Himachal Pradesh High Court
United India Insurance Company Ltd vs Sandeep & Others on 30 July, 2026
Author: Virender Singh
Bench: Virender Singh
1 2026:HHC:31618
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
.
FAO (MV) No. 136 of 2020 a/w
FAO (MV) Nos.118, 119, 121 &
235 of 2020, 215, 216, 217 & 218
of 2023, 141, 170, 239 & 240 of
2024, 127 and 136 of 2025
Reserved on : 06.07.2026
of
Decided on : 30.07.2026
Uploaded on : 30.07.2026
1.
rt
FAO (MV) No. 136 of 2020
United India Insurance Company Ltd. ...Appellant
Versus
Sandeep & Others ...Respondents
2. FAO (MV) No. 118 of 2020
United India Insurance Company Ltd. ...Appellant
Versus
Tara Devi & Others ...Respondents
3. FAO (MV) No. 119 of 2020
United India Insurance Company Ltd. ...Appellant
Versus
Tulsa Devi & Others ...Respondents
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4. FAO (MV) No. 121 of 2020
.
United India Insurance Company Ltd. ...Appellant
Versus
Bhag Singh & Others ...Respondents
5. FAO (MV) No. 135 of 2020
of
United India Insurance Company Ltd. ...Appellant
rt Versus
Sangeeta & Others ...Respondents
6. FAO (MV) No. 215 of 2023
United India Insurance Company Ltd. ...Appellant
Versus
Subi Devi & Others ...Respondents
7. FAO (MV) No. 216 of 2023
United India Insurance Company Ltd. ...Appellant
Versus
Subi Devi & Others ...Respondents
8. FAO (MV) No. 217 of 2023
United India Insurance Company Ltd. ...Appellant
Versus
Sarita Devi & Others ...Respondents
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9. FAO (MV) No.218 of 2023
.
United India Insurance Company Ltd. ...Appellant
Versus
Rohit Kumar & Others ...Respondents
10. FAO (MV) No. 141 of 2024
of
United India Insurance Company Ltd. ...Appellant
Versus
Santo Devi & Others
rt ...Respondents
11. FAO (MV) No. 170 of 2024
United India Insurance Company Ltd. ...Appellant
Versus
Pinki & Others ...Respondents
12. FAO (MV) No. 239 of 2024
United India Insurance Company Ltd. ...Appellant
Versus
Anita & Others ...Respondents
13. FAO (MV) No. 240 of 2024
United India Insurance Company Ltd. ...Appellant
Versus
Kamla & Others ...Respondents
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14. FAO (MV) No. 127 of 2025
.
Brij Mohan Jain ...Appellant
Versus
Akshay Kumar & Others ...Respondents
15. FAO (MV) No. 136 of 2025
of
Brij Mohan Jain ...Appellant
Versus
rt
Akshay Kumar & Others ...Respondents
Coram
The Hon'ble Mr. Justice Virender Singh, Judge.
Whether approved for reporting?
1. FAO No. 118 of 2020
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Shyam Singh Chauhan,
Advocate, for respondents No. 1
to 7.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for
respondent No.8.
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2. FAO No. 119 of 2020
.
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Shyam Singh Chauhan,
Advocate, for respondents No.1 to
6.
of
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
rt No.7.
3. FAO No. 121 of 2020
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Shyam Singh Chauhan,
Advocate, for respondents No.1 &
2.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.3.
4. FAO No. 135 of 2020
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
respondents No. 1 and 2.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
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Thakur, Advocate, for respondent
No.3.
.
5. FAO No. 136 of 2020
For the appellant: Ms. Rajvinder Sandhu, Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
respondents No. 1 and 2.
of
Mr. Hemant Kumar Thakur,
Advocate vice Mr. Ravinder
rt Thakur, Advocate, for respondent
No.3.
Mr. Mohinder Zharaick, Mr. H.S.
Rawat, Additional A.Gs., for
respondents No. 4, 6 & 7.
None for respondent No. 5.
6. FAO No. 215 of 2023
For the appellant:
Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
respondents No. 1 to 3.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.4.
Mr. Mohinder Zharaick, Mr. H.S.
Rawat, Additional A.Gs., for
respondents No. 5 and 7.
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Mr. B.N. Sharma, Advocate, for
respondent No. 6.
.
7. FAO No. 216 of 2023
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
of
respondents No. 1 to 3.
Mr. Hemant Kumar Thakur,
rt Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.4.
Mr. Mohinder Zharaick, Mr. H.S.
Rawat, Additional A.Gs., for
respondents No. 5 and 7.
Mr. B.N. Sharma, Advocate, for
respondent No.6.
8. FAO No. 217 of 2023
For the appellant : Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Ajay Kumar, Advocate, for
respondents No. 1 to 3.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.4.
9. FAO No. 218 of 2023
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
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For the respondents: Mr. Sanjay Ranta, Advocate, for
respondents No. 1 to 4.
.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.5.
Mr. Mohinder Zharaick, Mr. H.S.
of
Rawat, Additional A.Gs., for
respondents No. 6 and 8.
rt Mr. B.N. Sharma, Advocate, for
respondent No.7.
10. FAO No. 141 of 2024
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Shyam Singh Chauhan,
Advocate, for respondents No.1
to 7.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No.8.
11. FAO No. 170 of 2024
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
respondent No. 1.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
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Thakur, Advocate, for respondent
No.2.
.
12. FAO No. 239 of 2024
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
of
respondents No. 1 to 3.
Mr. Hemant Kumar Thakur,
rt Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No. 4.
Mr. Mohinder Zharaick, Mr. H.S.
Rawat, Additional A.Gs., for
respondent No. 5.
Respondent No. 6 exparte.
13. FAO No. 240 of 2024
For the appellant: Ms. Rajvinder Sandhu,
Advocate.
For the respondents: Mr. Sanjay Ranta, Advocate, for
respondents No. 1 to 4.
Mr. Hemant Kumar Thakur,
Advocate, vice Mr. Ravinder
Thakur, Advocate, for respondent
No. 5.
None for respondent No. 7.
Mr. Tejasvi Sharma, Mr. H.S.
Rawat, Additional A.Gs., for
respondents No. 6 and 8.
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Mr. B.N. Sharma, Advocate, for
.
respondent No.9.
14. FAO No. 127 of 2025
For the appellant: Mr. Hemant Kumar Thakur,
Advocate, for the appellant.
of
For the respondents: Mr. Sunny Rawat, Advocate, for
respondents No. 1 to 6.
rt Ms. Rajvinder Sandhu, Advocate,
for respondent No. 7.
15. FAO No. 136 of 2025
For the appellant: Mr. Hemant Kumar Thakur,
Advocate, for the appellant.
For the respondents: Mr. Sunny Rawat, Advocate, for
respondents No. 1 to 6.
Ms. Rajvinder Sandhu, Advocate,
for respondent No. 7.
Virender Singh, Judge
The above titled appeals are being decided by a
common judgment, as the appellantÂUnited India Insurance
Company Ltd., and the owner of the offending vehicle, have
filed these appeals, under Section 173 of the Motor Vehicles
Act (hereinafter referred to as ‘the M.V. Act‘), against the
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awards, which have been passed by the learned Motor
.
Accident Claims Tribunal (III), Shimla, Camp at Rohru,
District Shimla, H.P., learned Motor Accident Claims
TribunalÂI, Sirmaur District at Nahan, H.P., learned
Motor Accident Claims Tribunal (II), Shimla, learned
of
Motor Accident Claims Tribunal, Paonta Sahib, District
rt
Sirmaur, learned Motor Accident Claims Tribunal (III),
Shimla, and learned Motor Accident Claims Tribunal,
Rohru, District Shimla, respectively, (hereinafter referred to
as ‘the MACT’), in the claim petitions, which have arisen out
of the same accident, which had taken place on 19.04.2017,
at place Antroli (Gumma), involving bus No.UK16ÂPAÂ0045
(hereinafter referred to as ‘the offending vehicle’).
2. The offending vehicle was owned by Brij Mohan
Jain; was driven by its driver, in a rash and negligent
manner (who unfortunately expired in the said accident) and
insured with the United India Insurance Company.
3. FAO (MV) No. 136 of 2020 has been preferred
by the Insurance Company against the award dated
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18.01.2020, passed by the learned MACT, in MAC RBT Case
.
No.14ÂS/2 of 2018/2017, titled as ‘Sandeep & Another
Versus Brij Mohan Jain & Another’, wherein a sum of Rs.
29,10,224/Â, along with interest, at the rate of 9% per
annum, from the date of filing of the petition, till the
of
realization of the whole awarded amount, with costs of
Rs.5,000/Â, has been awarded by fastening the ultimate
rt
liability upon the owner, however, the insurance company
has been directed to pay, at the first instance, and recover
the same from respondent No.1 (owner).
4. FAO (MV) No. 118 of 2020, has been preferred
by the Insurance Company against the award dated
06.12.2019, passed by the learned MACT, in MAC Petition
No.170ÂMAC/2 of 2017, titled as ‘Tara Devi & Others Versus
Brij Mohan Jain & Another’, wherein a sum of Rs.
11,72,400/Â, along with interest, at the rate of 7% 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 upon the Insurance
Company.
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5. FAO (MV) No. 119 of 2020, has been preferred
.
by the Insurance Company against the award dated
05.12.2019, passed by the learned MACT, in MAC Petition
No.165ÂMAC/2 of 2017, titled as ‘Tulsa Devi & Others
Versus Brij Mohan Jain & Another’, wherein a sum of Rs.
of
9,47,500/Â, along with interest, at the rate of 7% per annum,
from the date of filing of the petition, till the realization of the
rt
whole awarded amount, has been awarded by fastening the
ultimate liability upon the Insurance Company.
6. FAO (MV) No. 121 of 2020, has been preferred
by the Insurance Company against the award dated
21.08.2019, passed by the learned MACT, in MAC Petition
No.163ÂMAC/2 of 2017, titled as ‘Bhag Singh & Another
Versus Brij Mohan Jain & Another’, wherein a sum of Rs.
9,37,200/Â, along with interest, at the rate of 7% 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 upon the Insurance Company.
7. FAO (MV) No. 135 of 2020, has been preferred
by the Insurance Company against the award dated
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18.01.2020, passed by the learned MACT, in MAC RBT Case
.
No.15ÂS/2 of 2018/2017, titled as ‘Sangeeta & Another
Versus Brij Mohan Jain & Another’, wherein a sum of Rs.
17,90,120/Â, along with interest, at the rate of 9% per
annum, from the date of filing of the petition, till the
of
realization of the whole awarded amount, with costs of
Rs.5,000/Â, has been awarded by fastening the ultimate
rt
liability upon the owner, however, it is also ordered that the
Insurance Company shall pay, at the first instance and
recover the same from respondent No.1.
8. FAO (MV) No. 215 of 2023, has been preferred
by the Insurance Company against the award dated
24.12.2022, passed by the learned MACT, in MAC Petition
No.5ÂS/2 of 2018, titled as ‘Subi Devi & Others Versus Brij
Mohan Jain & Others’, wherein a sum of Rs. 8,00,000/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 upon the owner and Insurance Company.
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9. FAO (MV) No. 216 of 2023, has been preferred
.
by the Insurance Company against the award dated
24.12.2022, passed by the learned MACT, in MAC Petition
No.6ÂS/2 of 2018, titled as ‘Subi Devi & Others Versus Brij
Mohan Jain & Others’, wherein a sum of Rs.8,90,000/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 upon the owner and insuranceÂcompany.
10. FAO (MV) No. 217 of 2023, has been preferred
by the Insurance Company against the award dated
29.12.2022, passed by the learned MACT, in MAC Petition
No.38ÂS/2 of 2017, titled as ‘Sarita Devi & Others Versus
Brij Mohan Jain & Another’, wherein a sum of Rs.
14,66,172/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 upon the owner and
Insurance Company.
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11. FAO (MV) No. 218 of 2023, has been preferred
.
by the Insurance Company against the award dated
30.11.2022, passed by the learned MACT, in MAC Petition
No.7ÂS/2 of 2018, titled as ‘Rohit Kumar & Others Versus
Brij Mohan Jain & Others’, wherein a sum of Rs.
of
14,30,800/Â, along with interest, at the rate of 7.5% per
annum, from the date of filing of the petition, till the
rt
realization of the whole awarded amount, has been awarded
by fastening the ultimate liability upon the owner and
Insurance Company.
12. FAO (MV) No. 141 of 2024, has been preferred
by the Insurance Company against the award dated
24.08.2023, passed by the learned MACT, in MAC Petition
No.209ÂN/2 of 2017, titled as ‘Santo Devi & Others Versus
Brij Mohan Jain & Another’, wherein a sum of Rs.
12,25,500/Â, along with interest, at the rate of 6% 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 upon the insuranceÂ
company.
