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2026 Supreme(Online)(HP) 3240

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
HON'BLE MR. JUSTICE VIRENDER SINGH
RELIANCE GENERAL INSURANCE COMPANY LTD – Appellant
Versus
AARAV AND OTHERS – Respondent
FAO/258/2021



Petitioner Advocates:Jagdish Thakur ,Respondent Advocate: Varun Chauhan NEMO Bhagwati Chander Verma Bhagwati Chander Verma Bhagwati Chander Verma

A driver with an LMV license can legally operate transport vehicles under 7,500 kg. Furthermore, negligence in motor accident claims is determined by the preponderance of probability, meaning police cancellation reports in criminal proceedings do not automatically exonerate the driver from liability.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Death in motor accident - Driver's license - A driver holding a license for Light Motor Vehicle (LMV) class is permitted to operate a transport vehicle without additional authorization if the gross vehicle weight is below 7,500 kg - Insurance companies cannot take a technical plea to defeat a legitimate claim based on this licensing overlap. (Paras 15, 16)

(B) Rash and negligent driving - Standard of proof - Liability of the tort-feasor in proceedings under the Motor Vehicles Act is determined by the preponderance of probability - Such proceedings are distinct from criminal proceedings where guilt must be proved beyond reasonable doubt - The filing of a police cancellation report in a criminal case does not automatically exonerate the driver from charges of rash and negligent driving for the purpose of awarding compensation. (Paras 19, 20, 21)

(C) Quantum of compensation - Deceased homemaker - For the purpose of assessing compensation, the contribution of a homemaker must be converted into monetary terms - Deceased below 40 years is entitled to an addition of 40% of the established income towards future prospects - Multiplier to be applied based on the age of the deceased. (Paras 24, 25, 26)

(D) Loss of consortium - Right to consortium is a compendious term encompassing spousal, parental, and filial consortium, which includes the loss of company, care, help, comfort, guidance, solace, and affection of the deceased. (Para 28)

Facts of the case:
Claimants filed a petition for compensation following the death of a 29-year-old woman in a road accident involving a transport vehicle. The Tribunal awarded Rs. 19,35,000 with 9% interest. The insurer appealed the award, contending that the driver lacked a valid transport license, that a police cancellation report proved a lack of negligence, and that the quantum of compensation was excessive.

Findings of Court:
The Court held that the driver's LMV license was sufficient for a transport vehicle weighing less than 7,500 kg. It found that the driver was negligent based on the preponderance of probability, as the vehicle was under his exclusive control and the accident occurred despite the possibility of stopping the vehicle at normal speeds. The Court revised the homemaker's monthly income to Rs. 8,000, added 40% for future prospects, applied a multiplier of 17, and reduced the interest rate to 7.5%.

Issues: Whether a driver with an LMV license can legally operate a transport vehicle under 7,500 kg; whether a police cancellation report in a criminal case absolves a driver of negligence in a claim petition; and whether the quantum of compensation was just.

Ratio Decidendi: The court reasoned that LMV and transport vehicle classes overlap for vehicles under 7,500 kg. It further held that the standard of proof in motor accident claims is lower than in criminal trials, meaning a cancellation report in the latter does not preclude a finding of negligence in the former.

Result: Appeal allowed. Award reduced to Rs. 16,66,288 with interest @ 7.5%.

Legal Category Hierarchy

  • tort
    • motor vehicle accidents
      • negligence (Para 17, 18, 19, 20, 21)
      • compensation
        • future prospects (Para 25)
        • loss of consortium (Para 28)
        • funeral expenses (Para 28)
        • loss of estate (Para 28)
      • driving license (Para 12, 13, 14, 15, 16)
  • practice and procedure
    • appeals (Para 1, 2, 31, 33)
    • evidence
      • standard of proof
        • preponderance of probability (Para 19, 20)
    • interest (Para 30)

Table of Contents

1. Motor accident claim under M.V. Act — Death of homemaker — Appeal by insurer challenging award. (Para 1 , 2 , 3 , 4 )

2. Dispute over negligence, driving license validity, and quantum of compensation. (Para 9 , 10 , 11 )

3. Appeal allowed — Compensation reduced and interest rate modified — Award modified accordingly. (Para 31 , 32 , 33 )

4. Does a police cancellation report in a criminal case preclude a finding of rashness and negligence in a Motor Vehicles Act claim?

