advocate,
for respondents No. 5 and 6 in
FAO (MV) No. 226 of 2017, for
respondents No. 2 and 3 in
FAO (MV) Nos. 227, 228, 229
of
of 2017 and 376 of 2019.
Virender Singh, Judge
rt
The above titled appeals are being decided by a
common judgment, as the appellantÂNational Insurance
Company Ltd., has filed these appeals, under Section 173 of
the Motor Vehicles Act (hereinafter referred to as ‘the M.V.
Act‘), against the awards, which have been passed by the
learned Motor Accident Claims TribunalÂI, Mandi, District
Mandi, H.P. and learned Motor Accident Claims TribunalÂIII,
Mandi, District Mandi, H.P., respectively, (hereinafter
referred to as ‘the MACTÂI’ and ‘the MACTÂIII’), in the claim
petitions, which have arisen out of the accident, which had
taken place on 21.12.2013, at place ChairaÂkhad Nalla,
involving Tata Sumo bearing No. HP01MÂ1688 (hereinafter
referred to as ‘the offending vehicle’).
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2. FAO (MV) No. 226 of 2017, has been preferred by
.
the Insurance Company against the award dated
02.01.2017, passed by the learned MACTÂI, in Claim Petition
No. 67/2014, titled as ‘Smt. Tikma Devi & Ors. Versus
Neeraj Kumar & Ors.’, wherein a sum of Rs. 16,02,000/Â,
of
along with interest, at the rate of 7.5% per annum, from the
date of filing of the petition, till the realization of the whole
rt
awarded amount, has been awarded by fastening the
ultimate liability to pay the amount of compensation upon
the appellantÂInsurance Company.
3. FAO (MV) No. 227 of 2017, has been preferred by
the Insurance Company against the award dated
02.01.2017, passed by the Court of learned MACTÂI, in
Claim Petition No. 74/2014, titled as ‘Dole Ram Versus Roop
Lal & Ors.’, wherein a sum of Rs. 5,91,600/Â, along with
interest at the rate of 7.5% per annum, from the date of
filing of the petition, till the realization of the whole awarded
amount, has been awarded by fastening the ultimate liability
to pay the amount of compensation upon the appellantÂ
Insurance Company.
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4. FAO (MV) No. 228 of 2017, has been preferred by
.
the Insurance Company against the award dated
02.01.2017, passed by the Court of learned MACTÂI, in
Claim Petition No. 76/2014, titled as ‘Gumti Devi Devi
Versus Roop Lal & Ors.’, wherein a sum of Rs. 40,300/Â,
of
along with interest at the rate of 7.5% per annum, from the
date of filing of the petition, till the realization of the whole
rt
awarded amount, has been awarded by fastening the
ultimate liability to pay the compensation upon the
appellantÂInsurance Company.
5. FAO (MV) No. 229 of 2017, has been preferred by
the Insurance Company against the award dated
02.01.2017, passed by the Court of learned MACTÂI, in
Claim Petition No. 90/2014, titled as ‘Dhani Ram Versus
Roop Lal & Ors.’, wherein a sum of Rs. 40,000/Â, along with
interest at the rate of 7.5% per annum, from the date of
filing of the petition, till the realization of the whole awarded
amount, has been awarded by fastening the ultimate liability
to pay the compensation upon the appellantÂInsurance
Company.
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6. FAO (MV) No. 376 of 2019, has been preferred by
.
the Insurance Company against the award dated 22.10.2018
passed by the Court of learned MACTÂIII, in Claim Petition
No. 44/2015, 32/2017/2015, titled as ‘Hira Singh Versus
Roop Lal & Ors.’, wherein a sum of Rs. 21,173/Â, along with
of
interest at the rate of 7.5% per annum, from the date of
filing of the petition, till the realization of the whole awarded
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amount, has been awarded by fastening the ultimate liability
to pay the compensation upon the appellantÂInsurance
Company.
7. For the sake of convenience, the parties to the
present lis, are, hereinafter referred to, in the same manner,
as were, referred to, by the learned MACT.
STAND OF THE PETITIONERS BEFORE LEARNED MACT:
8. Necessary facts, for adjudication of the above
titled appeals are being borrowed from Claim Petition No. 67
of 2014, titled as “Smt. Tikma Devi & Ors. Versus Neeraj
Kumar & Ors.”, by treating the said case as the lead case,
9. The petitioners, in Claim Petition No. 67 of 2014,
have filed the claim petition, seeking compensation on
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account of death of their predecessorÂinÂinterest Sh.
.
Chhabinder, whereas in Claim Petition Nos. 74/2014,
76/2014, 90/2014 and 44/2015 (32/2017/2015), the
petitioners have sought compensation, on account of the
injuries sustained/suffered in Claim Petition No.67 of 2014
of
(lead case), by them, in the aforesaid accident.
10. The petitioners, in Claim Petition No.67 of 2014
rt
(lead case) being widow, minor sons and mother of deceased
Chhabinder, have filed the claim petition under Section 166
of M.V. Act, seeking compensation on account of death of
Sh. Chhabinder, in a motor vehicle accident involving the
offending vehicle, against the respondents being driver,
owner and insurer of the offending vehicle.
10.1 According to the petitioners, on 21.12.2013, Sh.
Chhabinder, along with his nephew Jhabe Ram, son of Sh.
Ganga Ram, was coming from Kullu to their native place and
when, they reached at place Kandha, they hired the
offending vehicle. Apart from them, other persons also
boarded the offending vehicle. When the offending vehicle
reached at ChairaÂKhad Nala, the same fell down from the
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road, due to rash and negligent driving of respondent No. 1,
.
due to which, Sh. Chhabinder sustained fatal injuries and
died. His dead body was taken to PHC Thunag for
postmortem examination, where, the postmortem
examination was conducted on 22.12.2013. The
of
information, regarding the accident, was given to police of
Police Station Gohar, where, FIR No. 140 dated 22.12.2014
rt
under Sections 279, 337, 304ÂA of IPC was registered.
10.2 The age of Sh. Chhabinder, at the time of his
death, was pleaded as 27 years. He was earning Rs.
12,000/Â per month, from all sources. Elaborating the
stand, it has been pleaded by the petitioners that apart from
working as mason, Sh. Chhabinder was also following the
agricultural pursuits.
10.3 Since, the accident in question has solely been
attributed to rash and negligent driving of respondent No. 1,
as such, petitioners have sought the compensation of Rs.
30,00,000/Â, from the respondents.
STAND OF THE RESPONDENTS BEFORE LEARNED
MACT:
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11. When put to notice, respondents have contested
.
the claim petition, by filing their replies.
11.1 Respondents No. 1 and 2 have filed their joint
reply, in which, they have pleaded that respondent No. 1 was
not driving the offending vehicle in a rash and negligent
of
manner. According to them, respondent No. 1 was having a
valid driving license. Other contents of the claim petition
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have been denied by pleading that at the site of accident, it
was a hilly track and there was a blind curve also. When,
the offending vehicle reached at the spot, a stray cow
suddenly appeared in front of the offending vehicle, from the
adjoining hill, and in order to save the said cow, vehicle
rolled down from the road.
12. Insurance company of the offending vehicle has
filed the separate reply by taking preliminary objections that
the vehicle in question was being permitted to ply in
violation of the terms and conditions of insurance policy and
the driver was not holding valid and effective driving license
at the time of accident.
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12.1 On merits, contents of the claim petition have
.
been denied mainly for want of knowledge.
13. Thus, a prayer has been made by the
respondents to dismiss the claim petition.