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13. FAO (MV) No. 170 of 2024, has been preferred
.
by the Insurance Company against the award dated
23.05.2023, passed by the learned MACT, in MACC No.33Â
S/2 of 2022/19, titled as ‘Pinki Versus Brij Mohan Jain &
Another’, wherein a sum of Rs. 13,69,948/Â, along with
of
interest, at the rate of 9% per annum, from the date of filing
of the petition, till the realization of the whole awarded
rt
amount, has been awarded by fastening the ultimate liability
upon the owner, however, it has been ordered that the
Insurance Company shall pay, at the first instance and
recover the same from respondent No.1.
14. FAO (MV) No. 239 of 2024, has been preferred
by the Insurance Company against the award dated
26.02.2024, passed by the learned MACT, in MAC Petition
No.55ÂS/2 of 2019, titled as ‘Anita & Others Versus Brij
Mohan Jain & Others’, wherein a sum of Rs.13,40,080/Â
along with interest, at the rate of 9% 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 upon the Insurance Company.
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15. FAO (MV) No. 240 of 2024, has been preferred
.
by the Insurance Company against the award dated
26.02.2024, passed by the learned MACT, in MAC Petition
No.41ÂS/2 of 2019, titled as ‘Kamla & Others Versus Brij
Mohan Jain & Others’, wherein a sum of Rs.12,60,700/Â,
of
along with interest, at the rate of 9% 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 upon the insuranceÂcompany.
16. FAO (MV) No. 127 of 2025, has been preferred
by the owner of the offending vehicle against the award
dated 09.08.2024, passed by the learned MACT, in MACT
Case RBT No.46ÂR/2 of 2023/17, titled as ‘Akshay Kumar &
Others Versus Brij Mohan Jain & Another’, wherein a sum of
Rs. 19,01,700/Â, along with interest, at the rate of 6% 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 upon the owner of the
offending vehicle (respondent No.1).
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17. FAO (MV) No. 136 of 2025, has been preferred
.
by the owner of the offending vehicle against the award
dated 09.08.2024, passed by the learned MACT, in MACT
Case RBT No.49ÂR/2 of 2023/17, titled as ‘Akshay Kumar &
Others Versus Brij Mohan Jain & Another’, wherein a sum of
of
Rs.17,89,200/Â, along with interest, at the rate of 6% per
annum, from the date of filing of the petition, till the
rt
realization of the whole awarded amount, has been awarded
by fastening the ultimate liability upon the owner of the
offending vehicle (respondent No.1).
18. Learned MACT, while deciding the above titled
claim petitions, have fastened the liability to pay the
compensation upon the Insurance Company and the owner,
and in some of the cases, liberty has been given to Insurance
Company to pay the amount of compensation to the
claimants, at the first instance, and recover the same from
respondent No.1 Brij Mohan.
19. All the appeals have been preferred by the
Insurance Company and owner of the offending vehicle,
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against the awards passed by the learned MACT, as referred
.
to above.
20. FAO No.136 of 2020, arising out of a case RBT
No.14ÂS/2 of 2018/2017, titled as Sandeep & Another
versus Brij Mohan & Others, is being taken as lead case to
of
decide the controversy, involved in the above titled appeals.
21. For the sake of convenience, the parties to the
rt
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:
22. Brief facts, leading to the filing of RBT No.14ÂS/2
of 2018/2017, titled as Sandeep & Another versus Brij
Mohan & Others, as borne out from the records, may be
summed up as under:Â
23. The petitioners have filed the claim petition,
under Section 166 of the M.V. Act, seeking compensation, on
account of death of their father Maan Singh, in a road side
accident, involving the offending vehicle. As per their stand,
age of their father Shri Maan Singh, at the time of accident,
was 47 years. He was fruit merchant/contractor and used
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to take apple orchard on lease and on contract basis, for the
.
last 15 years. He used to grow vegetables on the land of the
local villagers and earning Rs.20,000/Â per month and
Rs.20,000/Â per month from apple orchard.
24. It is the further case of the petitioners that on
of
19.04.2017, their father was traveling in the offending
vehicle from Vikasnagar to Tiuni and then to Rohru. When
rt
the offending vehicle reached near Antroli (Gumma), at
about 10.30 a.m., the driver could not control the offending
vehicle, as, he was driving the vehicle in a very high speed.
Consequently, the offending vehicle rolled down from the
road and plunged into the Tons River. In the said accident,
Shri Maan Singh sustained fatal injuries and expired.
25. Information regarding the accident was given to
Police Station, Nerwa, where, FIR No.20/2017 dated
19.04.2017, under Sections 279, 337, 304ÂA of IPC was
registered.
26. The petitioners have also pleaded their bright
past and bleak future. Since, the accident, in question, has
solely been attributed to the rash and negligent driving, of
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the offending vehicle, by the driver. As such, the claimants
.
have sought the compensation, along with interest, from the
respondents.
STAND OF THE RESPONDENTS BEFORE LEARNED
MACT:
of
27. When put to notice, respondent No.1Âowner has
contested the claim petition, by filing his reply, in which, he
rt
has taken the preliminary objections, that the claim petitionis not maintainable.
28. On merits, the contents of the claim petition have
been contested, however, the factum of accident has not
been disputed. He has also admitted that the offending
vehicle was insured with United India Insurance Company.
He has also annexed the copy of Insurance Policy, copy of
registration certificate and copy of route permit, along with
the reply. Other contents of the claim petition have been
denied including the allegations of driving the offending
vehicle in a rash and negligent manner. Other contents
have been denied for want of knowledge.
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29. United India Insurance Company has filed its
.
separate reply, by taking the preliminary objections, that the
petition is not maintainable, as the accident, in question,
had taken place due to the rash and negligent driving of the
offending vehicle; the claim petition is vague, misconceived
of
and does not disclose any cause of action; the driver of the
offending vehicle was not having a valid and effective driving
rt
licence to drive the same, at the time of accident and the
owner of the offending vehicle has not taken any steps to
check the validity of the license; the vehicle was being plied
in contravention of the terms and conditions of the
insurance policy, as, the vehicle was overloaded and 47
passengers were travelling against the seating capacity of 37;
the offending vehicle was being plied in the area of Himachal
Pradesh, without a valid and effective permit, valid
registration and fitness certificate, as such, the insurance
company has sought exoneration of its liability to indemnify
the owner, on account of breach of standard policy
conditions; and the claim petition has been filed by the
claimants in collusion with respondent No.1.
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30. On merits, the contents of the claim petition have
.
mainly been denied for want of knowledge.
31. Respondent No.3ÂRTO Shimla has filed separate
reply, by denying the factual position, as mentioned, in the
petition. It has also been pleaded that respondent No.3
of
carried out mechanical inspection on the spot and forwarded
its report to the Director Transport.
32.
rt
Respondent No.4ÂRTO Dehradoon (Uttrakhand),
has filed reply, by pleading that the route permit of the
offending vehicle was issued for VikasnagarÂTiuniÂAtal vide
route permit No.PATP4729 in favour of Brij Mohan. The
condition of the permit of the route is Vikas Nagar CentreÂII
to Set No.5 only and the accident has taken place at Gumma
Himachal Pradesh, which is beyond the route issued by
respondent No.4.
33. It is the further case of respondent No.4 that
there is no agreement between the Government of
Uttrakhand and Government of Himachal Pradesh,
according to which, the route permit is valid in other State.
Other contents of the claim petition have been contested.
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34. Respondent No.5 has filed the reply denying the
.
averments, made in the claim petition. Hence, a prayer has
been made by the respondents to dismiss the claim petition.
PROCEEDINGS BEFORE LEARNED MACT:
35. From the pleadings of the parties, the following
of
issues were framed, by learned MACT vide order dated
30.10.2018 :Â rt
1. Whether the death of Shri Maan Singh took place in a
motor accident because of rash and negligent driving
of the driver of vehicle No.UKÂ16PAÂ0045, as alleged?
OPP
2. If issue No. 1 is proved in affirmative, whether the
petitioners are entitled for compensation, if so, to what
extent and from whom? OPP
3. Whether the respondents No. 3 to 6 wrongly permitted
the owner of he vehicle to ply the vehicle on the said
route, as alleged, if so to what effect? OPP
4. Whether the petitioner of the petitioners is not
maintainable, as alleged? OPR
5. Whether the offending vehicle UKÂ16PAÂ0045 was not
insured with respondent No.2, as alleged? OPRÂ2
6. whether the driver of the offending vehicle was not
holding a valid and effective driving licence to ply it, as
alleged? OPRÂ2
7. Whether the offending vehicle was being driven in
breach of the terms of Insurance Policy, as alleged?
OPRÂ2
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26 2026:HHC:31618
8. Whether the offending vehicle was over loaded, as
alleged, if so to what effect? OPRÂ2
.
9. Whether the offending vehicle was being plied within
the territory of Himachal Pradesh without route permit,
as alleged if so to what effect? OPRÂ2
10. Relief.
36. Thereafter, the parties to the lis were directed to
of
adduce evidence.
37. After closure of the evidence and after hearing
rt
the learned counsel appearing for the parties, the learned
MACT has allowed the petition, as referred to above.
STAND OF THE INSURANCE COMPANY BEFORE THIS
COURT:
38. Feeling aggrieved from the award, the Insurance
Company of the offending vehicle has preferred FAO No. 136
of 2020, along with 12 other appeals, as referred to above,
before this Court, mainly on the ground that issue No.6 has
not been properly decided by the learned MACT, as, at the
time of accident, the offending vehicle was carrying 47
persons against the seating capacity of 37.
39. The owner has filed FAO (MV) Nos.127 and 136
of 2025, with a prayer to set aside the award passed by the
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27 2026:HHC:31618
learned MACT, by virtue of which, the owner has been
.
directed to pay the amount of compensation, as well as, the
awards, by virtue of which, the Insurance Company has
been permitted to recover the amount of compensation from
him, after paying the same to the petitioner.
of
40. According to the learned counsel for the
appellantÂInsurance Company, there is violation of the terms
rt
and conditions of the insurance policy, as the permit was
issued to the offending vehicle for the route, falling within
the State of Uttrakhand, whereas, the offending vehicle was
being plied within the territory of Himachal Pradesh, without
any route permit and this fact has clearly been admitted by
respondent No.1, in his crossÂexamination. However, the
learned MACT, relying upon Section 88 of the M.V. Act, has
given the benefit of doubt to the insured and fastened the
liability on the appellant.
41. Highlighting the fact that the distance from
Minas to Fediztul is 18 kilometers, as per the report of
Regional Manager, HRTC and the said distance, according to
the Executive Engineer, Chopal Division, is 16.64
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28 2026:HHC:31618
kilometers, it has been pleaded that there is clearÂcut
.
violation of Section 88(1) of the M.V. Act.
42. On the basis of the above facts, Ms. Rajvinder
Sandhu, Advocate, appearing for the Insurance Company,
has prayed that the appeals, preferred by the Insurance
of
Company, may kindly be allowed, by exonerating the
Insurance Company from indemnifying the owner of the
rt
offending vehicle. In addition to this, she has also prayed
that the compensation is on the higher side and the same
may kindly be reduced.
43. Per contra, Shri Shyam Singh Chauhan & Mr.
Sanjay Ranta, learned counsel appearing for the claimants,
have supported the award and prayed that the appeals san
merit and the same may kindly be dismissed, by enhancing
the award, so that the same could fall within the definition of
‘just compensation’.
44. The owner of the offending vehicle, who has also
filed FAO (MV) Nos.127 and 136 of 2025, has prayed that
the Insurance Company has miserably failed to prove the
violation of the terms and conditions of the Insurance Policy,
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29 2026:HHC:31618
especially the violation of route permit. As such, the learned
.
MACT has wrongly fastened the liability upon him to pay the
compensation and also give right to recover the amount of
compensation, after paying the same to the petitioners.
45. In these appeals, the Insurance Company has
of
prayed that the company be exonerated from indemnifying
the owner, as, the offending vehicle was being plied without
rt
route permit and as such, the said violation is stated to be
fundamental breach of insurance policy.
46. As per the stand taken by the claimants, the
accident, in question, had taken place, near Antroli
(Gumma) and FIR was registered with Police Station, Nerwa,
District Shimla, under Sections 279, 337, 304ÂA of IPC. In
this case, the place of accident is not in dispute, which,
admittedly, falls within the territorial jurisdiction of
Himachal Pradesh.
47. As per the claimants, deceased was travelling in
the offending vehicle from Vikas Nagar to Tiuni. The
Insurance Company has taken the plea that the offending
vehicle was overloaded and the same was being plied within
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30 2026:HHC:31618
the territory of Himachal Pradesh, without any valid and
.
effective permit. Respondent No.4, RTO Dehradoon, has
mentioned, in the reply, that the route permit for offending
vehicle was issued to ply the same from Vikas Nagar to
Tiuni, vide permit No.PATP4729.
of
48. In order to decide the above stand of the
appellantÂInsurance Company, it would be necessary to
rt
discuss the evidence, so adduced, by the respondents, before
the learned MACT.
