New India Assurance Company Ltd v. MS Mahendri & Ors.

Delhi High Court · 15 Jul 2025 · 2025:DHC:5793
Tara Vitasta Ganju
MAC.APP. 311/2022
2025:DHC:5793
civil petition_allowed Significant

AI Summary

The Delhi High Court directed release of 60% of the awarded compensation to claimants in a motor accident claim, affirming the Tribunal's findings based on unimpeached eye-witness evidence and emphasizing the Motor Vehicles Act's beneficial nature.

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MAC.APP. 311/2022
HIGH COURT OF DELHI
Date of Decision: 15.07.2025
MAC.APP. 311/2022, CM APPL. 43710/2022
NEW INDIA ASSURANCE COMPANY LTD .....Appellant
Through: Mr. Abhishek Gola, Adv.
VERSUS
MS MAHENDRI & ORS. .....Respondents
Through: Mr. S.N. Parashar, Adv. for R-1 to 5
CORAM:
HON'BLE MS. JUSTICE TARA VITASTA GANJU TARA VITASTA GANJU, J.: (Oral)
CM APPL. 6672/2023[Release of awarded amount]
JUDGMENT

1. This is an Application filed by the Respondent Nos.[1] to 5/Claimants seeking release of the awarded amount deposited by the Appellant.

2. A Predecessor Bench of this Court by its ex-parte order dated 18.10.2022 directed that 75% of the awarded amount shall be deposited by the Appellant with the learned Tribunal.

3. Learned Counsel for the Respondent Nos.[1] to 5/Claimants submits that no amounts have been released to the Respondent Nos.[1] to 5/Claimants pursuant to this deposit.

4. Learned Counsel for the Appellant objects to this Application. Learned Counsel submits that it is the entire case of the Appellant that the witness was planted. Learned Counsel further submits that this aspect was referred to by the Appellant in its Written Statement that was placed on record before the learned Tribunal wherein it is stated that the offending vehicle is wrongly implemented in this case. Thus, it is contended by the learned Counsel for the Appellant that the awarded amount cannot be released in favour of the Respondent Nos.[1] to 5/Claimants.

5. Learned Counsel for the Respondent Nos.[1] to 5/Claimants, on the other hand, makes two submissions. Firstly, learned Counsel submits that so far as concerns the plea of ‘planted witness’, the said plea has been adjudicated upon by the learned Tribunal. It is contended that the learned Tribunal has relied upon the deposition of an eye-witness PW-3 in this behalf and has given a finding that the statement of PW-3 could not be impeached. 5.[1] Learned Counsel for the Respondent Nos.[1] to 5/Claimants, in addition, submits that in support of the plea of witness being planted, no evidence was led by the Appellant before the Tribunal and the crossexamination of the eye-witness did not bring out any infirmity in his testimony. In addition, it is contended that the driver of the offending vehicle was not examined.

6. The examination of the Impugned Award dated 28.05.2022 shows that this aspect has been discussed in the Impugned Award and a finding with respect to the liability has been given by the learned Tribunal. It is apposite to extract the relevant paragraphs of the Impugned Award dated 28.05.2022 in this behalf:

“15. Now, neither the factum of accident nor the identity of respondent no.1 being the driver of the offending vehicle is disputed. The FIR is bearing no. 587/2019 PS Khair, Aligarh, UP u/s. 279/304-A IPC was registered qua the accident. The FIR was registered on 27.11.2019 and there was no delay in the lodging the FIR. RW3/1 Sh Bijender Singh has deposed that the chargesheet in respect of the said FIR has also been filed before the competent Magistrate. 16. Now, the eye witnesses to the accident-PW-3 has categorically deposed about the manner in which the accident happened. He has stated that the

offending truck was being driven by its Driver at a high speed in a zigzag manner and in a rash and negligent way. It was behind the car and hit the car as a result of which the car fell into the Canal/River. Police was informed and with the help the JCB Crane, the car was pulled out from the Canal. The driver of the car was found dead on the driving seat. The witness was duly cross examined by ld. counsel for insurance company, during crossexamination the witness categorically deposed that the driver of the offending vehicle stopped the vehicle for sometime and then fled away from spot. He noted down the registration number of the offending vehicle. Nothing came out from his cross-examination which could impeach his credibility or raise any doubt about his deposition. He has clearly deposed about the manner in which the truck driver was driving and how the accident had happened. His testimony is sufficient enough to show that the driver of offending truck was driving it in a rash and negligent manner and the speed was beyond his control.

17. Thus, from the evidence led on the record, the petitioners on the basis of preponderance of probabilities have been able to establish that the accident was caused due to rash and negligent driving of respondent no.1. Issue no.1 is decided in favor of petitioners and against the respondents.” [Emphasis Supplied]

7. The finding of the learned Tribunal is that the cross-examination did not impeach the credibility of the eye-witness and the testimony of no other witness contradicted the same.

8. It is no longer res integra that the MV Act is a beneficial legislation which is intended to place the claimant in the same position as that of before the accident. The Supreme Court in the case of N. Jayasree & Ors. v. Cholamandalam MS General Insurance Co. Ltd[1]., has held that MV Act is a beneficial legislation which has been framed with the object of providing relief to the victims or their families and thus the provisions of MV Act warrant liberal and wider interpretation to serve the real purpose underlying the enactment and to fulfil the legislative intent. The relevant extract of the

N. Jayasree case is below:
"9. The provisions of the Motor Vehicles Act, 1988 (for short “the MV Act”) give paramount importance to the concept of “just and fair” compensation. It is a beneficial legislation which has been framed with the object of providing relief to the victims or their families. Section 168 of the MV Act deals with the concept of “just compensation” which ought to be determined on the foundation of fairness, reasonableness and equitability. Although such determination can never be arithmetically exact or perfect, an endeavour should be made by the Court to award just and fair compensation irrespective of the amount claimed by the applicant(s). xxx xxx xxx xxx 16. In our view, the term “legal representative” should be given a wider interpretation for the purpose of Chapter XII of the MV Act and it should not be confined only to mean the spouse, parents and children of the deceased. As noticed above, the MV Act is a benevolent legislation enacted for the object of providing monetary relief to the victims or their families. Therefore, the MV Act calls for a liberal and wider interpretation to serve the real purpose underlying the enactment and fulfil its legislative intent. We are also of the view that in order to maintain a claim petition, it is sufficient for the claimant to establish his loss of dependency. Section 166 of the MV Act makes it clear that every legal representative who suffers on account of the death of a person in a motor vehicle accident should have a remedy for realisation of compensation." [Emphasis Supplied]

9. Accordingly, let 60% of the awarded amount be released in favour of Respondent Nos.[1] to 5/Claimants in accordance with the scheme, as is set out in the Impugned Award.

10. The Application stands disposed of in the aforegoing terms. MAC.APP. 311/2022, CM APPL. 43710/2022[Stay]

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11. The parties seek and are granted time to file their respective written synopsis, not exceeding three pages each, at least three days before the next date of hearing, along with the compilation of judgments, if any, they wish to rely upon. 11.[1] All judgments sought to be relied upon shall be filed with an index which also sets out the relevant paragraph numbers and the proposition of law that it sets forth.

12. List for hearing on 12.12.2025.

TARA VITASTA GANJU, J JULY 15, 2025