PROCEEDINGS BEFORE LEARNED MACT:
of
14. From the pleadings of the parties, the following
issues were framed by the learned MACT on 27.03.2015:Â
rt
1. Whether the deceased Chhabinder had died in Motor
Vehicle Accident on account of rash and negligent
driving of respondent No. 1? OPP
2. If issue No. 1 is proved in affirmative, to what amount
the petitioners are entitled for compensation? OPP
3. Whether the respondent No. 3 Insurance Company can
be held liable to indemnify the award amount? OPRÂ
1&2
4. Whether the vehicle was driven by the respondent No.
2 in violation of the terms and conditions of the
Insurance Policy? OPRÂ3
5. Whether the respondent No. 2 was not having valid
and effective driving license to drive the vehicle at the
time of the accident? OPRÂ3
6. Relief.
15. Thereafter, the parties to the lis were directed to
adduce evidence.
16. After hearing the learned counsel appearing for
the parties, the learned MACT have allowed the petitions, as
referred to above, by fastening the liability upon the
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insurance company to pay the compensation, as referred
.
above.
STAND OF THE INSURANCE COMPANY BEFORE THIS
COURT:
17. Feeling aggrieved from the awards, the Insurance
of
Company of the offending vehicle has preferred the presentappeals, before this Court, assailing the awards, mainly on
rt
the ground that the evidence has not been properlyconsidered by the learned MACT.
18. The awards have also been assailed, on the
ground, that driving license Ext. RW1/A, has been proved to
be fake and learned MACT has wrongly held that respondent
No. 1 was having valid and effective driving license, to drive
the offending vehicle, at the time of accident.
19. It is further case of the Insurance Company that
the driver, Neeraj Kumar, has placed on record his driving
license No. 157636/BPR (Ext. RW1/C). He has also
produced on record copy of the No Objection Certificate (Ext.
RW1/D) allegedly issued by DTO, Bishnupur (Manipur).
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20. According to the appellant, a commission was
.
appointed by the learned MACT, to record the statement of
District Transport Officer, Bishnupur (Manipur).
Accordingly, statement of Simen Keishing, the then D.T.O.
Bishnupur was recorded by the Commissioner as RWÂ2, in
of
which, he has deposed that the driving license No.
157636/BPR was issued from his office in the name of
rt
Takhellambam Nanoacha Singh, resident of Ithai Wakokpi,
P.O. and P.S. Kumbi, District Bishnupur (Manipur) on
22.01.2013 for MLV and lateron, the said person was
authorized to drive Heavy Motor Vehicle on 06.01.2014.
According to the appellant, RWÂ2 has categorically stated
that the driving license was not issued in the name of Neeraj
Kumar son of Roop Lal, resident of Village Kondhi, however,
in the crossÂexamination, he has admitted that document
Ext. RW1/C bears his signatures.
21. All these facts have been highlighted by the
Insurance Company, in the present appeals, to establish
that the company has successfully proved that the driving
license Ext. RW1/C, was not issued by DTO Bishnupur
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(Manipur), in the name of respondent No. 1. As such, the
.
findings have been assailed on the ground that the learned
MACT has wrongly concluded that the Insurance Company
could not prove the violation of the terms and conditions of
the Insurance Policy.
of
22. The findings of the learned MACT have further
been assailed on the ground that the monthly income of Sh.
rt
Chhabinder has wrongly been taken as Rs. 6,000/Â per
month and thereafter increase at the rate of 50% has been
given on account of future prospects, which according to the
learned Senior counsel appearing for the appellantÂ
Insurance Company, is not sustainable in the eyes of law, in
view of the law laid down by Hon’ble Supreme Court in
“National Insurance Company Ltd. Versus Pranay Sethi &
Others, (2017) 16 Supreme Court Cases 680”.
23. On the basis of above facts, Sh. Ashwani K.
Sharma, Senior Advocate, assisted by Ms. Mamta, Advocate,
has prayed that the appeals may kindly be allowed by setting
aside the awards and Insurance Company may kindly be
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exonerated from the liability to pay the amount of
.
compensation to the petitioners.
STAND OF THE PETITIONERS BEFORE THIS COURT:
24. Per contra, Ms. Leena Guleria, learned counsel
appearing for respondents No. 1 to 4, in FAO (MV) No. 226 of
of
2017, has supported the award passed by learned MACTand prayed that the awarded amount may kindly be
rt
enhanced, so that the same could fall within the definition of‘just compensation’.
25. In order to buttress her contentions, Ms. Leena
Guleria, learned counsel has drawn the attention of this
Court towards the fact that all the petitioners are entitled for
compensation, under the heads ‘loss of estate’; and ‘loss of
consortium’, along with 10% increase, as mandated by the
Constitution Bench of Hon’ble Supreme Court in Pranay
Sethi’s case (supra).
STAND OF THE OWNER & DRIVER BEFORE THIS
COURT:
26. Sh. Lokesh Thakur, Advocate vice Mr. G.R.
Palsra, Advocate, appearing for respondents No. 5 and 6,
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have supported the award passed by the learned MACT and
.
prayed that the appeal sans merits and the same may kindly
be dismissed.
DISCUSSION & ANALYSIS:
27. This Court has to decide the contention, as
of
raised by the Insurance Company, in the present appeals,qua violation of the terms and conditions of the Insurance
rt
Policy. From the evidence, so adduced on the file, it hasbeen argued that respondent No. 1 was not having a valid
and effective driving license, as such, the insurance
company is not liable to pay the amount of compensation.
28. In this regard, evidence of RWÂ2 Simen Keishing,
has been highlighted to prove that he has categorically
stated that driving license No. 157636/BPR dated
28.01.2013, has never been issued by DTO Bishnupur
(Manipur), in favour of respondent No. 1. As such, efforts
have been made by the Insurance Company to get rid of
their liability of indemnifying the owner of offending vehicle.
29. The Hon’ble Supreme Court in a recent decision
in case “Hind Samachar Ltd. Versus National Insurance
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Company Ltd. & Ors., (2026) 2 Supreme Court Cases
.
773″, has held that it is incumbent upon the Insurance
Company to plead and prove that the owner was knowing
the fact that his driver was having a fake driving license, in
case the Insurance Company wants to get the exoneration
of
from the liability to indemnify the owner. Relevant
paragraphs 8 to 17 of the judgment, are reproduced, as
rt
under:Â
“8. In Swaran Singh (supra), a three Judge Bench of this
Court, considered the purported conflict in Kamla (supra)
and Lehru and Ors. (supra) to hold as under: Â
“99. So far as the purported conflict in the judgments
of Kamla (2001) 4 SCC 342 and Lehru (2003) 3 SCC
338 is concerned, we may wish to point out that the
defence to the effect that the licence held by the
person driving the vehicle was a fake one, would be
available to the insurance companies, but whether
despite the same, the plea of default on the part of
the owner has been established or not would be a
question which will have to be determined in each
case.”
9. In PEPSU RTC (supra) it was held so on the facts arising
in the said case, as under: Â
“11. On facts, in the instant case, the appellant
employer had employed the third respondent Nirmal
Singh as driver in 1994. In the process of
employment, he had been put to a driving test and
he had been imparted training also. The accident
took place only after six years of his service in PRTC
as driver. In such circumstances, it cannot be said
that the insured is at fault in having employed a
person whose licence has been proved to be fake by
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the Insurance Company before the Tribunal. As we
have already noted above, on scanning the evidence
.
of the licensing authority before the Tribunal, it
cannot also be absolutely held that the licence to the
driver had not been issued by the said authority and
that the licence was fake. Though the appellant had
also taken a contention that the compensation is on
the higher side, no serious attempt has been made
and according to us justifiably, to canvas that
position.”
of
10. In Geeta Devi (supra) this Court deprecated the practice
of the insurance companies blithely claiming that the
deceased vehicle owner did not conduct due diligence while
employing a driver; which is not a condition prescribed
rt
either in the statute or in the insurance policy, despite the
wealth of precedents. It was held so in paragraph 18, as
under: Â
“18. Applying the aforeÂstated edicts to the case on
hand, it may be noted that the petitionerÂinsurance
company did not even raise the plea that the owner
of the vehicle allowed Ujay Pal to drive the vehicle
knowing that his licence was fake. Its stand was
that the accident had occurred due to the negligence
of the victim himself. Further, the insurance policy
did not require the vehicle owner to undertake
verification of the driving licence of the driver of the
vehicle by getting the same confirmed with the RTO.
