The Supreme Court of India allowed the civil appeals filed by the appellant, setting aside the concurrent decisions of the Motor Accident Claims Tribunal and the High Court that had awarded compensation under Section 166 of the Motor Vehicles Act, 1988. The Apex Court held that for compensation to be claimable under the Motor Vehicles Act, a clear causal relationship (“arising out of the use of a motor vehicle”) must be established between the use of the vehicle and the resulting injury or death. In this case, although the victim was last seen in the appellant’s car before being found murdered days later, the complete absence of forensic links or evidence connecting the vehicle to the fatal injuries rendered the motor accident claim legally unsustainable.
- Causal Link Requirement:
- Liability under the Motor Vehicles Act cannot be fastened merely because an accident and a motor vehicle coexist.
- The expression “arising out of” requires a causal relationship or connection between the use of the vehicle and the accident resulting in the injury or death.
- Distinction in Standards of Proof:
- While civil claims under the Motor Vehicles Act are decided on the touchstone of “preponderance of probabilities” rather than the stricter criminal standard of “beyond reasonable doubt,” claimants must still establish a baseline connection or link between the vehicle and the incident.
- Absence of Evidence Connecting the Car:
- The record lacked any forensic proof (such as blood, skin cells, or hair) recovered from the appellant’s car, nor was the car involved in any traffic collision.
- The lower courts incorrectly assumed that the deceased’s injuries from hard and blunt objects occurred inside the vehicle without supporting evidence.
- Final Ruling:
- The Supreme Court set aside the judgments of the High Court and the Tribunal, allowing the appeal.
However, the Court directed that any compensation amount already disbursed to the respondents shall not be subjected to recovery, given the peculiar facts of the case.
2026 INSC 736
Dilip Agarwal v. Rajshri Agarwal & Ors. (D.O.J. 22.07.2026)




