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2001 Supreme(SC) 5

K.T.THOMAS, R.P.SETHI
Kaushnuma Begum – Appellant
Versus
New India Assurance Company LTD. – Respondent


Judgement Key Points

Based on the provided legal document, here are the key points:

  • The Supreme Court of India held that the rule of strict liability propounded in Rylands v. Fletcher can be followed in respect of motor accident claims before the Motor Accident Claims Tribunal, at least until a new superior principle is evolved or legislation provides otherwise (!) (!) (!) .
  • The jurisdiction of the Tribunal is not restricted to deciding claims arising out of negligence; negligence is only one of the species of causes of action for compensation claims regarding accidents involving motor vehicles (!) .
  • Even if there is no negligence on the part of the driver or owner, the owner should be made liable for damages if an accident occurs while the vehicle is in use, unless one of the exceptions to the Rylands v. Fletcher rule applies (!) (!) .
  • The "No Fault Liability" envisaged under Section 140 of the Motor Vehicles Act is distinguishable from the rule of strict liability; the former is a statutory liability with a fixed amount, while the latter is a common law principle resting on different premises (!) .
  • Regarding the quantum of compensation, the Court adopted the structured formula from the Second Schedule to the Motor Vehicles Act, calculating the amount based on the deceased's age (35 years) and monthly income (Rs. 1,500), resulting in a total compensation of Rs. 1,80,000 after deducting one-third (!) (!) .
  • The Court directed that interest on the compensation should be paid at the rate of 9% per annum from the date of the claim, reflecting the interest rates granted by nationalised banks on fixed deposits (!) .
  • The compensation awarded under Section 140 (No Fault Liability) by the insurance company is deductible from the final amount awarded by the Tribunal (!) (!) .

JUDGMENT

Thomas, J.-Leave granted.

2. Can a claim be maintained before the Motor Accident Claims Tribunal ( Tribunal for short ) on the basis of strict liability propounded in Rylands v. Fletcher1. The Tribunal dismissed a claim made before it solely on the ground that there was neither rashness nor negligence in driving the vehicle and hence the driver has no liability, and the corollary of which is that the owner has no vicarious liability to pay compensation to the dependants of the victim of a motor accident. A Division Bench of the High Court of Allahabad dismissed the appeal filed by the claimants by a cryptic order stating that there is no error in the Tribunal s order. Hence this appeal by special leave.

3. The accident which gave rise to the claim occurred at about 7.00 P.M. on 20.3.1986. The vehicle involved in the accident was a jeep. It capsized while it was in motion. The cause of the capsized was attributed to bursting of the front tyre of the jeep. In the process of capsizing the vehicle hit against one Haji Mohammad Hanif who was walking on the road at that ill-fated moment and consequently that pedestrian was crushed and subsequently succumbed to the injuries sust






























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