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2026 Supreme(Pat) 136

IN THE HIGH COURT OF JUDICATURE AT PATNA
Rajiv Roy, J.
The New India Assurance Company Limited - Appellant
Versus
Vijaya Kumari w/o Lt. Kameshwar Mahto Deceased - Respondent
Miscellaneous Appeal No.702 of 2016
Decided On : 22-01-2026

Advocates Appeared:
For the Appellant :Mr. Durgesh Kumar Singh, Advocate, Mr. Abhijeet Kumar Singh, Advocate
For the Respondent:Mr. Bal Govind Sharma, Advocate, Mr. Dhannjay Kumar No.2, Advocate

In determining compensation for fatal accidents, courts must consider salary, age, and future prospects, while rejecting tax deductions that negate the intended calculations.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Claim for compensation - Deceased, Kameshwar Mahto, was an assistant engineer who died due to injuries sustained in an accident caused by a tractor - Tribunal awarded compensation of Rs.41,77,428/- after deducting an earlier payment of Rs.50,000/- with interest at 6% from filing of the appeal - The insurance company contested liability and deduction of income tax, but these arguments were dismissed as the tractor was insured and future prospects cancels out the tax deduction. (Paras 8, 20, 19).

(B) Tort Law - Legal liability and compensation calculation - In assessing damages, factors such as salary, age, and future prospects should be considered, while deductions for income tax need to be factored judiciously, as affirmed by Supreme Court precedent. (Paras 16-17)

Facts of the case:
The accident occurred on 09.07.2012 when the tractor hit the deceased's motorcycle, leading to grievous injuries and subsequently death at a hospital. The insurance company's denial of liability was based on an assertion that the tractor's involvement was unproven. (Paras 4-5, 11-15)

Findings of Court:
The deceased's fixed salary and age factored into the compensation calculation; no errors were found in the Tribunal's award of Rs.41,77,428/-, emphasizing the insurance company's obligation to pay. (Paras 8-10).

Issues: The main issues were whether the appeal was maintainable, existence of the cause of action, the justification of the compensation awarded, and the validity of the insurance coverage. (Paras 6, 20)

Ratio Decidendi: The court found no error in the Tribunal's reasoning; the insurance policy's validity and the deceased's employment details supported the claim, negating the insurance company's arguments regarding liability and tax deductions. (Paras 17-19)

Result: Appeal dismissed; the insurance company must pay Rs.41,77,428/- with 6% interest, along with additional costs for delays in payment.

Table of Content
1. details of the accident and claim initiation (Para 4 , 5 , 6)
2. tribunal's findings on liability and compensation (Para 7 , 8)
3. arguments regarding liability and compensation deductions (Para 11 , 12 , 13 , 14)
4. court's reasoning on income deductions and future prospects (Para 15 , 16 , 17)
5. final judgment and implications for the insurance company (Para 18 , 19 , 20 , 21)

JUDGMENT :

Rajiv Roy, J.

Heard Mr. Durgesh Kumar Singh, learned counsel for the appellant duly assisted by Mr. Abhijeet Kumar Singh and Mr. Dhannjay Kumar No.2 for the claimant respondents.

2. The present appeal has been preferred for:

“being aggrieved by and dissatisfied with the judgment dated 07.11.2015 & award dated 26.11.2015 passed by the learned 12th Additional District Judge cum Motor Vehicle Accident Claim Tribunal, Muzaffarpur in Claim Case No. 326/12 ‘Vijaya Kumar & Ors. vs. Jyoti Devi & Another’.

3. The facts leading to the present appeal is/are as follows:

4. On 09.07.2012, the deceased, Kameshwar Mahto who was an Assistant Engineer with the Rural Works Department, Bihar, Patna, was going to Darbhanga on his motorcycle. As he reached near Taralahi, a Tractor bearing Registration No. BR-07-G-4161 in a rash and negligent manner hit the motorcycle from behind, Kameshwar Mahto sustained grievous injuries, taken to the Darbhanga Medical College, Darbhanga where he died in course of treatment on 09.07.2012.

5. The usual F.I.R./investigation/submission of charge-sheet followed the present Claim case no.329 of 2012 by the deceased’s family members including the wife and the children (Vijaya Kumari & Ors. vs. Jyoti Devi & Anr.). The second respondent is/was the New India Assurance Company Limited (henceforth for short ‘the Insurance Company’) with which the Tractor was insured.

6. The matter went up before ‘the Tribunal’ and the issues were framed as under:

(i) whether the claim case as framed is maintainable?

(ii) whether claimants have got cause of action and right to sue?

(iii) whether the accident had taken place on 09.07.2012 at 9:30 AM at near Taralahi P.S. Bahadurpur, District-Darbhanga by attending vehicle bearing registration No. BR-07-g-4161;

(iv) whether the driver of offending vehicle was driving the said vehicle very rashly and negligently at the time of alleged accident;

(v) whether offending vehicle was insured at the time of alleged accident;

(vi) whether the driver of offending vehicle had legal valid driving license at the time of accident?

(vii) what should be quantum, if compensation is granted and who is liable to pay the same?

(viii) are the claimants entitled to get any other reliefs or reliefs?”

7. The parties put forward their respective submissions whereafter to ‘the Tribunal’ vide an order and judgment dated 07.11.2015 and 26.11.2015 came to the conclusion that:

(i) Kameshwar Mahto was moving on the motorcycle on the said date (09.07.2012). As he stopped and was in conversation with a friend, the Tractor bearing registration no.BR-07-G- 4161 came from behind and in a rash and negligent manner hit him causing injuries. He was shifted to the Darbhanga Medical College & Hospital, Darbhanga but as recorded above, he died in course of the day;

(ii) the Tribunal further came to the conclusion that the said Tractor was insured with ‘the Insurance Company’ with valid insurance certificate (from 29.05.2012 to 28.05.2013) and as such, ‘the Insurance Company’ also has the responsibility towards the payment.

8. The admitted fact that ‘the Tribunal’ recorded is/was that the deceased was employed with the Rural Works Department, Bihar, Patna. He was who was 54-55 years of age at the time of accident and considering that his salary statement shows the income as Rs.47,941/-, thus multiplying the same and deduction towards personal expenses; it was held that the claimants are entitled to Rs.42,27,428/-

9. As already compensation of Rs.50,000/- was paid earlier, it came down to Rs.41,77,428/- with interest of six percent per annum from the date

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