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Patna High Court
The Oriental Insurance Company Limited vs Mustari Khatoon on 5 February, 2026
Author: Rajiv Roy
Bench: Rajiv Roy
IN THE HIGH COURT OF JUDICATURE AT PATNA
Miscellaneous Appeal No.193 of 2022
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The Oriental Insurance Company Limited. at Division Office, Daya Complex,
Aghoria Bazar Chowk, Muzaffarpur through the Constituted attorney the
Deputy Manager, T.P. Hub Incharge at Regional Office, The Oriental
Insurance Company Limited, Pirmuhani, Patna.
... ... Appellant/s
Versus
1. Mustari Khatoon, W/o Nurul Huda Resident of Village-C/o Md. Taslim,
Quila Road, Mehandi Hasan Chowk, Police Station-Brahampura, District-
Muzaffarpur.
2. Nurul Huda S/o Late Md. Salim Resident of Village-C/o Md. Taslim, Quila
Road, Mehandi Hasan Chowk, Police Station-Brahampura, District-
Muzaffarpur.
3. Sri Babu Saheb Sah S/o Late Janak Sah Resident of at J.P. Colony, Ward No.
12, Madhubani, Presently at Mithanpura Chowk, Dist.-Muzaffarpur. (Owner
of the Offending Truck Bearing Reg. No. HR 38K 6456)
... ... Respondent/s
======================================================
Appearance :
For the Appellant/s : Mr.Sumit Kumar
For the Respondent/s : Mr.Dhannjay Kumar No. 2
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CORAM: HONOURABLE MR. JUSTICE RAJIV ROY
ORAL JUDGMENT
Date : 05-02-2026
Heard Mr. Sumit Kumar, learned counsel for the
appellant and Mr. Dhannjay Kumar, learned counsel for the
claimant-respondent.
2. The present petition has been preferred for the
following relief/s:
"against the order/judgment dated
11.02.2022
and Award dated 22.02.2022
passed in Claim Case No. 167 of 2010 by
Learned Puneet Kumar Garg, Additional
Patna High Court MA No.193 of 2022 dt.05-02-2026
District Judge-III-cum-Motor Vehicle
Accident Claim Tribunal, Muzaffarpur [here
in after referred to as the Tribunal] by which
the learned Tribunal has awarded
compensation of Rs. 5,30,600/- with interest
@ 06% annually in favor of
Claimants/Respondents from the date of
filing of the Claim Application till
realization within 60 days. Any delay in
realization of the said award after the lapse
of 60 days would incur the interest of 7% per
annum till realization."
3. As per the story, an accident took place on
02.06.2010 near Reliance Petrol Pump, in the district of
Darbhanga. The claimant's son, Vakil Ahmad alongwith his
friend was standing at a place where a Bullock Cart and a
Ambassador Car were also stationed. In the meantime, a Truck
bearing registration no. HR38K-6456 came in a negligent
manner and dashed against the standing car. It, thereafter, fell
down into 25 ft. deep ditch. Wakil Ahmad who was present
there died on the spot, body taken to the Darbhanga Medical
College and Hospital, Darbhanga for post-mortem and this
Patna High Court MA No.193 of 2022 dt.05-02-2026
followed Sadar P.S. Case No. 200 of 2010.
4. The family members, thereafter, preferred Claim
Case No. 167 of 2000 which was taken up by the Court of
learned Additional District Judge-IIIrd-cum-Motor Vehicle
Accident Claim Tribunal, Muzaffarpur. The truck was
insured with the appellant's company, the Oriental Insurance
Company (henceforth for short 'the Company').
5. Notices were issued to the parties. The truck owner
failed to appear while 'the Company' appeared and objected to
the claim put forward by the claimant. It objected to the manner
of the accident, income as also the fact that the cheque issued by
the truck owner bounced, this followed the cancellation letters
sent. The accident took place thereafter and as such 'the
Company' is not bound by any liability to make payment.
6. 'The Tribunal' framed the issue as follows:
i. Whether the claim case as framed
maintainable?
ii. Whether the accident in question
took place due to rash and negligent
driving of Vehicle No. HR38K 6456
truck on 02-06-2010, 2.45 p.m. at
near Reliance Petrol Pump N.H. 57,
Patna High Court MA No.193 of 2022 dt.05-02-2026
P.S. Sadar, District - Darbhanga?
Iii. Whether the deceased Vakil
Ahmed s/o Nurul Hoda died in this
accident which arises out of P.S.
Case No. 200/2010 P.S. Sadar, (O.P.
