Citation : 2026 Latest Caselaw 5958 Raj
Judgement Date : 16 April, 2026
[2026:RJ-JD:17669]
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR
S.B. Civil Miscellaneous Appeal No. 3320/2024
The New India Assurance Company Limited, T.p. Suit Hub,
Divisional Office-Ist, Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative.
----Appellant
Versus
1. Smt. Pooro Devi W/o Shri Surta Ram, Village Nagana
(Dewasiyo/rebariyo Ka Vas) Tehsil Pachpadra, District
Barmer.
2. Dinesh Ram Vishnoi S/o Shri Jiya Ram, Khavon Ki Dhani,
Salori, (Soorsagar) Tehsil And District Jodhpur. (Owner
Cum-Driver)
----Respondents
Connected With
S.B. Civil Miscellaneous Appeal No. 3246/2024
The New India Assurance Company Limited, T.p. Suit Hub,
Divisional Office-1St, Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative
----Appellant
Versus
1. Lrs Of Smt. Meero Devi W/o Sh. Chela Ram, Since
Deceased Through Her Legal Representative -
2. Chela Ram S/o Pratap Ram Dewasi, R/o Village Nagana
(Dewasiyo/rebariyo Ka Vas) Tehsil Pachpadra, Dist.
Barmer
3. Dinesh Ram Vishnoi S/o Sh. Jiya Ram, R/o Khavon Ki
Dhani, Salori (Soorsagar) Tehsil And Dist. Jodhpur
(Owner-Cum-Driver)
----Respondents
S.B. Civil Miscellaneous Appeal No. 3309/2024
The New India Assurance Company Limited, T.p. Suit Hub,
Divisional Office 1St Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative
----Appellant
Versus
1. Smt. Leela Devi W/o Sh. Natha Ram Dewasi, R/o Village
Nagana (Dewasiyo/rebariyo Ka Vas) Tehsil Pachpadara,
Dist. Barmer
2. Dinesh Ram Vishnoi S/o Sh Jiya Ram, R/o Khavon Ki
Dhani, Salori (Soorsagar) Tehsil And Dist. Jodhpur,
(Owner-Cum-Driver)
----Respondents
S.B. Civil Miscellaneous Appeal No. 3321/2024
The New India Assurance Company Limited, T.p Suit Hub,
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[2026:RJ-JD:17669] (2 of 5) [CMA-3320/2024]
Divisional Office-1St, Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative.
----Appellant
Versus
1. Mst. Kamla D/o Sh. Chhoga Ram, Minor Through Her
Natural Guardian Father Sh. Chhoga Ram S/o Sh. Kana
Ram, R/o Village Nagana (Dewasiyo/rebariyo Ka Vas)
Tehsil Pachpadra, District Barmer. (Claimant)
2. Dinesh Ram Vishnoi S/o Sh. Jiya Ram, R/o Khavon Ki
Dhani, Salori (Soorsagar) Tehsil And District Jodhpur.
(Owner Cum Driver)
----Respondents
S.B. Civil Miscellaneous Appeal No. 3353/2024
The New India Assurance Company Limited, T.p. Suit Hub,
Divisional Office-1St, Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative.
----Appellant
Versus
1. Smt. Sua Devi W/o Sh. Badar Ram Dewasi, R/o Village
Nagana (Dewasiyo/rebariyo Ka Vas) Tehsil Pachpadra,
District Barmer. (Claimant)
2. Dinesh Ram Vishnoi S/o Sh. Jiya Ram, R/o Khavon Ki
Dhani, Salori (Soorsagar) Tehsil And District Jodhpur.
(Owner Cum Driver)
----Respondents
S.B. Civil Miscellaneous Appeal No. 3368/2024
The New India Assurance Company Limited, T.p. Suit Hub,
Divisional Office 1St, Abhay Chambers, Jalori Gate, Jodhpur
Through Its Authorized Representative.
