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2026 Supreme(P&H) 17

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
Iffco Tokio General Insurance Co. Ltd. - Appellant
Versus 
Gurleen Kaur And Ors. - Respondents
FAO-665-2024 (O&M) and Cross objection-27-2026
Decided On : 09-04-2026

Advocates Appeared:
For the Appellant :Mr. Sarthak Mehta, Ms. Rajni Godara, Mr. P.H.S. Pannu, Advocates
For the Respondent:Ms. Garima Modi, Advocate

In motor accident claims, the standard of proof is the preponderance of probability. Income assessment should rely on the latest statutory tax returns, and compensation must include the value of managerial skills for agricultural land, alongside standard conventional heads for loss of estate and consortium.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor accident - Claim petition - Standard of proof - Preponderance of probability - Registration of criminal case is prima facie proof of negligence - Adverse inference drawn against driver for failing to testify - FIR is not substantive evidence but serves to set criminal machinery in motion. (Paras 15, 16)

(B) Compensation - Assessment of income - Reliance on latest income tax returns as statutory documents - Managerial skills for agricultural land - Consideration of managerial skills required for supervision and labour engagement - Just and reasonable compensation. (Paras 23, 24, 27)

(C) Conventional heads - Loss of estate, loss of consortium, and funeral expenses - Adherence to established guidelines for quantification - Enhancement of compensation based on latest income assessment. (Paras 19, 30, 31)

Facts of the case:
A motor vehicle accident resulted in the death of the deceased after colliding with a stationary vehicle parked without indicators. The insurance company challenged the liability, alleging false implication and collusion, while the claimants sought enhancement of the compensation awarded by the tribunal.

Findings of Court:
The court found no infirmity in the tribunal's finding of negligence, noting the driver's failure to testify. It held that income tax returns are reliable evidence for income assessment and that managerial skills for agricultural land must be accounted for in dependency calculations.

Issues: Whether the accident was caused by the negligence of the driver of the stationary vehicle; whether the compensation awarded was adequate; and whether the income assessment and conventional heads were correctly calculated.

Ratio Decidendi: Proceedings under the relevant act are summary in nature, requiring only a preponderance of probability. Income tax returns are statutory documents for income assessment, and managerial skills for agricultural land are a compensable loss of dependency.

Result: Appeal dismissed; cross-objections allowed; compensation enhanced.

Table of Content
1. procedural background and factual context of the motor accident claim. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. adjudication of negligence based on preponderance of probability in motor vehicle claims. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
3. applicability of standardized compensation heads including consortium as per supreme court precedents. (Para 17 , 18 , 19 , 20)
4. determination of annual income using latest income tax returns and valuation of agricultural managerial skills. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
5. final calculation of enhanced compensation and direction for disbursement with interest. (Para 31 , 32 , 33 , 34)

JUDGMENT :

SUDEEPTI SHARMA, J.

FAO-665-2024 (O&M)

1. The present appeal has been preferred against the award dated 28.11.2023 passed by the learned Motor Accident Claims Tribunal, Patiala (for short, 'the Tribunal’) in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 on the ground that the liability to pay compensation to the tune of Rs. 38,43,000/- has been wrongly fixed upon the appellant-Insurance Company.

XOBJC-27-2026

2. The present cross-objection has been preferred by cross-objector/claimants against the 28.11.2023 passed by the learned Motor Accident Claims Tribunal, Patiala in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988, for enhancement of compensation, granted to the claimants to the tune of Rs.38,43,000/- along with interest @ 7.5% per annum on account of death of Gagandeep Singh who died in road accident, which occurred on 12.04.2019.

3. Since the appeal filed by the Insurance Company and the cross- objections filed by the cross-objectors/legal heirs of the claimant are arising out of the same award dated 28.11.2023 passed by the learned Tribunal, therefore, FAO-665-2024 and XOBJC-27-2026 are decided vide this common judgment.

BRIEF FACTS OF THE CASE

4. Brief facts of the case are that on 12.04.2019, Gurwinder Singh son of Bhinder Singh, resident of village Kallar Majri, Tehsil Nabha, District Patiala had gone to Mohali in his Swift car bearing registration no. PB-11AP-0021 for his work and after finishing his work in the evening, he went to Sector 78, Mohali to meet Gagandeep Singh (since deceased) where he was getting his new shop constructed for running the business. At about 10.30 pm, they both proceeded towards Patiala in their respective cars. Gagandeep Singh was driving car bearing registration no. CH- 01AU-4177 and Gurwinder Singh was driving his Swift car bearing registration no. PB-11AP-0021. Gagandeep Singh was driving his Bolero car on his left side at normal speed ahead of Gurwinder Singh. At about 12.00 am, Bolero car of Gagandeep Singh struck against tractor trolley bearing registration no. HR-04G- 6038 (hereinafter referred as offending vehicle, for convenience), which was parked on the road without any indication, as a result of which, Gagandeep Singh received multiple grievous injuries. He was taken to Rajindra Hospital, Patiala but due to his serious condition, he was taken to Amar Hospital, Patiala, where he died. FIR no. 59 dated 12.04.2019, under Sections 283, 304-A & 427 IPC regarding this accident was registered at Police Station Sadar, Patiala

5. Upon notice of the claim petition, respondents appeared and admitted the factum of compensation.

6. From the pleadings of the parties, the following issues were framed by the learned Tribunal :-

“1. Whether Gagandeep Singh died in the motor vehicular accident occurring due to rash and negligent driving of vehicle no. HR-04G-6038 by respondent no.1? OPP

2. Whether the claimants are entitled to compensation, if so to what extent and from whom? OPP

3. Whether respondent no.1 was not holding a legal and valid driving licence at the time of the accident? If so, its effect? OPR-2

4. Whether there is breach of any condition of the insurance policy by respondent no.1? OPR-2

5. Relief.

7. After taking into consideration the pleadings and the evidenc








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