2026 Supreme(Sikk) 30
IN THE HIGH COURT OF SIKKIM AT GANGTOK
MEENAKSHI MADAN RAI, J.
The Branch Manager, The New India Assurance Company Limited – Appellant
Versus
Gyandup Tshering Lepcha and Others – Respondents
MAC App. No. 16 of 2025
Decided On : 16-04-2026
Important Points
Subject
Motor Vehicle Accident Law - Assessment of Compensation
Headnote
(B) Appellate Jurisdiction - Scope of interference - An order passed on erroneous findings and conjecture is liable to be set aside - Findings of fact must be supported by cogent evidence on record and not on the subjective belief of the court. (Para 6)
Facts of the case:
The tribunal awarded a significant sum as compensation based on a finding of 50% permanent disability following a motor vehicle incident. The insurer challenged this, contending that no disability certificate was produced by the injured party and that the medical evidence did not support such a high percentage of disability. The insurer further highlighted a discrepancy in the medical expenses claimed versus those proven by documentation.
Findings of Court:
The court observed that the discharge summary did not mention any permanent disablement and indicated a normal recovery process. The court concluded that basing disability on fractures, which in the ordinary course heal, without specific medical certification or an expert's detailed analysis, is impermissible. Additionally, the witness testimony regarding the physical limitations was found to be unreliable and logically inconsistent.
Issues: The primary issue was whether the tribunal erred in fixing disability at a specific percentage and awarding subsequent loss of income without a formal medical certificate or substantive evidentiary backing.
Ratio Decidendi: The legal requirement for establishing disability necessitates medical substantiation. Mere assumptions regarding the impact of injuries, unsupported by valid medical documentation or expert witness testimony, do not constitute a sound basis for calculating compensation for permanent disability.
Result: Appeal allowed; compensation restricted to the actual medical expenses proved on record.
For the Appellant : Dipayan Roy
For the Respondents: Rahul Rathi, Rupal Agarwal, Sushant Subba, Nirmal Thapa
| Table of Content |
|---|
| 1. summary of lower court's compensation award and findings. (Para 1 , 2) |
| 2. contentions regarding disability evidence and medical expenses. (Para 3 , 4) |
| 3. court's analysis rejecting the disability finding due to lack of evidence. (Para 5) |
| 4. final order setting aside the award and limiting compensation. (Para 6 , 7 , 8 , 9) |
JUDGMENT :
Meenakshi Madan Rai, J.
1. The Learned Motor Accidents Claims Tribunal, Gangtok, Sikkim (hereinafter, the “MACT”), in MACT Case No. 03 of 2022 ( Gyandup Tshering Lepcha and Others vs. The Branch Manager, New India Assurance Company Ltd. and Others ), granted a total compensation of Rs. 29,12,887/- (Rupees twenty nine lakhs, twelve thousand, eight hundred and eighty seven) only, with interest @ 6% per annum, from the date of filing of the application (i.e., 01-02-2022) until full realization.
2. The MACT had granted the compensation by concluding inter alia that, the injuries sustained by the Claimant No.1 (Respondent No.1 herein), such as fracture of 5th rib and dislocation of hip joint could be successfully treated. However, fracture of vertebra may affect performance of his normal routine. That, keeping in view the nature of injuries, it may not be possible to say that the Claimant No.1 is fully disabled but it would be reasonable to conclude that he was permanently disabled. The disability was fixed at around 50% by the MACT.
3. The Appellant Insurance Company, is before this Court, assailing the said Judgment and the quantum of compensation granted, on grounds that no disability certificate was furnished by the Claimants to enable the MACT to arrive at the finding of 50% disability of the Claimant No.1. That, such conclusion has been arrived at on the basis of surmises, sans substantiation by evidence. The compensation claimed therefore cannot include loss of income of the Claimant No.1 as in the absence of disability certificate or other proof to establish that on account of the alleged disability, he lost his ability to earn. Compensation also cannot be granted under any of the heads computed by the MACT on the failure of the Claimants to establish disability. The claim of Rs. 2,67,887/- (Rupees two lakhs, sixty seven thousand, eight hundred and eighty seven) only, was made by the Claimants on the basis of medical bills and the expenses thereby incurred by the Claimant No.1 on his medical treatment, however on computation of the bills furnished before the MACT, the actual total amount is revealed to be Rs. 1,14,147/- (Rupees one lakh, fourteen thousand, one hundred and forty seven) only, and that would be the only compensation that the Claimants are entitled to, hence the Judgment of the MACT be modified to that extent.
4. Resisting the arguments advanced by Learned Counsel for the Appellant, Learned Counsel for the Respondents No.1 to 3 submits that it has clearly been stated in the evidence-on- affidavit of the Claimant's witness Mr. Asom Tshering Lepcha (who is not a Claimant in the instant matter), that due to the accident, his brother, Claimant No.1, had sustained grievous injuries [Bi- lateral haemithorax following blunt injury over chest, bi-lateral with multiple fracture injuries (sic.)] and dislocation of left hip joint and various fractures as detailed in the medical certificates, X-ray reports which are filed along with the claim petition, resulting in him being bedridden for several months. That, the said witness also testified that his brother is unable to stand in “supine manner” (sic.) and the accident led him to become crippled as his ribs were fractured. His left hip joint was dislocated and he is unable to work, stand and in need of support, even for basic tasks like attending the call of nature. That, he was also referred to various Doctors at Kalimpong and Siliguri which establishes his condition of 50% disability. Hence, there is no error in the findings of the Learned Trial Court and the compensation granted warrants no interference.
5. The parties have been he

