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2026 Supreme(Online)(Guj) 12236

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Mool Chand Tyagi, J
Mansukhbhai Ghelabhai Baraiya – Appellant
Versus
Manubhai Balabhai Bhaliya – Respondent
R/FIRST APPEAL NO. 1476 of 2010



Advocates:
For the Appellants/Petitioners: Nishit A Bhalodi
For the Respondents: Karuna V Rahevar

Oral evidence corroborated by vehicle ownership filings outweighs the silence of accident reports regarding insurance liability. Furthermore, beneficial statutory provisions for fixed compensation in fatal accidents apply to pending litigations to ensure remedial benefits are extended to claimants.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 163A and 164 - Fatal accident - Exoneration of Insurance Company - Quantum of compensation - Tribunal exonerated insurer on the premise that goods were not mentioned in the panchnama - Oral testimony of claimants supported by the written statement of the vehicle owner should take precedence over silence in police papers - Held, the Tribunal erred in ignoring oral evidence regarding the presence of goods - Section 164 is a beneficial legislation providing for fixed-sum compensation and applies to pending proceedings regardless of the date of the accident - Compensation enhanced to Rs. 5,00,000/-. (Paras 10, 11, 13, 14)

(B) Appeal - Delay condonation - Condition imposed regarding non-entitlement to interest on the period of delay for filing the appeal - Claimants not entitled to interest for the 214-day delay period. (Paras 8, 15)

Facts of the case:
A young person died in a vehicular accident while travelling in a commercial vehicle carrying agricultural goods. The lower tribunal awarded compensation but exonerated the insurer, citing an absence of mention of the cargo in the official accident report. The claimants challenged both the liability of the insurer and the quantum of compensation awarded.

Findings of Court:
The court determined that the presence of goods was sufficiently established by oral testimony provided alongside the admission of the vehicle owner, rendering the omission in the accident report insufficient to exonerate the insurer. Furthermore, the court held that the statutory provision regarding fixed compensation in fatal accidents is beneficial legislation applicable to pending matters.

Issues: Whether the insurer should be exonerated based on the absence of cargo mention in the official accident report, and whether the provision for fixed compensation under the amended act applies retrospectively.

Ratio Decidendi: In cases of contradiction between oral evidence and police records, oral testimony corroborated by the vehicle owner holds greater evidentiary weight. Beneficial legislation concerning compensation for fatalities is to be applied to existing claims to ensure the intended social security benefit reaches the legal heirs.

Result: Appeal allowed.

Table of Content
1. overview of the appeal against the lower tribunal's motor accident claim award. (Para 1 , 2)
2. summary of rival arguments concerning goods carriage proof and applicability of amended mv act provisions. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. oral evidence prevails over police records in determining insurance liability. (Para 9 , 10)
4. section 164 of the mv act applies retrospectively for enhanced compensation. (Para 11 , 12 , 13 , 14)
5. final award modification with directions for payment and future recovery. (Para 15 , 16 , 17 , 18 , 19)

JUDGMENT

1. The captioned appeal has been preferred against the impugned judgment and award dated 05.06.2009 passed by the learned Motor Accident Claims Tribunal (Main), at Bhavnagar, in M.A.C.P. No. 308 of 2007, whereby the learned Tribunal had partly allowed the claim petition and awarded a sum of Rs.1,64,500/- along with interest at the rate of 7.5% per annum, from the date of filing of the claim petition till its realization, as compensation, however, the learned Tribunal had exonerated the respondent No.2 – Insurance Company from its liability to satisfy the award.

2. The succinct facts, which led to the filing of the captioned appeal, as explained by the learned counsel for the claimants and as narrated in the Claim Petition, are summarized as under :-

i. On 08.04.2007 at about 08:00 a.m., Mr. Sonal Mansukhbhai (hereinafter referred to as the “deceased”) was travelling in a tempo bearing registration No.GJ-4V-5993 from onion factory to Nesvad Village, as owner of the goods, i.e., onion. When the said tempo reached near the agricultural field of Bhagvanbhai, the said tempo due to a ditch on the road lost control, as a result of which, the deceased fell down from the tempo and sustained grievous bodily injuries and she succumbed to the said injuries.

ii. It is also the case of the original claimants/appellants herein before the learned Tribunal that at the time of the vehicular accident, the deceased was aged about 16 years and was doing labour work, thereby earning Rs.40,000/- per annum. Therefore, the original claimants/appellants herein preferred the Claim Petition before the learned Tribunal under Section 163A of the Motor Vehicle Act (hereinafter referred to as the “ACT”) seeking compensation on account of the death of the deceased.

iii. Having been served with the notices/summons of the Claim Petition, original opponents/respondents herein filed their respective written statements, thereby, denying the contentions raised in the claim petition and in brief, prayed for dismissal of the claim petition.

iv. Having considered the evidence on record, and having considered the submissions of the learned counsels for the parties, the learned Tribunal partly allowed the claim petition and awarded a sum of Rs.1,64,500/- along with interest at the rate of 7.5% per annum, from the date of filing of the claim petition till its realization, as compensation, however, the learned Tribunal had exonerated the respondent No.2 – Insurance Company from its liability to satisfy the award.

v. Being aggrieved and dissatisfied with the impugned judgment and award, the original Claimant/appellant herein preferred the captioned appeal on the ground of quantum as well as exoneration of respondent No.2 – Insurance Company.

3. Heard learned counsels for the parties.

4. Learned counsel for the original claimants/appellants herein vehemently submitted that at the time of the vehicular accident, the deceased was travelling in a tempo bearing registration No.GJ-4V-5993 as owner of the goods, i.e, onion. He further submitted that the respondent No.1 herein - owner of the said tempo has filed his Written Statement at Exh.9, and he supported the version of the claimants/appellants herein. He stated therein that the deceased was travelling in his tempo along with goods, however, the learned Tribunal has not relied on the version of the claimants as well as the Written Statement of th

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