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2026 Supreme(HP) 201

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
VIRENDER SINGH, J.
New India Assurance Co. Ltd. – Appellant
Versus
Kamla and Others – Respondents
FAO Nos. 424, 473 of 2017 
Decided On : 18-03-2026

Advocates Appeared:
For the Appellant : Raman Sethi
For the Respondent: Dhanwanti

Credible oral evidence proves self-employed income sans documents; 40% future prospects for unorganized sector deceased under 40; conventional heads fixed at Rs.15,000x3 + Rs.40,000 consortium.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166, 168 and 173 - Death in motor accident - Quantum of compensation - Tribunal awarded Rs.17,65,000/- with 9% interest from filing, liability on insurer - Insurer appealed reduction on income Rs.7,500/-p.m., 50% future prospects, conventional heads - Claimants appealed for income Rs.15,000/-p.m., higher conventional heads - Deceased aged 35, skilled worker unorganized sector, income Rs.12,000/-p.m. (Rs.400/day) proved by oral evidence of widow and clerk - Overtime ignored sans proof - 40% future prospects added (Rs.16,800/-), 1/3rd personal expenses deducted (Rs.11,200/-), multiplier 16 - Conventional: Rs.15,000/- each loss of estate/contribution/funeral, Rs.40,000/- loss of consortium - Total Rs.23,45,400/- with 7.5% interest from filing. (Paras 23-36)

(B) Evidence Act, 1872 - Sections 138, 146 - Oral evidence - Widow and co-worker's unchallenged testimony on daily wages Rs.400/- accepted despite no muster roll/documents, credible per Supreme Court guidelines; minimum wages not applied where evidence exists. (Paras 25-29)

Facts of the case:
Claimants (widow, minor children) filed for compensation under MV Act for death from roadside accident attributed to rash/negligent driving of insured tipper. FIR registered. Tribunal awarded Rs.17,65,000/-@9%, insurer/claimants appealed quantum.

Findings of Court:
Compensation enhanced to Rs.23,45,400/- with 7.5% interest from petition filing till realization, insurer liable; insurer appeal dismissed, claimants' allowed.

Issues: Monthly income determination; future prospects addition for unorganized sector; personal expenses deduction; multiplier for age 35; conventional damages; interest rate.

Ratio Decidendi: Just compensation requires accepting credible oral evidence on income over minimum wages; 40% future prospects for deceased under 40 in unorganized sector; 1/3rd deduction for 3 dependents; multiplier 16; fixed/enhanced conventional heads mandatory.

Result: Award modified, enhanced.

Table of Content
1. common judgment decides appeals from mact award. (Para 1 , 2 , 3)
2. fatal accident from rash negligent truck driving. (Para 4)
3. respondents deny negligence, cite license violation. (Para 5 , 6 , 7 , 8 , 9)
4. tribunal frames issues, hears evidence, awards compensation. (Para 10 , 12 , 13)
5. insurance challenges income, prospects, damages per sethi. (Para 14 , 15 , 16)
6. claimants seek higher income, enhanced damages. (Para 17 , 18 , 19 , 20)
7. mv act mandates just compensation to victims. (Para 21 , 22)
8. deceased aged 35 years per post-mortem. (Para 23)
9. oral evidence proves rs.12,000 monthly income. (Para 24 , 25 , 26 , 27 , 28 , 29)
10. 40% future prospects for unorganized sector. (Para 30 , 31)
11. 1/3 deduction, multiplier 16, fixed heads. (Para 32 , 33)
12. compensation enhanced to rs.23,45,400/- at 7.5% interest. (Para 34 , 35 , 36 , 37 , 38)

JUDGMENT :

VIRENDER SINGH, J.

1. Both the aforesaid appeals are being decided by a common judgment, as these appeals have arisen out of the award dated 1.4.2017, passed by the Court of learned Motor Accident Claims Tribunal-II, Solan, District Solan, H.P. (hereinafter referred to as ‘the learned Tribunal’), in Claim Petition No. 15-S/2 of 2013, titled as, Kamla & others vs. M/s Som Dutt Builders Pvt. Ltd. & others.

2. By way of award dated 1.4.2017, the learned Tribunal has allowed the claim petition filed by respondents No.1 to 3, in FAO No. 424 of 2017 by awarding a sum of Rs. 17,65,000/-, along with interest @ 9% per annum, from the date of filing of the petition, till deposit. However, the ultimate liability to pay the amount of compensation has been fasten upon the appellant-Insurance Company.

3. For the sake of convenience, the parties to the present lis are, hereinafter, referred to, in the same manner, as were, referred to, by the learned Tribunal.

4. Brief facts, leading to the filing of present appeals, before this Court, may be summed up, as under:-

The claimants, being widow, minor daughter and minor son of deceased Dhan Bahadur had filed the claim petition, under Section 166 of the Motor Vehicles Act (hereinafter referred to as ‘the M.V. Act’), seeking compensation on account of death of Dhan Bahadur, who expired in a roadside accident, which, according to the claim petition, had taken place on 16.3.2011, in village Dangyari near Naina Tikker, on Kumarhatti-Nahan road, tehsil Pachhad, District Sirmour, H.P., involving vehicle No. HP 71-5105 (hereinafter referred to as ‘the offending vehicle’), owned by respondent No. 1, driven by respondent No. 2, and insured with respondent No. 3.

4.1 According to the claimants, the accident had taken place on 16.3.2011, on account of rash and negligent driving of respondent No. 2, in which, predecessor-in-interest of the claimants had sustained fatal injuries. After the accident, he was taken to Regional Hospital, Solan, from where, he was referred to IGMC, Shimla. However, keeping in view the serious condition, he was further referred to PGI, Chandigarh, but, on the third day of the accident, he had expired.

4.2 The information regarding the accident was given to the Police, upon which, FIR No. 15/2011, dated 16.3.2011 was registered under Sections 279, 337 and 304-A IPC, with Police Station, Pachhad, District Sirmour, H.P. Since, the accident had solely been attributed to the rash and negligent driving of respondent No. 2, as such, claimants have sought compensation to the tune of Rs. 50,00,000/- alongwith interest @ 12% interest per annum, from the date of accident, till its realization from the respondents.

5. When put to notice, the claim petition has been contested by the respondents.

6. Respondents No. 1 and 2 had filed their joint reply, in which, factum of accident has not been disputed. Other contents of the claim petition have been denied by them. However, factum of registration of the FIR has impliedly been admitted by pleading that contents of para-9 as matter of record.

7. The Insurance Company of the offending ve








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