49. RWÂ1 is Devinder Kumar, Senior Assistant, RTO
Shimla. He, when appeared in the witnessÂbox, has feigned
his ignorance, by stating that RTO Office Shimla was not
aware that the offending vehicle was being plied in the State
of Himachal Pradesh, during the year 2017. According to
him, RTO and other authorized officers of the State, check
the vehicles, off and on, and in case, any vehicle is found,
being plied without valid documents/authorization, the
same are being dealt with, in accordance with law. In this
regard, he has submitted the report of the committee as Ex.
RWÂ1/A.
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31 2026:HHC:31618
50. In the crossÂexamination, by the respondentÂ
.
claimants, this witness has admitted that the accident had
taken place within the territorial jurisdiction of RTO Shimla.
51. In the crossÂexamination by learned counsel
appearing for respondent No.1, this witness has again
of
feigned his ignorance about the distance of the spot, where,
the accident had taken place from Uttrakhand border.
52.
rt
RWÂ3 Brij Mohan Jain, owner of the offending
vehicle, has tendered in evidence his affidavit Ex.RWÂ3/A,
copy of award dated 19.11.2018 Ex.RWÂ3/B, copy of RC
Mark RA, copy of permit mark RB, copy of insurance mark
RC, copy of vehicle particular mark RD, copy of extract of
driving licence of Kamal Singh markÂRE and copy of list of
routes mark RF.
53. In the affidavit, this witness has deposed that the
offending vehicle was enroute Vikas Nagar to Tiuni and the
vehicle, at the time of accident, was being plied, in
accordance with all legal documents, license, registration
certificate, route permit and fitness certificate. The vehicle
was being plied, as per the terms and conditions of the
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32 2026:HHC:31618
insurance policy and as per the policy, the Insurance
.
Company is liable to indemnify, for any loss, caused on
account of plying the vehicle. The vehicle met with an
accident in the State of Himachal Pradesh, as, the route
from Vikas Nagar to Tiuni passes through a small portion of
of
Himachal Pradesh and vehicles are allowed to run on above
road from the last few years, without any interruption and
rt
as per the M.V. Act, there is no requirement to take separate
permit for the area, which falls in the State of Himachal
Pradesh. Lastly, he has categorically stated that at the time
of accident, there were only 37 passengers in the bus, and
other than 37 people, who have sustained injuries and
succumbed to death, were pedestrians.
54. In the crossÂexamination by the learned counsel
appearing for the Insurance Company, this witness has
admitted that he never travelled in his bus from Vikas Nagar
to Tiuni. However, he has admitted that the offending
vehicle crosses from Himachal and the distance covered in
Himachal is about 7Â8 kilometers. He has admitted that no
permit was issued to ply the bus in Himachal over the above
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33 2026:HHC:31618
distance. There was no endorsement on the permit by
.
Himachal authorities. He has denied that at the time of
accident,47 persons were travelling in the offending vehicle,
out of which, 45 have died.
55. In the crossÂexamination by the learned counsel
of
for the petitioners, he has denied that the driver of the
offending vehicle requested that the offending vehicle
rt
requires some repair. He has also denied that the vehicle
met with an accident on account of the mechanical defect.
He has feigned his ignorance that the accident in question,
had taken place due to nonÂmaintenance of the road,
however, admitted that the road was in bad shape. He has
further admitted that the accident in question had taken
place in Himachal area, which is at a distance of 3
kilometers from the Uttrakhand border.
56. In the crossÂexamination by respondent No.1, he
has admitted that the RTO Dehradoon, has issued permit for
the route Vikasnagar Centre to Set No.5, within his
jurisdiction.
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34 2026:HHC:31618
57. Respondent No.4 Rajinder Mohan Sharma,
.
Administrative Officer, United India Insurance Company,
has tendered his affidavit in evidence, Ex.RWÂ4/A and copy
of insurance policy Ex.RX.
58. In the examinationÂinÂchief, RWÂ4, has deposed
of
that as per the terms and conditions of the insurance policy,
issued to the insured, the permit was not valid for being
rt
plied, outside the jurisdiction of the said permit, without any
endorsement. He has also deposed that the place, where,
the accident had taken place, is 18.5 kilometers, from the
border and the bus was overloaded and carrying 47
passengers, against the permitted capacity of 37, including
driver and conductor. The vehicle was being plied outside
the permit area and lastly, he has deposed, in his
examinationÂinÂchief, that there is violation of Section 88 of
the M.V. Act.
59. In the crossÂexamination, this witness has denied
all the suggestions, which have been put to him by learned
counsel for respondent No.1, but, admitted that the routeÂ
Vikas Nagar to Tiuni had starting and destination point in
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35 2026:HHC:31618
Uttrakhand. According to him, the accident took place at a
.
distance of about 18.5 k.m., inside Himachal from
Uttrakhand border. Voluntarily stated that endorsement on
the permit is essentially required from RTO of Himachal
Pradesh. In the crossÂexamination, by learned counsel for
of
the petitioner, he has admitted that he has not visited the
site of the accident.
60.
rt
RWÂ5, Mehmood, Senior Assistant, office of
Regional Transport Officer, Vikasnagar, has deposed on the
basis of the record that route permit for the offending vehicle
was valid from 17.06.2015 to 16.6.2020. As per their
record, the route permit does not authorize respondent No.1
to ply the offending vehicle in any part of Himachal Pradesh.
61. In the crossÂexamination, by learned counsel for
respondent No.1, he has admitted that as per the route
permit, the starting point and terminal point, are in the
State of Uttrakhand. He has admitted that route permit
issued was valid. He has denied that the offending vehicle
was being plied on the prescribed route permit. Voluntarily
stated that the accident took place at a distance of 10
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36 2026:HHC:31618
kilometers from Minus in District Shimla. Firstly, he has
.
feigned his ignorance by deposing that in terms of Section 88
of the M.V. Act, the vehicle could ply for short distance in
another State, but, voluntarily stated that for plying vehicle
beyond the prescribed route, permit from other transport
of
authority is required.
62. RWÂ6 Narinder Singh, at the relevant time, was
rt
posted as SHO Police Station, Nerwa. He has deposed that
he, initially investigated the case, arising out of FIR No.20 of
2017. He has inspected the spot and during investigation,
clicked the photographs of the spot and dead bodies. He has
also deposed that as per the statement of witnesses
recorded, the accident took place due to rash and negligent
driving of the driver of the offending vehicle. He has also
deposed that the place of occurrence was at a distance of 9½
kilometers from Uttrakhand border via Minas and 7
kilometers via Attal. He has also deposed that during
investigation, he has not inquired about the route permit, as
on his transfer, he has handed over the file to his successor.
He has also tendered the copies of final report as Ex.RWÂ
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37 2026:HHC:31618
6/A, spot map Ex.RWÂ6/B, seizure memo Ex.RWÂ6/C and
.
statement of Tulsi Ram Ex.RWÂ6/D.
63. In the crossÂexamination by respondent No.1,
this witness has deposed that the RC and insurance were
taken into possession and checked by him, however, he has
of
denied that only 37 passengers were travelling in the bus.
64. In the crossÂexamination by the petitioners, this
rt
witness has feigned his ignorance about the exact distance
between the place of occurrence in Himachal Pradesh from
Uttrakhand border.
65. RWÂ7 Prittam Singh Chandel, who has been
appointed as investigator, in the present case, has filed his
affidavit Ex.RWÂ7/A. In the examinationÂinÂchief, this
witness has deposed that he has conducted the investigation
on behalf of the company and found that the accident had
taken place due to the rash and negligent driving by the
driver of the offending vehicle.
66. According to this witness, as per the terms and
conditions of the Policy, issued by the Insurance Company
to the insured, the permit was not valid for plying the vehicle
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38 2026:HHC:31618
outside the jurisdiction of the permit in other State.
.
Issuance and counter signature of the permit was required
from the State of Himachal Pradesh, as the route area is
more than 16 kilometers in the State of Himachal Pradesh.
He has also tendered the documents showing the distance
of
from Minus to Fedijpul. As per the document, received from
Executive Engineer, B&R Division, HPPWD, Chopal, the
rt
distance is about 16.64 kilometers, and as per the
information received form Deputy Divisional Manager,
HRTC, Shimla, the same is about 18.00 kilometers. In
addition to this, he has tendered the documents, i.e., copy of
letters Ex.RWÂ7/B to Ex.RWÂ7/K. He has admitted that in
his report Ex.RWÂ7/L, he has not mentioned about the date,
place, and names of the witnesses examined.
67. So far as the documentary evidence relied upon
by the respondents is concerned, Ex.RWÂ1/A, is the inquiry
report of the accident, in question, which was conducted, in
pursuance of the office order issued by the Director
Transport, Himachal Pradesh. Along with the report, copy of
FIR, photographs of the spot, list of persons expired and
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39 2026:HHC:31618
injured in the accident, photocopy of the registration
.
certificate, copy of insurance policy, temporary authorization
permit, according to which, the offending vehicle was
permitted to ply from Vikasnagar to Set No.5, copy of driving
licence of the driver, along with findings of the committee,
of
according to which, the accident had taken place due to the
negligence on the part of the driver. Ex.RWÂ6/A is copy of
rt
the chargesheet, Ex.RWÂ7/B is the forwarding letter issued
by RWÂ7 to the Divisional Manager, New India Assurance
Company, according to which, the distance from Minus to
Fedijpul is 16.64 kilometers. RWÂ7/F, is the information
provided by Deputy Divisional Manager, HRTC, Shimla,
under the Right to Information Act, according to which, the
distance from Minus to Fedijpul is 18 kilometers and Ex.RWÂ
7/L is the investigating report.
68. Since, in this case, Insurance Company has
sought the exoneration to indemnify the owner on the
ground of violation of the Insurance Policy, especially, route
permit and overloading of the offending vehicle, the said
provisions are to be interpreted in such a manner to favour
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40 2026:HHC:31618
the insured, as held by the Hon’ble Supreme Court in Civil
.
Appeal No.of 2026 (Special Leave Petition (Civil)
No.20645 of 2025), titled as The Oriental Insurance Co.
Ltd. Versus Durg Roadways Private Ltd. & Others, 2026
INSC 722. Relevant paragraphs 16 of the judgment, is
of
reproduced, as under :Â
“16. Keeping with the beneficial intent, it is a
rt
well settled position of law that in case of any
ambiguity, the interpretation that favours the
insured must be adopted i.e. the rule of contra
proferentem. Reference can be made to United
India Insurance Co. Ltd. v. Pushpalaya
Printers15, which was followed in Sangrur Sales
Corpn. v. United India Insurance Co. Ltd.
6. … It is also settled position in law that if
there is any ambiguity or a term is capable
of two possible interpretations, one
beneficial to the insured should be accepted
consistent with the purpose for which the
policy is taken, namely, to cover the risk on
the happening of certain event…”
69. Being guided by the above decision of the Hon’ble
Supreme Court, now, this Court would proceed further to
determine whether the Insurance Company has successfully
proved the fundamental breach of the insurance Police, as
alleged.
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41 2026:HHC:31618
70. In the present case, the Insurance Company has
.
taken a specific plea that the offending vehicle was being
plied in Himachal area, without valid and effective permit.
As such, the breach of standard policy conditions has been
pleaded by the Insurance Company, whereas, owner of the
of
vehicle has specifically deposed that the route of the
offending vehicle was from Vikasnagar to Tiuni. According
rt
to him, the small portion of the road is in Himachal Pradesh.
In the crossÂexamination by respondent No.2, he has
categorically stated that the distance covered in Himachal
Pradesh was 7Â8 kilometers, but, in the next line, he has
deposed that he does not have the proof of the distance
covered in Himachal Pradesh.
71. Even, the Administrative Officer of the Insurance
Company, RWÂ4, has admitted that the route was
Vikasnagar to Tiuni, which has starting and terminal point
in the State of Uttrakhand. When, the suggestion was put to
this witness that the route covered only 7Â8 kilometers
distance in Himachal Pradesh, he has denied the same by
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42 2026:HHC:31618
stating that the accident took place 18.5 kilometers inside
.
the State of Himachal Pradesh.
72. Even, the person from the office of Assistant
Regional Transport Officer, Vikasnagar, i.e. RWÂ5 has
deposed that the route permit was valid from 17.6.2015 to
of
16.06.2020 and the same has not authorized the owner to
ply the vehicle in any part of the Himachal Pradesh and the
rt
accident had taken place within the territory of Himachal
Pradesh.
73. In the crossÂexamination, this witness has stated
about the distance of 10 kilometers, which the offending
vehicle has covered within the territory of Himachal Pradesh.
This factual position assumes significance as, in terms of
Section 88 of the M.V. Act, the legislature, in its wisdom, has
provided the window of 16 kilometers.
74. This witness has further admitted that the
starting and terminal point is in State of Uttrakhand and the
route permit was valid. When, a suggestion was put to this
witness that the offending vehicle was being plied on the
prescribed route permit, he has denied that same and stated
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43 2026:HHC:31618
that the accident had taken place at a distance of 10
.
kilometers from Minas in District Shimla. This admission
nowhere leads to the conclusion that the place of accident is
more than 16 kilometers from the boundary of Uttrakhand.
