Claim Dismissed: High Court Finds Fraud and Fabrication in Motor Accident Compensation Claim; Directs Criminal Action and Contempt Proceedings.

sketch of the Bombay High Court
Case
THE BRANCH MANAGER, THE SBI GENERAL INSURANCE CO. LTD., NAGPUR v. SMT. KHAIRUN WD/O JAHIR KHAN AND OTHERS (Bombay High Court, 03-01-2025)
Law
Code of Civil Procedure, Indian Evidence Act, Indian Penal Code, Contempt of Courts Act, Motor Vehicles Act.
  • Facts: The claimants, relatives of the deceased Salman Jahir Khan, filed a claim petition seeking compensation for his death in a motor vehicle accident. The Insurance Company contested the claim, alleging discrepancies in the deceased's identity (Salman Khan Zahir Khan @ Jasvant Yadav), fabrication of documents, and lack of a valid driving license. The Motor Accident Claims Tribunal awarded compensation to the claimants.
  • Procedural Posture: The Insurance Company appealed the judgment and award of the Motor Accident Claims Tribunal to the High Court. The High Court is hearing the First Appeal No. 208 of 2022.
  • Issue: Did the claimants fraudulently fabricate documentary evidence to claim compensation? Are the judgment and award of the Tribunal illegal and incorrect, warranting interference? Was the tribunal correct in awarding compensation given the discrepancies in the deceased's identity and the lack of supporting documentation?
  • Holding: The High Court allowed the appeal, set aside the Tribunal's judgment and award, and dismissed the claim petition.
  • Reasoning: The Court found that the claimants failed to produce crucial documents, such as a birth certificate, school leaving certificate, Aadhar card, and driving license, despite being given multiple opportunities. The post-mortem report and inquest revealed two names for the deceased, raising doubts about his identity. The Court drew an adverse inference against the claimants under Section 114 of the Indian Evidence Act, 1872, for failing to produce the documents. The Court concluded that the claimants intentionally filed a false claim by fabricating documents to fraudulently obtain compensation. The Court directed the Insurance Company to lodge a report to register a crime for cheating and fabrication of documents against the claimants and others involved, including the investigating officer. The Court also directed the Registry to file a suo motu criminal contempt petition against the claimants. The court imposed costs of Rs. 50,000 on the respondents/claimants. The court cited the Supreme Court case of IN RE: Perry Kansagra.. Alleged Contemnor to support its decision to initiate contempt proceedings for abusing the process of the court, noting "A person who makes a false statement before the Court and makes an attempt to deceive the Court, interferes with the administration of justice and is guilty of contempt of Court."