New India Assurance Company Ltd. Vs. Narayan Singh & Ors.
 Civil Appeal @ SLP (C) No. 19976 of 2019, decided on 26 September 2025 in English and Telugu:



Accident and Tribunal Findings

A 21-year-old (Hem Singh Mehta), working as a security guard and earning ₹4,000 per month, died in a motor accident caused by rash and negligent driving of a truck.

The Motor Accident Claims Tribunal (MACT) awarded ₹3,87,000 with 7% interest, holding that the insurance policy produced by the owner was valid from 17.06.2006 to 16.06.2007, thus covering the accident on 21.06.2006.

Insurance Company’s Objection

The insurer later claimed in review that the policy was actually valid only from 28.06.2006 to 27.06.2007, and the owner had fraudulently altered dates.

The Tribunal dismissed the review, stating it had no power under the Motor Vehicles Act to review its own award.

Importantly, the insurer did not challenge that review order (12.10.2007) before the High Court.

High Court’s Decision

The High Court upheld the Tribunal’s calculation of compensation, finding the income, dependency, and multiplier correctly applied.

It dismissed both the insurer’s appeal and the claimants’ cross-appeal, noting that the insurer had failed to challenge the review order.

Supreme Court’s Observations

The insurer raised the issue of fraud only in review, not in the original claim proceedings.

Fraud was not proved by evidence in the main proceedings.

Since the review order was not appealed against, the High Court was correct in dismissing the insurer’s appeal.

Equitable Adjustment by Supreme Court

However, since verification later showed that the insurance policy did not cover the accident date, justice would be served if the insurer was allowed to recover 50% of the compensation from the vehicle owner and driver.

The insurer must deposit any unpaid amount with the Tribunal within six weeks.

Conclusion

The appeal was dismissed, but with modification allowing recovery of half the compensation from the owner/driver


                 TELUGU
అపఘాతం మరియు ట్రిబ్యునల్ నిర్ణయం

21 సంవత్సరాల హేమ్ సింగ్ మెహతా, సెక్యూరిటీ గార్డుగా పనిచేస్తూ నెలకు ₹4,000 సంపాదించేవాడు. అతను ట్రక్ నిర్లక్ష్యపూర్వక డ్రైవింగ్ వలన జరిగిన రోడ్డు ప్రమాదంలో మరణించాడు.

మోటార్ ప్రమాద పరిహార ట్రిబ్యునల్ (MACT) ₹3,87,000 పరిహారం మరియు 7% వడ్డీ మంజూరు చేసింది. యజమాని చూపిన పాలసీ తేదీలు (17.06.2006–16.06.2007) ప్రకారం ప్రమాదం (21.06.2006) కవర్లో ఉందని ట్రిబ్యునల్ భావించింది.

ఇన్సూరెన్స్ కంపెనీ అభ్యంతరం

ఇన్సూరెన్స్ కంపెనీ రివ్యూ పిటిషన్‌లో, పాలసీ నిజానికి 28.06.2006–27.06.2007 వరకే చెల్లుబాటు అవుతుందని, యజమాని మోసం చేసి తేదీలు మార్చాడని ఆరోపించింది.

కానీ ట్రిబ్యునల్ తనకు రివ్యూ పవర్ లేదని 12.10.2007న పిటిషన్‌ను కొట్టివేసింది.

ఆ ఆర్డర్‌ను ఇన్సూరెన్స్ కంపెనీ హైకోర్టులో సవాలు చేయలేదు.

హైకోర్టు తీర్పు

మరణించినవాడి ఆదాయం, ఆధారితులు, మల్టిప్లయర్ లెక్కలు సరిగానే ఉన్నాయని హైకోర్టు నిర్ధారించింది.

అందువల్ల ఇన్సూరెన్స్ కంపెనీ అప్పీల్, క్లెయిమెంట్‌ల క్రాస్ అప్పీల్ రెండూ కొట్టివేసింది.

సుప్రీం కోర్టు పరిశీలనలు

మోసం ఆరోపణను ఇన్సూరెన్స్ కంపెనీ రివ్యూ పిటిషన్‌లో మాత్రమే పెట్టింది, కానీ ప్రాథమిక కేసులో ఎలాంటి సాక్ష్యం ఇవ్వలేదు.

మోసం నిరూపించబడలేదు.

రివ్యూ ఆర్డర్‌ను అప్పీల్ చేయనందున హైకోర్టు తీర్పు సరైనదే.

సుప్రీం కోర్టు న్యాయపరమైన సవరణ

అయితే, తరువాతి ధృవీకరణలో పాలసీ ప్రమాదం జరిగిన తేదీని కవర్ చేయలేదని తేలడంతో, న్యాయం కోసం ఇన్సూరెన్స్ కంపెనీకి 50% పరిహారం మొత్తాన్ని యజమాని, డ్రైవర్ నుండి తిరిగి పొందే హక్కు ఇచ్చింది.

చెల్లించని పరిహారాన్ని ఆరు వారాలలో ట్రిబ్యునల్‌లో జమ చేయాలని ఆదేశించింది.

