SUPREME COURT OF INDIA
SANJAY KAROL, AUGUSTINE GEORGE MASIH, JJ.
Dilip Agarwal – Appellant
Versus
Rajshri Agarwal & Ors. – Respondents
Civil Appeal Nos. 9311-9312 of 2026 (Arising out of SLP(C) Nos. 9002-03 of 2026)
Decided On : 22-07-2026
Motor Vehicles Act, 1988 – Sections 165 and 166 – Death in motor accident – Enhanced compensation of Rs.8,60,832/- with 6% interest awarded by High Court – Liability under M.V. Act cannot be fastened only because of accident and motor vehicle – ‘Arising out of’ is the causal link – Without this, liability falls – Distinction between primary and secondary felonious act cannot be made in present case – What transpired was a perfectly innocuous set of circumstances – No causal link has been established – Evidence-on-record does not point to any forensic proof having been recovered from car – Claimants need not establish particular manner in which injuries have been sustained by injured or deceased but that does not mean that simply because there was a car somehow involved in a chain of circumstances that led to his death, provisions of MVA would apply – Some link whatsoever between car, and death has to be established – There is alleged accidental murder and there is a motor vehicle, but relationship between the two specifically involving a motor vehicle has not been established – There cannot be any liability under MVA – Judgments of Courts below set aside. (Paras 8, 10, 11, 13 and 14)
Facts of the case:
Tribunal, while holding that rashness and negligence could not be proved, held death of Anand, to be covered under Sections 165 and 166 of Motor Vehicles Act, 1988, observing that dominant intention at play was not murder of Anand, but injuries suffered by him were inflicted while they were in vehicle, eventually leading to his death. Another reason for the Tribunal’s conclusion was that Dilip, failed to deny the case of claimants and as such accepted their version of events. Total amount of Rs.5,64,000/- with 7% interest was awarded. High Court agreed with findings of Tribunal and enhanced total compensation to Rs.8,60,832/- with 6% interest on enhanced amount.
Findings of Court:
In peculiar facts, amount of compensation, if already paid to respondents, shall not be subjected to any recovery.
Result : Appeal allowed.
JUDGMENT :
SANJAY KAROL, J.
1. Leave Granted.
2. One Anand, sat in the vehicle driven by his friend, the appellant Dilip, on 29th November 2009 and three days later, on 03.12.2009 he was found dead near Binjkot village, PS Chalradhar Nagar. Rajshri - Anand’s wife lodged FIR No.963 of 2009 at PS Kotwali, District Raigarh, thus setting in motion the machinery in criminal law. The chargesheet alleged that a total of three accused persons in furtherance of a conspiracy, kidnapped Anand, killed him in a premeditated fashion and disposed of his mortal remains. Somewhat parallelly, Rajshri and her three children filed a claim petition vide claim Case No.37 of 2011 under Section 166 of the Motor Vehicles Act, before the Fourth Additional Motor Accident Claims Tribunal1[MACT], Raigarh, seeking compensation of approximately Rs. 26,00,000/-, alleging that Anand, was killed inside Dilip’s vehicle and hence the vehicle was used in the commission of the offence.
3. In the criminal case being Sessions Trial No. 38 of 2010, vide judgment dated 30th November 2012, Dilip was convicted under Sections 365, 302, 201 and 120B of the Indian Penal Code, 18602[IPC]. His appeal to the High Court succeeded and in terms of judgment dated 18th November 2015, he was acquitted of all charges primarily on account of the fact that the last seen theory, on which the case of the prosecution rested, could not be proved.
4. The Tribunal, while holding that rashness and negligence could not be proved, held the death of Anand, to be covered under Sections 165 and 166 of the Motor Vehicles Act, 1988,3[MVA] observing that the dominant intention at play was not the murder of Anand, but the injuries suffered by him were inflicted while they were in the vehicle, eventually leading to his death. Another reason for the Tribunal’s conclusion was that Dilip, failed to deny the case of the claimants and as such accepted their version of events. A total amount of Rs.5,64,000/- with 7% interest was awarded. The High Court agreed with the findings of the Tribunal and enhanced total compensation to Rs.8,60,832/- with 6% interest on the enhanced amount.
5. The short question before us is whether the death of Anand ‘arises out of’ the use of the motor vehicle thereby making Dilip and/or his insurer liable to compensate the respondents?
6. In a recent decision, this Court in Bruhat Bangalore Mahanagara Palike v. K.K. Umesh Kumar, 2026 SCC OnLine SC 1111 while considering a case of a passenger in an autorickshaw that was parked on the side of the road, being injured by a branch of a tree falling on top of the said vehicle, referred to earlier precedents in connection with ‘arising out of’. Relevant extract of the decision is as follows:
“26. These decisions indicate that the word “use”, in the context of motor vehicles, has been construed in a wider sense to include the period when the vehicle is not moving and is stationary, being either parked on the road and when it is not in a position to move due to some breakdown or mechanical defect. … In our opinion, the word “use” has a wider connotation to cover the period when the vehicle is not moving and is stationary and the use of a vehicle does not cease on account of the vehicle having been rendered immobile on account of a breakdown or mechanical defect or accident. In the circumstances, it cannot be said that the petrol tanker was not in the use at the time when it was lying on its side after the collision with the truck.
…
33. …The words “arising out of” were not construed to mean “arising under” as in Union of India v. E.B. Aaby's Rederi A/S [1975] A.C. 797 : [1974] 2 All ER 874] which decision was held inapplicable
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.