Mabbi) District Darbhanga ?
iv. Whether the applicants are
entitled to the claim propounded if
so what would be the quantum and
from whom?
7. The parties were heard. 'The Tribunal' thereafter
came to the conclusion that accident has taken place, it was hit
by the truck bearing registration no. HR38K-6456, was insured
with 'the Company'. It further recorded that though 'the
Company' made multiple objections, it did not lead any
evidence despite several opportunities given by the Court. 'The
Tribunal' further recorded that the opposite party no.2, 'the
Company' or its counsel did not even appear for the argument,
nor filed any evidence. Again, despite grant of opportunities, it
held, that in the absence of any evidence, the claim of the
claimant cannot be denied merely on the basis of averment
made in the written statement.
Patna High Court MA No.193 of 2022 dt.05-02-2026
8. In that background, it directed payment of
Rs.5,30,600/- with annual interest of 6% from the date of filing
of the claim petition till its realization with further observation
that in case it fails to pay in sixty days, the amount will increase
to 7%.
9. Aggrieved, the present appeal.
10. It is to be noted that on 28.07.2025, on the stand
taken by 'the Company' that they shall be depositing the Award
amount of Rs.5,30,600/- to 'the Tribunal' within a week, further
proceeding in Execution Case No. 20 of 2022 (arising out of
Claim Case No. 167 of 2010) was stayed.
11. Heard the parties.
12. Learned counsel for the appellant submits that
though 'the Company' is not denying the accident, the fact
remains that on the day, the accident took place, the truck was
not plying on a valid insurance certificate. He submits that the
policy was issued for the period 12.01.2010 to 11.01.2011.
However, the cheque that was provided by the vehicle owner
bounced on 15.01.2010, whereafter, intimation of cancellation
was given on 29.03.2010. The accident took place on
02.06.2010 and as such, they have no liability to make payment
and in that background, erroneous order came to be passed
Patna High Court MA No.193 of 2022 dt.05-02-2026
which need to be interfered.
13. Learned counsel for the appellant on the other
hand has taken this Court to the observation of 'the Tribunal' to
show that the said statement made by the appellant's company
has no basis. The Tribunal has already recorded that though
multiple objections were put forward by 'the Company', it
chose not to lead any evidence despite several opportunities
granted. It even failed to put forward its view on the point of
argument and further did not file any evidence.
14. The submission is that any document which 'the
Company' is/are intends to insert at the later stage cannot
change the original position that they chose not to adduce
evidence/put forward the argument before 'the Tribunal'.
15. This Court has gone through the facts of the case
and the submissions of the parties is also issues that were
framed by 'the Tribunal'.
16. The admitted facts are that:
(i) an accident took place on 02.06.2010;
(ii) the vehicle involved in the insurance was a
truck bearing registration no. HR38K-6456;
(iii) it was having a policy with 'the Company'
between 12.01.2010 to 11.01.2011;
Patna High Court MA No.193 of 2022 dt.05-02-2026
(iv) the claimant put forward its claim in the
aforesaid Claim Case No. 167 of 2010;
(v) though it raised number of objections, the
same were never supported by any
document/evidence.
17. Any insertion, thereafter, will not better the
original position which has been recorded by 'the Tribunal' and
not rebutted by the appellant company.
18. If the policy was issued subject to clearance of
the cheque and the cheque bounced, proper letter of cancellation
sent by the Insurance Company must reach the table of the
vehicle owner. Further, the documentary evidence of the vehicle
owner having received in said information must be there to
complete the chain that when the accident took place, the
vehicle owner had the knowledge about the cancellation of the
policy. The said scenario/development/chain is/are not present
in this case.
19. In that background, any plea taken at the stage
of the appeal cannot be allowed. As recorded above, the amount
in question has already been deposited with 'the Tribunal' when
the order of stay was granted on 28.02.2023. 'The Company' is
duty bound to release the amount in favour of the claimant. The
Patna High Court MA No.193 of 2022 dt.05-02-2026
only relief that is extended to the appellant company is that the
payment of compensation shall be made @6% interest by
28.02.2026.
20. 'The Company will be well within its right to
take appropriate steps in accordance with the law for realization
of the amount from the truck owner, if it is able to prove the
point raised in the present appeal.
21. M.A. No. 193 of 2023 is disposed of with the
aforesaid observation.
22. It is made clear that if the if appellant company
fails to make payment by 28.02.2026, the claimant shall be
entitled to Rs. 20,000/- as cost to be released from the pocket of
the Officer who delays the payment.
23. The statutory amount, if any, has to be returned.
(Rajiv Roy, J)
Ravi/-
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