Therefore, the claim of the petitioner insurance
company that it has the right to recover the
compensation from the owners of the vehicle, owing
to a willful breach of the condition of the insurance
policy, viz., to ensure that the vehicle was driven by
a licenced driver, is without pleading and proof.”
11. Now, coming to the facts of this case, A2 was produced
by R3W1, a Clerk of the record room in Tis Hazari Court as
was pointed out by the appellant. While referring to his
deposition, the Tribunal had in paragraph 179 specifically
stated that neither the Clerk nor the Court could have
seized the driving licence at the time of accident. It is also
stated in paragraph 184 that: ‘Interestingly, the police had
seized the driving licence A2 from the driver of the Tempo
issued from Alwar, renewed on 18.04.1990 till
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17.04.1993′. We would, for the moment, assume that it is a
typographical error and the statement is that A2 was
.
seized from the driver of the truck itself. Even then, there is
no evidence to substantiate the seizure having been made,
nor even the seizure mahazar produced, which the police
would have recorded if such seizure had been made at the
accident spot or from the driver, later on.
12. We do not find any substance in the argument of the
respondentÂinsurer that a collusion can be validly inferred
since the driving licence was produced by the owner. In
of
fact, the owner of the truck is not an individual and is a
company, as we see from the cause title. Undisputedly,
even if the tort feasor is the driver, the liability for any
negligence of the driver rests on the owner of the vehicle,
rt
vicariously. There can be no suspicion raised merely
because the owner had produced the driving licence before
Court. It only indicates that the owner had been diligent
enough to procure the driving licence from the driver and
produce it before the Tribunal, so as to validly raise a case
for indemnification by the insurer.
13. The office of the DTO, Gurdaspur had also issued a
certificate indicating that the driving licence No.5288 issued
in the name of the first respondent was so issued on
05.04.1991 valid from 05.04.1991 to 04.04.1994 and,
thereafter renewed from 11.08.1994 to 10.08.1997 vide
entry No.2903 dated 11.08.1994, produced along with the
additional documents by the appellant and marked before
the Tribunal as RÂ1.
14. The driving licence issued from the office of DTO
Gurdaspur was produced as R1W1/1 and R3W3 was a
Clerk from the office of DTO Gurdaspur who claimed that
Exhibit R1W1/1 was not issued from their office and no
amount was deposited in the name of R1 towards driving
licence fees in their office on 21.08.1990. Immediately, we
have to notice that the date 21.08.1990 has no nexus with
the date of issuance of R1W1/1, which was first issued on
05.04.1991 and the renewal effected on 11.08.1994.
15. Further, it is to be noticed that the DL register produced
from the office of DTO Gurdaspur was full of interpolations.
A colour photograph of 1st respondent was found in the
register but the name shown was different. In cross
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examination, it has come out that there were interpolations
and deletions made as against other entries too. Also on the
.
ground of there being no possibility of a colour photograph
in the year 1990, the High Court found collusion between
the owner and the driver. The collusion at best can be only
alleged for the production of the licence and not with
respect to the entrustment of the vehicle.
16. As has been noticed in Geeta Devi (supra) there is no
pleading or substantiation of due diligence having not been
employed at the time of entrustment. R1W1 was the
of
Advertising InÂcharge of the appellant who produced the
licence before the Court as Exhibit R1W1/1. The certificate
issued by the RTO Gurdaspur was also marked as R1
which we referred to from the additional documents. In
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crossÂexamination, there was only a bland suggestion
made to the witness that the Directors of R2 knew that R1
possessed only a fake driving licence. There were no
questions put to the witness, who was examined on behalf
of the owner, as to the actual entrustment of the vehicle or
whether R1 was employed regularly or temporarily and
when such employment commenced, which are crucial
insofar as proving or disproving due diligence by the owner
at the time of engagement of the driver and the entrustment
of the vehicle. As has been rightly held by the precedents
above noticed, the owner of a vehicle employing a driver
can only look at the licence produced by the person seeking
employment and is not expected to verify from the licence
issuing authority whether the licence is fake or not.
17. The insurance company from the totality of the
circumstances has to bring out the absence of due diligence
in the employment of the driver or the entrustment of the
vehicle, to prove breach by the insured, which is totally
absent in the present case. The High Court had erred in
finding that there was collusion between the employer and
the employee merely for reason of the driving licence having
been produced by the employer and the driver having not
contested the claim. The driver, as has been noticed in a
number of decisions of this Court, would have kept himself
away from the box, for fear of incriminating himself; since a
prosecution was pending against him. In any event, the
vicarious liability to satisfy the damages caused by the
negligence of the employee is on the employer, the later of
whom has to contest the matter. Not only was the driving
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licence, as issued to the driver produced, but, a certificate
showing its further renewal was also produced. In fact, we
.
specifically notice that the renewal made is not an
automatic renewal which has to be carried out within 30
days of the expiry of a driving licence, as per the Motor
Vehicles Act and the Rules made thereunder. Herein the
validity period of the licence, originally issued expired on
04.04.1994 and the renewal was on 11.08.1994.”
(Self emphasis supplied)
30. Being guided by the above decision, now, this
of
Court would proceed further to determine the fact, whether
the Insurance Company has proved/probablized the fact
rt
that respondent No. 2, owner of the offending vehicle (father
of respondent No. 1), had the knowledge that the license Ext.
RW1/C was not valid.
31. In order to determine the said fact, relevant
evidence, so adduced by the parties, before the learned
MACT, is required to be discussed. Onus to prove the willful
violation was on respondent No. 3ÂInsurance Company.
32. Respondents No. 1 and 2Âdriver & owner, filed
the joint reply, in which, specific stand has been taken that
respondent No. 1 was having valid driving license.
33. Respondent No. 2 appeared in the witness box as
RWÂ1 and filed his duly swornÂin affidavit Ext. RW1/A in
evidence, in which, he has asserted the factual position qua
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the fact that he is owner of the offending vehicle and he has
.
deployed his son Neeraj Kumar, as driver of his vehicle, who
has good experience of driving for the last about ten years in
the State of H.P. and other States of India, including
Manipur, where he used to work as driver, upto January,
of
2013. According to him, he had verified his driving license
and his driving was perfect with no antecedents of accident.
34.
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In the crossÂexamination by the learned counsel
for the Insurance Company, this witness has deposed that
he had verified the driving license from Manipur and
obtained the copy of verification letter Ext. RW1/E. Rest, he
has denied all the suggestions, including the suggestion, qua
production of documentary proof to prove that his son was
working at Manipur.
35. The verification letter has not been tendered by
RWÂ1, in his examinationÂinÂchief, rather, on asking of
learned counsel appearing for the Insurance Company, he
has deposed about the material fact that he got verified the
license of his son by obtaining the verification report Ext.
RW1/E.
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36. Respondent No. 1 has not appeared in the
.
witness box, nor he has been examined by the Insurance
Company, as their witness, to probablize their defence that
the driving license, copy of which is Ext. RW1/C, was not
obtained by him from the office of DTO Bishnupur
of
(Manipur).
37. In this case, evidence of DTO Bishnupur
rt
(Manipur) has been recorded by the Local Commissioner as
RWÂ2. RWÂ2, in his examinationÂinÂchief has deposed that
the driving license No. 157636/BPR, as per record, was
issued in the name of Takhellambam Nanoacha Singh on
22.01.2013, which was issued for Light Motor Vehicle,
lateron, he was authorized to drive Heavy Motor Vehicle on
06.01.2014. In this regard, he has issued the report Ext.
RW2/A, mentioning therein that no license was issued in the
name of Neeraj Kumar son of Roop Lal, resident of Village
Kandhi, P.O. Saroa, Tehsil Chachiot, District Mandi, H.P.
