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2026 Supreme(Gau) 1079
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
YARENJUNGLA LONGKUMER, J.
New India Assurance Co. Ltd. – Appellant
Versus
Rina Das And 4 ors. W/o Sri Gopal Das – Respondents
MACApp. 276 of 2022
Decided On : 19-06-2026
For the appellant :Mr. R.K. Bhatra & Ms. A. Biyani, Advocates
For the respondents Nos. 1&4:Mr. H.K. Sarma, Advocate
For the respondents No.5:Mrs. S. Roy, Advocate
In motor accident litigation, insurers are entitled to recover paid compensation from vehicle owners if the driver's license is invalid. Furthermore, undisputed salary certificates constitute sufficient proof of income, and awarded interest rates must remain reasonable rather than excessive, ensuring just compensation for claimants.
Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Code of Civil Procedure - Order 41 Rule 27 - Motor accident - Driving license verification - Where license of driver of offending vehicle is found to be invalid or not issued by the concerned authority, insurer is entitled to recover compensation amount from owner of offending vehicle - Principle of pay and recover is applicable. (Paras 17 and 23)
(B) Compensation - Assessment of Income - Where salary certificate issued by employer is neither disputed nor challenged before the tribunal, such document constitutes conclusive evidence of deceased's income - Rejection of such proof on grounds that the issuer was not examined is unjustified. (Para 18)
(C) Interest - Rate of interest - Award of 12% interest is excessive in the absence of extraordinary delay in proceedings - Rate of interest stands reduced to 7.5% per annum from the date of filing of claim petition till realization. (Para 21)
Facts of the case:
Claimant sought compensation following the death of her son in a road accident. The tribunal awarded total compensation with interest at 12% per annum. The insurer-appellant challenged the award on grounds of the driver's driving license being invalid, incorrect assessment of the deceased's monthly income, excessive interest rate, and improper calculation of loss of estate.
Findings of Court:
The court noted that the driving license of the offending vehicle's driver was not genuine, entitling the insurer to recovery rights against the owner. It further held that the salary certificate, being undisputed, was sufficient proof of income. The court adjusted the calculation for loss of estate to align with settled precedents and substituted the award for 'loss of love and affection' with 'filial consortium'. Interest was reduced to 7.5% as the 12% rate was deemed excessive.
Issues: The main issues addressed were the validity of the driving license, the admissibility of unexamined employer-issued salary certificates to determine income, and the reasonableness of the interest rate awarded.
Ratio Decidendi: An insurer is permitted to recover compensation from the vehicle owner if the driver lacks a valid license. Additionally, undisputed documentary evidence including salary certificates must be accepted for proving income, and interest rates in compensation claims must remain reasonable and reflect current norms rather than being excessively high.
Result: Appeal allowed with modifications to the compensation amount and interest rate.
| Table of Content |
|---|
| 1. overview of the appeal against the mact award and factual background of the motor vehicle accident. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. appellate arguments regarding driving license validity, dependency, income assessment, and interest rates. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 3. analysis of liability, income proof, applicability of future prospects, and adjustment of compensation heads. (Para 16 , 17 , 18 , 19 , 20 , 21) |
| 4. procedural directives for recovery rights and final disbursement of the modified compensation award. (Para 22 , 23 , 24 , 25 , 26) |
JUDGEMENT AND ORDER (CAV)
YARENJUNGLA LONGKUMER, J.
The present appeal under Section 173 of the MV Act, 1988(As amended) has been preferred by the New India Assurance Company Limited challenging the judgment and award 28.10.2021 passed by the MACT No.1 Tinsukia, in MAC Case No. 36/2017 awarding a compensation of Rs.10,95,000/-(Rupees Ten Lakh Ninety-Five Thousand) along with interest at 12% per annum from the date of filing the claim petition till its realization.
2. Heard learned counsel for the appellant, Mr. R.K. Bhatra and learned counsel, Ms. A. Biyani. Also heard learned counsel, Mr. H.K. Sarma, for the respondent Nos. 1& 4 and learned counsel, Mrs. S. Roy, for the respondent No.5.
3. The facts leading to the filing of the present appeal is that a claim petition was filed by the mother of the deceased as claimant seeking compensation for the death of her son, Chintu Das who died in a Motor vehicle accident on 24.03.2017 on NH-37 when the deceased driving the vehicle No.AS-06-S- 2017(Motor Cycle) was proceeding from Dibrugarh towards Tinsukia side with a pillion rider. Suddenly, the truck Bearing Registration No.HR-57-6589 coming from the opposite direction being driven in a rash and negligent manner lost control and knocked down the motor cycle with great force by coming on the wrong side of the road. As a result, both the driver and pillion rider of the motor cycle died on the spot.
4. in the claim petition the owner and driver as well as the appellant being the insurer of the truck bearing registration No.HR-57-6589 were impleaded as opposite party Nos. 1,2 and 3 and the owner and the insurer of the motor cycle bearing registration No. AS-06-S 2107 were impleaded as opposite party No. 4 & 5.
5. All the opposite parties contested the case except the opposite party No.2/Driver of the offending truck. The opposite parties filed their written statement. The appellant herein also filed their written statement taking statutory defenses and also filed an additional written statement taking the defense of contributory negligence.
6. The learned Tribunal after the conclusion of the evidence and after hearing arguments passed the impugned judgment and award dated 28.10.2021. Being aggrieved the appellant has preferred the instant appeal.
7. Learned counsel for the appellant has argued the appeal on five grounds. The first ground taken by the appellant is that the driving license of the driver of the truck was not valid and effective at the time of the accident. It is stated that when the appellant company was processing the file after delivery of the impugned judgment it was discovered that the driver of the truck was not holding a valid driving license at the time of the accident. It is stated that during the pendency of the claim petition, the appellants could not ascertain the concerned RTO from where the driving license was issued. It was only at the later stage that the appellant came to know that the DTO Muzaffarpur, was projected as the issuing authority. Thus, the appellant sought a verification report from the DTO Muzaffarpur, and thereafter, the report of the DTO was received on 03.03.2022 indicating that the driving license No.4164/08F held by the driver of the truck Bearing Registration No.HR-57-6589 was not issued from the office of the DTO Muzaffarpur. Therefore, the appellant states that there was a violation of the policy condition by the owner of
