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2026 Supreme(HP) 358

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Sushil Kukreja, J.
National Insurance Company Limited - Appellant.
Versus
Mala Vati & another – Respondents
FAOs No. 322 of 2023 & 188 of 2025
Decided On : 27-02-2026

Advocates Appeared:
For the Appellant :Mr. Jagdish Thakur, Advocate.
For the Respondent:Mr. Nand Land Thakur, Advocate, Mr. Rajiv Rai, Advocate.

Monthly income includes salary plus proven daily dietary allowance; statutory interest @12% from one month post-accident till deposit; insurer liable to pay compensation for insured vehicle absent policy breach.

Headnote:(A) Employee’s Compensation Act - Sections 3, 4A(3)(a), 22, 30 - Death during course of employment - Income of deceased assessed as Rs.14,000/- per month comprising salary of Rs.8,000/- plus daily dietary allowance of Rs.200/-, proved by claimant and employer testimony despite initial claim of Rs.8,000/- only - Compensation principal of Rs.13,84,420/- upheld - Statutory interest @12% accrues from one month after accident till deposit, modified to two years nine months (from 20.11.2020 to 26.08.2023) amounting to Rs.4,54,695/-, total Rs.18,39,115/- - Insurer liable to indemnify owner as vehicle insured without breach of policy terms. (Paras 17, 18, 20, 21, 22)

Facts of the case:
Deceased employed as driver by vehicle owner at Rs.8,000/- monthly salary plus Rs.200/- daily allowance. While driving vehicle towards destination with occupants, mechanical fault caused it to roll down hill; deceased died on spot during course of employment. Vehicle insured. Commissioner awarded Rs.24,36,588/- jointly against owner and insurer. Insurer appealed on income and interest calculation; owner on liability allocation.

Findings of Court:
Claimant entitled to Rs.18,39,115/- (principal Rs.13,84,420/- plus interest Rs.4,54,695/-) with future interest @12% from award date till deposit, payable by insurer.

Issues: Whether Commissioner erred in assessing income at Rs.14,000/- without documentary evidence beyond pleadings; in awarding interest for three years four months including on interest; and in holding joint liability without specifying insurer as primary payer.

Ratio Decidendi: Income correctly includes admitted daily allowance per testimony (paras 17-18); interest per Section 4A(3)(a) starts one month post-accident till deposit, not on pre-included amounts (paras 19-21); insurer bears liability absent policy breach (para 22).

Result: Appeals disposed of; impugned award modified accordingly.

Table of Content
1. linked appeals against compensation award heard together. (Para 1 , 2 , 3 , 4 , 12)
2. driver died in accident during employment course. (Para 5 , 6 , 7)
3. commissioner allowed claim; appeals challenge errors. (Para 8 , 9 , 10 , 11)
4. contentions on income, interest period, liability. (Para 13 , 14)
5. evidence establishes rs.14,000 monthly income. (Para 15 , 16 , 17 , 18)
6. interest from one month post-accident per sec.4a. (Para 19 , 20)
7. interest calculated for 2 years 9 months. (Para 21)
8. insurer liable absent policy breach. (Para 22)
9. award modified; insurer to pay. (Para 23 , 24)

JUDGMENT :

Sushil Kukreja, J.

Since both these appeals are the offshoots of impugned order dated 26.08.2023, passed by learned Employees Compensation Commissioner, Court No. 1, Mandi, H.P. (hereinafter referred to as the learned Commissioner), they are taken up together for consideration and disposal.

2. Appellant-National Insurance Company Limited, who was respondent No. 2 before the learned Commissioner below, maintained appeal (FAO No. 322 of 2023) under Section 30 of the Employee’s Compensation Act (for short “the Act”), against award dated 26.08.2023, passed by learned Commissioner below under Employee’s compensation Act, in Case Registration No. 1 of 2021, whereby the learned Commissioner allowed the petition filed by Smt. Mala Vati (one of the respondents herein), who was petitioner (claimant) before the learned Commissioner below, under Section 3 read with Section 22 of the Act and granted her compensation to the tune of Rs.24,36,588/-, with a prayer to quash and set-aside the impugned award by dismissing the claim petition filed by the petitioner/claimant.

3. One of the respondents before the learned Commissioner below, Smt. Girja Thakur (owner of the vehicle) also filed appeal, i.e., FAO No. 188 of 2025, against the impugned award passed by the learned Commissioner below, with a prayer to quash and set-aside the impugned award passed by the learned Commissioner below.

4. As per the award passed by the learned Commissioner below, the respondents, i.e., Smt. Girja Thakur (owner of the vehicle) and National Insurance Company Limited (insurer) were saddled to pay the aforesaid amount of compensation to the petitioner/claimant.

5. The facts giving rise to the instant appeals can be encapsulated as under:

5(a). Petitioner-Smt. Mala Vati filed a petition before the learned Commissioner below under Section 3 read with Section 22 of the Act seeking compensation. As per the petitioner, deceased-Pritam Singh was her son, and he was employed by Smt. Girja Thakur (respondent No. 1 before the learned Commissioner below) as Driver to drive vehicle bearing registration No. HP-65B-0909. The deceased had authorization to drive the class of vehicle whereupon he was employed to drive the vehicle in question by respondent No. 1. The salary of the deceased was Rs.8000/- per month. On 20.10.2020, the deceased was driving the aforesaid vehicle and going towards Gohar via Kelodhar-Bassi and there were other occupants in the vehicle as well. When the vehicle of the deceased reached near Dharot, due to mechanical fault, it rolled down the hill and consequently the deceased died on the spot and predecessor of respondent No. 1-Smt. GirjaThakur, in an injured condition, was brought to CHC, Gohar, District Mandi, H.P., wherefrom he was shifted to Zonal Hospital, Mandi, H.P. and ultimately to IGMC, Shimla, where he died on 24.10.2020. As per the petitioner, the accident occurred during the course of employment. At the time of the accident, respondent No.2 (National Insurance Company Limited) was the insurer of the vehicle in question. The deceased was hale and hearty man of 35 years and he used to earn Rs.8000/- per month, being driver of respondent No. 1 and Rs.12000/- per month from agriculture and other allied works. He was sole bread winner of the family, as he used to spend his entire salary towards the maintenance of the petitioner. Lastly, the petit

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