38. Interestingly, in the crossÂexamination by learned
counsel for respondents No. 1 and 2, this witness has
admitted that the document Ext. RW1/C, bears his
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23 2026:HHC:30105
signature. Ext. RW1/C is the copy of verification report of
.
driving license issued in the name of respondent No. 1. The
evidence of RWÂ2 was recorded on 25.02.2016 and
statement of RWÂ1 was recorded on 20.11.2015, prior to the
recording of statement of RWÂ2. On the day, when the
of
statement of RWÂ2 was recorded i.e. on 25.02.2016,
document Ext. RW1/E was already on record, as the same
rt
had been produced by respondent No. 2 (RWÂ1) on
20.11.2015, in the crossÂexamination conducted by the
learned counsel for the Insurance Company.
39. Interestingly, this document i.e. No Objection
Certificate has been issued under the seal and signature of
Simon Keishing, District Transport Officer Bishnupur
District, Manipur (RWÂ2) as admitted by him, in his crossÂ
examination. In the absence of any evidence contrary to the
authenticity of Ext. RW1/E, this document is sufficient to
hold that the owner has taken requisite precautions before
handing over the offending vehicle to a person, who was
having a driving license purported to have been issued by
DTO Bishnupur, Manipur.
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24 2026:HHC:30105
40. The Insurance Company has miserably failed to
.
prove that the owner has knowingly allowed the breach of
terms and conditions of the Insurance Company, by handing
over the offending vehicle to a person, who was not having a
valid and effective driving license.
of
41. At the cost of repetition, RWÂ2 has admitted that
the driving license, copy of which is Ext. RW1/C, bears his
rt
signatures and the verification report has also been tendered
in evidence by respondent No. 2 (owner of the offending
vehicle). Thus, the learned MACT has considered the
evidence in the right perspective and rightly concluded that
the Insurance Company has miserably failed to prove the
willful violation of the terms and conditions of the Insurance
Policy.
42. The Insurance Company could not prove any
fault on the part of the owner of the offending vehicle. As
such, it can be said that the Insurance Company has failed
to prove that respondent No. 2 (owner of the offending
vehicle) had handed over the offending vehicle to respondent
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25 2026:HHC:30105
No. 1 (driver) to drive the same, despite knowing the fact that
.
he was not having a valid and effective driving license.
43. Now, the next question is whether the amount of
compensation awarded to the petitioners falls within the
definition of ‘just compensation’, as the endavour of the
of
Court/Tribunal is to grant ‘just compensation’.
44. The Hon’ble Apex Court in Oriental Insurance
rt
Company Limited vs. Mohd. Nasir and another, (2009) 2
SCC (Cri.) 987 has held that the provisions of M.V. Act are
beneficial piece of legislation and the endeavour of the
Court/Tribunal should be to provide “just compensation”.
The relevant paras 23 and 24 of the judgment are
reproduced as under:Â
“23. Both, the 1923 Act and 1988 Act are beneficent
legislation insofar as they provide for payment of
compensation to the workmen employed by the
employers and/or by use of motor vehicle by the
owner thereof and/or the insurer to the petitioners
suffering permanent disability. The amount of
compensation is to be determined in terms of the
provisions of the
respective Acts. Whereas in terms of the 1923 Act, the
Commissioner who is a quasi judicial authority, is
bound to apply the principles and the factors laid
down in the Act for the purpose of determining the
compensation, Section 168 of the 1988 Act enjoins the
Tribunal to make an award determining the amount of
compensation which appears to be just.
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26 2026:HHC:30105
24. Both the Acts aim at providing for expeditious relief
to the victims of accident. In these cases, the accidents
.
took place by reason of use of motor vehicles. Both the
statutes are beneficial ones for the workmen as also
the third parties. The benefits thereof are available
only to the persons specified under the Act besides
under the Contract of Insurance. The statutes,
therefore, deserve liberal construction. The legislative
intent contained therein is required to be interpreted
with a view to give effect thereto.”
of
(self emphasis supplied)
45. This view has again been reiterated by Hon’ble
rt
Apex Court in Govind Yadav versus The New India
Assurance Co. Ltd., reported in 2012 ACJ 28 (SC).
Relevant paragraphs 12 & 13 of the judgment are
reproduced as under:
12. In Reshma Kumari v. Madan Mohan (2009) 13 SCC
422, this Court reiterated that the compensation awardedunder the Act should be just and also identified the factors
which should be kept in mind while determining theamount of compensation. The relevant portions of the
judgment are extracted below:
“The compensation which is required to be determined
must be just. While the petitioners are required to becompensated for the loss of their dependency, the same
should not be considered to be a windfall. Unjust
enrichment should be discouraged. This Court cannot
also lose sight of the fact that in given cases, as for
example death of the only son to a mother, she can
never be compensated in monetary terms. The question
as to the methodology required to be applied for
determination of compensation as regards prospective
loss of future earnings, however, as far as possible
should be based on certain principles. A person may
have a bright future prospect; he might have become
eligible to promotion immediately; there might have::: Downloaded on – 22/07/2026 20:31:42 :::CIS
27 2026:HHC:30105been chances of an immediate pay revision, whereas in
another (sic situation) the nature of employment was.
such that he might not have continued in service; his
chance of promotion, having regard to the nature of
employment may be distant or remote. It is, therefore,
difficult for any court to lay down rigid tests which
should be applied in all situations. There are divergentviews. In some cases it has been suggested that some
sort of hypotheses or guess work may be inevitable.
That may be so.
of
In the Indian context several other factors should be
taken into consideration including education of the
dependants and the nature of job. In the wake of
changed societal conditions and global scenario, future
rt
prospects may have to be taken into consideration not
only having regard to the status of the employee, his
educational qualification; his past performance but alsoother relevant factors, namely, the higher salaries and
perks which are being offered by the private companies
these days. In fact while determining the m ultiplicand
this Court in O riental Insurance Co. Ltd. v. Jas huben
held that even dearness allowance and perks withregard thereto from which the family would have
derived monthly benefit, must be taken into
consideration.
One of the incidental issues which has also to be taken
into consideration is inflation. Is the practice of takinginflation into consideration wholly incorrect?
Unfortunately, unlike other developed countries in India
there has been no scientific study. It is expected thatwith the rising inflation the rate of interest would go up.
In India it does not happen. It, therefore, may be a
relevant factor which may be taken into consideration
for determining the actual ground reality. No hardÂandÂ
fast rule, however, can be laid down therefor.”
(emphasis supplied)
13. In Arvind Kumar Mishra v. New India Assurance
Company Limited (2010) 10 SCC 254, the Court considered
the plea for enhancement of compensation made by the
appellant, who was a student of final year of engineering
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28 2026:HHC:30105
and had suffered 70% disablement in a motor accident.
After noticing factual matrix of the case, the Court observed:
.
“We do not intend to review in detail state of authorities
in relation to assessment of all damages for personal
injury. Suffice it to say that the basis of assessment of
all damages for personal injury is compensation. Thewhole idea is to put the petitioner in the same position
as he was insofar as money can. Perfect compensation
is hardly possible but one has to keep in mind that the
victim has done no wrong; he has suffered at the handsof
of the wrongdoer and the court must take care to give
him full and fair compensation for that he had
suffered.”
rt (emphasis supplied)
46. It would also be profitable to reproduce relevant
paragraphs 29 to 34 of the judgment passed by the Hon’ble
Supreme Court in the case titled as, Sidram versus
Divisional Manager, United India Insurance Company
Limited & anr., reported in (2023) 3 Supreme Court Cases
439, as under:
29. The process of determining the compensation by the
court is essentially a very difficult task and can never be an
exact science. Perfect compensation is hardly possible, more
so in claims of injury and disability. As rightly pointed out in
H. West & Son Ltd. v. Shephard, 1958Â65 ACJ 504 (HL,
England):
“…money cannot renew a physical frame that has been
battered.”
