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2025 Supreme(HP) 1033

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
SUSHIL KUKREJA, J.
Gulab Thakur - Appellant
Versus
Reeta Kumari and Others - Respondents
FAO No. 7 of 2025
Decided On : 06-01-2025

Advocates:
Advocate Appeared:
For the Appellant : Rajiv Sirkeck
For the Respondents: Bhavinta Kumar, Niranjana, Heena Chauhan, Himani Verma, Ashwani K. Sharma, Nisha Nalot

An employer cannot be held liable for a vehicular accident if they were neither the owner nor the driver of the vehicle, emphasizing established principles of liability under the Motor Vehicles Act.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 167 - Appeal against the award by the Motor Accident Claims Tribunal - Employer of deceased held liable erroneously - Tribunal's findings on negligence were challenged based on the designation of parties and applicable legal provisions. (Paras 1, 11, 13)

(B) Liability in Motor Accident cases - Where an employer is not the owner or driver of the offending vehicle, liability cannot be fastened upon them if findings support the opposite conclusion. (Paras 10, 11)

Facts of the case:
Appellant was found liable to pay Rs. 6,26,000/- for the death of Joginder Pal in a vehicular accident while working under the appellant's employment, despite a contention that different parties were responsible. (Paras 1, 9)

Findings of Court:
The Tribunal had erred in attributing liability to the appellant as the employer, while evidence indicated that the driver was responsible for the accident. (Paras 10, 13)

Issues: Whether the correct party was held liable under the Motor Vehicles Act for the negligence leading to the accident, and the appropriateness of the damages awarded. (Paras 6, 11)

Ratio Decidendi: The court emphasized that liability must be based on the clear designation and role of involved parties, as the appellant was neither the owner nor the driver and thus not liable for the compensation claims. (Paras 11, 13)

Result: The appeal is allowed, and the Tribunal's award is set aside, with the case remanded for fresh consideration.

Table of Content
1. factual basis of accident and claim (Para 1 , 2)
2. defensive arguments rejecting liability (Para 3 , 4 , 5)
3. court's analysis on liability and jurisdiction (Para 6 , 9 , 10 , 11 , 12 , 13)
4. conclusion and remand for fresh hearing (Para 7 , 8 , 14 , 15)

JUDGMENT :

Sushil Kukreja, J.

1. The present appeal has been filed by appellant (respondent No. 2 before the learned Tribunal below) against the impugned award dated 30.07.2019, passed by learned Motor Accident Claims Tribunal Kinnaur at Rampur Bushahr, District Shimla, H.P., in MACT Case No. 0000019/2016, whereby, the petition filed by the petitioners (respondents No. 1 to 6 herein) was allowed and respondent No. 2 (appellant herein), being employer of the deceased, was held liable to pay compensation to the tune of Rs. 6,26,000/-, alongwith interest @ 6% per annum from the date of the petition, till the deposit of the amount, to the petitioners.

2. The brief facts of the case are that the petitioners filed a petition under Section 166 of the MOTOR VEHICLES ACT , 1988 (hereinafter referred to as “MV Act”) before the learned Tribunal below, seeking compensation on account of death of Joginder Pal, who died in an accident while travelling in a vehicle, bearing registration No. HP-06A-3099 on 10.10.2015 and bringing stones to Kachin Ghati, where respondent No. 2 had taken contract of constructing the retaining wall. It has been averred in the petition that the driver of the vehicle was driving it in a rash and negligent manner and could not control the same, as a result of which, it met with an accident and rolled down about 30 meters out of the road towards nallah and deceased died on the spot. Consequently, FIR No. 90/2015, dated 10.10.2015 was registered at Police Station, Kumarsain. As per the petitioners, the deceased was 40 years of age at the time of his death and was employed by respondent No. 2, as a driver, on a monthly salary of Rs. 10,000/- besides this, he was earning Rs. 2,00,000/- per annum from agriculture. It has further been averred in the petition that they incurred more than Rs. 50,000/- on carrying the dead body from the place of accident to CHC, Kumarsain and thereafter to their native place for funeral. Hence, the petitioners filed the petition seeking compensation of Rs. 20,00,000/-.

3. In the reply filed by respondent No. 1-owner of the vehicle, preliminary objection qua maintainability has been taken. It has been pleaded that at the time of accident, respondent No. 3 was not driving the vehicle in question, but the vehicle in question was being driven by one Harish @ Raj Kumar Nepali. It has further been pleaded that accident had not taken place due to rash and negligent driving of the driver of the vehicle and in fact, the road suddenly gave way, as a result of which, the vehicle rolled down 30 meters from the road. It has also been pleaded that the vehicle in question was insured with respondent No. 4. On merits, it has been admitted that the deceased was travelling in the vehicle from Karsog and was carrying stones. It has been averred that during investigation, the Investigating Agency has found that there was no rashness and negligence on the part of the driver of the vehicle and as such, a cancellation report in the matter was prepared and submitted to the Court of ld. ACJM, Rampur Bushahr.

4. In the reply filed by respondent No. 3-driver, preliminary objections qua maintainability and non-joinder of necessary parties have been taken. On merits, it has been admitted that on the date of accident, the deceased was travelling in the vehicle with his stones, but it has been denied that he was driving the vehicle in a rash and negligent manner. It has been averred that during investigation, Investigating Agency has found no rashness and negligence on his part.

5. In the reply filed by respondent No. 4-Insurance Company, preliminary objections qua maintainability, collusion and that the vehicle was being driven in violation of the terms an

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