Facts
On July 24, 2016, a scooter driven by deceased Vijay Kumar (20 years old) with pillion rider Anil was struck by a truck (UK-18CA-1231) in Ghaziabad, resulting in fatal injuries to both.
Source reference: para. 2An FIR was lodged and a chargesheet was filed against the truck driver.
Source reference: para. 3The Motor Accidents Claims Tribunal (MACT) declined the claim under Section 166 of the Motor Vehicles Act (MVA) on the grounds that the sole witness (the mother) was not an eyewitness and negligence was not proved; instead, it awarded a limited compensation of Rs. 5,22,000 under the structured formula of Section 163A/Second Schedule of the MVA.
Source reference: paras. 9-10The appellants/claimants sought enhancement of this award.
Source reference: para. 1Issues
1. Whether a finding of negligence can be returned in the absence of an eyewitness if an FIR and chargesheet have been filed against the driver of the offending vehicle.
Source reference: paras. 12-152. Whether the compensation awarded by the MACT requires enhancement based on the principles of Pranay Sethi and Sarla Verma.
Source reference: paras. 21-22Law Applied
The Court applied the principle that in motor accident claims, the standard of proof is "preponderance of probability" rather than "beyond reasonable doubt," as established in Bimla Devi v. Himachal RTC.
Source reference: para. 18Relying on Meera Bai v. ICICI Lombard (2025) and Ranjeet v. Abdul Kayam Neb (2025), the Court held that where a chargesheet is filed and the driver fails to lead evidence to the contrary, negligence is deemed established even without an eyewitness.
Source reference: paras. 16-17For the computation of quantum, the Court followed Sarla Verma v. DTC regarding multipliers and personal deductions and National Insurance Co. Ltd. v. Pranay Sethi regarding future prospects and conventional heads.
Source reference: para. 21Reasoning
The Court observed that the MACT erred in dismissing the plea of negligence solely due to the absence of an eyewitness.
Source reference: para. 15The Court noted that the site map clearly showed the offending truck suddenly cut in front of the scooter, and since the driver/owner failed to produce evidence to rebut the chargesheet, negligence was established on a preponderance of probabilities.
Source reference: paras. 19-20Consequently, the Court shifted the assessment from the restrictive Section 163A (notional income) to Section 166 principles.
Source reference: no citationIt revised the income based on minimum wages in Uttar Pradesh (Rs. 7,108/month), added 40% for future prospects, applied a multiplier of 18 (for age 20), and deducted 50% for personal expenses as the deceased was a bachelor.
Source reference: paras. 21-22Holding
The High Court set aside the MACT’s finding on negligence and enhanced the compensation from Rs. 5,22,000 to Rs. 11,84,726.
The Insurance Company was directed to deposit the enhanced amount of Rs. 6,62,726 with 9% interest per annum.
Source reference: paras. 23-24The Court ordered the immediate release of 1/4th of the amount to the claimants, with the remainder to be secured in staggered FDRs to ensure long-term financial support.
Source reference: paras. 25-26Original Court PDF
Munni Devi & Anr. v. Azam Khan & Ors. (New India Assurance Co. Ltd.)
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