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2026 Supreme(Online)(Sikk) 48

THE HIGH COURT OF SIKKIM: GANGTOK
Bhaskar Raj Pradhan, J
The Divisional Manager National Insurance Company Ltd – Appellant
Versus
Dawa Lhamu Sherpa and Ors. – Respondent
MAC App. No.20 of 2025|SKHC01-000223-2025



Advocates:
For the Appellants/Petitioners: M. N. Dhungel
For the Respondents: Vidya Lama, Nima Tshering Sherpa, Arun Rai

Income certificates issued by authorized government officials (BDOs) are public documents carrying a presumption of correctness, and the Tribunal's discretionary power to award interest under the Motor Vehicles Act should not be disturbed unless the rate is exorbitant.

Headnote:(A) Evidence - Income Certificate - Presumption of Correctness - An income certificate issued by a Block Development Officer (BDO) under government notification is a public document and carries a presumption of correctness unless rebutted by evidence. (Para 5)

(B) Motor Vehicles Act - Interest Rate - Judicial Discretion - The power to grant interest under Section 171 is discretionary; such discretion should not be interfered with in appeal unless the rate is shown to be excessive or exorbitant. (Para 6)

Issues: Whether the income certificate issued by the BDO was valid and whether the interest rate of 10% awarded by the Tribunal was excessive.

Table of Content
1. summary of the accident, the tribunal's findings on negligence, and the calculation of compensation. (Para 1 , 2 , 3)
2. presumption of correctness attached to income certificates issued by bdos as public documents. (Para 4 , 5)
3. non-interference with the tribunal's discretionary power to award interest unless exorbitant. (Para 6)
4. dismissal of appeal based on valid insurance policy and reasoned tribunal award. (Para 7)

J U D G M E N T (O R A L)

Bhaskar Raj Pradhan, J.

1. Admit. Heard the learned counsel for the parties.

2. The National Insurance Company is aggrieved by the judgment and award of the learned Motor Accident Claims Tribunal dated 31.07.2025 adjudicating the claim made by respondent nos. 1 to 3 i.e. Dawa Lhamu Sherpa, Phur Dawa Sherpa and Palden Sherpa claiming for the death of the deceased, as heirs. The owner of the vehicle-Karma Tamang is respondent no.4. As per the judgment impugned herein the accident vehicle which was hired by the deceased persons met with an accident on 13.01.2024. In the accident the deceased along with his son had succumbed to the injury. The driver also died as a result of the accident.

3. The learned Tribunal has concluded that the cause of accident was due to rash and negligent driving of the driver; that the driver was the authorized driver as authorized by the owner of the vehicle and the vehicles documents including the driver’s driving license were all valid. The learned Tribunal determined the monthly income of the deceased from agricultural production as Rs.36,450/- as claimed by the claimants. The learned Tribunal also concluded that the Insurance Policy of the vehicle was effective and that the appellant was liable to pay the compensation. Thus, the learned Tribunal calculated the compensation under various heads i.e. loss of earning, funeral expenses, loss of estate, spousal consortium, transportation charges, cost of litigation and non-pecuniary damages and directed the appellant to pay a compensation of Rs.48,50,000/- along with interest @ 10% per annum from the date of filing of the application i.e. 21.11.2024 until its full realization.

4. The learned counsel for the appellant seeks to assail the Judgment and Order of the learned Tribunal on the ground that the income certificate (Annexure-A2) issued by the Block Development Officer (BDO) did not disclose as to how he had come to the conclusion that the income was as mentioned in the income certificate. The learned counsel also contends that the grant of interest of 10% is rather high and it should be reduced to 9% instead.

5. The income certificate (Annexure-A2) issued by the BDO is a certificate issued under Notification No.25/HOME/2007 dated 30.04.2007 by which the Government of Sikkim has empowered the BDOs to issue various certificates as mentioned therein including an income certificate. The income certificate is duly exhibited before the Tribunal as exhibit 14. It is apparent that therefore the income certificate of the BDO certifying the income is a public document and it would carry a presumption of correctness. The learned counsel for the appellant has taken this Court to the cross examination of the Dawa Lhamu Sherpa (claimant no.1) on this aspect. On such examination it is apparent that the appellant had not been able to rebut the presumption of correctness attached to the certificate issued by the BDO. Accordingly, the learned counsel’s first contention is rejected.

6. The second challenge with regard to the interest is also not substantiated by any reasoned thought except that according to the perception of the appellant, it is high. It is submitted that normally the learned Tribunal awards interest at the rate of a maximum of 9%. It is noted that the accident occurred on 13.01.2024 and the award was rendered on 31.07.2025 directing interest payable from the date of filing of the claim petition i.e. 21.11.2024. However, if the reduction of 1% is the only aspect which is argued by the learne

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