THE NEW INDIA ASSURANCE COMPANY LTD. v. RIYA KUMARI
AO/409/2025 · 2026-01-10
Alok Mahra
body2026
DailyLaw.ai
[ 2026 DAILYLAW 3995 (UTT) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 3995 (UTT) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
2026:UHC:471 SL. No. Dat e Office Not es, r epor t s, or der s or pr oceedin gs or dir ect ion s an d Regist r ar ’s or der w it h Sign at u r es COURT’S OR JUDGE’S ORDERS
A.O. No.409 of 2025 Hon ’ble Alok Mah r a, J.
Mr. D.C.S. Rawat, Advocate for the appellant.
Mr. M.K. Chand, Advocate for respondent no.1.
2. The present Appeal from Order has been preferred by the appellant– Insurance Company assailing the
judgment and award dated 19.05.2025 rendered by the learned Motor Accident Claims Tribunal/ District Judge, Champawat in M.A.C.P. No.06 of 2022, whereby the learned Tribunal directed the appellant to pay compensation to the claimant.
3.
Learned counsel for the appellant submits that the learned Tribunal has erred in assessing the compensation. It is contended that although the claimant placed on record a disability certificate certifying 50% permanent disability, the learned Tribunal, without any cogent basis, treated the same as 100% for the purpose of computation of compensation. It is further argued that the claimant failed to produce any reliable or cogent evidence to substantiate her income; however, the learned Tribunal erroneously assessed the monthly income at ₹10,000/-. According to the appellant, as per the notification issued by the Labour Department applicable at the relevant point of time, the minimum wages for an unskilled labourer were ₹8,213/- per month. It is also submitted that the claimant was approximately 16
2026:UHC:471 years of age at the time of the accident, and the learned Tribunal has further erred in applying 50% towards future prospects; whereas, as per the dictum of the Hon’ble Supreme Court, the addition towards future prospects ought to have been confined to 40% .
4. Per contra, learned counsel for respondent no.1 submits that the findings returned by the learned Tribunal are based on due appreciation of oral and documentary evidence as well as the settled principles of law and, therefore, warrant no interference by this Court in the exercise of its appellate jurisdiction.
5. Having heard learned counsel for the parties and upon perusal of the impugned judgment and the material available on record, this Court finds substance in the contention advanced by
learned counsel for the appellant with respect to the computation of future prospects. The learned Tribunal has assessed the future prospects at 50% ; whereas, in view of the settled position of law laid down by the Hon’ble Supreme Court in Sarla Verma (Smt.) and others Vs. Delhi Transport Corporation and another, reported in (2009) 6 SCC 121, the addition towards future prospects, in case of a claimant below 40 years of age and employed in the unorganized sector, ought to be restricted to 40% . Therefore, the assessment made by the learned Tribunal to the extent of fixing future prospects at 50% cannot be sustained and is accordingly modified to 40% . Hence, the award passed by the learned Tribunal stands modified to the above extent. The rest of the findings, being based on due appreciation of the oral
2026:UHC:471 and documentary evidence, call for no interference.
6. Accordingly, the appeal is partly allowed. The impugned judgment and award dated 19.05.2025 stand modified to the extent indicated above. The appellant–Insurance Company shall deposit the modified compensation amount, after adjusting any amount already paid, within the time stipulated by the learned Tribunal. The amount of the award shall be paid to the claimant/ respondent no.1. The remaining terms and conditions of the award shall remain unaltered.
7. The statutory amount, if deposited by the appellant at the time of filing the appeal, shall be remitted to the Tribunal concerned for adjustment towards the award amount. The balance amount, if any, shall be released in favour of the claimant as per the directions of the Tribunal.
( Alok Mah r a, J.)
10.01.2026 Arpan
ARPAN JAISWAL Digitally signed by ARPAN JAISWAL DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=eabb68a3895e41937c266c23964c0485365445e3 a20dddb7393398f9fe45ba3e, postalCode=263001, st=UTTARAKHAND, serialNumber=060FC17022BEAE3DE215D68D9D454C510 9CB987446351E4DF04AADAA2C2CEA66, cn=ARPAN JAISWAL Date: 2026.01.10 16:39:09 +05'30'