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2026 Supreme(Online)(HP) 2163

IN THE HIGH COURT OF HIMACHAL PRADESH

SHIMLA


( 2026:HHC:14167


FAO(MVA) No.130 of 2013


Date of Decision: 25.04.2026


Ajnana & Anr. …Appellants

Versus

Kubja & Ors. …..Respondents


Coram:

The Hon’ble Mr. Justice Virender Singh, Judge.


Whether approved for reporting?1Whether reporters of Local Papers may be allowed to see the judgment?


For the Appellants : Mr. Arsh Chauhan, Advocate.

For the Respondents : None for respondents No.1 to 4.

Ms. Devyani Sharma, Senior Advocate, with Mr. Shivam Sharma, Advocate, for respondent No.5.

Advocates:
For the Appellants/Petitioners: Arsh Chauhan
For the Respondents: Devyani Sharma, Shivam Sharma

Legal representatives of a deceased driver who borrowed the vehicle from the owner cannot claim compensation under Section 163-A of the Motor Vehicles Act, 1988, as the deceased steps into the shoes of the owner and thus cannot be both the claimant and the recipient of compensation.

Headnote:(A) Motor Vehicles Act, 1988 - Section 163-A - Death in motor accident - Claim by legal representatives of deceased who was driver - Deceased borrowed vehicle and was driving with owner’s permission - Held, deceased steps into shoes of owner - Legal representatives of such deceased cannot claim compensation under Section 163-A as the owner/driver cannot be both claimant and recipient. (Paras 12, 17)

(B) Motor Vehicles Act, 1988 - Scope of Section 163-A - Non-obstante clause - While Section 163-A provides for no-fault liability, it does not enable a claim by an owner or one stepping into the shoes of the owner, as the liability to pay compensation is essentially on the owner themselves. (Para 16)

Facts of the case:
The widow and minor son of the deceased filed a claim petition under Section 163-A of the Motor Vehicles Act following a fatal accident involving a vehicle owned by the father-in-law of the widow. The deceased was driving the vehicle at the time of the accident with the consent of the owner. The Tribunal dismissed the claim, leading to the current appeal.

Findings of Court:
The court held that since the deceased was driving the vehicle with the owner’s consent, he stepped into the shoes of the owner. Consequently, his legal representatives are not entitled to claim compensation from the insurance company under Section 163-A, as the owner cannot be the recipient of compensation for their own death or disability.

Issues: Whether the legal representatives of a person who borrowed and drove a vehicle, which met with an accident, can claim compensation under Section 163-A of the Motor Vehicles Act.

Ratio Decidendi: A person who borrows a vehicle and drives it steps into the shoes of the owner. Under Section 163-A, the liability and the right to compensation cannot vest in the same person. Thus, legal heirs of such a driver cannot maintain a claim against the insurer or the owner.

Result: Appeal dismissed; trial court award upheld.

__________________________________________________________

Virender Singh, Judge (Oral):

Appellants have filed the present appeal, under Section 173 of the Motor Vehicles Act, (hereinafter referred to as the ‘M.V. Act’), against the award dated 02.11.2012, passed by learned Motor Accident Claims Tribunal-II, Shimla, District Shimla, H.P., (hereinafter referred to as the ‘learned Tribunal’), in MAC No.44-S/2 of 2010, titled as Anjana and another versus Kubja and others.

By way of award dated 02.11.2012, the learned Tribunal has dismissed the claim petition, filed by the appellants.

For the sake of convenience, parties to the present appeal, are hereinafter referred to, in the same manner, in which, they were referred to by the learned Tribunal.

Brief facts, leading to filing of the present appeal, before this Court, may be summed up, as under:-

4.1. The claimants, being widow and minor son of Rajesh, have filed the claim petition, under Section 163-A of M.V. Act, seeking compensation, on account of death of Rajesh on 03.05.2010, involving Vehicle No.HP63A-7300, owned and registered, in the name of predecessor-in-interest of respondents No.1 to 4 and insured with respondent No.5.

4.2. According to the claimants, Rajesh was driving Vehicle No.HP63A-7300 (vehicle in question), with the consent and authority of the registered owner, who was also sitting with him. When, the said vehicle reached at Chaila Tehsil Kotkhai, District Shimla, at about 10:00 AM, on 03.05.2010, the said vehicle met with an accident, in which, predecessor-in-interest of the claimants and owner has expired.

When put to notice, this claim petition has been contested by the respondents. Respondents No.1 to 4 have filed the joint reply, denying the factum of accident. The contents of paras 5 to 7 have been denied, mainly for want of knowledge, whereas, contents of paras 8 to 11 have been admitted to be correct. In addition to this, it has been pleaded that respondent No.3 was also travelling in the ill-fated vehicle and sustained injuries.

Another plea has also been taken that respondent No.1 Kubja is also legal heir of Rajesh and as such, she is also entitled for the compensation.

Insurance Company has filed the separate reply by taking the preliminary objections that the claim petition is not maintainable; the claimants are not entitled to any claim; the Insurance Company is not under legal obligations to indemnify the claimants, as the vehicle in question, at the time of accident was driven by a person, who was not a regular/paid driver, but, was a family member and was not holding a valid and effective driving license; the vehicle in question was being permitted to ply in violation of the terms and conditions of the insurance policy. On merits, the contents of the claim petition have mainly been denied for want of knowledge. Thus, the insurance company has prayed that the claim petition may kindly be dismissed.

From the pleadings of the parties, following issues were framed by the learned Tribunal, vide order dated 04.07.2011:

1). Whether death of Sh. Rajesh was caused due to involvement of Vehicle No.HP-63A-7300 ? OPP.

2). If issue No.1 is proved to what amount of compensation the petitioners are entitled to and from whom ? OPP.

3). Whether the driver was not holding valid and effective driving licence to drive the car at the time of accident ? OPR.

4). Whether Car No.HP63A-7300 was being driven without registration certificate ? OPR.

5). Relief.

Thereafter, parties to the lis were directed to adduce evidence. After closure of the evidence, the learned Tribunal, upon hearing learned counsel for the parties, has dismissed the claim petition.

Feeling aggrieved from the said award, present appeal has been filed before this Court, on the ground that the learned Tribunal has wrongly held that Rajesh stepped into the shoes of his father, as, he was driving the ill-fated car with the consent of his father.

The case law relied upon by the learned Tribunal is also s

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