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2026 Supreme(Gau) 863

IN THE GAUHATI HIGH COURT HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH) 
MRIDUL KUMAR KALITA, J. 
Oriental Insurance Company Ltd., Represented By its Regional Manager – Appellant
Versus
Niru Saikia, W/o. Purnanda Saikia – Respondent
MAC App. 41 of 2023 
Decided On : 18-05-2026

Advocates Appeared:
For the Appellants :Mr. R. C. Paul, Advocate
For the Respondents:Mr. I. A. Talukdar, Advocate
a

Under Section 167 of the Motor Vehicles Act, a claimant must elect between available remedies. Once a specific statute is chosen, the tribunal cannot apply criteria from a different act to compute compensation, nor can it bypass the requirement of proving negligence in fault-based claims.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166, 163A, 167 - Employees' Compensation Act, 1923 - Section 4 - Death of driver - Compensation - Tribunal erred in mixing jurisdictions - Claimant must elect remedy - Section 167 provides option but bars simultaneous or conflated claims - No negligence established - Insufficiency of proof regarding driver/owner fault - Income threshold bar for specific non-fault provisions applied - Remand process improper - Criteria for computation misapplied. (Paras 26, 28, 32, 35)

(B) Appellate Jurisdiction - Tribunals must adhere to the jurisdictional scope of the statute under which a claim is filed - Cannot adopt beneficial provisions of a different statute if the original claim is not maintainable under those specific parameters. (Para 34)

Facts of the case:
A deceased driver was killed during a vehicle theft. A claim petition for compensation was filed under the vehicle-related legislation. After repeated litigation and remand, the tribunal awarded compensation by applying computation criteria governed by labor-specific compensation law, rather than the vehicle-accident statutes. The insurance provider challenged this on the grounds of jurisdictional error and failure to establish the required fault/negligence, noting that the deceased's earnings excluded the claim from simplified non-fault provisions.

Findings of Court:
The court determined that the tribunal incorrectly calculated compensation using standards from the labor-related compensation statute for a claim strictly filed under vehicle-accident law. The claimants were effectively barred from oscillating between statutes after making an initial election of jurisdiction and remedy. Furthermore, the mandatory requirement to prove fault/negligence for the specific pathway of the claim was not satisfied.

Issues: Whether the tribunal acted within its jurisdiction by importing criteria from labor-related legislation into a claim filed under vehicle-accident regulations, and whether the essential requirement of establishing fault/negligence was satisfied.

Ratio Decidendi: Once a claimant selects a specific statutory forum for relief, they cannot invoke provisions from a different statute to calculate or justify the award. Legislative provisions enable an initial choice between potential remedies but strictly prohibit the conflation or mixing of divergent legal frameworks. Fault-based claims require the establishment of negligence on the part of the driver or owner.

Result: Appeal allowed; judgment and award of the tribunal set aside.

Table of Content
1. procedural history and factual background of the accident. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. conflicting arguments on jurisdictional suitability of the compensation act versus motor vehicles act. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
3. section 167 of the motor vehicles act prohibits seeking compensation under both the employees' compensation act and the motor vehicles act simultaneously. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29)
4. claimants under section 166 must prove fault-based liability, and income limitations preclude shifting to section 163a. (Para 30 , 31 , 32 , 33 , 34 , 35)
5. order setting aside the impugned award due to jurisdictional errors by the tribunal. (Para 36 , 37 , 38)

JUDGMENT :

MRIDUL KUMAR KALITA, J.

1. Heard Mr. R. C. Paul, the learned counsel for the appellant Insurance Company. Also heard Mr. I. A. Talukdar, the learned counsel for the respondents /claimants.

2. This Appeal under Section 173 of the Motor Vehicles Act, 1988 has been filed by the Oriental Insurance Company Limited impugning the judgment and award dated 23.08.2022 passed by the Motor Accident Claims Tribunal, Nagaon in the MAC Case No. 249/2006, whereby, the appellant was directed to pay a compensation amount of Rs. 20,17,856/- to the claimants along with an interest at the rate of 12% per annum.

3. The facts relevant for consideration of the instant appeal, in brief, are that one Sanjeev Saikia was a professional driver of the vehicle bearing Registration No. AS01Y5127 (Tata mobile pick-up van), which is a goods carrying vehicle. On 26.03.2006, some miscreants had hired the said vehicle with an intention to commit theft of the vehicle and when the vehicle was going towards Changjurai Potiapam reserve for loading vegetables, the miscreants killed the driver and the handyman and committed theft of the said vehicle. However, the villagers appeared at the place of occurrence and apprehended the two of the miscreants involved in the incident. In this regard, an FIR was lodged and Jamunamukh Police Station Case No. 5/2006 under Section 302/34 of the Indian Penal Code was registered.

4. Thereafter, the mother, the father and the widow of the deceased Sanjeev Saikia filed an application under Section 166 of the Motor Vehicle Act, 1988 before the Motor Accident Claims Tribunal, Nagaon, seeking compensation for death of their son/husband. The said case was registered as MAC Case No. 249/2006.

5. The present appellant contested the claims case by filing a written statement, wherein it took the usual defences which are available to Insurance Company under the law. It also took the plea of non-maintainability of the application under Section 166 of the Motor Vehicle Act, 1988. Upon the pleadings of the parties, the Motor Accident Claims Tribunal framed the following issues:

i. Whether the claim petition is maintainable?

ii. Whether the accident occurred due to rash and negligent driving of the driver of the vehicle No. AS01Y5127 (mobile pick-up van)?

iii. Whether the claimant is entitled to receive compensation, and if so, to what extent and who is liable to pay the same?

iv. To what reliefs/reliefs are the parties entitled to?

6. The Motor Accident Claims Tribunal, Nagaon, by judgment dated 11.03.2015, had dismiss the claim case filed by the claimants mainly on the ground that the claimants have failed to show any negligence or fault on the part of the driver or owner of the offending vehicle. Hence, it was held that they are not entitled to get relief under Section 166 of the Motor Vehicle Act, 1988.

7. The Tribunal also held that as the annual income of the deceased was more than Rs. 40,000/- the claim case also cannot be converted into a case under Section 163A of the Motor Vehicle Act, 1988, in view of the clear bar to that effect laid down in law and clarified by the Apex Court in the case of Deepal Girishbhai Soni and Others Vs. United India Insurance Company Limited reported in (2004)

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