30. The principle consistently followed by this court in
assessing motor vehicle compensation claims, is to place the
victim in as near a position as she or he was in before the
accident, with other compensatory directions for loss of
amenities and other payments. These general principles
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29 2026:HHC:30105
have been stated and reiterated in several decisions.
[Govind Yadav v. New India Insurance Co. Ltd., (2011) 10
.
SCC 683.]
31. It is now a well settled position of law that even in cases
of permanent disablement incurred as a result of a motorÂ
accident, the petitioner can seek, apart from compensation
for future loss of income, amounts for future prospects as
well. We have come across many orders of different
tribunals and unfortunately affirmed by different High
Courts, taking the view that the petitioner is not entitled to
of
compensation for future prospects in accident cases
involving serious injuries resulting in permanent
disablement. That is not a correct position of law. There is
no justification to exclude the possibility of compensation for
future prospects in accident cases involving serious injuries
rt
resulting in permanent disablement. Such a narrow reading
is illogical because it denies altogether the possibility of the
living victim progressing further in life in accident cases –
and admits such possibility of future prospects, in case of
the victim’s death.
(Self emphasis supplied)
32. This Court has emphasised time and again that “just
compensation” should include all elements that would go to
place the victim in as near a position as she or he was in,
before the occurrence of the accident. Whilst no amount of
money or other material compensation can erase the
trauma, pain and suffering that a victim undergoes after a
serious accident, (or replace the loss of a loved one),
monetary compensation is the manner known to law,
whereby society assures some measure of restitution to
those who survive, and the victims who have to face their
lives.
33. In Santosh Devi v. National Insurance Company Limited
and Others, (2012) 6 SCC 421, this Court held that:
“14. We find it extremely difficult to fathom any
rationale for the observation made in paragraph 24 of
the judgment in Sarla Verma case [Sarla Verma v. DTC,
(2009) 6 SCC 121] that where the deceased was selfÂ
employed or was on a fixed salary without provision
for annual increment, etc., the Courts will usually take
only the actual income at the time of death and a
departure from this rule should be made only in rare
and exceptional cases involving special circumstances.
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30 2026:HHC:30105
In our view, it will be nave to say that the wages or
total emoluments/income of a person who is selfÂ
.
employed or who is employed on a fixed salary without
provision for annual increment, etc., would remain the
same throughout his life.
15. The rise in the cost of living affects everyone across
the board. It does not make any distinction between
rich and poor.
of
As a matter of fact, the effect of rise in prices which
directly impacts the cost of living is minimal on the rich
and maximum on those who are selfÂemployed or who
get fixed income/emoluments. They are the worst
affected people. Therefore, they put in extra efforts to
rt
generate additional income necessary for sustaining
their families.
16. The salaries of those employed under the Central
and State Governments and their agencies/
instrumentalities have been revised from time to time to
provide a cushion against the rising prices and
provisions have been made for providing security to the
families of the deceased employees. The salaries of
those employed in private sectors have also increased
manifold. Till about two decades ago, nobody could
have imagined that salary of Class IV employee of the
Government would be in five figures and total
emoluments of those in higher echelons of service will
cross the figure of rupees one lakh.
17. Although the wages/income of those employed in
unorganised sectors has not registered a corresponding
increase and has not kept pace with the increase in the
salaries of the government employees and those
employed in private sectors, but it cannot be denied
that there has been incremental enhancement in the
income of those who are self employed and even those
engaged on daily basis, monthly basis or even
seasonal basis. We can take judicial notice of the fact
that with a view to meet the challenges posed by high
cost of living, the persons falling in the latter category
periodically increase the cost of their labour. In this
context, it may be useful to give an example of a tailor
who earns his livelihood by stitching cloths. If the cost
of living increases and the prices of essentials go up, it
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31 2026:HHC:30105
is but natural for him to increase the cost of his labour.
So will be the cases of ordinary skilled and unskilled
.
labour, like, barber, blacksmith, cobbler, mason etc.
18. Therefore, we do not think that while making the
observations in the last three lines of para 24 of Sarla
Verma [Sarla Verma v. DTC, (2009) 6 SCC 121]
judgment, the Court had intended to lay down an
absolute rule that there will be no addition in the
income of a person who is selfÂemployed or who is paid
fixed wages. Rather, it would be reasonable to say that
of
a person who is selfÂemployed or is engaged on fixed
wages will also get 30% increase in his total income
over a period of time and if he/she becomes the victim
of an accident then the same formula deserves to be
applied for calculating the amount of compensation.”
rt
34. In Jagdish v. Mohan and Others, (2018) 4 SCC 571,
the victim, a carpenter, suffered permanent
disablement, and his claim for compensation including
for loss of future prospects was considered by a threeÂ
Judge Bench which included, incidentally, the judges
who had decided National Insurance Company (supra).
This Court held that:
“13. In the judgment of the Constitution Bench
in Pranay Sethi [National Insurance Co. Ltd. v. Pranay
Sethi, (2017) 16 SCC 680], this Court has held that thebenefit of future prospects should not be confined only
to those who have a permanent job and would extend
to selfÂemployed individuals. In the case of a selfÂemployed person, an addition of 40% of the established
income should be made where the age of the victim at
the time of the accident was below 40 years. Hence, inthe present case, the appellant would be entitled to an
enhancement of Rs. 2400 towards loss of future
prospects.
14. In making the computation in the present case, the
court must be mindful of the fact that the appellant has
suffered a serious disability in which he has suffered a
loss of the use of both his hands. For a person engaged
in manual activities, it requires no stretch of
imagination to understand that a loss of hands is a
complete deprivation of the ability to earn. Nothing –at
least in the facts of this case–can restore lost hands.
But the measure of compensation must reflect a::: Downloaded on – 22/07/2026 20:31:42 :::CIS
32 2026:HHC:30105genuine attempt of the law to restore the dignity of the
being. Our yardsticks of compensation should not be so.
abysmal as to lead one to question whether our law
values human life. If it does, as it must, it must provide
a realistic recompense for the pain of loss and the
trauma of suffering. Awards of compensation are not
law’s doles. In a discourse of rights, they constituteentitlements under law. Our conversations about law
must shift from a paternalistic subordination of the
individual to an assertion of enforceable rights as
intrinsic to human dignity.
of
15. The Tribunal has noted that the appellant is unable
to even eat or to attend to a visit to the toilet without
the assistance of an attendant. In this background, it
rt
would be a denial of justice to compute the disability at
90%. The disability is indeed total.
Having regard to the age of the appellant, the Tribunal
applied a multiplier of 18. In the circumstances, the
compensation payable to the appellant on account of
the loss of income, including future prospects, would be
Rs 18,14,400. In addition to this amount, the appellantshould be granted an amount of Rs 2 lakhs on account
of pain, suffering and loss of amenities. The amount
awarded by the Tribunal towards medical expenses
(Rs 98,908); for extra nourishment (Rs 25,000) and forattendant’s expenses (Rs 1 lakh) is maintained. The
Tribunal has declined to award any amount towardsfuture treatment. The appellant should be allowed an
amount of Rs 3 lakhs towards future medical
expenses. The appellant is thus awarded a total sum ofRs 25,38,308 by way of compensation. The appellant
would be entitled to interest at the rate of 9% p.a. on
the compensation from the date of the filing of the claim
petition. The liability to pay compensation has been
fastened by the Tribunal and by the High Court on the
insurer, owner and driver jointly and severally which is
affirmed. The amount shall be deposited before the
Tribunal within a period of 6 weeks from today and
shall be paid over to the appellant upon proper
identification.”
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33 2026:HHC:30105
47. Being guided by the above decisions of Hon’ble
.
Supreme Court, now this Court would proceed further to
determine the fact whether the learned MACT has rightly
assessed the amount of compensation or not.
