Summary
| Category | Data |
|---|---|
| Case Name | MAC/488/2022 of United India Insurance Company Limited Vs Suman Uike |
| CNR | CGHC010084282022 |
| Date of Registration | 01-04-2022 |
| Decision Date | 02-09-2025 |
| Disposal Nature | Disposed with modification of interest rate to 8% p.a. |
| Judgment Author | Hon’ble Shri Justice Sanjay K. Agrawal |
| Court | High Court of Chhattisgarh at Bilaspur |
| Bench | Single-Judge Bench |
| Precedent Value | Binding |
| Overrules / Affirms | Affirms existing precedent |
| Type of Law | Motor Vehicles Law |
| Questions of Law |
|
| Ratio Decidendi | The insurer’s express plea disputing the vehicle’s involvement attracts the burden of proof under Section 101 of the Evidence Act; failure to lead any evidence means the plea must fail and liability stands. Further, Section 173 of the Motor Vehicles Act allows interest at 8% per annum only; imposition of 12% penal interest was unsustainable and is set aside. |
| Logic / Jurisprudence / Authorities Relied Upon | Burden of proof principle under Section 101 of the Evidence Act |
| Facts as Summarised by the Court | Accident occurred on 02 May 2018; deceased died on 12 May 2018; vehicle seized on 29 August 2018; Tribunal awarded ₹58,82,200/− plus 8% interest and 12% penal interest; insurer appealed under Section 173 MVA. |
| Citations |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | All Motor Accident Claims Tribunals and subordinate courts within Chhattisgarh High Court’s jurisdiction |
| Persuasive For | Other High Courts dealing with appeals under Section 173 MVA |
What’s New / What Lawyers Should Note
- Insurers disputing vehicle involvement must adduce concrete evidence; mere assertions in written statements are insufficient.
- Burden of proof under Section 101 of the Evidence Act applies equally to insurance companies challenging accident linkage.
- Under Section 173 of the Motor Vehicles Act, post-award interest is capped at 8% p.a.; penal rates above that are not sustainable.
Summary of Legal Reasoning
- The insurer in its written statement expressly pleaded that the Wagon R (CG 4 DK 1211) was wrongly implicated and seized late, but led no evidence to substantiate that plea.
- The Claims Tribunal recorded (para 18) that neither owner nor driver challenged the vehicle’s involvement; burden to prove wrongful implication lay on the insurer.
- Failure to discharge the burden under Section 101 of the Evidence Act resulted in liability being fastened on the insurer.
- The Tribunal’s award of 8% interest per annum from the date of claim filing (23 Feb 2019) was upheld.
- Penal interest of 12% per annum (para 32(2)) was found to exceed the statutory ceiling under Section 173 of the Motor Vehicles Act and was reduced to 8% p.a.
Arguments by the Parties
Petitioner (Insurance Company)
- The vehicle was wrongly implicated as the accident occurred on 02 May 2018 but the vehicle was seized only on 29 August 2018.
- No liability should attach if the vehicle was not involved.
- 12% penal interest is unsustainable under Section 173 MVA.
Respondents 7 & 8 (Driver & Owner)
- The vehicle was duly insured and legally on the road at the time of accident.
- The Claims Tribunal correctly fastened liability on the insurer; appeal deserves dismissal.
Respondents 1–6 (Claimants)
- Did not appear despite service of notice.
Factual Background
A Wagon R (CG 4 DK 1211) allegedly caused an accident on 02 May 2018, leading to the death of a police constable on 12 May 2018. The vehicle was seized on 29 August 2018. The Motor Accident Claims Tribunal awarded ₹58,82,200/− compensation to the claimants with 8% interest and 12% penal interest. The insurer appealed under Section 173 of the Motor Vehicles Act, disputing both vehicle involvement and the penal interest rate.
Statutory Analysis
- Section 101, Evidence Act: Places the evidentiary burden on a party pleading wrongful implication of a vehicle.
- Section 173, Motor Vehicles Act, 1988: Governs appellate powers of High Courts in motor accident claims and prescribes interest at 8% p.a.; does not authorize higher penal rates.
Alert Indicators
- Precedent Followed
Citations
- 2025:CGHC:44736
- MAC No. 488 of 2022
- NAFR
- CNR CGHC010084282022
- Motor Vehicles Act, 1988, Section 173
- Evidence Act, 1872, Section 101