Delay in filing FIR is not factual grounds for doubting motor accident claims or proving false vehicle implication.

On January 12, 2023, Shobharam Ahirwar died in a motor accident involving his motorcycle and a negligent tractor

The Motor Accident Claims Tribunal (MACT), Damoh, awarded the claimants ₹82,45,785/-

The Appellant Insurance Company challenged this award ongoing grounds that the vehicle was falsely implicated, there was a 15-day delay in lodging the FIR, and the compensation was erroneously calculated without statutory tax deductions

1. Whether a 15-day delay in lodging an FIR and the initial mention of an "unknown vehicle" are sufficient grounds to dismiss a claim for compensation based on alleged false implication

2. Whether the Tribunal erred in calculating compensation by failing to deduct income tax and professional tax from the deceased's income

Section 173 of the Motor Vehicles Act, 1988 regarding appeals

Ravi v. Badrinarayan and Others (2011) 4 SCC 694, which establishes that delay in lodging an FIR is not fatal to a motor accident claim as victims' families prioritize medical treatment and mourning over legal formalities

Shyamvati Sharma v. Karam Singh and Others (2011) 4 M.P.H.T. 416, which mandates the deduction of income tax from the gross income (after adding future prospects) to determine the net dependency

The Court rejected the appellant's contention regarding false implication, noting that an enquiry preceded the FIR and that the delay was natural given the circumstances of a fatal accident

Furthermore, the appellant failed to examine the driver or owner to prove fraud

By applying the "Amount ought to have been awarded" formula—which includes adding 50% for future prospects and then deducting 1/4th for personal expenses and statutory income tax (calculated at ₹57,239/-)—the Court determined the actual loss of dependency to be ₹73,73,846/- instead of the ₹80,17,785/- awarded by the Tribunal

The total compensation was reduced from ₹82,45,785/- to ₹76,01,846/-, resulting in a total reduction of ₹6,43,939/-. All other terms and conditions of the original award remained intact.