FAO (MV) No. 226 of 2017 arising out of Claim Petition
of
No. 67 of 2014
48. As per the stand taken by the petitioners, Sh.
rt
Chhabinder, at the time of accident was 27 years of age and
earning Rs. 12,000/Â per month, by working as mason and
also pursuing agricultural pursuits. By examining PWÂ3
Jhabe Ram, who is nephew of Sh. Chhabinder, an attempt
has been made by the petitioners to prove that Sh.
Chhabinder was earning Rs. 12,000/Â per month, during his
lifetime.
49. Petitioner No. 1 Tikma Devi, while appearing in
the witness box as PWÂ4, has deposed almost on the same
lines. In the crossÂexamination, she has admitted that her
husband was not getting regular employment and he used to
get work occasionally. He was earning Rs. 400/Â Â Rs. 500/Â
per day. Learned MACT has taken the income of Sh.
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34 2026:HHC:30105
Chhabinder, during his life time as Rs. 6,000/Â per month.
.
The accident in question had taken place in the year 2013.
Even in that year, the minimum wages of a skilled worker
were Rs. 122/Â per day, or to say Rs. 3660/Â per month.
However, the principle of minimum wages is to be applied,
of
where there is no evidence, whereas, in the present case, the
wife of Sh. Chhabinder categorically deposed about the
rt
income of her husband, in her statement, on oath. In such
situation, this Court is of the view that the learned MACT
has rightly taken the monthly earning of Sh. Chhabinder as
Rs. 6,000/Â per month.
50. In view of the law laid down by the Hon’ble
Supreme Court in “Sarla Verma Vs Delhi Transport
Corportation, 2009 (6) SCC 121″, and as approved in
Pranay Sethi‘s case (supra), keeping in view the age of Sh.
Chhabinder, at the time of his death, increase has rightly
been given by the learned MACT, but the said increase
should be 40%, not 50% as awarded by the learned MACT,
as Sh. Chhabinder was working in unorganized sector.
Thus, his contribution towards his family comes to Rs.
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35 2026:HHC:30105
6,000/Â + 40% of Rs. 6,000/Â = Rs. 6,000/Â + Rs. 2,400/Â =
.
Rs. 8,400/Â per month.
51. Keeping in view the number of dependents, 1/4th
amount, out of the total contribution of Sh. Chhabinder is
liable to be deducted, on account of personal expenses, had
of
he been alive, which comes to Rs. 6,300/Â per month (Rs.
8,400/Â minus Rs. 2,100/Â). His monthly contribution, thus
rt
comes to Rs. 6,300/Â per month.
52. The learned MACT has applied the multiplier of
17, which according to the judgment of Hon’ble Supreme
Court in Sarla Verma’s case (supra), is the appropriate
multiplier, to be applied in the present case. Thus, the loss
of contribution comes to Rs. 6,300/Â x 12 x 17 = Rs.
12,85,200/Â.
53. In view of the decision of Hon’ble Supreme Court
in Magma General Insurance Company Limited versus
Nanu Ram alias Chuhru Ram and others, reported in
(2018) 18 Supreme Court Cases 130, all the petitioners are
held entitled for the amount of loss of consortium. The
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36 2026:HHC:30105
relevant paras 21 to 24 of the judgment are reproduced, as
.
under:Â
“21. A Constitution Bench of this Court in
Pranay Sethi dealt with the various heads
under which compensation is to be awarded in
a death case. One of these heads is loss of
consortium. In legal parlance, “consortium” is a
compendious term which encompasses
of
`spousal consortium’, `parental consortium’,
and `filial consortium’. The right to consortium
would include the company, care, help, comfort,
guidance, solace and affection of the deceased,
rt
which is a loss to his family. With respect to a
spouse, it would include sexual relations with
the deceased spouse:
21.1. Spousal consortium is generally defined
as rights pertaining to the relationship of a
husbandÂwife which allows compensation to
the surviving spouse for loss of “company,society, coÂoperation, affection, and aid of the
other in every conjugal relation”.
21.2. Parental consortium is granted to the
child upon the premature death of a parent, for
loss of “parental aid, protection, affection,society, discipline, guidance and training.”
21.3. Filial consortium is the right of the
parents to compensation in the case of an
accidental death of a child. An accident leading
to the death of a child causes great shock and
agony to the parents and family of the
deceased. The greatest agony for a parent is to
lose their child during their lifetime. Children
are valued for their love, affection,
companionship and their role in the family unit.
22. Consortium is a special prism reflecting
changing norms about the status and worth of::: Downloaded on – 22/07/2026 20:31:42 :::CIS
37 2026:HHC:30105actual relationships. Modern jurisdictions
worldÂover have recognized that the value of a.
child’s consortium far exceeds the economic
value of the compensation awarded in the case
of the death of a child. Most jurisdictions
therefore permit parents to be awarded
compensation under loss of consortium on the
death of a child. The amount awarded to the
parents is a compensation for loss of the love,
affection, care and companionship of the
of
deceased child.
23. The Motor Vehicles Act is a beneficial
legislation aimed at providing relief to the
rt
victims or their families, in cases of genuine
claims. In case where a parent has lost their
minor child, or unmarried son or daughter, the
parents are entitled to be awarded loss of
consortium under the head of filial consortium.
Parental consortium is awarded to children
who lose their parents in motor vehicle
accidents under the Act. A few High Courts
have awarded compensation on this count.
However, there was no clarity with respect to
the principles on which compensation could be
awarded on loss of filial consortium.
24. The amount of compensation to be awarded
as consortium will be governed by the
principles of awarding compensation under
`loss of consortium’ as laid down in Pranay
Sethi (supra). In the present case, we deem it
appropriate to award the father and the sister
of the deceased, an amount of Rs. 40,000 each
for loss of Filial Consortium.”
54. Before assessing the entitlement of the
petitioners for compensation under conventional heads, it is
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38 2026:HHC:30105
apt for this Court to reproduce relevant paragraph 59.8 of
.
Pranay Sethi case (supra), which is reproduced as under:Â
“59.8 Reasonable figures on conventional heads,
namely, loss of estate, loss of consortium and funeral
expenses should be Rs. 15,000/Â, Rs. 40,000/Â and
Rs. 15,000/Â respectively. The aforesaid amount
should be enhanced at the rate of 10% in every three
of
years.”
55. In view of the law laid down by Hon’ble Supreme
Court in Pranay Sethi‘s case (supra), the petitioners are
rt
also held entitled for compensation under the heads: ‘loss of
estate’, ‘funeral expenses’, and ‘loss of consortium’.
56. Thus, the entitlement of the claimants, is
adjudicated, as under:
1. Loss of income = Rs. 12,85,200/Â
2. Loss of consortium = Rs.1,60,000/Â
3. Loss of estate = Rs. 15,000/Â
4. Funeral Expenses = Rs. 15,000 /Â
_________________________________________________________
Total = Rs. 14,75,200/Â.
________________________________________________________
57. The entitlement of the petitioners with a view to
grant just compensation, thus, comes to Rs. 14,75,200/Â.
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39 2026:HHC:30105
58. So far as the rate of interest is concerned, the
.
learned MACT has rightly awarded the rate of interest at the
rate of 7.5% and the same does not require any interference.
59. The learned MACT has rightly fastened the
ultimate liability to pay the amount of compensation, along
of
with upÂtoÂdate interest, on the Insurance Company
(respondent No.3), with whom, the offending vehicle was,
rt
admittedly, insured, at the time of accident.
60. Having glance of the above discussion, the appeal
of the Insurance Company is partly allowed; the amount of
compensation is reduced from Rs. 16,02,000/Â to Rs.
14,75,200/Â, along with interest @ 7.5% per annum, from
the date of filing of the petition, till the deposit of award
amount.
