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. 2The claimant sustained a Diffuse Axonal Injury and a bimalleolar fracture, resulting in 90% profound physical disability and cognitive decline.
Source reference: paras. 34, 38The FIR was lodged 12 days after the incident by the claimant's father.
Source reference: para. 8The Motor Accident Claims Tribunal (MACT) awarded Rs. 1,25,35,440/- with 7.5% interest.
Source reference: para. 1The 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, 16Issues
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. 162. Whether the quantum of compensation awarded under pecuniary and non-pecuniary heads was excessive or required modification.
Source reference: para. 113. Whether interest should be waived for the period the claim was dismissed for default.
Source reference: para. 12Law 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. 23Regarding 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. 29-30For 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. 47Future prospects and multipliers were governed by *Sarla Verma v. DTC* and *Pranay Sethi*.
Source reference: para. 51Reasoning
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. 26-27The 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. 24On 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. 49-50Finding 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, 60Interest was upheld for the default period as the claimant’s severe medical condition provided a reasonable excuse for the litigation delay.
Source reference: para. 57Holding
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. 59-61The 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. 64The appeal was disposed of, with the stay on the award vacated.
Source reference: paras. 65-66Original Court PDF
New India Assurance Co. Ltd. v. Saleem Khan Mewati & Ors. MAC.APP. 555/2025
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