SBI General Insurance Company Ltd. Lko. Thru. Its… — Motor Accident Claims | Allahabad HC (2025)

SBI General Insurance Company Ltd. Lko. Thru. Its… — Motor Accident Claims | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Appeal admitted with notice to respondents and summons for lower-court record, listed for 29.08.2025. As an interim measure, operation of the impugned award dated 28.03.2025 (Claim Petition No.180/2017) to remain stayed conditional on the appellant depositing the entire amount under the award within four weeks, after adjusting the statutory amount; 75% of the deposit to be released to the claimants-respondents per the award and 25% invested in a nationalized bank under the highest rate of interest, subject to final disposal of the appeal.

Issue for consideration

Whether the Tribunal erred in treating the accident as a case of composite negligence where the FIR attributed the negligence to an unknown truck, such that the appellant-insurer's liability would arise only if there was negligence on the part of the vehicle belonging to respondent No.1 (UP-43-Q-4666).

Ratio / Principle

The appeal under Section 173 of the Motor Vehicle Act, 1988 is admitted.

Key takeaways

Notice is issued to the respondents returnable at an early date; the record of the lower court is to be summoned; learned counsel for the appellant to take steps within one week; the matter is listed on 29.08.2025 along with the record of the lower court.ratio¶10
As an interim measure, the operation of the impugned award dated 28.03.2025 passed by the Motor Accident Claims Tribunal in Claim Petition No.180/2017 shall remain stayed, conditional upon the appellant depositing the entire amount under the impugned award within four weeks before the Court, after adjusting the statutory amount.ratio¶14
Upon the deposit of the aforesaid sum, 75% of it shall be released in favour of the claimants-respondents in accordance with the impugned award.

Detailed headnote1 paragraphs

High Court of Judicature at Allahabad, Lucknow Bench (Jaspreet Singh, J.) â First Appeal From Order No. 262 of 2025 under Section 173 of the Motor Vehicle Act, 1988 filed by SBI General Insurance Company Ltd. against the judgment and award dated 28.03.2025 of the Motor Accident Claims Tribunal, Gonda in Claim Petition No.180/2017, whereby a sum of Rs.6,98,700/- with 7% interest was awarded to the claimants-respondents in a death case. The appellant's sole contention is that the accident was caused by rash and negligent driving of an unknown truck (as per the FIR), and the Tribunal wrongly applied the principle of composite negligence; the appellant's liability would arise only if there was negligence of the vehicle belonging to respondent No.1, i.e. UP-43-Q-4666. The appeal is admitted; notice issued; lower-court record summoned; matter listed on 29.08.2025. Interim relief: operation of the impugned award shall remain stayed if the appellant deposits the entire amount under the award within four weeks, after adjusting the statutory amount; upon deposit, 75% to be released to the claimants-respondents per the award and the remaining 25% invested in a nationalized bank under the highest rate of interest bearing account, subject to final disposal of the appeal.

Court No. - 8

Case :- FIRST APPEAL FROM ORDER No. - 262 of 2025

Appellant :- Sbi General Insurance Company Ltd. Lko. Thru. Its Officer In Charge Respondent :- Smt. Ram Rani And 5 Others Counsel for Appellant :- Dinesh Kumar

Hon'ble Jaspreet Singh,J.

Heard learned counsel for the appellant.

The instant appeal has been preferred under Section 173 of the Motor Vehicle Act, 1988 assailing the judgment and award dated 28.03.2025 passed by the Motor Accident Claims Tribunal, Gonda in Claim Petition No.180/2017, whereby, in a death case, a sum of Rs.6,98,700/- along with 7% interest has been awarded in favour of the claimants-respondents.

The sole contention of the learned counsel for the appellant is that the accident occurred on account of rash and negligent driving of an unknown truck. In the FIR lodged, it was indicated that the negligence was of the unknown truck. However, the Tribunal treating it as a case of composite negligence has awarded the compensation whereas the said principle was not applicable. In this view, the award has been vitiated as the liability of the appellant would only arise if there was any negligence on the part of the vehicle belonging to the respondent No.1 i.e. UP-43-Q-4666.

The matter requires consideration.

The appeal is admitted.

Let notice be issued to the respondents returnable at an early date.

Summon the record of lower court.

Learned counsel for the appellant shall take steps within a period of one week from today.

List on 29.08.2025 along with the record of lower court.

As an interim measure, it is provided that in case if the appellant deposits the entire amount under the impugned award within four weeks from today, before this Court after adjusting the statutory amount, the operation of the impugned award

dated 28.03.2025, passed by the Motor Accident Claims Tribunal concerned in Claim Petition No.180/2017, shall remain stayed.

It is further provided that upon the deposit of the aforesaid sum, out of which 75% shall be released in favour of the claimantsrespondents in accordance with the impugned award. The remaining 25% of the aforesaid sum shall be invested in some nationalized bank under the highest rate of interest bearing account, which shall be subject to the final disposal of this appeal.

Order Date :- 4.7.2025 Rakesh/-

Digitally signed by :- RAKESH PRAJAPAT High Court of Judicature at Allahabad, Lucknow Bench