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2025 Supreme(Online)(P&H) 6712

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Nidhi Gupta, J
Royal Sundaram Alliance Insurance Co. Ltd – Appellant
Versus
Mayawati – Respondent
FAO-2901-2018 | FAO-1584-2022



Advocates:
For the Appellants/Petitioners: Dinesh Kumar Prajapati
For the Respondents: Rakesh Sobti

An appellate court possesses the power under Section 107 read with Order XLI Rule 33 CPC to convert a motor accident claim from Section 166 to Section 164 of the Motor Vehicles Act to uphold the beneficial intent of the legislation and ensure just compensation for the claimants.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166, 163, 164 - Determination of compensation and appellate power - Appellate court has the power under Section 107 read with Order XLI Rule 33 of CPC to convert a claim filed under Section 166 to one under Section 164 to ensure beneficial legislation purposes are met - Beneficent legislation must not be defeated by technicalities regarding the specific provision under which a claim is filed. (Paras 22, 23, 26)

Facts of the case:
Both appeals arise from an accident on 14.03.2017 resulting in the death of Sunder. The Insurance Company challenged the compensation award, arguing the offending vehicle was falsely implicated, citing the acquittal of the driver in criminal proceedings and discrepancies in witness testimony. The claimants sought enhancement of the compensation originally awarded by the Motor Accident Claims Tribunal.

Findings of Court:
The court observed that while serious discrepancies existed in the evidence concerning the involvement of the offending vehicle in the criminal trial, the beneficial intent of the motor statutes necessitates a balanced approach. The court exercised its appellate powers to convert the claim filed under Section 166 to Section 164 of the Motor Vehicles Act.

Issues: Whether the offending vehicle was sufficiently identified and whether the appellate court could convert the claim petition from Section 166 to 164 to ensure just compensation.

Ratio Decidendi: The appellate court is empowered to re-appreciate evidence and convert the basis of a claim petition to advance the objectives of beneficial legislation, ensuring just and equitable compensation despite strict procedural objections involving initial classification.

Result: Claim petition converted to Section 164; Insurance Company ordered to pay compensation of Rs. 5 Lakh with interest.

Table of Content
1. overview of the background and procedural history of the competing appeals. (Para 1 , 2 , 3 , 4 , 5)
2. rival contentions regarding the involvement of the offending vehicle and quantum of compensation. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13)
3. court's analysis of the evidence and the threshold for negligence in motor accident cases. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
4. application of appellate powers to convert claims for ensuring just compensation as beneficial legislation. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)

FAO-1584-2022

Present appeal has been filed by claimants seeking enhancement of compensation of Rs.15,82,000/- awarded by the Motor Accident Claims Tribunal, Palwal (hereinafter ‘the learned Tribunal’) vide Award dated 04.04.2018 passed in MACP No.75 dated 28.07.2017 filed under Section 166 of the Motor Vehicles Act (hereinafter “the Act”). The 4 claimants are the 30-year-old widow and 3 minor children of deceased Sunder son of Shri Kishan Lal, who was 31 years old at the time of accident.

FAO-2901-2018

Present appeal has been filed by the Insurance Company laying challenge to the Award dated 04.04.2018 passed by the learned Tribunal whereby MACP No.75 dated 28.07.2017 filed under Section 166 of the Act by the claimants/respondents No.1 to 4 herein, has been allowed and compensation of Rs.15,82,000/- has been awarded to the claimants.

2. In FAO-2901-2018, notice was issued vide order dated 29.05.2018; whereafter vide order dated 01.11.2018, the Executing Court was directed to adjourn the proceedings beyond the date fixed by this Court which has been confirmed by this Court vide subsequent orders.

3. Both the above said appeals are being disposed of by this common order as both appeals arise out of the same Award dated 04.04.2018; accident dated 14.03.2017; and parties, facts and offending vehicle in both cases, are same. For the sake of brevity, the parties are being referred to and the facts are being drawn from FAO-2901-2018 titled as “Roayal Sundaram Alliance Insurance Co. Ltd. Vs. Mayawati & Others”.

4. Facts as pleaded by the claimants in their Claim Petition before the Tribunal as recorded in Paras 2 and 3 of the Award are as under:-

“2. Brief facts of the case as pleaded in the claim petition are that on 14.3.2017, at about 3 p.m., while Sunder (since deceased) was going towards Palwal on his motor-cycle no.HR-51AJ-8147 and when he reached near Omaxe City, National Highway No.2, Palwal, in the meanwhile, a Swift car bearing registration no.HR-50F-0537 (hereinafter to be mentioned as the vehicle in question) driven by the respondent no.1 in a rash and negligent manner and also at a high speed came and hit him from behind, as a result of which, he fell down along with his vehicle and sustained injuries and thereafter, succumbed thereto and died at the spot. The accident in question had taken place due to rash and negligent driving of the vehicle in question by the respondent no.1. A criminal case vide FIR No.219 dated 15.3.2017 was registered under sections 279 and 304-A of IPC, at police station Camp Palwal for causing the impugned accident.

3. The claimants, being widow and children respectively of the deceased Sunder have thus prayed for grant of compensation to the tune of Rs. 75,00,000/- as against the respondent no.1 being driver, respondent no.2 being owner and respondent no.3 being insurer of the vehicle in question on the grounds that the deceased was aged about 30 years at the time of his accidental death. He was an agriculturist and was also doing the job of milk vending and supplying milk thereby earning a sum of Rs.50,000/- per month. A sum of Rs.50,000/- was spent on transportation of his dead body and last rites. Due to his untimely death, they have been deprived of his love and affection. They were fully dependent upon the income of the deceased. Hence, the petition.”

5. The ld. Tribunal on the basis of pleadings and oral & documentary evidence adduced by the parties,

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