Supreme Court Allows Appeal Restoring Tribunal's Award Holding Truck Insurer Liable for Accident -- Appellant Succeeds Against Respondents in Liability Dispute

  • 9
Judgement Image
Font size:
Print

Case Note & Summary

The Supreme Court heard an appeal concerning liability between two insurance companies for a 2013 accident involving a trailer and truck collision -- The Tribunal initially found the truck driver negligent and held Respondent liable -- The High Court reversed this finding and held Appellant liable -- The Supreme Court examined the evidence, particularly the claimant Cleaner's testimony about inadequate distance between vehicles -- The Court applied Regulation 23 of the Rules of the Road Regulations, 1989 and precedent cases including Nishan Singh v. Oriental Insurance Company Ltd -- The Court found the truck driver negligent for failing to maintain safe distance -- The Court restored the Tribunal's award holding Tata AIG liable and dismissed arguments about contributory negligence

Headnote

The Supreme Court allowed the appeal filed by Appellant -- The Court restored the Tribunal's award which had mulcted liability on Respondents -- The Court held that the driver of the truck following the trailer failed to maintain sufficient distance as mandated by Regulation 23 of the Rules of the Road Regulations, 1989 -- The evidence of the claimant Cleaner established that the truck maintained only 20 feet distance when 40-50 feet was required -- The Court found no merit in the contention of contributory negligence -- The High Court's order reversing the Tribunal was set aside

Issue of Consideration: Which insurance company has the liability to satisfy the award in favour of the claimant injured in the collision of two vehicles

Final Decision

The Supreme Court allowed the appeal -- The Court reversed the High Court's order and restored the Tribunal's award -- The Court held Tata AIG General Insurance Company Limited liable to satisfy the compensation award -- The Court dismissed arguments about contributory negligence

2026 LawText (SC) (02) 71

Civil Appeal No. of 2026 (@Special Leave Petition (C) No.14988 of 2023)

2026-02-24

Sanjay Kumar J. , K. Vinod Chandran J.

2026 INSC 208

Amit Kumar Singh, Shantha Devi Raman

Oriental Insurance Company Limited

Tata AIG General Insurance Company Limited and Others

Nature of Litigation: Civil appeal concerning insurance liability for motor accident compensation

Remedy Sought

Appellant Oriental Insurance Company Limited seeking reversal of High Court order and restoration of Tribunal award holding respondent Tata AIG liable

Filing Reason

Dispute over which insurance company should satisfy compensation award for claimant injured in trailer-truck collision

Previous Decisions

Tribunal found truck driver negligent and held Tata AIG liable -- High Court reversed finding and held Oriental Insurance liable

Issues

Whether the truck driver was negligent in maintaining insufficient distance from the trailer Whether the trailer driver's alleged sudden braking constituted contributory negligence Which insurance company bears liability for the accident compensation

Submissions/Arguments

Appellant argued truck driver negligent for failing to maintain safe distance as per claimant's evidence Respondent argued trailer driver negligent due to sudden braking and cited criminal case confession Respondent attempted to establish contributory negligence

Ratio Decidendi

The driver of a following vehicle must maintain sufficient distance to avoid collision as per Regulation 23 of the Rules of the Road Regulations, 1989 -- Failure to maintain adequate distance constitutes negligence -- Evidence before the Tribunal takes precedence over criminal proceedings documents -- The insurer of the negligent following vehicle bears liability

Judgment Excerpts

The driver following another vehicle should maintain sufficient distance from the vehicle going in the front to avoid a collision, keeping in mind the possibility of a sudden slowing down or stoppage The Cleaner deposed to the fact that the distance kept by his driver from the vehicle moving in the front was not adequate and sufficient so as to control the vehicle at the back, if the vehicle at the front abruptly stopped We are of the opinion that the High Court erred in reversing the well-considered order of the Tribunal based on the evidence led before it

Procedural History

Accident occurred on 19.05.2013 -- Claim petition filed before Tribunal -- Tribunal decided on 14.01.2019 holding Tata AIG liable -- High Court reversed Tribunal decision holding Oriental Insurance liable -- Supreme Court granted leave and heard appeal -- Supreme Court restored Tribunal award

Related Judgement
Supreme Court Supreme Court Allows Appeal Restoring Tribunal's Award Holding Truck Insurer Lia...
Related Judgement
Supreme Court Quashing of FIR Set Aside — Supreme Court Reiterates Limits of Section 482 CrP...