Authority: High Court at Calcutta

Order Date: 09 July 2026

Case Overview

  • Parties: Appellants – Chandramaya Singh & Ors.; Respondents – ICICI Lombard General Insurance Co. Ltd. & Anr.
  • Nature of Proceeding: Appeal (F.M.A.T. 557 of 2018) against Judgment and Award dated 21‑03‑2018 passed by the Learned Additional District Judge, 3rd Court, Jalpaiguri in MAC Case No. 147/2014.
  • Background: On 18‑Jan‑2014, at about 5.00 p.m., a truck bearing No PB‑65‑D‑9345, travelling at high speed, collided with the police van of Constable Bikash Singh (West Bengal Police) at Oil India More, Sonapur, District Dinajpur. The constable sustained serious injuries and died the same day at Dalua BPHC.
  • Victim’s Earnings: Salary Rs 21,123 per month; pay statement later showed gross Rs 21,836, net Rs 21,706 after professional tax. Including 50 % future prospect, monthly income calculated as Rs 32,559, giving annual income Rs 3,90,708. After deducting personal expenses (one‑third), annual dependency loss Rs 2,60,472. Applying a multiplier of 15, total dependency loss Rs 39,07,080. Funeral and loss of consortium amount Rs 1,10,000, yielding arithmetic total compensation Rs 40,17,080.
  • Legal Issues Raised:
  • Jurisdiction – trial court proceeded on merits despite lack of territorial jurisdiction; appeal argued objection should have been raised earlier.
  • Merits – whether the driver’s rash and negligent driving was proved; whether the driver held a fake licence; applicability of Sections 166, 279, 304A IPC and Sections 112, 183, 184 MV Act.
  • Insurance liability – whether alleged violation of policy condition (driving without valid licence/permit) bars insurer from paying compensation, and the procedure for pay‑and‑recovery.
  • Advocates’ Submissions: Appellants claimed trial court erred on jurisdiction and on factual findings of rash/negligent driving; Respondent insurer argued no rash/negligent driving, licence was fake, thus policy condition breached.

Findings and Reasoning

  • Jurisdiction: The Court held that because the trial court did not entertain the jurisdiction objection at the earliest stage, the objection cannot be raised at the appellate stage under CPC Section 21(1).
  • Rash & Negligent Driving: The Court examined the FIR, charge‑sheet (Sections 279 & 304A IPC), and witness testimony establishing high‑speed approach of the offending truck. It concluded that high speed and violation of Rule 17 of the Motor Vehicles (Driving) Regulations 2017 constitute rash and negligent driving for compensation purposes under Section 166 MV Act, even though the charge‑sheet was not under Sections 183/184 of the MV Act.
  • Fake Licence Claim: The Court reiterated settled law that a breach of the insurance policy condition (driving without a valid licence) does not automatically absolve the insurer from liability; the insurer may recover the amount from the vehicle owner only after a proper enquiry and an opportunity of being heard.
  • Compensation Calculation: While the arithmetic computation gave Rs 40,17,080, the Court applied the principle of “just and reasonable” compensation under Section 168 MV Act, considering the victim’s status as a government employee and other relevant factors, and fixed compensation at Rs 38,00,000.
  • Interest: Interest at 6 % per annum from the date of filing the claim case till the date of this order.
  • Directions to Insurer: ICICI Lombard must deposit Rs 38,00,000 plus interest within eight weeks before the Registrar General, High Court Calcutta. The insurer is granted liberty to serve a notice on the vehicle owner (respondent No‑2, Subrata Nath) annexing the trial court’s award and this order, and after hearing the owner, decide whether to initiate recovery proceedings.
  • Procedural Observations: The Court noted that the insurer had not conducted a prior enquiry or given the vehicle owner an opportunity of being heard regarding the alleged licence violation; therefore, any recovery order cannot be made without such enquiry.

Final Outcome

  • The Appeal (FMAT‑557 of 2018) is allowed.
  • The Judgment and Award dated 21‑03‑2018 passed by the Additional District Judge, Jalpaiguri, is set aside.
  • Claimants are entitled to compensation of Rs 38,00,000 (Rupees thirty‑eight lakh) with interest at 6 % per annum from the filing date.
  • ICICI Lombard General Insurance Co. Ltd. must deposit the amount within eight weeks and subsequently conduct a notice‑and‑hearing process before seeking any recovery from the vehicle owner.
  • The order also directs that a certified copy of the order be made available to the parties upon compliance with formalities.

Topics: Motor Accident Compensation, Insurance Liability