IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.
2026:HHC:15682
FAO (MV) No. 107 of 2014
Reserved on : 18.04.2026
Decided on : 08.05.2026
Oriental Insurance Company Ltd. ...Appellant
Versus
Smt. Reena and others ...Respondents
Coram
The Hon’ble Mr. Justice Virender Singh, Judge.
Whether approved for reporting?1Whether the reporters of Local Papers may be allowed to see the judgment? Yes.
For the appellant: Mr. Ashwani Sharma, Senior Advocate, assisted by Mr. Ishan Sharma, Advocate.
For the respondents: Mr. Surender K. Sharma, Advocate, for respondents No. 1 to 3.
Mr. Vinod Kumar, Advocate, vice Mr. Nimish Gupta, Advocate, for respondent No. 4.
Mr. Vinod Thakur, Advocate, for respondent No. 5.
Mr. Vijay Mokta, Advocate, vice Mr. Vijay Chaudhary, Advocate, for respondent No. 6.
Virender Singh, Judge
Appellant-Oriental Insurance Company Ltd. has filed the present appeal, under Section 173 of the Motor Vehicles Act (hereinafter referred to as ‘the M.V. Act’), against the award dated 16.01.2014, passed by learned Motor Accident Claims Tribunal-II, Chamba, District Chamba, H.P. (hereinafter referred to as ‘the learned Tribunal’), in MAC No. 50/2012, (Regd. No. 403/2013), titled as ‘Smt. Reena & Others Versus Oriental Insurance Company Ltd. & Others’.
By way of the award, dated 16.01.2014, the learned Tribunal has allowed the petition filed by respondents No. 1 to 3 and awarded a sum of Rs. 19,59,480/- in equal shares, along with interest at the rate of 9% per annum, from the date of filing of the petition, till the deposit of the awarded amount.
Although, the Insurance Company has been directed to deposit the awarded amount, however, recovery rights have been given to the Insurance Company to recover the same, from insured, by filing the Execution Petition.
For the sake of convenience, the parties to the present lis, are, hereinafter referred to, in the same manner, as were, referred to, by the learned MACT.
Brief facts, leading to the filing of the present appeal, may be summed up, as under:-
5.1 The petitioners being widow, minor son and mother of Sh. Yog Raj, have filed the petition under Section 166 of M.V. Act against the respondents, being insurer of the vehicle No. HP01C-0153, registered owner and driver of the offending vehicle and the respondent No. 4 being the person, in whose possession, the said vehicle was, at the relevant time, on the ground that Sh. Yog Raj, was travelling in the vehicle No. HP01C-0153 (hereinafter referred to as ‘the offending vehicle’), from Tissa to Chilli. When, the said vehicle reached near Pangola Nallah, respondent No. 3, Ramesh Kumar was driving the said vehicle in a rash and negligent manner and due to the said fact, he could not control the vehicle and accident had taken place, which resulted into severe head injury and other injuries on the person of Yog Raj.
5.2 According to the petitioners, Sh. Yog Raj died at the spot and his dead body was taken to PHC Nakror, District Chamba, H.P., where, the postmortem of the dead body was conducted. The information regarding the accident was given to police of Police Station Tissa, District Chamba, H.P.
5.3 According to the petitioners, Sh. Yog Raj, at the time of his death, was about 26 years and he was mason by profession. His income has been pleaded as Rs. 10,000/- per month. Since, the accident in question, has solely been attributed to the rash and negligent driving of respondent No. 3 Ramesh Kumar, driver of the offending vehicle, as such, the petitioners, have sought compensation to the tune of Rs. 15,00,000/-, along with interest, at the rate of 12% per annum, from the date of filing the petitioner, till realization of the whole amount, from the respondents.
5.4 On the basis of above facts, a prayer has been made to allow the claim petition, as prayed for.
When put to notice, claim petition has been contested by the respondents.
Insurance Company (respondent No. 1) has filed the separate reply by taking preliminary objections that the claim petition is not maintainable. According to respondent No. 1, respondent No. 2 Virender Singh, had sold the offending vehicle to one Latif Mohd. This fact has been pleaded to seek exoneration of the liability to pay the amount of compensation. In addition to this, preliminary objections have also been taken qua the fact that the driver of the offending vehicle was not holding valid and effective driving license to drive the offending vehicle at the relevant time; owner was aware about the fact that the driving license of the driver of the offending vehicle was fake; the vehicle was being permitted to ply in violation of the terms and conditions of the insurance policy; and that Sh. Yog Raj was travelling in the offending vehicle other than for hire or reward.
7.1 On merits, the c
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