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2026 Supreme(Guj) 996

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
MOOL CHAND TYAGI, J.
Bajaj Allianz Genral Insurance Company Ltd. – Appellant 
Versus
Rinkudevi Sohan Prajapati And Ors. – Respondents 
First Appeal No. 5776 Of 2019
Decided On : 20-04-2026

Advocates Appeared:
For The Appellant : Ms Kirti S Pathak
For The Respondent: Mr. Hemal Shah

Appellate courts have the authority to grant 'just compensation' regardless of the absence of formal cross-objections. Additionally, an insurer bears the strict burden of proof to demonstrate the lack of a valid driving license and cannot rely on mere allegations to evade liability.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Motor accident - Liability of insurer - Burden of proof to establish absence of valid driving license lies on the insurer - Mere assertion of a lost license is insufficient proof to absolve the insurer of liability. (Paras 5, 14, 15)

(B) Compensation - Quantum - Determination of legal heirs and dependents - Inclusion of parents as dependents - Deduction for personal expenses - Where there are four dependents, deduction for personal expenses should be 1/4th instead of 1/3rd. (Paras 16, 17, 18)

(C) Appellate Jurisdiction - Power to enhance compensation - In the interest of ensuring 'just compensation', an appellate court is empowered to grant enhancement even in the absence of formal cross-objections or appeals by the claimants. (Paras 12, 22, 23)

Facts of the case:
An appeal was preferred by the insurer against an award passed by the tribunal in a motor accident claim case. The insurer challenged the liability on the grounds that the driver of the offending vehicle did not possess a valid driving license. Simultaneously, the claimants sought an enhancement of the compensation, arguing that the tribunal erred in the dependency calculation and failed to account for all conventional heads of compensation correctly.

Findings of Court:
The court held that the insurer failed to conclusively prove the absence of a valid driving license through requisite evidence or examination of officials, and thus, remained liable. It further ruled that the deduction for personal expenses was incorrectly calculated considering the number of dependents was four, necessitating a revision. It also held that the denial of consortium to all dependents was erroneous.

Issues: The main issues addressed were whether the insurer had successfully proven the absence of a driving license to avoid liability; whether the parents of the deceased qualified as dependents for the purpose of compensation calculation; and whether compensation could be enhanced in an appeal filed by the insurer without the claimants filing a formal cross-appeal.

Ratio Decidendi: The court maintained that an insurer bears the active burden of proving the invalidity of a license and that a mere report of a lost document does not equate to the total absence of a valid document. Furthermore, judicial interpretation of 'just compensation' mandates that appellate courts ensure the claimant receives the correct amount, irrespective of whether a formal cross-appeal has been filed, provided such enhancement is legally justified.

Result: Appeal dismissed. Compensation enhanced with interest awarded on the additional amount.

Table of Content
1. factual background of the motor accident claim appeal and procedural status of the parties. (Para 1 , 2 , 3)
2. burden of proof on the insurer to demonstrate invalidity of driving license as a defense. (Para 4 , 5 , 6 , 13 , 14 , 15)
3. appellate court power to enhance compensation to 'just compensation' without formal cross-appeals. (Para 7 , 8 , 9 , 10 , 11 , 12 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
4. final adjudication of the appeal and directions for deposit and disbursement of compensation. (Para 24 , 25 , 26)

JUDGMENT :

MOOL CHAND TYAGI, J.

1. The captioned appeal is preferred against the impugned judgment and award dated 27.06.2019 passed by the learned Motor Accident Claims Tribunal (Main), Jamnagar in M.A.C.P. No. 608 of 2007, whereby the learned Tribunal has partly allowed the claim petition and awarded a sum of Rs.9,70,000/- (Rupees Nine Lacs Seventy Thousand Only) along with interest at the rate of 9% per annum, from the date of filing of the claim petition till realization, as compensation.

2. A perusal of the record transpires that the respondent no.5 herein – driver of the offending auto-rickshaw had expired, but the appellant-Insurance Company has not taken any step to bring the legal representatives of respondent no.5 herein on record. Therefore, the appeal qua respondent no.5 stands abated.

3. The succinct facts, which lead to the filing of the captioned appeal are summarized as under :-

i. On 03.09.2007, Sohan Ritu Prajapati was travelling in a rickshaw bearing Registration No. GJ-10-W-1434 from Reliance Kolsi Gate to Village Padana. At about 05:00 p.m., when the rickshaw reached ahead of Village Padana, it overturned due to excessive speed and the rash and negligent driving of its driver. As a result of the accident, Sohan Ritu Prajapati sustained grievous injuries and succumbed to the same.

ii. The notices/summons of the Claim Petition were duly served upon the opponents. The opponent no.1 – respondent no.5 herein chosen not to appear before the learned Tribunal, however, the Insurance Company appeared before the learned Tribunal and filed Written-Statement at Exh.20, thereby, denying the averments made in the claim petition in toto.

iii. Having considered the pleadings of the parties, the learned Tribunal framed the following issues at Exh.30, for determination.

i. Whether the petitioners prove that the deceased died due to the injuries sustained by him in a vehicular accident due to rash and/or negligent driving of the driver of the motor-vehicles involved in the said accident?

ii. Whether the petitioners are entitled to compensation? If yes, what amount and from whom?

iii. What Award?

iv. Having considered the oral as well as documentary evidence on record, and having considered the submissions of the learned counsels for the parties, the learned Tribunal awarded a sum of Rs.9,70,000/- (Rupees Nine Lacs Seventy Thousand Only) along with interest at the rate of 9% per annum, from the date of filing of the claim petition till realization, as compensation.

v. Being aggrieved and dissatisfied by the impugned judgment and award, the Insurance Company preferred the captioned appeal.

4. Heard learned counsels for the parties.

5. Ms. Kirti Pathak, learned advocate appearing on behalf of the Insurance Company vehemently submitted that at the time of accident, the driver of the offending auto-rickshaw was not having the valid and effective driving license. It is submitted that in order to prove its defence, the Insurance Company has examined Mr.Manish K.Dave at Exh.54. Having placed reliance upon the affidavit in examination-in-chief of Mr.Manish K. Dave, it is submitted that the driver of the auto-rickshaw bearing Registration No.GJ-10-W-1434 was not holding the valid driving license, as the Investigating Officer, in his statement recorded that he lost the driving license. It is submitted that in view of admission of driver of the auto-rickshaw, in his statement made to the police, it is evident from the re

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