No, MV Act proceedings are decided on preponderance of probability, not beyond reasonable doubt; evidence can still establish negligence. (Para 17 , 18 , 19 , 20 , 21 )

5. Can a driver holding a Light Motor Vehicle (LMV) license legally drive a transport vehicle with gross vehicle weight below 7,500 kg?

Yes, under the MV Act and Supreme Court ruling, an LMV license suffices for transport vehicles under 7,500 kg. (Para 12 , 13 , 14 , 15 , 16 )

6. What percentage addition for future prospects should be applied to the income of a deceased homemaker?

40% of the established monthly contribution, as per Pranay Sethi for self-employed persons below 40 years. (Para 25 )

7. How should compensation be calculated for the death of a homemaker under the Motor Vehicles Act?

Notional monthly contribution assessed at Rs.8,000; add 40% for future prospects; deduct 1/3rd for personal expenses; apply multiplier of 17; add conventional heads with 10% escalation. (Para 22 , 23 , 24 , 26 , 27 , 28 , 29 )

8. What is the appropriate rate of interest on compensation awarded under the Motor Vehicles Act?

7.5% per annum, considering the prevailing rate of interest of nationalized banks. (Para 30 )

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA

2026:HHC:20653

FAO(MVA) No.258 of 2021

Reliance General Insurance Company …Appellant Versus Master Aarav (minor) & Ors. …..Respondents

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

Reserved on:- 07.05.2026 Date of Decision: 30.05.2026

Whether approved for reporting? yes

For the Appellant : Mr. Jagdish Thakur, Advocate.

For the Respondents : Mr. Sumit Sharma, Advocate for respondents No.1 & 2.

Mr. Varun Chauhan, Advocate, for respondent No.3.

Virender Singh, Judge :

1. Appellant-Reliance General Insurance Company Limited 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 07.05.2018, passed by learned Motor Accident Claims Tribunal-II, Kinnaur at Rampur Bushehar, H.P., (hereinafter referred to as the ‘learned Tribunal’), in R.B.T. No.104-R/2 of 2016, titled as Master Aarav and another versus Joginder Singh & another.

2. By way of award dated 07.05.2018, the learned Tribunal has allowed the claim petition, filed by the respondents No.1 and 2 and awarded a sum of Rs.19,35,000/- along with interest @ 9% per annum. However, the ultimate liability to pay the amount of compensation along with interest has been fastened upon the Insurance Company (appellant).

Brief Facts:

3. 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.

4. Necessary facts, as borne out from the record, may be summed up, as under:-

4.1. The petitioners-claimants, being minor son and mother-in-law of deceased Lakesh had filed the claim petition, under Section 166 of M.V. Act, before the learned Tribunal. They have sought the compensation on account of death of Lakesh, in a road side accident, involving Vehicle No.HP01K-5100 (hereinafter referred to as ‘the offending vehicle’), owned and driven by respondent No.1 and insured with respondent No.2.

4.2. According to them, Lakesh, at the time of her death, was 29 years old and she was earning Rs.20,000/-per month, as she was working as housewife and also used to do agriculture and horticulture work. The accident had taken place on 28.05.2015 at about 7:00 PM, at Kotgali near village Kotlu.

4.3. Elaborating their stand, it has been pleaded that the accident in question had taken place, due to rash and negligent driving of respondent No.1, as he drove the offending vehicle in a rash and negligent manner and could not control the same, due to which, the offending vehicle went off the road and had fallen into deep gorge. Lakesh died on the spot. Postmortem examination of the dead body was conducted by the Medical Officer, CHC, Anni District Kullu H.P.

4.4. The matter was also reported to the police of Police Station, Karsog, where, FIR No.75 of 2015, dated 29.05.2015 has been registered.

4.5. According to the claimants, Lakesh was housewife and also used to do agriculture and horticulture work and as such, she was earning Rs.20,000/- per month.

4.6. The claimants have also pleaded about their bright past and bleak future.

4.7. Since the accident in question has solely been attributed to the rash and negligent driving of the driver of the offending vehicle, as such, it has been prayed that the amount of compensation of Rs.30,00,000/, along with interest @9% be awarded to them, against the respondents.

Stand of the respondents before the learned Tribunal

5. When, put to notice, the claim petition has been contested by the respondents.

5.1. Respondent No.1/owner-cum-driver, has filed reply, by taking the preliminary objections that the claim petition is not maintainable. According to him, he was neither rash, nor, negligent, however, the accident had taken place due to sudden mechanical defects, in the offending vehicle. In this regard, respondent No.1, has relied upon the cancellation report submitted, by the police of Police Station Karsog, before the Court of l

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