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2026 Supreme(Online)(Tel) 12312

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Moushumi Bhattacharya, Gadi Praveen Kumar, JJ
New India Assurance Co. Ltd. – Appellant
Versus
Mohd. Nayeemuddin – Respondent
M.A.C.M.A. No.78 of 2026



Advocates:
For the Appellants/Petitioners: A. Ramakrihna Reddy
For the Respondents: Kota Subba Rao

A judgment or decree obtained through the use of fraudulent evidence, such as forged employment or educational documents, is a nullity that voids the entire claim, and courts must summarily reject such proceedings to prevent the abuse of the judicial process.

Headnote:(A) Motor Vehicles Act, 1988 - Section 168 - Claim petition for compensation - Fraudulent evidence - Manipulation of age and income documents - The court held that a judgment obtained by fraud is a nullity - Establishing a claim on fabricated employment offer letters and forged marks memos renders the entire award unsustainable - Foundational requirements of a genuine claim cannot be overridden - Fraud vitiates all solemn acts - Appellate court allowed the appeal, set aside the lower tribunal’s award, and ordered the refund of deposited amounts. (Paras 28, 29, 31, 35, 36)

Facts of the case:
The claimants were the parents of the deceased who sought compensation for his death in a motor accident. Initially claimed Rs.50,00,000/-, later enhanced to Rs.1,50,00,000/- while asserting the deceased was an engineering student earning a high salary through a corporate offer letter. The insurance company appealed, submitting additional documents under Order 41 Rule 27, demonstrating that the deceased was a first-year student and the employment offer letter was fabricated, with the candidate ID belonging to a different individual.

Findings of Court:
The Court concluded that the claimants engaged in systematic and deliberate fraud, having suppressed true facts regarding the deceased's age and education, and introduced a forged employment offer letter to inflate the compensation claim. The Court emphasized that a fraudulent claim collapses the entire edifice of the litigation.

Issues: Whether the award of the Tribunal was vitiated by fraud, misrepresentation, and suppression of material facts, and whether the insurer is liable to pay compensation based on such evidence.

Ratio Decidendi: Fraud vitiates all solemn judicial acts. When a claim is founded on false and fabricated material, the foundational requirement of a bona fide claim is absent; therefore, the court cannot grant partial relief, and the entire judgment or decree must be set aside.

Result: Appeal allowed; the award of the Tribunal was set aside.

Table of Content
1. summary of tribunal proceedings and findings regarding compensation. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. arguments regarding allegations of fraud and procedural law applications. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
3. court's reasoning on how fraud vitiates judicial awards. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)

JUDGMENT:

%Dated 09.04.2026

# Between:

The New India Assurance Co. Ltd. …. Appellant

And

Mohd. Nayeemuddin and two others …. Respondents.

! Counsel for appellant : Sri A.Ramakrihna Reddy

^ Counsel for Respondents 1 & 2 : Sri Kota Subba Rao

< GIST :

> HEAD NOTE :

? Cases referred :

1. (2009) 6 SCC 121

2.(2017) SC 1050

3.(2013) 15 SCC 45

4.2022 ACJ 948

5.(2006) 4 SCC 404

6.SLP (Civil) No.1110 of 2017

7.(2021) 13 SCC 587

8.AIR 2025 SC 1882

9.(1994) 1 SCC 1

10.AIR 2004 SC 175

11.AIR 1971 SC 1865

12.2022(5) ALD 76 (SC)

13.2025 ACJ 406

14.AIR 1965 SC 1008

15.AIR 1951 SC 193

16.Order in Civil Appeal No.1589 of 2001 (Arising out of SLP (C) No.6407 of 2000 dt.26.02.2001.

17.Civil Appeal No.6100 of 2024 dated 17.03.2026

18.(2007) 4 SCC 221 : 2007 SCC OnLine SC 317

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

***

THE HON’BLE JUSTICE MOUSHUMI BHATTACHARYA

AND

THE HON’BLE JUSTICE GADI PRAVEEN KUMAR

M.A.C.M.A. No.78 of 2026

Date of Order:09-04-2026

Between :

The New India Assurance Co. Ltd. …. Appellant

And

Mohd. Nayeemuddin and two others …. Respondents.

JUDGMENT:(per Hon’ble Justice Gadi Praveen Kumar)

Heard Sri A.Ramakrishna Reddy, learned counsel appearing for the appellant and Sri Kota Subba Rao, learned counsel appearing for respondent Nos.1 and 2/claimants.

2. The present Appeal is filed by the appellant-Insurance Company aggrieved by the order dated 01.05.2025 passed in M.V.O.P.No.1390 of 2018 by the Motor Accidents Claims Tribunal-cum-X Additional Chief Judge, City Civil Courts at Hyderabad (for short ‘the Tribunal’) awarding compensation of Rs.3,05,80,000/- to the claimants with interest at the rate of 6% per annum from the date of filing of the petition till realization with proportionate costs.

3. The facts leading to filing of the Claim Petition before the learned Tribunal are that on 26.05.2017 at about 3:30 p.m., the deceased, Mohd.Saifuddin, was traveling as a pillion rider on a motorcycle bearing Registration No. TS-10-EL-0668. The said motor cycle was being ridden by his college mate, Rizwan Rasool. When they reached near Yenkapally Gate, within the jurisdiction of Moinabad Police Station, the rider of the motor cycle lost control over the vehicle and dashed against the road divider. As a result of the impact, both the rider and the pillion rider sustained grievous injuries and died on the spot. Based on the report lodged, the Police of Moinabad, Cyberabad registered a case vide Crime No. 288 of 2017 under Sections 304-A and 337 of the Indian Penal Code and took up investigation.

4. The claimants being the parents of the deceased filed Claim Petition initially for a sum of Rs.50,00,000/- and later, enhanced the compensation to Rs.1,50,00,000/- stating that at the time of accident, the deceased was aged 21 years, hale and healthy, pursuing his Engineering (CSE) III Year Degree at Global Engineering College of Science and Technology, Moinabad and was a brilliant student, used to earn Rs.50,000/- p.m. by imparting private tuitions and maintain his family members, and due to the sudden demise of deceased, the claimants suffered mental agony and lost love and affection of the deceased. Respondent No.1 is the owner of the crime vehicle having insurance with the respondent No.2 and the accident occurred due to rash and negligent driving of the driver of the said crime vehicle. As such, respondent Nos.1 and 2 are jointly and severally liable to pay a sum of Rs.1,50,00,000/- towards compensation to the claimants.

5. The respondent No.1 in the MVOP did not contest the case and remained ex parte. The respondent No.2

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