75. The person, who has initially investigated the
of
case, has given the distance of place of occurrence from
Uttrakhand border as 9½ kilometers and via Atal, the
rt
distance is about 7 kilometers. Whatsoever has been
deposed by this person, he has simply stated that he does
not know the exact distance of the place of accident from
Uttrakhand border, but, from this admission, it cannot be
said that the Insurance Company has successfully proved
that the distance was more than 16 kms.
76. The Insurance Company has relied upon the
testimony of RWÂ7 Shri Prittam Singh Chandel, who, in his
report Ex.RWÂ7/L, has admitted that the vehicle was having
valid permit from 17.06.2015 to 16.6.2020, but, not for the
area of accident. In the entire report, it has not been
mentioned that the area, where, the alleged accident had
taken place, is at a distance of more than 16 kilometers from
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44 2026:HHC:31618
Uttrakhand border, so, the owner could not take benefit of
.
the window provided by the legislature, by way of proviso to
Section 88 of the M.V. Act.
77. Section 88 of the MV Act is reproduced as
under:Â
of
88. Validation of permits for use outside
region in which granted.–(1) Except as may
be otherwise prescribed, a permit granted by the
Regional Transport Authority of any one region
rt
shall not be valid in any other region, unless the
permit has been countersigned by the Regional
Transport Authority of that other region, and a
permit granted in any one State shall not be valid
in any other State unless countersigned by the
State Transport Authority of that other State or by
the Regional Transport Authority concerned:
Provided that a goods carriage permit, granted by
the Regional Transport Authority of any one
region, for any area in any other region or regionswithin the same State shall be valid in that area
without the countersignature of the RegionalTransport Authority of the other region or of each
of the other regions concerned:
Provided further that where both the starting
point and the terminal point of a route are situate
within the same State, but part of such route lies
in any other State and the length of such part
does not exceed sixteen kilometres, the permit
shall be valid in the other State in respect of that
part of the route which is in that other State
notwithstanding that such permit has not been
countersigned by the State Transport Authority or
the Regional Transport Authority of that other
State:
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45 2026:HHC:31618
xxxx xxxx xxxx
.
(self emphasis supplied)
78. Although, in the information obtained under the
Right to Information Act, from the Regional Manager, HRTC,
Taradevi, Shimla, which is Ex.RWÂ7/J, it has been
of
mentioned that as per the ETM software, the total distancefrom Menus to Fedizpul is 18 kilometers one side, however,
rt
from this report, no benefit can be derived by the InsuranceCompany that from the place of accident, the boundary of
Uttrakhand is more than 16 kilometers.
79. Similarly, in the report submitted by the PIOÂ
cumÂExecutive Engineer Division B&R Division, Chopal, the
distance from Minas to Fedijpul has been mentioned as
16.64 kilometers. No document has been placed on record
by the Insurance Company to demonstrate that the distance
from the place of accident to the boundary of Uttrakhand
border starting point of boundary of Himachal Pradesh is
more than 16 kilometers.
80. On this vague averment, the window, which has
been provided by the legislature in favour of respondent
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46 2026:HHC:31618No.1, cannot be shut down. Even, in the report under
.
Section 173 (2) Cr.PC, Ex.RWÂ6/A, the person, who has
made a statement under Section 154 Cr.PC, has stated that
the accident had taken place at a short distance from
Gumma towards Antroli. From this assertion, it is difficult
of
for this Court to conclude that the distance is more than 16
kilometers from the boundary of Uttrakhand.
81.
rt
In view of the above discussion, made on the
basis of the statements of RWs, it is not in dispute that the
starting and terminal point of the route was in the State of
Uttrakhand. It is not the case of the Insurance Company
that there are two roads and the vehicle was being plied in
the road, which was not mentioned in the permit.
82. In view of the above, learned MACT has wrongly
held that the offending vehicle was being plied in violation of
the terms and conditions of the insurance policy. It can also
be held that the vehicle was being plied as per the terms and
conditions of the route permit. Report Ex.RWÂ7/L has
wrongly been relied upon, without any justification.
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47 2026:HHC:31618
83. As such, the contentions, so raised in the appeal,
.
are liable to be rejected. Consequently, the same are
rejected.
84. In view of the discussion made above, this Court
has no hesitation to hold that the learned MACT has fallen
of
into error by fastening the liability to pay the amount of
compensation upon the owner and also fallen into error by
rt
giving the liberty to the Insurance Company to recover the
amount of compensation, from the owner, after paying the
same to the petitioners. In a nut shell, the Insurance
Company has miserably failed to prove the violation of the
route permit in the present cases.
85. In this case, it has also been alleged by the
Insurance Company that the Company is not liable to pay
the amount of compensation, as, there was overloading in
the offending vehicle as, against sanctioned sitting capacity
of 37 passengers, including driver and conductor, 47
passengers were travelling. To the considered opinion of this
Court, the above submissions holds no water, as the
Insurance Company is liable to indemnify the owner to pay
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48 2026:HHC:31618
the amount of compensation to the petitioners, upto the
.
permitted sitting capacity. The Hon’ble Supreme Court in
National Insurance Co. Ltd. versus Anjana Shyam and
others, reported in (2007) 7 Supreme Court Cases 445,
has held that the Insurance Company would be bound to
of
cover the higher of the awards and will deposit the higher of
the amounts of compensation awarded to the extent of the
rt
number of passengers covered by the insurance policy.
Relevant para 22 and 23 of the judgment, are reproduced as
under:
“22. Then arises the question, how to determine
the compensation payable or how to quantify
the compensation since there is no means ofascertaining who out of the overloaded
passengers constitute the passengers coveredby the insurance policy as permitted to be
carried by the permit itself. As this Court has
indicated, the purpose of the Act is to bring
benefit to the third parties who are eitherinjured or dead in an accident. It serves a social
purpose. Keeping that in mind, we think that the
practical and proper course would be to hold
that the insurance company, in such a case,
would be bound to cover the higher of the
various awards and will be compelled to deposit
the higher of the amounts of compensation
awarded to the extent of the number of
passengers covered by the insurance policy.
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49 2026:HHC:31618
23. Illustratively, we may put it like this. In the
case on hand, 42 passengers were the
.
permitted passengers and they are the ones
who have been insured by the insurance
company. 90 persons have either died or got
injured in the accident. Awards have been
passed for varied sums. The Tribunal should
take into account, the higher of the 42 awards
made, add them up and direct the insurance
company to deposit that lump sum. Thus, the
of
liability of the insurance company would be to
pay the compensation awarded to 42 out of the
90 passengers. It is to ensure that the maximum
benefit is derived by the insurance taken for the
rt
passengers of the vehicle, that we hold that the
42 awards to be satisfied by the insurance
company would be the 42 awards in the
descending order starting from the highest of the
awards. In other words, the higher of the 42
awards will be taken into account and it would
be the sum total of those higher 42 awards that
would be the amount that the insurance
company would be liable to deposit. It will be for
the Tribunal thereafter to direct distribution of
the money so deposited by the insurance
company proportionately to all the claimants,
here all the 90, and leave all the claimants to
recover the balance from the owner of the
vehicle. In such cases, it will be necessary for
the Tribunal, even at the initial stage, to make
appropriate orders to ensure that the amount
could be recovered from the owner by ordering
attachment or by passing other restrictive orders
against the owner so as to ensure the
satisfaction in full of the awards that may be
passed ultimately.”
(self emphasis supplied)
86. Being guided by the aforesaid decision, this
Court has no hesitation to hold that the Insurance Company
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is liable to satisfy the highest awards, to the extent of 37
.
passengers, and in rest of the awards, the Insurance
Company shall, at the first instance, pay the compensation
amount, with right to recover the same from the owner of the
offending vehicle.
of
87. In view of the above, the appeals preferred by the
Insurance Company are liable to be rejected, whereas, the
rt
appeals preferred by the owner, are liable to be allowed.
88. The proceedings under the M.V. Act are summary
in nature, where the liability of the tortfeasor is to be fixed
on the basis of the preponderance of probability.
89. Now, the next question, which arises for
determination, before this Court ,is whether the amount of
compensation awarded to the petitioners falls within the
definition of ‘just compensation’, as the endeavour of the
Court/Tribunal is to grant ‘just compensation’.
90. The Hon’ble Apex Court in Oriental Insurance
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
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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
of
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
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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.
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.”
(self emphasis supplied)
91. This view has again been reiterated by Hon’ble
Apex Court in Govind Yadav versus The New India
Assurance Co. Ltd., reported in 2012 ACJ 28 (SC).
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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 the
amount of compensation. The relevant portions of the
judgment are extracted below:
of
“The compensation which is required to be determined
must be just. While the petitioners are required to be
compensated for the loss of their dependency, the same
should not be considered to be a windfall. Unjust
enrichment should be discouraged. This Court cannot
rt
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 questionas 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 mayhave a bright future prospect; he might have become
eligible to promotion immediately; there might have
been chances of an immediate pay revision, whereas in
another (sic situation) the nature of employment wassuch 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 divergent
views. In some cases it has been suggested that somesort of hypotheses or guess work may be inevitable.
That may be so.
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
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 also
other 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::: Downloaded on – 30/07/2026 20:36:14 :::CIS
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this Court in Oriental Insurance Co. Ltd. v. Jas huben
held that even dearness allowance and perks with
.
regard 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 taking
inflation into consideration wholly incorrect?
Unfortunately, unlike other developed countries in India
there has been no scientific study. It is expected that
of
with 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
rt
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
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 personalinjury. 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 thevictim has done no wrong; he has suffered at the hands
of the wrongdoer and the court must take care to give
him full and fair compensation for that he had
suffered.”
(emphasis supplied)
92. Being guided by the above decisions of Hon’ble
Supreme Court, now, this Court would proceed further to
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determine the fact whether the learned MACT has rightly
.
assessed the amount of compensation or not.
FAO (MV) No. 136 of 2020
93. In the present case, the claimants are son and
daughter of Maan Singh, who expired in the said accident.
of
As per the stand taken by the petitioners, Maan Singh, at
the time of accident, was about 47 years of age and earning
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Rs.20,000/Â per month, from vegetables and Rs.20,000/Â
per month from apple orchards.
94. Learned MACT has taken the monthly income of
Maan Singh, as Rs.20,000/Â per month. These findings
have been assailed by the Insurance Company, in the
present case, as such, the evidence, so adduced, is required
to be discussed.
95. Petitioner No.1, tendered his affidavit Ex.PWÂ1/A,
which is based upon the assertion made in the petition.
96. PWÂ3 Ashok Kumar has been examined by the
claimants to demonstrate that Maan Singh used to sell apple
boxes and vegetables in the shop of PWÂ3. This witness has
moved a step further by deposing that the deceased used to
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earn Rs.13 to 14 lacs from his shop. He has also proved the
.
bills Ex.PWÂ1/CÂ1 to PWÂ1/CÂ67. In view of the evidence of
PWÂ3, this Court is of the view that the income, which has
been assessed by the learned MACT cannot be said to be on
the higher side.
of
97. The learned MACT has taken the age of deceased
Maan Singh, as 44 years. As per the postmortem report, the
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age of deceased Maan Singh has been mentioned as 44
years, whereas, the petitioners have pleaded his age as 47
years. As such, his age is required to be taken as 47 years,
at the time of accident. Thus, the said findings recorded, by
the learned MACT, require interference, by this Court
98. Admittedly, Maan Singh is working in
unorganized sector, as such, in view of the law laid down by
the Hon’ble Supreme Court, in National Insurance Co.
Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 25% increase is
required to be given, towards future prospects. Thus, by
adding 25% of his monthly income, the same comes to
Rs.25,000/Â (Rs.20,000/Â + Rs.5,000/Â).
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99. The learned MACT has rightly deducted 1/3rd of
.
the said amount, on account of his personal expenses, had
he been alive. Thus, his monthly income comes to
Rs.16668/Â. The said findings do not require any
interference by this Court.
of
100. Learned MACT has applied the multiplier of ’14’,
which is liable to be interfered with, as, the age of the
rt
deceased has been held to be 47 years, as such, multiplier of
’13’ is required to be applied, in the present case. Thus, the
loss of contribution comes to Rs.16668/Â x 12 x 13 =
Rs.26,00,208/Â.
101. So far as the amount awarded under the
conventional heads are concerned, the said findings do not
require, any interference, by this Court.
102. Thus, the entitlement of the petitioners, is
adjudicated, as under:
1. Loss of income = Rs. 26,00,208/Â
2. Loss of consortium = Rs.80,000/Â
3. Loss of estate = Rs. 15,000/Â
4. Funeral Expenses = Rs. 15,000 /Â
________________________________________________________
Total = Rs.27,10,208/Â.
________________________________________________________
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103. So far as the rate of interest is concerned, the
.
learned MACT has awarded the interest at the rate of 9%
per annum, which is on the higher side. As such, the same
is required to be reduced to 7.5%, in view of the prevailing
rates of interest of the nationalized banks. Ordered
of
accordingly.
