THE HIGH COURT OF SIKKIM: GANGTOK (Civil appellate Jurisdiction)

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SINGLE BENCH: THE HON’BLE MR. JUSTIC E BHASKAR RAJ PRADHAN, JUDGE -------------------------------------------------------------------------------------------------------------

MAC App. No. 06 of 2025 The Manager, HDFC ERGO General Insurance Co. Ltd.

4^th Floor, Block C, 22, Camac Street Kolkata, West Bengal, Pin No.700016.

….. Appellant.

Versus

1. Mrs. Laxmi Sherpa, W/o Mingma Dorjee Sherpa, R/o Daragoan, Phewa Busty, Dist: Gangtok, Sikkim, Pin: 737102.

…… Owner/Claimant/Respondent No.1

2. Mr. Mingma D. Sherpa, S/o Late R. Sherpa, R/o Phewa Busty, Dist: Gangtok, Pin: 737102.

….. Driver/Respondent No.2 Appeal under Section 173 of the Motor Vehicles Act, 1988.

{Impugned Judgment dated 11.07.2024 passed by the Learned Member, Motor Accidents Claims Tribunal, at Gangtok, Sikkim in M.A.C.T. Case No.33 of 2023, directing the Appellants to pay Rs.87,58,739/- only with interest @ 10% to the claimants from the date of filing of the claim petition i.e., 28.08.2023}.

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Appearance:

Mr. Rahul Rathi and Ms. Khushboo Rathi, Advocates for the Appellant.

Mr. Sudesh Joshi and Mr. Adarsh Gurung, Advocates for the Respondent No.1.

Mr. Anil Gurung, Advocate for the Respondent No.2.

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Date of Hearing : 20.11.2025 Date of Judgment : 11.12.2025 Date on which uploaded : 11.12.2025 Laxmi Sherpa & Anr.

J U D G M E N T

Bhaskar Raj Pradhan, J.

1. The Motor Accident Claims Tribunal (the learned Tribunal) allowed an application under Section 166 of the Motor Vehicles Act, 1988 (the MV Act) filed by the claimant (respondent no.1) for compensation on account of her injury vide judgment dated 11.07.2024 in her favour. The learned Tribunal awarded an amount of ₹87,58,739/- with interest @ 10% per annum from the date of filing of the claim petition i.e. 28.08.2023 until its full realization with a direction to deposit the admissible court fees. HDFC Ergo General Insurance Company Limited (the Insurance Company) the appellant herein is unhappy with the amount awarded and has preferred the present appeal under Section 173 of the Motor Vehicles Act, 1988. The Claim

2. The respondent no.1 had filed a claim under Section 166 of the M.V. Act before the learned Tribunal. The respondent no.1 sought compensation for an amount of ₹20,50,000/- compensation for injuries sustained by her due to an accident of the motor vehicle on 29.11.2020 in which she sustained traumatic paraplegia, fracture of the right humerus shaft and she sufferred disability to the extent of 75%. She Laxmi Sherpa & Anr.

claimed that she was the owner of the accident vehicle. The respondent no.1 also alleged that the driver lost control of the vehicle as he was driving in a rash and negligent manner.

The Written Objections

3. The appellant filed written objection contending that as the respondent no.1 was the registered owner and travelling in the accident vehicle she is not entitled to any relief. The appellant contended that the accident vehicle was registered in the name of the deceased driver. The appellant contended that as the injured was the owner of the accident vehicle she was the second party to the contract of insurance between her and the appellant. Therefore, the respondent no.1 could not have preferred a third party claim. It was also contended that the appellant could have been made liable to pay compensation in case of the death of the owner provided that additional premium was paid for „Personal Accident Cover‟.

4. The respondent no.2 also filed his written objection contesting the claim petition made by the respondent no.1. The respondent no.2 asserted that he had a valid driving license at the time of the accident; the respondent no.1 had given her consent to him to drive the vehicle; he had not driven the