SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(HP) 1743

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA
JIYA LAL BHARDWAJ, J.
United India Insurance Company Ltd.- Appellant
Versus
Smt. Kaushalya Devi And Others - Respondents
FAO No. 371 of 2015
Decided On : 22-12-2025

Advocates Appeared:
For the Appellant:Mr. Ashwani K. Sharma, Senior Advocate with Mr. Ishan Sharma, Advocate.
For the Respondent:Mr. Y.P. Sood, Mr. Praveen Chauhan, Advocates, Mr. Surya Chauhan, Advocate

LMV licence suffices for transport vehicle under 7500kg GVW sans endorsement; self-employed carpenter notional income Rs.800/day on oral evidence; 1/4th personal expenses deduction (4 dependents); 10% future prospects (50-60 age); consortium Rs.50,000/each.

Headnote:(A) Motor Vehicles Act, 1988 - Driver holding licence for light motor vehicle class permitted to operate transport vehicle without additional endorsement if gross vehicle weight under 7,500 kg - No fundamental breach by owner-insurer. Compensation for death - Self-employed carpenter income without documentary proof assessed at Rs.800/- per day (Rs.24,000/- monthly); 10% addition for future prospects (age 50-60 self-employed); 1/4th deduction for personal expenses (4 dependents); multiplier 11 applied; Rs.50,000/- each for spousal, parental, filial consortium; Rs.20,000/- each for loss of estate, funeral expenses; interest @9% upheld. (Paras 14, 22, 24, 26, 27, 28)

(B) Compensation computation - Oral evidence sufficient where unrebutted despite no documents; minimum wage notification not applicable if other evidence exists; carpenter plus shop business warrants higher notional income than pure labour. Deduction per dependents number; conventional heads enhanced periodically. (Paras 15-22)

Facts of the case:
Deceased (52 years) killed in accident when struck by vehicle while outside furniture shop. Claimants (wife, son, parents) dependent; petition claimed Rs.35,000/- monthly earnings. Tribunal awarded Rs.33,11,000/- +9% interest holding insurer liable; insurer appealed on licence validity, excessive income, deductions, heads, interest.

Findings of Court:
Compensation modified to Rs.28,53,600/- +9% interest from petition filing till realization; apportionment maintained.

Issues: Whether insurer absolved for lack of transport endorsement on LMV licence; propriety of income assessment sans documents; deductions, future prospects percentage; consortium, estate, funeral amounts; interest rate.

Ratio Decidendi: LMV licence covers transport vehicles <7,500 kg unladen weight per Supreme Court; income from skilled work/shop Rs.800/day reasonable on oral evidence; 1/4th deduction for 4 claimants; 10% prospects self-employed 50-60 years; consortium Rs.50,000/- each post-2017 enhancement; interest 9% per binding precedents. Result : Appeal partly allowed.

Table of Content
1. fatal accident killed pedestrian carpenter by vehicle. (Para 1 , 2 , 3 , 4)
2. deceased negligent; invalid license, no permit alleged. (Para 5 , 6)
3. tribunal holds negligence, awards rs.33.11 lakhs. (Para 7 , 8)
4. appeal challenges license, income proof, computation. (Para 9 , 10 , 11 , 12)
5. lmv license suffices for <7500kg transport vehicle. (Para 13 , 14)
6. rs.800/day income for carpenter via oral evidence. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22)
7. 1/4th deduction; 10% prospects; rs.50k consortium. (Para 23 , 24 , 25 , 26 , 27)
8. 9% interest upheld per supreme court rulings. (Para 28)
9. award modified to rs.28.53 lakhs total. (Para 29 , 30 , 31)

JUDGMENT :

JIYA LAL BHARDWAJ, J.

Challenge in the present appeal is against the award dated 08.06.2015, passed by the Motor Accident Claims Tribunal(II), Una, District Una, H.P., whereby the claim petition bearing No. MAC Petition RBT No. 144/2014, titled, Kaushalya Devi and others vs. Ashwani Kumar and others, preferred by the claimants was allowed and they were awarded a sum of Rs. 33,11,000/-, along with interest at the rate of 9% per annum from the date of filing of the petition till deposit of the award amount.

2. For deciding the appeal, the parties herein as referred to as they were in the claim petition.

3. The claimants had filed a petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation amount of Rs. 20,00,000/- along with interest at the rate of 12% per annum from the date of accident on account of death of Uttam Chand, who was husband of claimant No.1, father of claimant No.2 and son of claimants No.3 and 4. The accident had taken place on 10.10.2014 involving Crusier Trax HP-01B-0464, when the driver of vehicle, who was respondent No.1 in the claim petition, struck the vehicle with the deceased, who was standing outside his furniture shop at village Kohdra, Tehsil Bangana, District Una, H.P. In the accident, the deceased sustained injuries and fell unconscious. He was taken to hospital at CHC Barsar through ambulance, wherefrom he was referred to Regional Hospital Una. From Una he was referred to PGI Chandigarh, but he succumbed to the injuries near the gate of Regional Hospital Una and Doctors declared him dead.

4. As per the pleadings in the claim petition, the deceased was earning Rs. 35,000/- per month, since he was running a shop and self-employed. It was submitted that the claimants were dependent upon the earnings of the deceased.

5. Respondents No.1 and 2 filed reply to the claim petition and pleaded that the accident was caused due to the negligence on the part of the deceased, since he without waiting for the clearance of the road all of a sudden jumped to cross the road by running from left to right side of the road at a sharp turn, though respondent No.1 applied brakes to stop the vehicle.

6. Respondent No.3-insurance company filed separate reply and took preliminary objections that the driver was not holding valid and effective driving licence to drive the transport vehicle at the time of accident and, therefore, insurance company is not liable to pay any claim. It was also pleaded that the vehicle was not holding a valid route permit and further the vehicle was not fit to ply on the road. On merits, the insurance company has not specifically pleaded that the amount claimed is highly excessive. In reply to para 5 of the claim petition, where the claimants had pleaded that the deceased was earning Rs.35,000/- per month, it was pleaded that the para No.5 of the petition is wrong, incorrect and therefore denied.

7. The Tribunal on the basis of the pleadings framed the following issues in the claim petition:-

1. Whether on 10.10.2014 around 3.00 PM at village Kohdra, District Una, Uttam Chand died due to rash and negligent driving of vehicle Crusier Trax No. HP-01B-0464 by respondent No. 1 Ashwani Sharma, as alleged? OPP

2. If issue No. 1 is proved in affirmative to what amount of compensation the petitioners are






Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top