This legal judgment from the High Court of Himachal Pradesh, decided on January 2, 2026, involves an appeal by Oriental Insurance Company Limited against an award granted by the Motor Accidents Claims Tribunal (MACT). The High Court dismissed the appeal, confirming that a non-dependent legal representative is entitled to statutory compensation under “No-Fault Liability”.
Case Background
The case originated from a 2007 road accident where a man named Dasu was killed by a negligently driven bus. His brother, Dharamu, filed a claim petition for ₹7,00,000. While the Tribunal found that Dharamu was not financially dependent on his brother, it awarded him ₹50,000 plus interest under Section 140 of the Motor Vehicles Act (No-Fault Liability).
Key Legal Issues and Findings
- Entitlement of Non-Dependents: The Insurance Company argued that because the brother was not dependent on the deceased’s income, he was not entitled to any compensation. The Court rejected this, ruling that the right to apply for compensation belongs to any “legal representative” who represents the estate of the deceased.
- Definition of Legal Representative: Drawing on Supreme Court precedents (Manjuri Bera and Birender), the Court clarified that “legal representative” is a broad term including anyone upon whom the deceased’s estate devolves. Since the deceased was unmarried and childless, his brother was the rightful heir to his estate.
- Nature of “No-Fault Liability” (Section 140): The Court emphasized that compensation under Section 140 is a crystallized statutory amount (fixed at ₹50,000 for death) that becomes part of the deceased’s estate. While dependency is crucial for calculating loss of income, it is not a prerequisite for claiming this minimum statutory amount.
- Procedural Technicalities: The Insurance Company contended that the award was invalid because the petitioner had not filed a separate application specifically under Section 140. The Court ruled that once an accident and legal heirship are established, the Tribunal has a duty to award “just and proper” compensation, and the lack of a separate application does not bar the claim.
Conclusion
The High Court concluded that the brother was entitled to inherit the deceased’s estate, which included the statutory compensation. Consequently, the ₹50,000 award was upheld, and the Insurance Company’s appeal was dismissed.
Himachal Pradesh High Court : STPL (Web) 2026 HP 5
Oriental Insurance Company Limited V. Dharamu (Deceased) Through His LR & Others





