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FAO No.1274 of 2025(O&M) 1

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

(133) FAO No.1274 of 2025(O&M)

Reserved on:29.01.2026

Pronounced on: 31.01.2026

Uploaded on : 31.01.2026

The United India Insurance Company Limited … Appellant

Versus

Meenakshi and Others … Respondents

CORAM: HON’BLE MR. JUSTICE VIRINDER AGGARWAL

Present: Ms. Anil Mehra, Advocate,

for the appellant.

Mr. Ashwani Bhardwaj, Advocate,

for the Respondents/claimants.

*****

VIRINDER AGGARWAL, J.

1. The present appeal has been preferred by the appellant assailing the

award dated 11.11.2024 passed by the learned Motor Accident Claims Tribunal,

Hisar , whereby the claim petition filed by the Respondents/Claimants for grant

of compensation on account of death of Bajrang Sharma was allowed. Award

amount of Rs. 52,20,000/- along with interest at rate of 7% per annum from the

date of filing the claim petition till actual realisation.

BACKGROUND FACTS

2. The claimants’ case is that on 21.09.2021, Bajrang Sharma was travelling

as a pillion rider on a motorcycle driven by his nephew Pardeep. At about 9:30

a.m., near the South bypass road close to Jindal Factory overbridge, offending

truck bearing No. HR-39B/4225, driven rashly and negligently, struck the

motorcycle, resulting in Bajrang’s death. On Pardeep’s statement, FIR No. 839

SAURAV PATHANIA

2026.01.31 13:32

I attest to the accuracy and

integrity of this document

FAO No.1274 of 2025(O&M) 2

dated 21.09.2021 under Sections 279, 337, 304-A and 427 IPC was registered at

P.S. Sadar, Hisar. After investigation, the police found respondent No.1

Manjeet negligent and filed a charge sheet under Section 173 Cr.P.C. It was

asserted that the deceased was working as a Sales Manager with Edisafe

Logistics Pvt. Ltd., earning ₹30,000 per month, and his widow and two minor

children filed the claim petition seeking compensation.

3. Respondents No.4 and 5 (Driver and Owner respectively) in their written

statement, denied the occurrence of the accident, rash and negligent driving,

and involvement of the truck. They disclaimed liability and pleaded that, if

compensation was held payable, the same should be borne by respondent No.3,

the insurer, as the vehicle was insured. They sought dismissal of the claim

petition. Appellant-Insurance Company also contested the claim, raising

objections regarding locus standi, maintainability and alleged collusion. It

denied the accident, as well as the age and income of the deceased, alleging that

a false FIR was registered in collusion to extract money. It further pleaded

violation of policy terms and prayed for dismissal of the claim petition.

4. Upon appreciation of the oral and documentary evidence, the learned

Motor Accident Claims Tribunal recorded a finding that the accident had

occurred due to rash and negligent driving of the offending vehicle driven by

respondent no.1-Manjit Singh. While determining the quantum of

compensation, the learned Tribunal assessed Monthly Income as 30,000/-

relying upon his last salary slips (Ex.P-38 to Ex.P-43) and testimony of PW7.

Thereafter, learned Tribunal applied the structured formula as per the settled

principles of law. Consequently, awarded a total compensation of only

₹52,20,000/- with interest at rate of 7% per annum from the date of filing the

claim petition till actual realisation.. Aggrieved by the said award, the present

SAURAV PATHANIA

2026.01.31 13:32

I attest to the accuracy and

integrity of this document

FAO No.1274 of 2025(O&M) 3

appeal has been filed by appellant/insurance company for modification of the

impugned award.

CONTENTIONS

5. The Learned Counsel for the appellant contends that the learned Tribunal

committed a grave error in allowing the claim petition by assessing the

deceased’s income at ₹30,000 per month on the premise that he was working as

a Sales Manager. It is argued that while computing monthly income, the

Tribunal failed to appreciate that allowances personal to the deceased could not

be included. Consequently, inclusion of transport allowance and special

allo