Kiran Raj

The Jharkhand High Court has dismissed an appeal filed by Cholamandalam MS General Insurance Co. Ltd. against an order awarding compensation to the family of a deceased accident victim. The insurance company had challenged the award issued by the Motor Vehicles Accident Claims Tribunal, Ranchi, in Motor Accident Claim Case No. 341 of 2022, seeking to set aside the compensation granted to the claimants. The court found no grounds for interference with the Tribunal’s decision.

The case stemmed from a road accident on May 27, 2022, in which Sandeep Oraon, while returning home on his motorcycle after casting his vote at Chamranga Booth, was struck by a speeding truck near Amabatard Khalari Road under the jurisdiction of Chanho Police Station, Ranchi. The accident resulted in grievous injuries, and local residents rushed the victim to Chanho Hospital. Due to the severity of his condition, he was referred to Rajendra Institute of Medical Sciences (RIMS), Ranchi, where he was declared dead upon arrival. A postmortem was conducted the following day.

Following the incident, the informant lodged a statement with the police on May 28, 2022, at RIMS, Ranchi. Subsequently, Chanho Police Station registered Case No. 107 of 2022 on July 4, 2022, under Sections 279 and 304A of the Indian Penal Code against an unknown driver. Upon investigation, a chargesheet was filed against Ajit Minz, the driver of the offending truck bearing registration number JH-01-AY-8812.

The deceased, Sandeep Oraon, was survived by his wife, minor children, and parents. His family initiated a compensation claim under Section 166 of the Motor Vehicles Act, 1988, seeking ₹21,00,000 in damages.

The appellant-insurance company, represented by counsel Mr. Ashutosh Anand, contended that the Tribunal failed to consider key factors such as the validity of the deceased’s driving license and the fitness of the insured vehicle. The company argued that the vehicle was allegedly "implanted," as the first information report (FIR) did not initially specify the truck’s registration number. Additionally, the insurance company pointed out that the FIR was lodged 38 days after the incident, questioning the credibility of the claim.

Furthermore, the insurer raised the issue of contributory negligence, arguing that the deceased played a role in the accident. It asserted that the Tribunal overlooked critical aspects while awarding compensation.

Conversely, the claimants, represented by counsel Mr. Nikhil Ranjan, argued that the Tribunal had thoroughly examined all the issues and delivered a legally sound judgment. The Tribunal framed six key issues and found sufficient evidence to establish liability.

The High Court examined the Tribunal’s award and found that the Tribunal had examined relevant oral and documentary evidence, including the testimonies of witness Panchi Oraon, FIR details, the postmortem report, and the chargesheet. The court noted: "The Tribunal has considered the oral evidence of A.W.-Panchi Oraon, other oral evidence as well as documentary evidence, the contents of the FIR, chargesheet, post-mortem report and found that accident took place on 27.05.2022, near Ambatard-Khalari Road within the jurisdiction of P.S. Chanho, Ranchi."

The court further noted that the owner of the truck admitted to its involvement in the accident. Additionally, the driver, Ajit Minz, possessed a valid driving license, marked as Exhibit-5, and the insurance policy, marked as Exhibit-6, was valid during the period in question.

Regarding the question of contributory negligence, the court observed: "No evidence was led, and the onus lies upon the insurance company to prove the same, as has been held by the Hon’ble Supreme Court in the case of Mohammed Siddique & Anr. Versus National Insurance Company Ltd. & Ors., reported in (2020) 3 SCC 57."

The court dismissed the insurer’s argument about the delay in FIR registration, noting that an application was made on May 28, 2022—just a day after the accident. Given that the chargesheet was filed and the postmortem report was part of the record, the court found no merit in the insurer’s claim regarding the delay.

Dismissing the appeal, the High Court upheld the Tribunal’s award and ruled that no interference was warranted. The court also disposed of an interlocutory application (I.A. No. 13626 of 2024) filed by the claimants seeking the release of the compensation amount deposited by the insurer before the Tribunal. It granted liberty to the claimants to approach the Tribunal for disbursement of the awarded amount.

Regarding the statutory deposit made by the insurance company, the court directed: "The statutory amount deposited by the insurance company shall be transmitted back to the learned Tribunal and that amount will be utilized in satisfying the award in favor of the claimants. If the entire amount has already been deposited by the said insurance company, the statutory amount will be refunded back by the learned Tribunal to the insurance company."

Case Title: Cholamandalam MS General Insurance Co. Ltd. v. Panchi Oraon & Ors.

Case Number: M.A. No. 288 of 2024

Bench: Justice Sanjay Kumar Dwivedi

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