104. Consequently, the present appeal is dismissed,
however, the
rt
awarded amount is reduced from
Rs.29,10,224/Â to Rs.27,10,208/Â, with interest @ 7.5% per
annum. The award passed by the learned MACT is modified
accordingly.
FAO (MV) No.118 of 2020 arising out of MAC Petition No.
170ÂMAC/2 of 2017
105. In the present appeal, the claim petition has been
filed by the petitioners, being widow, widowed mother, sons
and daughters of Shri Narayan Singh. As per the petition,
the deceased was about 29 years of age, at the time of
accident. He was mason by profession and agriculturist
also.
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106. According to the petitioners, deceased Narayan
.
Singh, during his life time, was earning amount of
Rs.21,000/Â per month. Bifurcating the said amount, it has
been pleaded that the deceased was earning Rs.500/Â per
day from mason work and Rs.6,000/Â per month from
of
agriculture pursuits.
107. Petitioner No.1, when appeared, in the witnessÂ
rt
box, has deposed on the similar lines. In the crossÂ
examination, nothing has been put to her to controvert the
stand taken by her in the affidavit, as well as, in the petition.
108. By examining PWÂ3, petitioners have proved that
Narayan Singh was mason, by profession and earning
Rs.500/Â per day. This witness has admitted that Narayan
Singh, was unmarried, but, voluntarily stated that he was
living in Jodidari with Balbir Singh and Tara Devi. He has
also admitted that petitioners No.4 to 7 are children of Balbir
Singh. This is the entire evidence led by the petitioners, on
this issue.
109. Learned MACT has taken the monthly income of
Shri Narayan Singh as Rs.6,000/Â per month. The said
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findings do not require any interference by this Court, as the
.
same are based upon the proper appreciation of evidence, so
led by the petitioners. The age of the deceased has been
taken by the learned MACT, as 28 years, on the basis of the
document Ex.PWÂ1/A, wherein, the date of birth of the
of
deceased has been mentioned as 28.06.1988.
110. Learned MACT has rightly held only petitioners
rt
No.2 and 4, entitled to the amount of compensation. In the
absence of any appeal, the said findings do not require any
interference.
111. Learned MACT has rightly granted the amount of
Rs.15,000/Â, on account of ‘loss of estate’ and Rs.15,000/Â
on account of ‘funeral expenses’, however, has not granted
any compensation under the head ‘loss of consortium’. In
view of the law laid down by the Hon’ble Supreme Court in
Magma General Insurance Company Limited vs. Nanu
Ram @ Chuhru Ram and others, (2018) 18 SCC 130, each
claimant is entitled to the amount of compensation under
the head ‘loss of consortium’. As such, petitioners No.2 and
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4 are held to be entitled to a sum of Rs.40,000/Â each, under
.
this head.
112. Thus, the amount of compensation is required to
be enhanced and they are entitled to a sum of
Rs.11,72,400/Â + Rs.80,000/Â = Rs.12,52,400/Â.
of
113. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 7%
rt
and the same requires interference, as all the petitions have
arisen out of the same accident and in order to maintain
uniformity, the rate of interest is held to be 7.5% per annum.
114. Consequently, the present appeal is dismissed,
by enhancing the awarded amount from Rs.11,72,400/Â to
Rs.12,52,400/Â, with interest @ 7.5% per annum. The
award passed by the learned MACT is modified accordingly.
FAO No. 218 of 2023 arising out of MAC Petition No.7Â
S/2 of 2018
115. In the present appeal, claim petition, was filed by
sons and daughter of late Katki Devi, who has expired in the
accident, in question. Her age at the time of accident has
been pleaded as 44 years and according to the petitioners,
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she was earning Rs.20,000/Â per month from tailoring work
.
and Rs.15,000/Â per month from growing vegetables.
116. Learned MACT, in the present case, has taken
the income of Smt. Katki Devi, as Rs.10,000/Â per month.
The said findings are not sustainable in the eyes of law, as,
of
the Hon’ble Supreme Court in Shishu Pal @ Shish Ram &
Others versus Surjeet & Others, reported in 2026 INSC
rt
634, has held that the value of the domestic care of a
homemaker is liable to be taken as Rs.30,000/Â per month.
Relevant paragraphs 15 to 20, of the judgment, are
reproduced as under :Â
Quantifying The ContributionÂof a Nation Builder
15. In usual circumstances this Court would not
have ventured further than taking note of the fact
that the incident and judgment in Lata Wadhwa
(supra) was contemporaneous to the unfortunate
accident in this case and as such compensation
could be calculated using the Rs.3000/Â per
month metric applied therein however, in our
considered view that would not be justified. It
has to be observed that to measure the
contributions of a homemaker and mother as in
this case in strictly monetary terms is a task of
considerable difficulty for each and every aspect
of the day, month and year of such a
homemaker’s family members is informed,
shaped by her sometimes acknowledged, but
most often unacknowledged or taken for granted,
efforts. If compensation is to be calculated in the
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present day while accounting for the egregious
delay, to do so in terms that were frozen on the
.
day of the death of the deceased would be
grossly undervaluing the silent strength of
homemakers.
16. That being said, even when it comes to
computation for damages under nonÂpecuniary
heads, the loss still does require the recognition
of such heads before compensation can be
of
awarded. The first of them being the loss of the
homemaker’s dexterous ability to manage all the
chores of the household. Granted, that in the
increasingly modern urban centres of the country
rt
it may not be the case that a homemaker stands
in front of the gas stove bright and early in the
morning or late at night or even that she walks
around, slouched, running the broom throughout
the house, but, the fact of the matter is that in
smaller cities, towns and villages, even today,
such tasks assumedly and invariably fall on the
homemaker, without as much as a second
thought. The second head pertain to the children
of the house. They have lost their mother, the
source of neverÂending love, comfort and
affection, the person who they could run to with
all their problems, questions and concerns and
heartbreaks. She is also their first point of
contact with the ways of the world, silently and
subtly teaching them skills of survival,
perseverance and excellence shaping them into
well rounded human beings capable of being
functioning contributors to the economy of the
nation. This, in our view, is somewhat different
from emotional support or dependence for
primary skills necessary for everyday functioning
that are imbibed by the children from their
mother. This has a distinctly economic angle
while also being partly an emotional aspect
perfectly fitting into the nonÂcategorizable roles
played by homemaker. How does one calculate
this? The third is equally troubling. A husband
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has, no longer, the support of his life partner,
someone he depends on entirely to run smoothly,
.
an entire part of his life, his home, family,
children, relatives. Even in conservative settings
where patriarchy looms large, the sense of
dependency that obtains, if taken away, greatly
challenges the man for he is now directionless
and suddenly responsible for a lot more than he
is used to. When the efforts of the homemaker
towards the husband and children are taken on
of
the whole it cannot be disputed that although her
labour be at emotional or physical is within the
four walls of the home, its impact is much wider.
In enabling the direct contribution today of their
rt
husbands and tomorrow of their children, they
are the building blocks for the nation’s road to
holistic progress.[See: Kalukutty v. P.M. John12,
Bhuvaneswari v. Mani13] We may also 2023
SCC OnLine Ker 964 2020 SCC OnLine Mad
2163 observe that in a recent order of this Court
in Arvind Kumar Pandey v. Girish Pandey, also
made similar observations to the following effect:
“7. It goes without saying that the role of a
homemaker is as important as that of a familymember whose income is tangible as a source of
livelihood for the family. The activities performedby a homemaker, if counted one by one, there
will hardly be any doubt that the contribution of
a homemaker is of a high order and invaluable.
In fact, it is difficult to assess such a contribution
in monetary terms.”
Any computation made as a result of
injury suffered or death, should be aware of this
larger role and not be myopic in its view.
The loss of a homemaker however is not
limited to husband and children. It also directly
impacts the women’s own parents who have
been deprived of the love and company of their
child, who have lost the support and comfort of
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this person and are left alone with this
boundless grief. Still further, the loss is acutely
.
felt by her inÂlaws who are more often than not
members of the same household and therefore
are dependent on the love, labour and dedication
of this person, for food for medicines and doctor’s
visit or for even the regular company over a
morning tea. Strict arithmetic calculation does not
lend its services to any of these scenarios.
of
17. It is settled law by virtue of National
Insurance Co. Ltd. v. Pranay Sethi, that in all
cases that have resulted in death, loss of
consortium is to be paid to the claimants at the
rt
rate of Rs.40,000/Â per dependant along with
10% increase on the said amount every three
years, so in 2026 the compensation awarded
under this head is Rs.48,400/Â. This we may
note is irrespective of whether the deceased is a
male/female/child/retired/working or whatever
else. We are of the considered view, in such
situations the computation of compensation upon
the death of a homemaker suffers from an
inherent (2025) 2 SCC 145 (2017) 16 SCC 680
disadvantage. The amount awarded under the
same is over and above what is calculated on the
basis of the earnings/salaries/pension/notional
income for certain categories of claimants. In
view of the fact that there is no standard income
on the basis of which compensation can be
calculated and a figure is taken for the purposes
of calculation on guesswork, the true worth of the
homemaker is missed out, in as much as it is
amenable to calculation in monetary terms.
18. Future prospects when calculated on the
basis of the above judgment in Lata Wadhwa
(supra) would also be calculated on the
comparative lower notional income (Rs.3000/Âper
month) given that, both the fire incident and the
accident forming the basis of this appeal are from
the year 2001.
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19. When such conservative figures are used to
.
build up compensation, the amount arrived at is
paltry, and not even close, as much as monetary
terms can be, to the loss endured by the
claimants. Notional income is intended to
approximate the economic value of in the case of
homemaker, services rendered by them.
However, for whatever reason, judicial notice of
this issue is usually overly conservative, without
of
due acknowledgment of the fact that the role of
the homemaker is neither entirely economic nor
entirely nonÂeconomic and blends the factors of
economy with emotional and managerial
rt
contributions and as such fixed compensation in
terms of loss of consortium does not cover the
entire gamut of their contribution.
Loss Of Domestic Care: An Additional Head
20. It is in these circumstances, that we deem it
appropriate to direct that when a Motor Accidents
Claim Tribunal or the High Court or this Court is
concerned with or a case involving the death of a
homemaker, in order to overcome the inherent
disadvantage accrued against the homemaker on
a calculation of compensation on the basis of
conservatively computed notional income and
while being acutely aware of the dictum in
Pranay Sethi (supra) regarding loss of consortium
as also the disposition towards uniformity, that
for the three major heads (the homemaker’s
contribution towards smooth functioning of the
household, the loss of maternal support for
children and loss of spousal support/the support
and care of their child who is an adult, for the
parents of the deceased) discussed in the
foregoing paragraphs, a composite sum of
Rs.30,000/Â shall be added under the head of
‘loss of domestic care’, provided that all three of
these heads are met in the given case. This
determination shall be revised by 10%,
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cumulatively, every three years. It may be clearly
stated that this amount of Rs.30,000/Â i.e., loss
.
of domestic care is to be taken as a ‘stand in’
(basic minimum monthly income) for monthly
income in those cases where the homemaker
does not have an input into the house, in strictly
conventional, monetary terms. In those cases
where the homemaker is part of the workforce,
the component of loss of domestic care shall be in
addition to the monthly income as may be proved
of
before the Tribunal/Courts.”
117. In view of the decision of Hon’ble Supreme Court in
rt
National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC
680, and considering the age of deceased Katki Devi, 25%
increase is required to be given, towards future prospects.
Thus, by adding 25% towards her monthly income, the same
comes to Rs.37,500/Â (Rs.30,000/Â + Rs.7,500/Â). As such,
the annual income comes to Rs.4,50,000/Â (Rs.37,500/Â X 12).
The income tax component is liable to be deducted from the
said income.
118. The age of the deceased, at the time of accident was
held to be 44 years. As per the income tax slab, applicable for
the financial year 2017Â18, income of Rs.2,50,000/Â was
exempted. Thus, out of Rs.4,50,500/Â, the amount of total
taxable income comes to Rs.2,00,000/Â (Rs.4,50,000/Â minus
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Rs.2,50,000/Â). The said income falls within the tax slab of 5%.
.
Thus, the tax component comes to Rs.10,000/Â. The education
cess @4% on the said amount of Rs.10,000/Â is also liable to be
deducted, which comes to Rs.400/Â. Thus, the total tax
component comes to Rs.10,400/Â. Hence, the total established
of
annual income of the deceased comes to Rs.4,50,000/Â minus
Rs.10,400/Â = Rs.4,39,600/Â.
119.
rt
Out of the said amount, keeping in view the number
of dependent, 1/4th amount, on account of her personal
expenses, is required to be deducted, had she been alive. Thus,
the loss of contribution comes to Rs.4,39,600/Â minus
Rs.1,09,900 = Rs.3,29,700/Â.
120. Learned MACT has applied the multiplier of ’11’,
which is liable to be interfered with, as, the age of the deceased
has been held to be as 44 years, as such, multiplier of ’14’ is
required to be applied, in the present case. As such, the
amount of compensation on account of loss of dependency,
comes to Rs.3,29,700/Â x 14 = Rs.46,15,800/Â.
