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2026 Supreme(Online)(Del) 732
IN THE HIGH COURT OF DELHI AT NEW DELHI
Anish Dayal, J
Cholamandalam Ms General Insurance Co. Ltd. – Appellant
Versus
Pushpa – Respondent
MAC.APP. 24/2026 | CM APPL. 1752/2026
For the Appellants/Petitioners: Sameer Nandwani
For the Respondents: Pankaj Gupta, Priyanka SAneja, R S Chaggar
Pending the formal adjudication of the applicability of 'pay and recover' rights under the amended Motor Vehicles Act, the court maintains a interim balancing of interests by directing deposit of the award and partial disbursement to the claimants.
Headnote:The present appeal challenges an award passed by the Motor Accident Claims Tribunal concerning compensation in a fatal motor vehicle accident. The Appellant, an insurance company, contests its liability on the grounds that the driver of the offending vehicle was a minor lacking a valid driving license, and argues that post-amendment Statutory provisions negate the previously established 'pay and recover' principle. The Court observed the underlying legal contentions regarding the scope of liability post-Amendment of the relevant motor vehicle legislation. The central issue is whether the insurer is absolved of the liability to honor the award given the driver’s incompetence and the purported legislative changes impacting recovery rights. The reasoning hinges on the ongoing consideration of these specific legal questions in a pending batch of similar matters before the High Court, necessitating a provisional arrangement in the interest of justice for the claimants. The final result is that the Appellant is directed to deposit the total awarded amount along with interest before the Tribunal, with the Court permitting the immediate disbursement of 35% of said amount to the claimants, while the remaining 65% is to be held in an interest-bearing fixed deposit pending the final determination of the appeal.
| Table of Content |
|---|
| 1. summary of accident details and claims tribunal award. (Para 1 , 2 , 3 , 4) |
| 2. parties argument regarding liability and recovery rights post-amendment. (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. court order regarding interim deposit and partial disbursement. (Para 11 , 12 , 13 , 14) |
CM APPL. 1753/2026 (Exemption)
1. Exemption allowed, subject to all just exceptions.
2. Application stands disposed of.
MAC.APP. 24/2026
1. This appeal assails judgment dated 11th November 2025, passed by MACT Court, District Shahdara, Karkardooma Courts, Delhi, in MACT No.684/2022 awarding a sum of Rs.32,10,000/- along with interest @ 8% per annum from the date of filing of the DAR.
2. The accident occurred on 27th October 2022 at about 6:30 p.m. when Mr. Lalit Kumar (Deceased) was travelling on motorcycle bearing registration number UP-17M-7662. One scooty bearing registration no. DL-5SCV-0802, being driven by respondent no.1 apparently hit the motorcycle from behind, as a consequence of which deceased fell down on the road and sustained grievous injuries. Deceased succumbed to injuries on 30th October 2022.
3. FIR No. 780/22 was registered at P.S. Jyoti Nagar, Delhi; DAR was filed on 9th December 2022.
4. Legal Heirs of deceased filed the claim petition in question which was allowed.
5. The Insurance Company has come up with this appeal stating that the scooty/offending vehicle was being driven by a minor without a Driving Licence and therefore, entitled the insurer to exoneration.
6. It is contended that the MACT Court has granted recovery rights to recover compensation from respondent nos. 1 and 2, jointly and severally.
7. Mr Nandwani, Advocate appearing for the Insurance Company, contends that the accident occurred post 1st April 2022, when Motor Vehicles (Amendment) Act, 2019 came into force and original Section 149(4), which provides for ‘pay and recover’ directions, has now been consciously omitted post amendment by Section 150(4) of the Act and therefore, there would be no duty for insurer to shore up the liabilities.
8. Issue notice.
9. Mr. Pankaj Gupta, Advocate appears for claimants and accepts notice. He points out that this issue of recovery rights is pending before this Court in a batch of matters, the lead matter being MAC.APP. 273/2024, and is coming up for hearing on 27th April 2026.
10. Mr. Gupta has drawn attention of this Court to order dated 28th May 2025 passed by this Court in TATA AIG General Insurance Co. Ltd. v. Mr. Amit Raghav & Ors. bearing no. MAC APP.357/2025, wherein this issue has been considered and release of 35% of the awarded amount has been allowed.
11. It is directed that appellant-Insurance Company shall deposit the awarded amount along with interest before the Tribunal. 35% of the deposited amount, along with accrued interest till date, shall be released in favour of respondents-claimants within a period of two weeks from today, and remaining 65% shall be kept in form of an interest-bearing FDR with UCO Bank, Karkardooma Courts Branch in account no. 20780110171912; IFSC· UCBA0002078, which shall be disbursed subject to and in terms of outcome of this appeal.
12. List this matter along with MAC.APP. 273/2024 and connected batch matters on 22nd April 2026.
13. In the meantime, on appellant taking steps, notice be issued to respondent nos. 4 and 5 (owner and driver of the offending vehicle), returnable on the next date of hearing.
14. Order be uploaded on the website of this Court.
