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FAO-4825-2012 (O&M)(cid:1) (cid:2)(cid:1) (cid:1)

(cid:1)

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

FAO-4825-2012 (O&M) with

IOIN-1-FAO-4825-2012

Reserved on: 12^th February 2026

Date of decision: 05^th March 2026

Uploaded on: 07^th March 2026

RAM RATI AND OTHERS ..…..Appellants

versus

KRISHAN AND OTHERS .......Respondents

CORAM: HON'BLE MS. JUSTICE HARPREET KAUR JEEWAN

Present: Mr. Surinder Singh Duhan, Advocate

for the appellants.

Mr. Vikram Singh, Advocate

for respondent No.1.

Ms. Vandana Malhotra, Advocate

for respondent No.3-Insurance Company

(through video conferencing).

HARPREET KAUR JEEWAN, J.

1. By way of filing the present appeal, the appellants-claimants

have challenged the findings of the Motor Accident Claims Tribunal, Jind,

whereby, respondent No.3-Insurance Company was absolved of its liability

to pay compensation and only the owner and the driver were held liable to

pay the compensation. By way of filing the preesnt appeal, the appellants-

claimants have also sought enhancement of the compensation.

2. As per the brief facts, on 12.02.2011, deceased-Roshan, along

with his companions, was travelling in a Jeep bearing Registration No.

HR-11-1845. At about 6:00 P.M., when they reached near the area of village

Ramrai, the Jeep struck against a vehicle. Resultantly, the driver of the jeep

died. Roshan (deceased) suffered multiple injuries and he was shifted to

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General Hospital, Jind from where, he was shifted to PGIMS, Rohtak for

further treatment and ultimately, on 24.02.2011, he succumbed to the

injuries. A criminal case was registered by way of filing FIR bearing No.31

dated 12.02.2011 in Police Station Sadar Jind against an unknown driver.

3. The legal heirs of deceased-Roshan filed a claim petition, which

was contested by the owner, driver and the Insurance Company. The

Tribunal allowed the said petition and awarded a sum of ₹3,77,100/- as

compensation to the appellants-claimants. However, the owner and the

driver were directed to pay the said compensation and respondent No.3-

Insurance Company was exonerated by the Tribunal while recording the

following reasons:-

“xxxxxxx

22. Though the Insurance Company has produced insurance policy

Ex.R8 but respondents No.1 and 2 have failed to prove its route permit.

Even as per earlier version contained in FIR Ex. R6 as well as in untraced

report Ex. RI filed by the police, 12/13 passengers were traveling in the

Jeep in question at the time of impugned accident. In cross examination,

ASI Balwan Singh RW1 has categorically stated that during investigation,

it was found that the Jeep in question was being plied by its owner as taxi

from Narnaud to Jind for carrying passengers. Even in affidavit Ex. R5

respondent No.2 has clearly mentioned that he used to ply his taxi from

Jind to Narnaud.

23. More so, as per registration certificate and insurance policy Ex.R8,

the Jeep in question was a private vehicle and thus was "non transport

vehicle" and its insurance policy Ex.R8 covers its use for

any purpose other than:-

a) Hire or Reward:

b) Carriage of Goods (other than samples or personal luggage

c) Organized racing

d) Pace making;

e) Speed testing

f) and reliability trials and

g) Use in connection with Motor trade.

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As discussed above, since 12-13 passengers were traveling in the Jeep in

question on hire and reward, therefore, it is held that it was being plied in

contravention of terms and conditions of insurance policy exonerating its

liability.

24. However, respondent No.1 had sold the Jeep in question to

respondent No.2 much prior to the impugned accident on 15.1.2011 vide

affidavit Mark RA, but he being registered owner shall be deemed to

continue as its owner for the purposes of Motor Vehicle Act even though

under the Civil law he had ceased to be as such after its sale. Reliance can

be placed upon th