Delhi High Court

Delayed FIR is not fatal to motor accident claims if corroborated by police investigation and charge-sheet.

New India Assurance Co. Ltd. v. Saleem Khan Mewati & Ors. MAC.APP. 555/2025

Delhi High Court2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On 13.08.2016, Saleem Khan (Respondent No. 1) was struck by an insured vehicle (HR-27C-5161) driven rashly by Respondent No. 2.

Source reference: para. 2

The claimant sustained a Diffuse Axonal Injury and a bimalleolar fracture, resulting in 90% profound physical disability and cognitive decline.

Source reference: paras. 34, 38

The FIR was lodged 12 days after the incident by the claimant's father.

Source reference: para. 8

The Motor Accident Claims Tribunal (MACT) awarded Rs. 1,25,35,440/- with 7.5% interest.

Source reference: para. 1

The appellant Insurance Company challenged the award, alleging false implication of the vehicle due to the delayed FIR and discrepancies between the MLC (which mentioned a "bike") and the claim petition (which stated the claimant was "on foot").

Source reference: paras. 8, 10, 16
02

Issues

1. Whether the insured vehicle was involved in the accident and if the driver was negligent, despite the delay in FIR and discrepancies in medical records.

Source reference: para. 16

2. Whether the quantum of compensation awarded under pecuniary and non-pecuniary heads was excessive or required modification.

Source reference: para. 11

3. Whether interest should be waived for the period the claim was dismissed for default.

Source reference: para. 12
03

Law Applied

The court applied the "balance of probabilities" standard for motor accident claims, rather than "beyond reasonable doubt," as established in *Anita Sharma v. New India Assurance Co. Ltd.* and *Bimla Devi v. Himachal RTC*.

Source reference: para. 23

Regarding the delay in FIR, it followed *New India Assurance Co. Ltd. v. Velu*, holding that delay is not fatal unless contradictions in evidence exist.

Source reference: paras. 29-30

For income determination, it utilized the averaging method for ITRs as per *Ajay Kumar Mohanty* and *Rajbala v. Krishan Kumar Sharma*.

Source reference: para. 11(c), para. 47

Future prospects and multipliers were governed by *Sarla Verma v. DTC* and *Pranay Sethi*.

Source reference: para. 51
04

Reasoning

The court found the vehicle’s involvement proved because the police filed a charge-sheet after investigation, and the eye-witness (PW-2), although unable to read English, consistently identified the numerical digits of the plate.

Source reference: paras. 26-27

The discrepancy in the MLC (mentioning a "bike") was disregarded as the claimant was unconscious upon admission and the history was recorded by third parties.

Source reference: para. 24

On quantum, the court moderated the income by averaging the ITRs of two years, noting the latest ITR (filed after the accident) showed an improbable spike in earnings.

Source reference: paras. 49-50

Finding the non-pecuniary awards for "Future Medical Expenses" and "Loss of Amenities" insufficient given the claimant's "profound disability" and psychiatric state, the court exercised its power to enhance these heads even without a cross-appeal by the claimant.

Source reference: paras. 53, 55, 60

Interest was upheld for the default period as the claimant’s severe medical condition provided a reasonable excuse for the litigation delay.

Source reference: para. 57
05

Holding

The Court upheld the finding of negligence against the insured vehicle's driver.

It modified the total compensation from Rs. 1,25,35,440/- to Rs. 1,25,84,913/-, representing a net enhancement of Rs. 49,473/-.

Source reference: para. 59-61

The Court ordered the Insurance Company to deposit the enhanced amount with 7.5% interest within 8 weeks and directed the Tribunal to disburse the funds according to the specified scheme.

Source reference: para. 64

The appeal was disposed of, with the stay on the award vacated.

Source reference: paras. 65-66
Delhi High Court

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New India Assurance Co. Ltd. v. Saleem Khan Mewati & Ors. MAC.APP. 555/2025

Delhi High Court

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