A single bench of the High Court has delivered a significant verdict, quashing an order for compensation issued by the Motor Accident Claims Tribunal, Bhind. The single bench, presided over by Justice Hridesh, clarified that a claim for compensation under Section 166 of the Motor Vehicles Act is not maintainable when the negligence of the vehicle driver is not proven. This case pertained to a road accident in 2017, in which Padamchandra Jain sustained injuries. The Claims Tribunal had ordered the insurance company and the vehicle owner to jointly pay a compensation of ₹84,300.
This order was challenged in the High Court by HDFC ERGO General Insurance Company. The Claims Tribunal itself had acknowledged that the driver, Shivam Shivhare, was not driving the vehicle at the time of the accident and his negligence had not been proven. Compensation was awarded solely on the basis of the vehicle's use, which is not legally tenable.
The court also referred to Section 140 (No-Fault Liability), stating that this provision is applicable only in cases of death or permanent disability. In the present case, the victim had only sustained grievous injuries, not permanent disability. Consequently, the court cancelled the order of the Claims Tribunal and accepted the insurance company's appeal. The court reiterated that the right to compensation does not arise without proving negligence.
