Raj Pal Vs Munish Kumar and Others — Motor Accident Claims | Punjab & Haryana HC (2025)

Raj Pal Vs Munish Kumar and Others — Motor Accident Claims | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Appeal allowed to the extent indicated: Award dated 10.12.2021 of MACT Sirsa modified; compensation enhanced to Rs.5,00,000/- with interest @ 6% per annum from the date of filing of the claim petition till realization; Insurance Company to deposit the enhanced amount with interest before the Tribunal within four weeks for release to the appellant in accordance with law; pending applications, if any, stand disposed of.

Issue for consideration

Whether the compensation of Rs.1,69,500/- awarded under Section 163-A of the Motor Vehicles Act, 1988 is liable to be enhanced to Rs.5,00,000/- in terms of the Supreme Court judgment in Ram Murti v. Punjab State Electricity Board, the provision being beneficial in nature. +1 more

Court's answer

In view of the law laid down by the Hon'ble Supreme Court in Ram Murti (supra), the appellant is held entitled to enhancement of compensation from Rs.1,69,500/- to Rs.5,00,000/-, the Section 163-A provision being beneficial in nature.

Ratio / Principle

Having regard to the facts and circumstances of the case and the prevailing judicial trends, this Court deems it appropriate to award interest at 6% per annum on the enhanced compensation amount, from the date of filing of the claim petition till its actual realization (the 9% per annum sought by counsel was not adopted).

Key takeaways

The Insurance Company shall deposit the enhanced amount along with interest before the learned Tribunal within a period of four weeks from today, whereafter the same shall be released to the appellant in accordance with law.ratio¶26

Detailed headnote1 paragraphs

FAO No.1117 of 2022 (O&M), High Court of Punjab and Haryana at Chandigarh, Nidhi Gupta J. (Oral), decided 08.12.2025 — Raj Pal v. Munish Kujmar and others (respondent No.3: Insurance Company). Enhancement appeal against the Award dated 10.12.2021 of the Motor Accident Claims Tribunal, Sirsa, which had allowed the appellant's claim under Section 163-A of the Motor Vehicles Act, 1988 with Rs.1,69,500/- for the death of his father Mhaveer alias Mahabir Singh in an accident on 04.8.2020 involving Tractor-Trolley No.HR-24P-1723. Relying on the Supreme Court judgment in Ram Murti v. Punjab State Electricity Board (Law Finder Doc Id #2091451) — compensation in claims under Sections 163A/164 of the Amended Act being liable to enhancement to Rs.5,00,000/- as the provision is beneficial in nature, a position the insurer did not dispute — the Court enhanced the compensation to Rs.5,00,000/-. Although counsel sought 9% interest citing FAO No.3123 of 2008 (Mahender Singh v. Rajesh Kumar, decided 12.11.2025), the Court awarded interest at 6% per annum on the enhanced amount from the date of filing of the claim petition till realization, having regard to the facts and circumstances and prevailing judicial trends. The insurer was directed to deposit the enhanced amount with interest before the Tribunal within four weeks, for release to the appellant in accordance with law; pending applications were disposed of.

FAO-1117-2022 (O & M) 1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

131

FAO No.1117 of 2022 (O & M) Date of decision :-08.12.2025

Raj Pal

…..Appellant

Versus

Munish Kujmar and others

…..Respondents

CORAM:- HON'BLE MS. JUSTICE NIDHI GUPTA

Present:Mr. Sandeep Kotla, Advoca t e for the appellant.

Mr. Sarthak Mehta, Advoca t e for Mr. P.H.S. Pannu, Advocate for respondent No.3-Insuran c e Company.

NIDHI GUPTA J. (Oral)

The present appeal has been filed by the appellant seeking m odification of the Award dat e d 10.12.2021 passed by the learned M otor Accident Claims Trib u nal, Sirsa, whereby claim petition f iled by the appellant under S ection 163-A of the Motor Vehicles Act, 1988 was allowed and compensation of Rs.1,69,500/was awa r ded to the appellant on acc o unt of death of his father Mhaveer alias Mahabir Singh due to the i njuries suffered by him in an accident o n 04.8.2020 at 3.30 PM due t o involvement of the Tractor and Troll e y bearing registration No.HR-24P-1723.

Learned counsel for the a p pellant, at the very outset submits t hat the present appeal may be disposed of in terms of the judgment of Hon’ble Supreme Court i n Ram Murti and others vs.

VIJAY ASIJA 2025.12.10 18.24 I attest to the accuracy and integrity of this document

FAO-1117-2022 (O & M) 2

Punjab State Electricity Board Law Finder Doc Id #2091451, wherein i t is held that in a claim petition filed under Section 163A/164 o f the Amended Motor Vehi c les Act, the compensation awarded by the learned Tribunal is liable to be enhanced to Rs.5,00,000/- in view of the fact tha t the said provision/Act is beneficia l in nature.

Learned counsel for r espondent No.3-Insurance Compan y is unable to dispute the said le g al position.

At this stage, it is further s u bmitted by learned counsel for the a p pellant that the appellant also e ntitled to interest @ 9% per annum o n the enhanced amount. In supp o rt of this contention, learned counsel r elies upon the judgment pas s ed by this Court in FAO No.3123 of 2008 titled as “Mahender Singh and others vs. Rajesh Kumar and others” decided on 12.11.20 2 5.

Heard.

In view of the law laid dow n by Hon’ble Supreme Court in the ca s e of Ram Murti (supra) , the appellant is held entitled to enhance m ent of compensation from Rs.1 , 69,500/- to Rs.5,00,000/-. Having regard to the facts a n d circumstances of the case, as well as the prevailing judicial tr e nds, this Court deems it appropri a te to award interest at the rat e of 6% per annum on the enhanced compensation amount, from t h e date of filing of the claim petition t i ll its actual realization.

Accordingly, the present ap p eal is allowed to the extent indicated hereinabove. The Award date d 10.12.2021 passed by the

VIJAY ASIJA 2025.12.10 18.24 I attest to the accuracy and integrity of this document

FAO-1117-2022 (O & M) 3

learned M otor Accident Claims Tribunal, Sirsa, is modified and the compens a tion is enhanced to Rs.5,00,00 0 /- along with interest @ 6% per annum from the date of filing of the claim petition till realization. The Insu r ance Company shall deposit t he enhanced amount along with inte r est before the learned Tribunal w ithin a period of four weeks from tod a y, whereafter the same shall b e released to the appellant in accordan c e with law.

Pending application(s), if an y , shall stand(s) disposed of.

Decembe r 08, 2025 ( NIDHI GUPTA ) Vijay Asija JUDGE

Whether sp e aking/reasoned Yes / No Whether Re p ortable Yes / No

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