121. The amount, which has been awarded to the
petitioners, under the head, ‘loss of estate’, ‘funeral charges’,
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and ‘loss of consortium’, does not require any interference by
.
this Court.
122. Thus, the amount of compensation is required to
be enhanced and the petitioners are entitled to a sum of
Rs.46,15,800/Â.
of
123. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 7.5%,
rt
the said findings do not require any interference, by this
Court.
124. Consequently, the present appeal is dismissed,
by enhancing the awarded amount from Rs.14,30,800/Â to
Rs.46,15,800/Â, along with interest @ 7.5% per annum. The
award passed by the learned MACT is modified accordingly.
FAO (MV) No. 135 of 2020 arising out of MAC RBT Case
No. 15ÂS/2 of 2018/2017
125. The present appeal has been filed by the
Insurance Company, against the award passed by learned
MACT(III), Shimla, Camp at Rohru, in MAC RBT Case No.15Â
S/2 of 2018/ 2017, titled as Sangeeta & Another versus Brij
Mohan Jain & Others.
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126. The petitioners have filed the said petition, on
.
account of death of their mother Reshmi Devi, in the
accident in question. As per the claim petition, she was
earning Rs.12,000/Â per month from selling vegetables and
Rs.5,000/Â per month by selling milk.
of
127. Petitioner No.1 Sangeeta has filed her affidavit,
which is based upon her stand as taken in the petition. In
rt
the crossÂexamination, by the learned counsel appearing for
respondent No. 2, she has admitted that no document
regarding the income of her mother has been filed with the
petition.
128. PWÂ4 Vijay Laxmi, deposed that the deceased had
kept Jersey cows and she used to sell milk and vegetables,
for her livelihood. She was earning Rs.5,00,000/Â per
annum.
129. Learned Tribunal has taken the income of Smt.
Reshmi Devi as Rs.10,000/Â per month and her age has
been held to be 38 years.
130. The age of deceased Reshmi Devi has been
pleaded by the petitioners, in the petition, as 41 years. As
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such, the said findings require interference by this Court
.
and the age of deceased Reshmi Devi is held to be as 41
years.
131. So far as the monthly income of deceased Reshmi
Devi, is concerned, the said findings also require interference
of
by this Court, as in view of the law laid down by the Hon’ble
Supreme Court in Shishu Pal’s case supra, the value of
rt
domestic care of a homemaker is liable to be taken as
Rs.30,000/Â per month.
132. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased
Reshmi Devi, 25% increase is required to be given, towards
future prospect. Thus, by adding 25% of her monthly
income, the same comes to Rs.37,500/Â (Rs.30,000/Â +
Rs.7,500/Â). As such, the annual income comes to
Rs.4,50,000/Â (Rs.37,500/Â X 12). The income tax
component is liable to be deducted from the said income.
133. The age of the deceased, at the time of accident
was held to be 41 years. As per the income tax slab,
applicable for the financial year 2017Â18, income of
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Rs.2,50,000/Â was exempted. Thus, out of Rs.4,50,500/Â,
.
the amount of total taxable income comes to Rs.2,00.000/Â
(Rs.4,50,000/Â minus Rs.2,50,000/Â). The said income falls
within the tax slab of 5%. Thus, the tax component comes to
Rs.10,000/Â. The education cess @4% on the said amount
of
of Rs.10,000/Â is also liable to be deducted, which comes to
Rs.400/Â. Thus, the total tax component comes to
rt
Rs.10400/Â. Hence, the total established annual income of
the deceased comes to Rs.4,50,000/Â minus Rs.10,400/Â =
Rs.4,39,600/Â.
134. Out of the said amount, keeping in view the
number of dependent, 1/3rd amount, on account of her
personal expenses, is required to be deducted, had she been
alive. Thus, the loss of contribution comes to Rs.4,39,600/Â
minus Rs.1,46,533 = Rs.2,93,067/Â.
135. Learned MACT has applied the multiplier of ’15’,
which is liable to be interfered with, as, the age of the
deceased has been held to be as 41 years, as such,
multiplier of ’14’ is required to be applied, in the present
case. The said findings also require interference by this
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Court. As such, the amount of compensation on account of
.
loss of dependency, comes to Rs.2,93,067/Â x 14 =
Rs.41,02,938/Â.
136. The amount, which has been awarded to the
petitioners, under the head, ‘loss of estate’, ‘funeral charges’,
of
and ‘loss of consortium’, does not require any interference by
this Court.
137.
rt
Thus, the amount of compensation is required to
be enhanced and the petitioners are entitled to a sum of
Rs.41,02,938/Â.
138. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 9%
and the same requires interference, as, all the petitions have
arisen out of the same accident and in order to maintain
uniformity, the rate of interest is held to be 7.5% per annum.
139. Consequently, the present appeal is dismissed,
by enhancing the awarded amount from Rs.17,90,120/Â to
Rs.41,02,938/Â, along with interest @ 7.5% per annum. The
award passed by the learned MACT is modified accordingly.
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FAO (MV) No. 170 of 2024 arising out of MAC Case
No.33ÂS/2 of 2022/19
.
140. Insurance Company has filed the appeal against
the award, passed by the learned MACT, Shimla, in MACC
No.33ÂS/2 of 2022/19, titled as ‘Pinki versus Brij Mohan
of
Jain & Another’.
141. The above titled claim petition has been filed, by
rt
the petitioner, on account of death of Shri Sohan Lal,
husband of petitioner. The age of Sohan Lal, at the time of
accident has been pleaded to be 47 years and in the
postmortem report his has been mentioned as 48 years and
the learned MACT has also held the age of deceased to be as
48 years.
142. As per the pleadings, he was painter by
profession and used to grow vegetables on his land. As
such, he was earning Rs.20,000/Â per month.
143. In order to prove the said factual position,
petitioner appeared in the witnessÂbox as PWÂ1 and filed her
affidavit Ex.PWÂ1/A, which is based on the assertions, as
made in the petition. She has admitted that she has not
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annexed any documentary proof regarding the proof of
.
working, as well as, income of her husband.
144. The learned MACT has taken the monthly income
of Shri Sohan Lal, during his life time, as Rs.10,000/Â per
month. Deposition regarding the income of deceased Sohan
of
Lal was made by his wife, who cannot be said to be a
stranger. When, she has deposed about the income of her
rt
husband, in the absence of any evidence, contrary to the
said factual position, learned MACT has rightly taken the
income of deceased Sohan Lal as Rs.10,000/Â.
145. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased
Sohan Lal, the learned MACT has rightly give 25% increase
towards future prospects. Keeping in view the number of
dependents, after deducting 1/3rd amount, towards his
personal expenses, had he been alive, the learned MACT has
rightly assessed the monthly income of Sohan Lal as Rs.
8334/Â. The said findings do not require any interference by
this Court
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146. Learned MACT has rightly applied the multiplier
.
of ’13’, as, the age of the deceased has been held to be as 48
years. The said findings also do not any require interference
by this Court.
147. The amount, which has been awarded to the
of
petitioner, by the learned MACT, under the conventional
heads, i.e., ‘loss of estate’, ‘funeral charges’, and ‘loss of
rt
consortium’, does not require any interference by this Court.
148. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 9%
and the same requires interference, by this Court, as, all the
petitions have arisen out of the same accident and in order
to maintain uniformity, the rate of interest is held to be 7.5%
per annum.
149. Consequently, the present appeal is partly
allowed, by reducing the rate of interest from 9% to 7.5% per
annum. The award passed by the learned MACT is modified
accordingly.
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FAO (MV) No. 119 of 2020 arising out of MAC Petition
No. 165ÂMAC/2 of 2017
.
150. The above titled appeal has been filed by the
Insurance Company, against the award dated 05.12.2019,
passed by learned MACT in MAC Petition No. 165ÂMAC/2 of
of
2017, titled as Tulsa Devi & Others versus Brij Mohan Jain
& Another,
151.
rt
The petitioners have filed the said petition
against the respondents, seeking compensation on account
of death of Shri Jagar Singh, husband of petitioners No.1
and 2 and father of petitioners No.3 to 6. As per the claim
petition, Shri Jagar Singh, at the time of his death was 49
years and he was carpenter by profession and was earning
Rs.500/Â per day and Rs.6,000/Â per month from
agriculture pursuits.
152. Learned MACT, on the basis of the evidence, so
adduced before it, has taken the income of Shri Jagar Singh
as Rs.6,000/Â per month.
153. Petitioner No.1 Tulsa Devi appeared in the
witnessÂbox as PWÂ1 and filed her affidavit as Ex. PWÂ1/A.
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According to her deposition, her husband was agriculturist
.
and carpenter by profession and he was earning Rs.6,000/Â
per month. Petitioner No.1 herself has admitted the income
of her husband as Rs.6,000/Â and remained silent about the
income of her husband from other sources. As such, the
of
learned MACT has rightly taken his income as Rs.6,000/Â
per month.
154.
rt
Age of Jagar Singh has been mentioned as 50
years, in the postmortem report and in the petition, it has
been pleaded as 49 years. As such, the learned MACT has
rightly taken the age of the deceased as 49 years. The said
findings do not require any interference, by this Court.
155. The learned MACT has rightly added 25%,
towards future prospects, in the monthly income of the
deceased and deducted 1/4th amount, towards his personal
expenses. Learned MACT has rightly applied the multiplier
of ’13’, as the age of the deceased has been held to be 49
years.
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156. The learned MACT has rightly awarded a sum of
.
Rs. 8,77,500/Â, under the head ‘loss of contribution’, and
the same needs no interference, by this Court.
157. The learned MACT has also awarded
compensation to the petitioners, under the conventional
of
heads, i.e., ‘loss of estate’, ‘funeral charges’, however, on
account of ‘loss of consortium’, the learned MACT has
rt
awarded compensation only to petitioner No.1. The Hon’ble
Supreme Court in Nanu Ram‘s case supra, has held that all
the claimants are also entitled to the compensation, under
the head ‘loss of consortium’. As such, the said findings
require interference by this Court.
158. Consequently, all the claimants are entitled to
the compensation, which is as under:Â
1. Loss of contribution = Rs.8,77,500/Â
2.Loss of estate = `15,000/Â
3.Funeral expenses= `15,000/Â
4.Loss of consortium= `2,40,000/Â (`40,000 x 6 )
Total= Rs.11,47,500/Â
159. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 7% per
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annum. The same needs to be enhanced to 7.5%, as, all the
.
petitions have arisen out of the same accident and in order
to maintain uniformity, the rate of interest is held to be 7.5%
per annum.
160. Consequently, the present appeal is dismissed,
of
by enhancing the amount of compensation from
Rs.9,47,500/Â to Rs.11,47,500/Â, along with interest @ 7.5%
per annum.
rt
The award passed by the learned MACT is
modified accordingly.
FAO (MV) No. 215 of 2023 arising out of MAC Petition
No.5ÂS/2 of 2018
161. Insurance Company has filed the appeal against
the award, passed by the learned MACT, Shimla, in MAC
Petition No.5ÂS/2 of 2018, titled as ‘Subi Devi & Others
versus Brij Mohan Jain & Others’.
162. The above titled claim petition has been filed, by
the petitioners, on account of death of Promila @ Urmila,
daughter of petitioner No.1 and sister of petitioners No. 2
and 3. The age of deceased, at the time of accident has been
pleaded to be as 14 years.
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163. Learned MACT has taken the notional income of
.
Ms. Promila @ Urmila and rightly awarded the
compensation, to the tune of ₹ 8,00,000/Â, with interest @
7.5% per annum, which findings do not require any
interference by this Court.
of
164. Consequently, the appeal is dismissed.
FAO (MV) No. 127 of 2025 arising out of MACT Case RBT
rt
No.46ÂR/2 of 2023/17
165. Respondent No.1ÂBrij Mohan Jain (owner) has
filed the appeal against the award, passed by the learned
MACT, Rohru, District Shimla, in MACT Case RBT No.46Â
R/2 of 2023/17, titled as ‘Akshay Kumar & Others versus
Brij Mohan Jain & Another’.
166. The above titled claim petition has been filed, by
the petitioners, on account of death of Smt. Kiran Devi,
mother of the petitioners. The age of Kiran Devi, at the time
of accident, has been pleaded to be 38 years. In the Nakal
Parivar Register, Ex.PWÂ1/E, her year of birth has been
recorded as 1979. As such, her age is proved to be 38 years.
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167. According to the petitioners, the deceased was
.
working as Safai Karamchari in M.C. Rohru and besides
this, was also a house wife. As such, she was earning
Rs.13,000/Â per month.
168. Petitioner No.1, appeared in the witnessÂbox, as
of
PWÂ1 and filed his affidavit, Ex.PWÂ1/A, in which, he has
deposed that his mother was working as Safai Karamchari,
rt
with M.C. Rohru, on part time basis. Her age, at the time of
accident was 38 years.
169. Learned MACT has taken the income of deceased
Kiran as Rs.10,000/Â per month, whereas, the Hon’ble
Supreme Court in Shishu Pal’s case supra, has held that
the value of the domestic care of a homemaker is liable to be
taken as Rs.30,000/Â.
170. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased Kiran
Devi, 40% increase is required to be given, towards future
prospect. Thus, by adding 40% of his monthly income, the
same comes to Rs.42,000/Â (Rs.30,000/Â + Rs.12,000/Â).
As such, the annual income comes to Rs.5,04,000/Â
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(Rs.42,000/Â X 12). The income tax component is liable to
.
be deducted from the said income.
171. The age of the deceased, at the time of accident
was held to be 38 years. As per the income tax slab,
applicable for the financial year 2017Â18, income of
of
Rs.2,50,000/Â was exempted. Thus, out of Rs.5,04,000/Â,
the amount of total taxable income comes to Rs.2,54,000/Â
rt
(Rs.5,04,000/Â minus Rs.2,50,000/Â). Out of the said
amount, Rs.2,50,000/Â falls within the tax slab of 5%,
whereas, remaining Rs.4,000/Â falls within the tax slab of
20%. Thus, the tax component comes to Rs.13,300/Â. The
education cess @4% on the said amount of Rs.13,300/Â is
also liable to be deducted, which comes to Rs.532/Â. Thus,
the total tax component comes to Rs.13832/Â. Hence, the
total established annual income of the deceased comes to
Rs.5,04,000/Â minus Rs.13832/Â = Rs.4,90,168/Â.
172. Out of the said amount, keeping in view the
number of dependent, 1/4th amount, on account of her
personal expenses, is required to be deducted, had she been
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alive. Thus, the loss of contribution comes to Rs.4,90,168/Â
.
minus Rs.1,22,542 = Rs.3,67,626/Â.
173. Learned MACT has wrongly applied the multiplier
of ’14’, since, the age of the deceased has been held to be 38
years, as such, in view of Sarla Verma’ (Smt) and others
of
versus Delhi Transport Corporation and another, reported
in (2009) 6 Supreme Court Cases 121, the multiplier of
rt
’15’ is required to be applied, in the present case. The said
findings also require interference by this Court. As such,
the amount of compensation on account of loss of
dependency, comes to Rs.3,67,626/Â x 15 = Rs.55,14,390/Â.
174. Learned MACT has also awarded compensation
to the petitioners under the conventional heads, ‘loss of
estate’, ‘funeral charges’, and ‘loss of consortium’, and also
awarded 10% increase, after every three years. Such
approach of the learned MACT is not sustainable, in the eyes
of law, as the Hon’ble Supreme Court in Pranay Sethi’s
case supra, has mandated that the said amount will be
increased from the date of passing of the judgment. The
judgment, in this case, was passed in the year 2024 and the
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accident had taken place in the year 2017. As such, the
.
petitioners are held entitled to a sum of Rs.15,000/Â under
the head ‘funeral expenses’, Rs.15,000/Â under the head
‘loss of estate’ and Rs.40,000/Â to each of the petitioners,
i.e., total Rs.2,40,000/Â, under the head ‘loss of consortium’.
of
175. Thus, the petitioners are entitled to the
compensation, as under:Â
rt
1. Loss of contribution = Rs.55,14,390/Â
2.Loss of estate = `15,000/Â
3.Funeral expenses= `15,000/Â
4.Loss of consortium= `2,40,000/Â (`40,000 x 6 )
Total= Rs.57,84,390/Â
176. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 6%,
which is required to be enhanced to 7.5% per annum, in
order to maintain uniformity, as, all the petitions have
arisen out of the same accident. Ordered accordingly.
177. Consequently, the present appeal is allowed of,
by enhancing the awarded amount from Rs.19,01,700/Â to
Rs.57,84,390/Â, with interest @ 7.5% per annum and the
Insurance Company is held liable to pay the compensation.
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The order passed by the learned MACT is modified
.
accordingly.
FAO (MV) No. 121 of 2020 arising out of MAC Petition
No.163ÂMAC/2 of 2017
178. Insurance Company has filed the appeal against
of
the award, passed by the learned MACTÂ1, Sirmaur District
at Nahan, in MAC Petition No.163ÂMAC/2 of 2017, titled as
rt
‘Bhag Singh & Another versus Brij Mohan Jain & Another’.
179. The above titled claim petition has been filed, by
the petitioners, on account of death of their son Shri Dalip
Singh. The age of Dalip Singh, at the time of accident, has
been pleaded to be 18 years. According to the petitioners, he
was earning Rs.400/Â per day, by working as skilled labour
and Rs.5,000/Â per month from agricultural work.
180. Petitioner No.2, when appeared in the witnessÂ
box, as PWÂ1, deposed that her son was earning Rs.5,000/Â
per month from agricultural work. On the basis of the said
evidence, the learned MACT has rightly taken the income of
the deceased as Rs.6,000/Â per month.
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181. Keeping in view the age of deceased Dalip Singh,
.
as well as, the decision of Hon’ble Supreme Court in Pranay
Sethi‘s case supra and the number of dependents, the
learned Tribunal has rightly held the monthly income of the
deceased as Rs. 4200/Â. Learned MACT has applied the
of
multiplier of ’18’, which is the appropriate multiplier, in the
present case. Thus, the loss of contribution to the tune of
rt
Rs.4200/Â x 12 x 15 = Rs.9,07,200/Â has rightly been
awarded by the learned Tribunal, needs no interference by
this Court.
182. Learned MACT has also awarded compensation
to the petitioners under the heads, ‘loss of estate’, and
‘funeral charges’, however, no amount has been awarded
under the head ‘loss of consortium’. In view of the law laid
down by the Hon’ble Supreme Court in Nanu Ram‘s case
supra, both the petitioners are entitled to a sum of
Rs.40,000/Â each, as compensation, under the head ‘loss of
consortium’.
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183. Thus, the amount of compensation is required to
.
be enhanced and the petitioners are entitled to a sum of
Rs.9,37,200/Â + Rs.80,000/Â = Rs.10,17,200/Â.
184. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 7% per
of
annum. The same needs to be enhanced to 7.5%, as, all the
petitions have arisen out of the same accident and in order
rt
to maintain uniformity, the rate of interest is held to be 7.5%
per annum.
185. Consequently, the present appeal is dismissed,
by enhancing the awarded amount from Rs.9,37,200/Â to
Rs.10,17,200/Â with interest @ 7,5% per annum. The award
passed by the learned MACT is modified, accordingly.
FAO (MV) No. 136 of 2025 arising out of MACT Case RBT
No.49ÂR/2 of 2023/17
186. Respondent No.1ÂBrij Mohan Jain has filed the
appeal against the award, passed by the learned MACT,
Rohru, District Shimla, in MACT Case RBT No.49ÂR/2 of
2023/17, titled as ‘Akshay Kumar & Others versus Brij
Mohan Jain & Another’.
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187. The above titled claim petition has been filed, by
.
the petitioners, on account of death of their father, Shri
Sanjeev Kumar. As per the claim petition, age of deceased
Sanjeev Kumar, at the time of accident, was 40 years.
188. According to the petitioners, the deceased was
of
working as Safai Karamchari in N.A.C. Rohru, on part time
basis and he was earning Rs.13,000/Â per month.
189.
rt
Petitioner No.1, Akshay Kumar appeared in the
witnessÂbox, as PWÂ1 and filed his affidavit, Ex.PWÂ1/A, in
which, he has deposed that his father was working as Safai
Karamchari, with N.A.C. Rohru, and also in Hotels and
shops, on part time basis. He was earning Rs.13,000/Â per
month. His age, at the time of accident, was 40 years. He
has admitted that he has no documentary proof that his
father, during his lifetime, was working as part time Safai
Karamchari in NAC Rohru.
190. On the basis of the said evidence, learned MACT
has taken the income of Shri Sanjeev Kumar as Rs.10,000/Â
per month. In such situation, the material question, which
arises for determination, before this Court is as to whether
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the learned MACT, has rightly assessed the monthly income
.
of the deceased as Rs.10,000/Â per month, that too, in the
absence of any documentary proof, in this regard.
191. The answer to this question is in negative.
Simply, because the provisions of M.V. Act, are beneficial
of
peace of legislation, does not mean that whatsoever, amount
assessed by the learned MACT, is liable to be affirmed.
192.
rt
Petitioner No.1, has deposed, in his examinationÂ
inÂchief, that his father was earning Rs.13,000/Â, per
month, however, at the same time, he has admitted that he
is having no documentary proof. In such situation, to the
considered opinion of this Court, the learned MACT has
fallen in an error while assessing the monthly income of the
deceased as Rs. 13000/Â and, in the absence of any
documentary proof, the monthly income of the deceased,
during his lifetime, is held to be Rs.7,000/Â per month.
193. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi‘s case supra and considering the age of
deceased Sanjeev Kumar, 25% increase is required to be
given, towards future prospects. Thus, by adding 25% of his
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monthly income, the same comes to Rs.8,750/Â (Rs.7,000/Â
.
+ Rs.1,750/Â). Out of the said amount, keeping in view the
number of dependent, 1/4th amount, on account of his
personal expenses, is required to be deducted, had he been
alive. Thus, his monthly income is assessed as Rs. 6562/Â.
of
194. Learned MACT has applied the multiplier of ’13’,
which is liable to be interfered with, as, the age of the
rt
deceased has been held to be as 40 years, as such, in view of
the ratio laid down by the Hon’ble Supreme Court in Sarla
Verma‘s case supra, multiplier of ’15’ is required to be
applied, in the present case. Thus, the loss of contribution
comes to Rs.6,562/Â x 12 x 15 = Rs.11,81,160/Â.
195. So far as the amount of compensation awarded
under the conventional heads, ‘loss of estate’ and ‘funeral
charges’, is concerned, no interference is required, whereas,
the learned MACT has awarded compensation under the
head ‘loss of consortium’, to each of the petitioners, by
giving increase of 10% increase, after every three years.
Such approach of the learned MACT is not sustainable, in
the eyes of law, as the Hon’ble Supreme Court in Pranay
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Sethi‘s case supra has mandated that the said amount will
.
be increased @ 10% after every three years, from the date of
passing of the judgment. The judgment, in this case, was
passed in the year 2024 and the accident had taken place in
the year 2017. As such, the petitioners are only held
of
entitled to a sum of Rs.15,000/Â under the head ‘funeral
expenses’, Rs.15,000/Â under the head ‘loss of estate’ and
rt
Rs.40,000/Â to each of the petitioners, i.e. total
Rs.2,40,000/Â, under the head ‘loss of consortium’.
196. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 6% per
annum. The same needs to be enhanced to 7.5%, as, all the
petitions have arisen out of the same accident and in order
to maintain uniformity, the rate of interest is held to be 7.5%
per annum.
197. Consequently, the present appeal is allowed, by
reducing the awarded amount from Rs.17,89,200/Â to
Rs.14,51,160/Â, however, the rate of interest is enhanced
from 6% per annum to 7.5% per annum and the Insurance
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Company is held liable to pay the compensation. The award
.
passed by the learned MACT is modified accordingly.
FAO (MV) No. 141 of 2024 arising out of MACT Petition
No.209ÂN/2 of 2017
198. Insurance Company has filed the appeal against
of
the award, passed by the learned MACT, Paonta Sahib,
District Sirmaur, in MACT Petition No.209ÂN/2 of 2017,
rt
titled as ‘Santo Devi & Others versus Brij Mohan Jain &
Another’.
199. The above titled claim petition has been filed, by
the petitioners, being mother, widow, son and daughters of
Shri Surinder Singh, who has expired in the accident, in
question. As per the claim petition, Surender Singh, at the
time of his death was 44 years. According to the
petitioners, the deceased was agriculturist and was earning
Rs.12,000/Â per month.
200. Petitioner No.2, Kaushalya Devi, when appeared
in the witnessÂbox, as PWÂ1, has deposed that her husband
was earning Rs.12,000/Â to 15,000/Â per month.
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Admittedly, she has not produced any documentary proof
.
regarding the income of her husband.
201. Learned MACT has taken the income of deceased
Surender Singh as Rs.6,000/Â per month. Said approach of
the learned MACT is not sustainable in the eyes of law, as,
of
there was no occasion for the learned MACT to take the
income of Shri Surender Singh as notional, since, his wife
rt
has categorically deposed about his earnings between
Rs.12,000/Â to Rs.15,000/Â per month. The deposition, on
oath, cannot be brushed aside, merely, in the absence of
Jamabandi, as has been held by the learned MACT.
202. Considering the stand of PWÂ1, this Court is of
the view that the ends of justice would be met if the monthly
income of deceased Surender Singh is taken as Rs.7,000/Â
per month.
203. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased
Surinder Singh, 25% increase is required to be given,
towards future prospect. Thus, by adding 25% of his
monthly income, the same comes to Rs.8,750/Â (Rs.7,000/Â
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+ Rs.1,750/Â). Out of the said amount, keeping in view the
.
number of dependent, 1/5th amount, on account of his
personal expenses, is required to be deducted, had he been
alive. Thus, his monthly income comes to Rs.7,000/Â.