FAO (MV) No. 227 of 2017 arising out of Claim Petition
No. 74/2014
61. In the case of petitioner Dole Ram, who has filed
the Claim Petition No. 74/2014, the learned MACTÂI has
awarded a sum of Rs. 5,91,600/Â, along with interest @ 7.5%
per annum.
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40 2026:HHC:30105
62. According to the petitioner Dole Ram, in the said
.
accident, he has sustained grievous injuries and suffered
fracture. After the accident, he was firstly taken to PHC
Thunag and thereafter, referred to Zonal Hospital Mandi,
where, he remained admit as indoor patient on 21.12.2013
of
and 22.12.2013 and thereafter, he was referred to PGI
Chandigarh and remained admit from 22.12.2013 to
rt
12.01.2014. Thereafter, he was again brought back to Zonal
Hospital Mandi and remained admit w.e.f. 12.01.2014 to
19.01.2014. Thereafter, he was again taken to PGI
Chandigarh, where he remained admit from 20.01.2014 to
28.01.2014. He was again admitted with Zonal Hospital
Mandi from 29.01.2014 to 31.01.2014, and again admitted
at PGI Chandigarh w.e.f. 01.02.2014 to 17.02.2014.
Thereafter, he was advised to visit twice, per month, at PGI
Chandigarh, by the Doctor. According to him, he was forced
to spend a sum of Rs. 3,00,000/Â for his treatment.
63. By examining PWÂ1 Dr. Sandeep Vaidya, the
petitioner has proved the temporary disability certificate as
Ext. PW1/A, in which, the disability has been mentioned as
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41 2026:HHC:30105
32% in relation to right lower limb. No doubt, the Doctor
.
has deposed that there are chances of permanent disability,
in this type of injuries, but, till date the permanent disability
certificate has not been placed on record.
64. Moreover, PWÂ1, who has been examined as
of
expert, has categorically admitted in crossÂexamination that
petitioner may recover and there are chances of decrease of
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the disability, suffered by the petitioner.
65. In addition to this, the petitioner has also
examined PWÂ3 Diwan Chand, who allegedly, took the
petitioner for treatment to Shimla, Chandigarh and Mandi,
in his vehicle bearing No. HP01MÂ1610 and proved receipts
Ext. PW3/AÂ1 to Ext. PW3/AÂ20.
66. By examining PWÂ5, the petitioner has made
efforts to prove the fact that the driver of HP01MÂ0964 took
him to Chandigarh on fiveÂsix occasions for treatment, vide
bills Ext. PÂ86 to Ext. PÂ92.
67. Petitioner Dole Ram, while appearing as PWÂ4,
has deposed on the similar lines, as pleaded, in the claim
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42 2026:HHC:30105
petition and he has also proved the bills Ext. PÂ1 to Ext. PÂ
.
85.
68. By examining PWÂ6 Dr. M.A. Bassit, the
petitioner has proved the discharge slip Ext. PÂ93, treatment
chart Ext. PÂ94 to Ext. PÂ98, discharge slip Ext. PÂ99 and
of
medical bills Ext. PÂ100 to Ext. PÂ113.
69. Learned MACTÂI has taken the income of the
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petitioner, at the time of his accident, as Rs. 6,000/Â per
month. The said findings do not require any interference, as
petitioner has pleaded that he was agriculturist and also
doing business. He has made the deposition on oath that he
was earning Rs. 8000/Â per month. He has admitted that he
is not having any document to prove that he was earning Rs.
8,000/Â per month, but, this does not mean that the
petitioner was not earning anything. As such, the learned
MACTÂI has rightly taken his income as Rs. 6,000/Â per
month.
70. In the present case, the learned MACTÂI, has
given the 50% increase in the monthly income of petitioner
and thus held his notional income as Rs. 9,000/Â per
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43 2026:HHC:30105
month. The disability is proved to be temporary and till
.
date, no certificate demonstrating the permanent disability
has been placed on record. As such, the increase is not
liable to be given, while assessing the monthly income of the
petitioner, as there is no permanent disability.
of
71. The increase, on account of future prospects, is
to be given only in case of permanent disablement, as held
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by the Hon’ble Supreme Court in “Sidram Versus Divisional
Manager, United India Insurance Company Ltd. & Anr.,
(2023) 3 Supreme Court Cases 439”. Relevant paragraph
31 of the judgment, is reproduced, as under:Â
“31. It is now a wellÂsettled position of law that even in
cases of permanent disablement incurred as a result of a
motor accident, the claimant can seek, apart from
compensation for future loss of income, amounts for future
prospects as well. We have come across many orders of
different tribunals and unfortunately affirmed by different
High Courts, taking the view that the claimant is not entitled
to compensation for future prospects in accident cases
involving serious injuries resulting in permanent
disablement. That is not a correct position of law. There is
no justification to exclude the possibility of compensation for
future prospects in accident cases involving serious injuries
resulting in permanent disablement. Such a narrow reading
is illogical because it denies altogether the possibility of the
living victim progressing further in life in accident cases –
and admits such possibility of future prospects, in case of
the victim’s death.”
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44 2026:HHC:30105
72. The learned MACTÂI, while giving the addition of
.
50%, has relied upon the decision of Hon’ble Supreme Court
in “Rajesh and others Versus Rajbir Singh and others,
reported in (2013) 9 Supreme Court Cases 54”, but the
same is held to be not a binding precedent, in view of the
of
Pranay Sethi‘s case (supra). Relevant paragraph 59.2 of the
judgment, is reproduced, as under:Â
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“59.2 As Rajesh v. Rajbir Singh, (2013) 9 SCC 54, has not
taken note of the decision of Reshma Kumari v. Madan
Mohan, (2013) 9 SCC 65, which was delivered at earlier
point of time, the decision of Rajesh v. Rajbir Singh, (2013)
9 SCC 54, is not a binding precedent.”
73. Moreover, in Rajesh’s case (supra) the Hon’ble
Supreme Court, has given increase, on account of future
prospects, in a case involving death, and not in a case,
where the petitioner had sought compensation on account of
the injuries sustained by him.
74. Thus, the income of Sh. Dole Ram, is liable to be
taken as Rs. 6,000/Â per month.
75. Learned MACTÂI, in the present case, has
awarded a sum of Rs. 40,000/Â under the head ‘pain and
sufferings’. As per the documents produced by the
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45 2026:HHC:30105
petitioner especially Ext. PÂ36, Ext. PÂ37, the period of
.
hospitalization in PGI Chandigarh, from 22.12.2013 to
31.12.2013 is 10 days, from 01.02.2014 to 17.02.2014 is 17
days, and as per document Ext. PÂ93, period of
hospitalization from 29.08.2014 to 03.09.2014 is six days.
of
Similarly, from the document Ext. PÂ99, it has been proved
by the petitioner that he was admitted in the hospital on
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23.05.2016 and was discharged on 25.05.2016 i.e. three
days, as he was admitted for bone grafting. Thus, the total
period of hospitalization comes to 36 days. The said period
of 36 days, must be traumatic and painful for the petitioner,
for which, he is entitled, atleast, for a sum of Rs. 72,000/Â
(36 x 2000), as such, the amount of compensation, which
has been awarded as Rs. 40,000/Â, under the head ‘pain and
sufferings’ is liable to be enhanced to Rs. 72,000/Â. Ordered
accordingly.
76. The period of hospitalization is held to be 36
days, as apparent from the documents, referred to above, in
the preceding paragraph. The period of treatment has been
proved to be spanning from 22.12.2013 to 25.05.2016, when
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he was discharged from Mannat Hospital. The said period is
.
held to be spanning over two and half years. During that
period, he could not enjoy the life of a normal human being.
As such, the amount of compensation, which has only been
awarded by learned MACTÂI as Rs. 40,000/Â is liable to be
of
enhanced, as the petitioner has also suffered 32% temporary
disability. Thus, the ends of justice would meet, if a sum of
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Rs. 2,00,000/Â is awarded to the petitioner, under the head
‘Loss of enjoyment of life’. Ordered accordingly.
