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2025 Supreme(Gau) 1324

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
YARENJUNGLA LONGKUMER, J.
Smti Chuto Gaur And 3 Ors - Appellant 
Versus
National Insurance Company Ltd - Respondent 
MACApp.437 of 2018
Decided on : 12-08-2025

Advocates Appeared:
For the Petitioner: MR. Y S MANNAN, MR. K R BORA, MS. M  BHATTACHARYYA
For the Respondent: MS. R D MOZUMDAR, MR. DEBABRAT CHUTIA, MS. C MOZUMDAR, MR. S P SHARMA

Fraud in legal claims must be adequately substantiated; discrepancies in documentation alone do not invalidate awards unless malicious intent is proven.

Headnote:(A) Motor Vehicle Act, 1988 - Section 173 - Appeal against MACT decision - The appeal contests the review of a compensation award due to allegations of fraud regarding vehicle identification. The correction in G.D Entry does not automatically constitute fraud, and other evidence must be examined. (Paras 17, 18, 24)

(B) Fraud - Definition and burden of proof - A judgment obtained by fraud is nullified, but mere discrepancies do not suffice to prove fraudulent intent. The claimants must prove that any corrections were with dishonest intent. (Paras 17, 19)

Facts of the case:
The appeal arises from the death of a pedestrian due to an accident involving an allegedly misidentified vehicle. The initial award was set aside due to claims of fraud by the insurance company regarding the vehicle involved. (Paras 1, 6)

Findings of Court:
The court determined that the fraud was not proven and reinstated the original award in favor of the claimants, emphasizing the need for substantive evidence beyond G.D Entries. (Paras 24, 25)

Issues: Whether the correction in the G.D Entry constituted fraud and whether the claimants provided sufficient evidence linking the identified vehicle to the accident. (Paras 17, 20)

Ratio Decidendi: The court clarified that not every minor correction in documentation signals fraud, reaffirming that the burden of proof rests on the party alleging fraud. (Paras 18, 19)

Result: The impugned Judgment dated 11.10.2017 is quashed; the original award from 11.02.2015 is restored, directing payment within 90 days.

Table of Content
1. introduction of the case and parties involved (Para 1 , 2)
2. accident details and initial compensation awarded (Para 3 , 4)
3. insurance company claims fraud led to compensation recall (Para 5 , 6)
4. defense arguments against the fraud claim (Para 8 , 10)
5. supporting legal precedents cited by appellant (Para 11 , 12)
6. insurance company's rebuttal and evidence presented (Para 13 , 14)
7. court's reasoning regarding fraud and evidence standards (Para 16 , 17 , 18)
8. court conclusions on vehicle identification discrepancies (Para 19 , 20 , 21 , 23)
9. final order to restore compensation judgment (Para 24 , 25 , 26)

JUDGMENT :

YARENJUNGLA LONGKUMER, J.

The present appeal under 173 of the Motor Vehicle Act, 1988 has been preferred by the appellants against the Judgment dated 11.10.2017 passed in MISC Case No. 1/2016 arising out of MAC Case No. 1639/2013 passed by the Motor Accidents Claims Tribunal No. 3 (MACT No.3 for short), reviewing the Judgment and Order dated 11.02.2015 passed in MAC Case No. 1639/2013.

2. I have learned counsel, Mr. Y.S Mannan for the appellant as well as learned counsel for the Insurance Company/respondent No.1, Ms. R.D Mozumdar.

3. The case of the appellant is that on 01.06.2013 at about 7:00 PM when the deceased late Parasuram Gaur was proceeding from Bokul towards his home on foot, and on reaching National Highway No. 37, near Railway Gate Tiniali, the offending vehicle Indigo with R/No. AS-06-H/0237 coming from the same direction and being driven in rash and negligent manner knocked him down from the back side causing grievous injuries on his body which ultimately resulted in his death. In this regard, a case was registered being Lahuwal P.S. Case No. 90/2013 under Sections 279 /304(A) I.P.C. The claimants/appellants filed claim petition claiming an amount of Rs 40,00,000/- for causing the death of late Parasuram Gaur against the owner, driver of the offending vehicle and the National Insurance Company Limited.

4. It is further stated that the owner and driver of the vehicle did not contest the case and therefore, the tribunal proceeded ex-parte against them. The insurer/National Insurance Company Limited contested the case and the learned MACT No. 3 Kamrup (M), Guwahati vide Judgment and Order dated 11.02.2015 awarded compensation amounting to Rs. 22,45,739/- only with interest @ 6% p.a from the date of filing from the Claim Petition till realization of the amount to be paid by the National Insurance Company Limited.

5. Thereafter, the National Insurance Company/respondent No. 1 filed an application under Section 151 , 152 and 153 of the Code of Civil Procedure on 18.01.2016 praying for recalling the Judgment and Order dated 11.02.2015 passed in MAC Case No. 1639/2013 on the ground that the Insurance Company came to know that the deceased was hit by an unknown Maruti car from behind which was mentioned in the medical certificate issued by the Assam Medical College Hospital, Dibrugarh and not an Indigo car. The Insurance Company took the plea that the claimants had procured the award by plying fraud upon the tribunal and therefore, the award is required to be recalled.

6. The said review petition was registered as Misc Case No. 1/2016. The review petition was disposed of by the learned MACT No. 3 Kamrup(M), Guwahati vide Judgment and order dated 31.08.2017 setting aside the judgment and Award dated 11.10.2015 passed in MAC Case No. 1639/2013. By the impugned judgment dated 31.08.2017, the learned MACT No. 3 Kamrup(M), Guwahati held that the claimants/ appellants are not entitled to any relief as fraud had vitiated the award.

7. Being aggrieved the claimants/appellants have come before this Court assailing the impugned Judgment dated 31.08.2017 passed by the learned MACT No. 3, Kamrup(M), Guwahati in Misc Case No. 1 /2016.

8. The learned counsel for the appellant submits that the learned MACT No. 3 had considered only the Medical certificate issued by the Assam Medical Collage Hospital, and the e

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