----Appellant
Versus
1. Mst. Kavita D/o Sh. Surta Ram, Through Her Natural
Father Sh. Surta Ram S/o Sh. Girdhari Ram R/o Village
Nagana (Dewasi/ Rebariyo Ka Vas) Vas Pachpadra, Dist
Barmer.
2. Dinesh Ram Vishnoi S/o Sh. Jiya Ram, R/o Khavon Ki
Dhani, Salori (Soorsagar) Teh. And Dist. Jodhpur.
----Respondents
For Appellant(s) : Mr. Jagdish Vyas
Mr. Shyam Charan
For Respondent(s) : None present
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[2026:RJ-JD:17669] (3 of 5) [CMA-3320/2024]
HON'BLE MR. JUSTICE MUKESH RAJPUROHIT
Order
16/04/2026
1. These appeals have been preferred by the appellants against
the orders dated 21.08.2024 passed by the learned Tribunal in
respective claim petition Nos.51/2023 (81/2023), 56/2023
(86/2023), 57/2023 (87/2023), 55/2023 (85/2023), 58/2023
(88/2023) & 52/2023 (82/2023).
2. Heard learned counsel for the appellant.
3. Learned counsel for the appellant contends that while
deciding the claim petitions, the Tribunal has recorded an
erroneous finding and directing for an increase of the
compensation amount at the rate of 5% per annum from
01.01.2019 till the first month of the year of accident.
4. Learned counsel has drawn the attention of this Court to
Section 164 of the Motor Vehicles Act, 1988, which reads as
follows:
"164. Payment of compensation in case of death or grevious hurt, etc. -- (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be.
(2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or grievous hurt in respect of which the claim has been made was due to any wrongful act or neglect or default of the
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owner of the vehicle or of the vehicle concerned or of any other person. (3) Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section."
5. A bare perusal of Section 164 of the Motor Vehicles Act, 1988
makes it clear that in case of death, the compensation amount is
fixed at Rs. 5,00,000/- and in case of grievous injury, fixed
compensation amount of Rs. 2,50,000/- is payable. There is no
provision under the said section for any annual increase in the
compensation amount.
6. Learned counsel further submits that although the direction
for increase of compensation was issued with effect from
01.01.2019, but the provisions of Chapter XI of the Motor Vehicles
Act, 1988 which includes Section 164 was substitued vide
notification dated 25.02.2022 which came into effect from
01.04.2022. Therefore, the Tribunal has erred in granting the
benefit of increase from a date prior to the enforcement of the
said provisions.
7. It is further submitted that the fixed compensation amount
of Rs. 2,50,000/- with interest in all claim petitions has already
been deposited by the appellant company in terms of the interim
order granted by this Court.
8. Despite service, none appears on behalf of the respondents.
9. Considered the submissions made by learned counsel for the
appellant and gone through the material available on record.
10. Upon perusal of the impugned award and the relevant
notification issued under the Motor Vehicles Act, this Court finds
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that the statute prescribes a fixed compensation of Rs. 5,00,000/-
in case of death and Rs. 2,50,000/- in case of grievous injury.
There is no provision for enhancement/increase of the said
amount by 5% annually. Furthermore, the notification itself came
into effect from 01.04.2022, whereas, direction of the learned
Tribunal for increase has been issued w.e.f. 01.01.2019.
11. In view of the above, the appeals preferred by the appellants
deserve to be allowed.
12. Accordingly, the appeals are allowed. The awards dated
21.08.2024, passed by the learned Tribunal is modified to the
extent that the direction regarding enhancement/increase of
compensation by 5% per annum w.e.f. 01.01.2019, is hereby
quashed and set aside.
13. The grant of fixed compensation amount of Rs. 2,50,000/-
under Section 164 of the Motor Vehicles (Amendment) Act, 2019
is affirmed and same shall be disbursed to the claimants, if not
already disbursed.
14. No order as to costs.
15. Stay application and all pending applications, if any, also
stand disposed of.
(MUKESH RAJPUROHIT),J 79 to 84-AbhishekS/-
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