77. In the absence of any evidence on the record to
demonstrate that on account of the injuries/disability,
sustained/ suffered by the petitioner, the life span of the
petitioner has been shortened, no amount of compensation
is being awarded, under the head ‘shorten expectancy of life’.
78. So far as the ‘Loss of earning and earning
capacity’, is concerned, in the present case, the petitioner
could not prove the fact that the temporary disability, as
shown in the certificate Ext. PW1/A, has resulted into
permanent disability. The learned MACTÂI has granted a
sum of Rs. 1,72,800/Â, to the petitioner, under the head
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‘Loss of earning and earning capacity’, by assuming that
.
32% disability would result into permanent disability into
10%. Although, the proceedings under M.V. Act are
summary in nature, but, this does not mean to grant the
compensation merely on the basis of assumptions. Had
of
there been any permanent disability, then, there would have
been no legal hesitation to the petitioner to get himself
examined from
rtthe Board of Doctors to assess the
permanent disability. The temporary disability has already
been taken into consideration, while awarding the
compensation under the head ‘Loss of enjoyment of life’, as
such, learned MACTÂI has fallen into an error by assuming
the loss of earning capacity as 10%. Said findings are liable
to be interfered with. Ordered accordingly, by holding that
petitioner is not entitled for any compensation under the
head ‘Loss of earning and earning capacity’.
79. The period of treatment is held to be two and half
years and he might have taken, at least, four months for
convalescence, after getting discharged from Mannat
Hospital, after bone grafting on 25.05.2016, as per
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document Ext. PÂ99. Thus, for a period of about 33 months,
.
the petitioner could not contribute anything for his family,
as such, he is held entitled for a sum of Rs. 1,98,000/Â (Rs.
6000/Â x 33).
80. Under the head ‘Medical expenses’, the learned
of
MACTÂI has granted a sum of Rs. 2,93,800/Â, for medical
expenses and taxi charges. The said amount is not liable to
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be interfered with, as the same is based on the documents
Ext. PÂ1 to Ext. PÂ113 and Ext. PW3/AÂ1 to Ext. PW3/AÂ20.
81. So far as the special diet is concerned, learned
MACTÂI, has awarded a sum of Rs. 25,000/Â, on account of
special diet and attendant charges, which is liable to be
enhanced, keeping in view the span of treatment. As such,
the petitioner is held entitled to a sum of Rs. 2,00,000/Â,
under the head “Special Diet and attendant charges’, as, the
petitioner might have taken ‘special diet’ and might have
taken help of an attendant. Even, for the pro bono services
rendered by his family members, to help the petitioner to
follow his daily pursuits, this amount is required to be
awarded to him. Ordered accordingly.
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82. In view of the above, the total amount of
.
compensation, which was awarded by the learned MACT, as
Rs. 5,91,600/Â, is liable to be enhanced, to Rs. 72,000/Â +
Rs. 2,00,000/Â + Rs. 1,98,000/Â + Rs. 2,93,800/Â + Rs.
2,00,000/Â = Rs. 9,63,800/Â. Ordered accordingly.
of
83. So far as the rate of interest is concerned, the
learned MACT has rightly awarded the rate of interest at the
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rate of 7.5% and the same does not require any interference.
84. With these observations, the appeal is dismissed by
modifying the award passed by the learned MACTÂI and the
amount of compensation is enhanced from Rs. 5,91,600/Â to
Rs. 9,63,800/Â, along with interest @ 7.5% per annum, from
the date of filing of the petition, till the realization of the whole
amount, with upto date interest.
FAO (MV) No. 228 of 2017 arising out of Claim Petition No.
76/2014
85. By way of above titled claim petition, petitioner
Gumti Devi, has sought the compensation on account of the
injuries suffered by her, in the accident, in question.
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86. As per the stand taken by the petitioner Gumti Devi,
.
at the time of accident, she was 31 years of age and
agriculturist by profession and earning Rs. 6,000/Â per month.
According to her, after the accident, in which, she has
sustained injuries, she was taken to Regional Hospital Bagsaid
of
and thereafter, to Zonal Hospital Mandi, where, she remained
admitt as indoor patient from 21.12.2013 to 30.01.2014 and
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she was forced to spend a sum of Rs. 1,50,000/Â for her
treatment. She has proved the bills Ext. PW2/CÂ1 to Ext.
PW2/CÂ29.
87. The learned MACTÂI in the present case, has
awarded a sum of Rs. 40,300/Â along with interest, at the rate
of 7.5% per annum, from the date of filing the petition, till the
payment. The petitioner has not examined any Doctor from
Zonal Hospital Mandi, nor, any document has been exhibited
and from the MLC Ext. PW2/B, it can be said that she was
referred to Zonal Hospital Mandi, but, the document is totally
silent about the period of hospitalization. Although, the
photocopy of the discharge slip has been produced, but said
document has not been exhibited.
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88. Considering the amount, which has been awarded
.
to the petitioner under various heads, this Court is of the view
that the same does not require any interference by this Court.
89. As such, the findings recorded by the learned
MACTÂI need no interference. The appeal preferred by the
of
appellantÂInsurance Company is dismissed.
FAO (MV) No. 229 of 2017 arising out of Claim Petition No.
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90/2014
90. This claim petition has been filed by petitioner
Dhani Ram, alleging therein that after sustaining injuries in the
accident in question, he was taken to Regional Hospital
Bagsaid, from where, he was taken to Zonal Hospital Mandi,
where, he remained admit from 21.12.2013 to 27.01.2014 and
spent about Rs. 1,00,000/Â on his treatment. At the time of
accident, the petitioner was 32 years of age and agriculturist by
profession and earning Rs. 7,000/Â per month.
91. The petitioner has placed on record the copy of MLC
Ext. PW2/B and medical bills Ext. PW2/CÂ1 to Ext. PW2/CÂ17.
The learned MACTÂI has awarded a sum of Rs. 40,000/Â, along
with interest at the rate of 7.5% per annum, from the date of
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filing the petition, which does not require any interference, as
.
no document, qua the admission, has been proved by the
petitioner, by examining any Doctor/employee of Zonal Hospital
Mandi.
92. As such, the findings recorded by the learned
of
MACTÂI need no interference. Consequently, the appeal of the
Insurance Company is dismissed.
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FAO (MV) No. 376 of 2019 arising out of Claim Petition No.
44/2015 (32/2017/2015)
93. This claim petition has been filed by Hira Singh,
alleging that after the accident, he was taken to Regional
Hospital Bagsaid, from where, he was referred to Zonal Hospital
Mandi, where, he remained admit from 22.12.2013 to
09.01.2014 and again admitted on 16.01.2014 and discharged
on 18.01.2014. According to him, he was forced to spent Rs.
1,00,000/Â on his treatment. Learned MACTÂIII, in the present
case, has awarded a sum of Rs. 21,173/Â, along with interest,
at the rate of 7.5% per annum, from the date of filing of the
petition, till payment.
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94. The petitioner, when appeared in the witness box,
.
as PWÂ1, produced the medical bills Ext. PW1/AÂ1 to Ext.
PW1/AÂ32 and discharge slips Mark X and Mark Y. In this
case, the petitioner has not proved any document to
demonstrate that after the accident, he was taken to Zonal
of
Hospital Mandi, where, he remained admit, as asserted by him.
In the absence of any evidence, mere bald assertions of the
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petitioner, cannot be accepted as gospel truth.
95. Hence, the findings of learned MACTÂIII, do not
require any interference. Consequently, the appeal of the
Insurance Company is dismissed.
96. Parties are left to bear their own costs.
97. Memo of costs be prepared accordingly.
98. Record be sent back.
99. Copy of the judgment be placed on record, in the
connected appeals.
(Virender Singh)
21 July, 2026
st
Judge
(Pramod Kumar)
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