IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

FAO No.531 of 2016

Reserved on: 05.12.2025

Decided on: 12.12.2025

Oriental Insurance Company Limited

...Appellant

Versus

Shanti Devi and others

...Respondents

Coram r

The Hon’ble Mr.Justicue Jiya Lal Bhardwaj, Judge.

1

Whether approved for reporting? Yes.

For the appellant: Mr. Ashwani K. Sharma, Senior

Advocate with Mr.Ishan Sharma,

Advocate.

For the respondents: Mr. Virender Singh Kanwar,

Advocate for respondents No.1

to 6.

Respondent No.7 stands deleted

i vide order dated 22.06.2017.

None for respondents No.8 & 9.

Jiya Lal Bhardwaj, Judge

The appellant-Insurance Company feeling aggrieved by

the award dated 28.06.2016, passed by the Motor Accident Claims Tribunal, Shimla in MAC Case No.108-S/2 of 2013, titled, Shanti Devi and others vs. Amar Jit Singh and others, whereby the

1 Whether the reporters of Local Papers may be allowed to see the judgment? Yes.

Tribunal below has awarded a sum of Rs.21,44,600/- along with interest @ 9% per annum from the date of petition in favour of respondents No.1 to 7/claimants to be paid by the appellant-

Insurance Company, has preferred the instant appeal.

2. The key facts necessary for adjud ication of dispute in the present appeal are that respondenots No.1 and 4 being widows, respondents No.2, 3 and 6 being sons, respondent No.5 being daughter and respondent No.r7 being father, had preferred the claim petition under Section 166 of the Motor Vehicles Act, 1988 on account of death of Shri Shyama Nand. Late Shri Shyama Nand had boarded the bus No.HP-51-4774 on 22.08.2013 from Satog to Shimla an d when it reached near Hassan valley at about 8.45 a.m., the driver of the bus lost control over the same due to which the bus fell into a deep gorge. The deceased sustained fatal injuries and Hsuccumbed to the said injuries. The post-mortem of the deceased was conducted in IGMC, Shimla on 22.08.2013. The cause of accident was alleged to have been attributed to rash and negligent driving of the driver. At the time of death of late Shri Shyama Nand, he was aged about 50 years and was doing the avocation of Mason and earning Rs.21,000/- per month. It was also pleaded that he was also carrying on agriculture and horticulture pursuits and thus earning Rs.4-5 lac per annum.

3. Respondents No.8 and 9 in the present appeal were respondents No. 1 and 2 in the claim petition. They filed their separate replies and admitted the accident. Respondent No.8 had specifically pleaded in the reply that at the time of accident, the vehicle was being driven by respondent No.9, Shri Rajinder Kumar, owner of the vehicle, which met with aon accident. Respondent No.9 in his reply pleaded that he is the o wner of the bus and driving the same at the time of accident. rHowever, he pleaded that the accident took place due to mechanical fault occurred in the vehicle. The bus was insured with the appellant-Insurance Company.

4. The appellant-Insurance Company filed separate reply to the c laim petition and took preliminary objections regarding maintainability of the claim petition. It was specifically pleaded that the insured had made breach of terms and conditions of the Hinsurance policy and respondent No.8-driver was not holding the genuine and valid driving licence to drive the vehicle in question.

5. The Tribunal below on the basis of the pleadings framed the issues in the claim petition and after recording the evidence led by the parties, allowed the claim petition, thereby awarding a sum of Rs.21,44,600/- in favour of respondents No.1 to 7 along with interest @ 9% per annum from the date of petition till its payment. It was held that since the vehicle was insured with the appellant-Insurance Company, the ultimate liability to pay the amount of compensation along with up-to-date interest is on the appellant-Insurance Company.

6. The appellant-Insurance Company has filed the present appeal on the ground that since driver/respond ent No.1/respondent No.8 herein was not holding the valido driving licence, the Trib