ముగింపు

అప్పీల్ తిరస్కరించబడింది, కానీ 50% రికవరీ హక్కుతో సవరణ చేయబడింది


                                                           JUDGEMENT

New India Assurance Company Ltd. Vs. Narayan Singh & Ors. [Civil Appeal No._________ @ SLP (C) No. 19976 of 2019] N.V. Anjaria, J. 1. Leave granted. Heard learned Advocate for the appellant. 2. This appeal preferred by the Insurance Company is directed against a common judgment and order dated 25.04.2019 passed by the High Court of Uttarakhand whereby the High Court dismissed the Appeal from Order No. 562 of 2007 preferred by the Insurance Company as well as dismissed the Cross Appeal No. 2 of 2018 of the claimants. 2.1 Before the High Court, award dated 29.09.2007 of the Motor Accident Compensation Tribunal, Haldwari, Nainital, in Motor Accident Case No. 175 of 2006 was called in question. The Claims Tribunal awarded Rs. 3,87,000/- as compensation to the claimants, with 7% interest from the date of filing of the application till the payment, recoverable from the Insurance Company. 2.2 The appellant-Insurance Company had filed a review application against the aforesaid judgment and award of the Tribunal, which was dismissed by order dated 12.10.2007. The order passed in the review application was not challenged before the High Court. 3. Basic facts in the background may be noticed. One 21 year old, Hem Singh Mehta, serving as security guard and earning a sum of Rs. 4,000/- per month, met with accident on 21.06.2006. He was coming to Haldwani from Bilaspur. At around 12.30 in the morning, when he was waiting for a bus near Tanda Chowk, the truck driven a rashly and negligently, bearing No. UP-02- 2354 hit the said Hem Singh. Hem Singh died while undergoing treatment. 3.1 Recording the findings that the deceased died due to rash and negligent driving of the truck, the Tribunal proceeded to adjudicate and assess the compensation under the various heads. The compensation of Rs. 3,87,000/- was awarded. The owner of the offending vehicle produced insurance policy and stated that the said insurance policy was valid from 17.06.2006 to 16.06.2007. On the basis thereof the Tribunal concluded that since the accident had taken place on 21.06.2006, the coverage of the policy was available. 3.2 After the judgment and award of the Tribunal as aforementioned, the Insurance Company filed a review application raising a ground that when Insurance policy bearing No. 353800/31/06/02/00002785 filed in the claim proceedings by the owner was sent for verification to the issuing office at Rohtak, after verification the competent office informed that the Insurance Policy was valid only for the period from 28.06.2006 to 27.06.2007 and that the owner of the offending vehicle had fraudulently changed the validity dates to show that it was valid from 17.06.2006. The Tribunal, however, did not entertain the review application and repeated the same by order dated 12.10.2007 on the ground that it had no power under the Act to review. 3.3 As stated above, the Insurance Company preferred an appeal by making a submission that the judgment and decree of the Claims Tribunal was based on misrepresentation as the dates of the validity period of the insurance police was wrongly projected and it was a fraudulent act on the part of the owner to change the dates. The claimants filed appeal for enhancement. 4. The High Court held that the income of the deceased was rightly taken by the Tribunal at Rs. 36,000/- per annum, that the dependency was assessed to be at Rs. 24,000/- and by taking multiplier of 15, the compensation was worked out which was just appropriate compensation. The High Court noted that the Tribunal had also awarded, the sums towards loss of estate and funeral expenses. 4.1 The High Court observed that the order dated 12.10.2007 passed in the review application of the Insurance Company was not challenged in the appeal, thus dismissing the appeal as well as the cross objections. Only the Insurance Company preferred the present appeal. No further challenge was raised by the claimants against the judgment of the High Court dismissing the Cross Appeal of the claimants. 5. The main contention of the Insurance Company has been that the insurance policy when verified was for the period of 28.06.2006 to 27.06.2007 and on the date of the accident there was no insurance coverage, and the policy was not in operation. 5.1 It is to be noted that this contention was raised by the Insurance Company only in the review petition. Nothing was produced in the main claim proceedings because of which the Tribunal proceeded on the basis that the insurance policy was valid on the date of the accident. Though the allegation of fraud is levelled but it could not be proved by the insurer. 5.2 Furthermore, the order dated 12.10.2007 passed in the review application was not challenged by the Insurance Company before the High Court for the reasons best known to it. 6. This Court is not inclined to interfere with the judgment and order of the High Court. However, in the totality of the facts and circumstances when it was brought on record that upon a verification of the policy, its period did not cover the date when accident occurred, it would subserve the ends of justice if the appellant- Insurance Company is allowed to recover 50% of the compensation from the owner and the driver in accordance with law. 6.1 If any part of the compensation is not deposited by the appellant-insurance company, the same shall be deposited by it before the Tribunal concerned within six weeks from today. 7. The impugned judgment and order is partially modified accordingly. The present appeal is dismissed subject to the above modification. ....................J. (K. Vinod Chandran) ....................J. (N.V. Anjaria) New Delhi;