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2026 Supreme(UK) 189

HIGH COURT OF UTTARAKHAND AT NAINITAL
PANKAJ PUROHIT, J.
The New India Assurance Co. Ltd. - Appellant 
Versus 
Smt. Dhanwati Devi & others – Respondents
Appeal from Order No.557 of 2011
Decided On : 10-02-2026

Advocates Appeared:
For the Appellant : Mr. M.K. Goyal, learned counsel.
For the Respondents: Mr. Prem Prakash Singh Phartiyal, learned counsel, Mr. Basant Singh, learned counsel holding brief of Mr. Harshpal Sekhon, learned counsel.

Driver with light motor vehicle licence competent to drive transport light motor vehicle if gross/unladen weight ≤7500 kg; no insurance policy breach. Compensation upheld using multiplier 15, 1/4th personal expenses deduction.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166, 168, 173 - Driver holding valid licence for light motor vehicle competent to drive transport vehicle falling within light motor vehicle definition, i.e., gross vehicle weight or unladen weight not exceeding 7500 kg - No breach of insurance policy conditions - Insurer liable to pay compensation - Tribunal's award of Rs.4,07,000/- with 7% interest from date of award upheld, based on notional annual income of Rs.36,000/-, multiplier 15 for age group 36-40 years, 1/4th deduction towards personal expenses for 4 dependants. (Paras 11, 12, 14, 15)

(B) Claim petition not vitiated for non-joinder of owner and insurer of motorcycle, as accident occurred solely due to rash and negligent driving of mini bus - No negligence attributed to motorcycle. (Paras 9, 13)

(C) Appeal - Scope - Interference warranted only if Tribunal's findings perverse or contrary to settled principles - Compensation computation in consonance with established guidelines on notional income, multiplier and deductions. (Paras 14, 15)

Facts of the case:
Deceased aged 39 years succumbed to injuries sustained in motor accident when mini bus driven rashly and negligently from wrong side hit motorcycle on which he was returning from work. Tribunal awarded Rs.4,07,000/- with 7% interest against insurer, challenged in appeal.

Findings of Court:
Total compensation of Rs.4,07,000/- with 7% interest affirmed - Insurer directed to deposit balance amount within 2 months along with up-to-date interest.

Issues: Whether driver's licence valid for driving offending transport vehicle; whether non-joinder of motorcycle owner/insurer fatal; correctness of compensation quantum including income assessment, multiplier and deductions.

Ratio Decidendi: Light motor vehicle licence authorizes driving transport vehicle within specified weight limits per statutory definitions and binding precedents - Sole negligence of mini bus established on evidence - Compensation calculated justly applying appropriate notional income, multiplier and dependency deductions without perversity.

Result: Appeal dismissed.

Table of Content
1. appeal against tribunal's motor accident compensation award. (Para 1 , 2)
2. parties contested negligence, licence, joinder, income claims. (Para 3 , 4 , 5)
3. tribunal upheld negligence, valid licence, no non-joinder. (Para 6 , 7 , 8 , 9 , 10)
4. lmv licence valid for transport vehicles under 7500kg. (Para 11 , 12)
5. non-joinder of motorcycle parties inconsequential. (Para 13)
6. multiplier 15, 1/4th deduction per sarla verma correct. (Para 14 , 15)
7. appeal dismissed; insurer to deposit compensation. (Para 16)

JUDGMENT :

Pankaj Purohit, J.

This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellant–Insurance Company challenging the judgment and award dated 30.09.2011 passed by the learned Motor Accident Claims Tribunal / District Judge, Udham Singh Nagar, Rudrapur in Claim Petition No. 131 of 2007, whereby compensation to the tune of Rs.4,07,000/- along with interest @ 7% per annum has been awarded in favour of the claimants on account of the death of Ram Lakshan in a motor vehicle accident.

2. The brief facts, as emerge from the claim petition, are that on 14.01.2007 at about 7:30 p.m., the deceased Ram Lakshman, after finishing his duty at Dabur Factory, Rudrapur, was returning to his village Bagwala on a motorcycle bearing registration no. UA- 06C-5120, along with his brother Vijay Bahadur. When they reached near Amira Rice Mill, within the jurisdiction of Police Station Bilaspur, District Rampur, a Mini Bus bearing registration no.UP-65E-4596, coming from the opposite direction, was driven in a rash and negligent manner and hit the motorcycle from the wrong side. As a result of the said accident, Ram Lakshan sustained grievous injuries. He was initially taken to the Government Hospital, Rudrapur, where he succumbed to the injuries during treatment on 19.01.2007. An FIR was lodged at Police Station Bilaspur in relation to the said accident. It was pleaded that at the time of the accident, the deceased was aged about 39 years, was working as an Operator in Dabur India Limited, and was earning approximately Rs.4000/- per month and additionally he was also earning Rs.6,000/- from giving tuition classes. It was further submitted that he was made a permanent employee at Dabur factory and had started earning ฀ 6,450/- per month, making his total monthly income as Rs.12,450/-.The claimants asserted that due to the untimely death of the deceased, they suffered irreparable financial, mental, and emotional loss. Accordingly, a claim petition claiming compensation of Rs.25,00,000/- was filed against which the Tribunal had awarded a compensation of Rs.4,07,000 to the claimants.

3. In the claim petition, the claimants pleaded that the accident occurred solely due to the rash and negligent driving of the Mini Bus No. UP-65E-4596. It was asserted that the deceased was riding his motorcycle carefully and on the correct side of the road, whereas the bus was being driven at a high speed and in a negligent manner. It was further pleaded that the deceased was a permanent employee of Dabur India Limited, was drawing a monthly salary of about Rs.12,450/-, and was the sole earning member of the family. The claimants stated that they were entirely dependent upon the income of the deceased. On account of his death, they were deprived of financial support, love, affection, and security. The claimants further pleaded that at the time of the accident, the offending vehicle was duly insured, and the driver was holding a valid and effective driving licence, therefore, the liability to pay compensation was upon the insurance company.

4. The owner of the Mini Bus (Opposite Party No.1) filed a written statement denying the allegations of negligence. It was pleaded that the accident did not occur due to rash or negligent driving of the bus. According to the owner, the bus was being driven carefully and at a normal speed. It was further pleaded that the accident occurred due to the negligence of the motorcycle

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