204. Learned MACT has applied the multiplier of ’14’,
of
which is the appropriate multiplier, keeping in view the age
of the deceased, which is held to be as 44 years. Thus, the
rt
loss of contribution comes to Rs.7000/Â x 12 x 14 =
Rs.11,76,000/Â.
205. So far as the amount of compensation awarded
under the conventional heads, ‘loss of estate’, ‘funeral
charges’, and ‘loss of consortium’, is concerned, the learned
MACT has given the increase of 10%. Such approach of the
learned MACT is not sustainable, in the eyes of law, as the
Hon’ble Supreme Court in Pranay Sethi‘s case has
mandated that the said amount will be increased @ 10%,
after every three years, from the date of passing of the
judgment. The judgment, in the present case, was passed in
the year 2023 and the accident had taken place in the year
2017. As such, the petitioners are only held entitled to a
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sum of Rs.15,000/Â under the head ‘funeral expenses’,
.
Rs.15,000/Â under the head ‘loss of estate’ and Rs.40,000/Â
to each of the petitioners, i.e. total Rs. 2,80,000/Â, under the
head ‘loss of consortium’.
206. Viewed thus, the petitioners are held entitled to
of
enhanced compensation to the tune of Rs. 11,76,000/Â + Rs.
15,000/Â + Rs. 15,000/Â + Rs. 2,80,000/Â = Rs. 14,86,000/Â.
207.
rt
So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 6% per
annum. The same needs to be enhanced to 7.5%, as, all the
petitions have arisen out of the same accident and in order
to maintain uniformity, the rate of interest is held to be 7.5%
per annum.
208. Accordingly, the amount of compensation is
required to be enhanced. Consequently, the present appeal
is dismissed, by enhancing the awarded amount from
Rs.12,25,500/Â to Rs.14,86,000/Âand rate of interest from
6% to 7.5 % per annum. The award passed by the learned
MACT is modified accordingly.
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FAO (MV) No. 216 of 2023 arising out of MAC Petition
No.6ÂS/2 of 2018
.
209. Insurance Company has filed the appeal against
the award, passed by the learned MACT, Shimla, in MAC
Petition No.6ÂS/2 of 2018, titled as ‘Subi Devi & Others
of
versus Brij Mohan Jain & Others’.
210. The above noted claim petition has been filed, by
rt
the petitioners, on account of death of Radha, daughter of
petitioner No.1 and sister of petitioners No.2 and 3. The age
of deceased, at the time of accident, has been pleaded to be
as 14 years.
211. Learned MACT has taken the notional income of
Ms. Radha and has rightly awarded the compensation, to
the tune of Rs. 8,90,000/Â, with interest @ 7.5% per
annum, which findings, do not require any interference, by
this Court.
212. Consequently, the appeal is dismissed.
FAO (MV) No. 217 of 2023 arising out of MAC Case
No.38ÂS/2 of 2017
213. Insurance Company has filed the appeal against
the award, passed by the learned MACT(II), Shimla, in MAC
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Petition No.38ÂS/2 of 2017, titled as ‘Pinki versus Brij
.
Mohan Jain & Another’.
214. The above noted claim petition has been filed, by
the petitioners, being widow daughter and son of deceased
Ramesh Chand. The age of Ramesh Chand, at the time of
of
accident, has been pleaded to be 46 years.
215. As per the claim petition, the deceased was
rt
agriculturist and horticulturist and is earning Rs.1,00,000/Â
per month. Elaborating their stand, it has been pleaded
that he was a progressive horticulturist and an expert
pruner.
216. In order to prove the said factual position,
petitioner No.1, Sarita Devi, appeared in the witnessÂbox as
PWÂ1 and deposed that her husband was earning
Rs.1,00,000/Â per month, by grafting and cutting in the
apple orchard. PWÂ2, Bisham Singh Thakur, deposed that
he used to pay Rs.70,000/Â to 80,0000/Â to Ramesh for
cutting and pruning. The learned MACT has taken the
income of Shri Ramesh, during his life time as Rs.9,000/Â
per month, on notional basis. The said findings are not
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sustainable, in the judicial scrutiny by this Court, as the
.
pruning work is seasonal in nature. As such, the income of
deceased Ramesh, during his life time can be taken as
Rs.7,000/Â per month.
217. The petitioners have pleaded the age of deceased
of
Ramesh Chand, as 46 years. As per the matriculation
certificate annexed with the petition, the date of birth of the
rt
deceased Ramesh Chand was 04.08.1968. As such, age of
the deceased was 49 years, at the time of accident.
218. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased
Ramesh Chand, 25% increase is required to be given,
towards future prospects. Thus, by adding 25% of his
monthly income, the same comes to Rs.8,750/Â (Rs.7,000/Â
+ Rs.1,750/Â). Out of the said amount, keeping in view the
number of dependents, 1/3rd amount, on account of his
personal expenses, is required to be deducted, had he been
alive. Thus, his monthly income comes to Rs.5833/Â.
219. Learned MACT has rightly applied the multiplier
of ’13’, as, the age of the deceased has been held to be as 49
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years. Thus, the petitioners are entitled to compensation of
.
Rs.5833/Â x 12 x 13= Rs.9,09,948/Â, under the head ‘loss of
dependency’.
220. The amount, which has been awarded to the
petitioners, by the learned MACT, under the conventional
of
heads, i.e., ‘loss of estate’, ‘funeral charges’, and ‘loss of
consortium’, does not require any interference by this Court.
rt
Thus, the total compensation comes to Rs. 9,09,948/Â + Rs.
15,000/Â + Rs. 15,000/Â + Rs. 1,20,000/Â = Rs.10,59,948/Â.
221. Consequently, the present appeal is partly
allowed, by reducing the amount of compensation from
Rs.14,66,172 to Rs.10,59,948/Â. The award passed by the
learned MACT is modified accordingly.
FAO (MV) No. 239 of 2024 arising out of MAC Petition
No.55ÂS/2 of 2019
222. Insurance Company has filed the appeal against
the award, passed by the learned MACT(II), Shimla, in MAC
Petition No.55ÂS/2 of 2019, titled as ‘Anita & Others versus
Brij Mohan Jain & Another’.
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223. The above noted claim petition has been filed, by
.
the petitioners, on account of death of Kaku @ Punnu, being
his widow and parents, in the accident in question. The age
of Kaku, at the time of accident, has been pleaded to be 23
years.
of
224. As per the claim petition, the deceased was
painter by profession and also used to grow vegetables. He
rt
is stated to be earning Rs.20,000/Â per month from painting
work and Rs.10,000/Â per month, from the vegetables.
225. Petitioner No.1, Anita, when appeared in the
witnessÂbox, as PWÂ2, has filed her affidavit Ex.PWÂ2/A, in
which, she has changed her version, as taken in the claim
petition, by deposing that her husband used to earn
Rs.20,000/Â per month from vegetables and Rs.10,000/Â per
month from painter work.
226. The learned MACT has taken the income of
deceased Kaku, during his life time, as per the daily wages
pertaining to agriculture labourer, in the year 2017, as
Rs.210/Â per day, or to say Rs.6300/Â per month. The said
findings do not require any interference by this Court.
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227. The petitioners have pleaded the age of deceased
.
Kaku, as 23 years.
228. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi’s and considering the age of deceased
Kaku, 40% increase is required to be given, towards future
of
prospects. Thus, by adding 40% of his monthly income, the
same comes to Rs.8,820/Â (Rs.6300/Â + Rs.2,520/Â). Out of
rt
the said amount, keeping in view the number of dependents,
1/3rd amount, on account of his personal expenses, is
required to be deducted, had he been alive. Thus, his
monthly income comes to Rs.5880/Â. The said findings
require interference by this Court.
229. Learned MACT has applied the multiplier of ’18’.
Keeping in view the age of the deceased, the said multiplier
is the appropriate multiplier. Thus, the petitioners have
rightly been held entitled to compensation of Rs.5880/Âx12 x
18= Rs.12,70,080/Â, under the head ‘loss of dependency’.
230. The learned MACT has rightly awarded
compensation under the conventional heads, i.e., ‘loss of
estate’, and ‘funeral charges’, however, the learned MACT
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has awarded compensation under the head ‘loss of
.
consortium’, only to one petitioner, which is required to be
awarded to all the petitioners, as per the mandate of the
Hon’ble Supreme Court in Nanu Ram‘s case supra.
231. Thus, the petitioners are held entitled to the
of
compensation, as under:Â
1. Loss of income
rt = Rs. 12,70,080/Â
2. Loss of consortium = Rs.1,20,000/Â
3. Loss of estate = Rs. 15,000/Â
4. Funeral Expenses = Rs. 15,000 /Â
________________________________________________________
Total = Rs.14,20,080/Â.
________________________________________________________
232. So far as the rate of interest is concerned, the
learned MACT has awarded the interest at the rate of 9%
and the said findings require interference, by this Court, as,
all the petitions, have arisen out of the same accident and in
order to maintain uniformity, the rate of interest is held to
be 7.5% per annum.
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233. Consequently, the present appeal is partly
.
allowed, by enhancing the amount of compensation from
Rs.13,40,080/Â to Rs.14,20,080/Â, along with interest @
7.5%. The award passed by the learned MACT is modified
accordingly.
of
FAO (MV) No. 240 of 2024 arising out of MAC Petition
No.41ÂS/2 of 2019
234.
rt
Insurance Company has filed the present appeal
against the award, passed by the learned MACT(II), Shimla,
in MAC Petition No.41ÂS/2 of 2019, titled as ‘Kamla &
Others versus Brij Mohan Jain & Another‘.
235. The above titled claim petition has been filed, by
the petitioners, seeking compensation, on account of death
of Ajab Singh, being his widow, daughter, son and widowed
mother, in the accident in question. The age of Ajab Singh,
at the time of accident, has been pleaded to be as 38 years.
236. As per the claim petition, the deceased was
painter by profession and also used to grow vegetables. He
is earning Rs.15,000/Â per month from painting work and
Rs.10,000/Â per month, from the vegetables.
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237. In order to prove the above factual position,
.
petitioner No.1, appeared in the witnessÂbox, as PWÂ2, and
filed her affidavit Ex.PWÂ2/A, in which, she has again
asserted the fact that her husband was a painter by
profession and earning Rs.15,000/Â per month, by painting
of
working and Rs.10,000/Â by growing vegetables.
238. The learned MACT has taken the income of
rt
deceased Ajab Singh, during his life time, as per the daily
wages pertaining to agriculture labourer, in the year 2017,
as Rs.210/Â per day, or to say Rs.6300/Â per month. The
said findings do not require any interference by this Court.
239. The petitioners have pleaded the age of deceased
Kaku, as 38 years.
240. In view of the decision of Hon’ble Supreme Court
in Pranay Sethi‘s case and considering the age of deceased
Ajab Singh, 40% increase is required to be given, towards
future prospect. Thus, by adding 40% of his monthly
income, the same comes to Rs.8,820/Â (Rs.6300/Â +
Rs.2,520/Â). Out of the said amount, keeping in view the
number of dependents, 1/4th amount, on account of his
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personal expenses, is required to be deducted, had he been
.
alive. Thus, his monthly income comes to Rs.6615/Â. The
said findings do not require any interference, by this Court.
241. Keeping in view the age of the deceased, the
learned MACT has rightly applied the multiplier of ’15’ and
of
has rightly held the petitioners entitled to compensation to
the tune of Rs.6615/Âx12x15= Rs.11,90,700/Â, under the
rt
head ‘loss of dependency’.
242. The compensation has been awarded to the
petitioners, by the learned MACT, under the conventional
heads, i.e., ‘loss of estate’, and ‘funeral charges’, however,
the learned MACT has awarded compensation under the
head ‘loss of consortium’, only to one petitioner, which is
required to be awarded to all the petitioners, as pet the
mandate of the Hon’ble Supreme Court in Nanu Ram‘s case
supra.
243. Thus, the petitioners are entitled to the
compensation, as under:Â
1. Loss of income = Rs. 11,90,700/Â
2. Loss of consortium = Rs.1,60,000/Â
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106 2026:HHC:31618
3. Loss of estate = Rs. 15,000/Â
.
4. Funeral Expenses = Rs. 15,000 /Â
________________________________________________________
Total = Rs.13,80,700/Â.
________________________________________________________
244. So far as the rate of interest is concerned, the
of
learned MACT has awarded the interest at the rate of 9%
and the said findings require interference, by this Court, as,
rt
all the petitions, have arisen out of the same accident and in
order to maintain uniformity, the rate of interest is held to
be 7.5% per annum.
245. Consequently, the present appeal is partly
allowed, by enhancing the amount of compensation from
Rs.12,60,700/Â to Rs.13,80,700/Â, along with interest @
7.5%. The award passed by the learned Tribunal is modified
accordingly.
246. Parties are left to bear their own costs.
247. Memo of costs be prepared accordingly.
248. Record be sent back.
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249. Copy of the judgment be placed on the files, in
.
the connected appeals.
(Virender Singh)
Judge
30th July, 2026 (rajni/ps)
of
rt
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