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SUPREME COURT OF INDIA
S. Abdul Nazeer, Vikram Nath, JJ.
Gangu Ram – Appellant
Versus
Divisional Manager Oriental Insurance Company Limited – Respondent
Civil Appeal No(s). 3638 of 2022 (Arising Out of SLP (C) No. 19996 of 2019)
Decided On : 05-05-2022
Compensation - Motor Accidents Claims - M.A.C.P. No. 305 of 1996 - FAFO No. 877 OF 2000 - 29.10.2018
Fact of the Case:
The appellant challenged the order passed by the High Court of Judicature at Allahabad, which awarded compensation of Rs.5,78,800 with interest, in a motor accidents claim case. The claimant had previously questioned the judgment and Award passed by the Motor Accidents Claims Tribunal/IVth Addl. District Judge, Aligarh, which had awarded compensation of Rs.1,93,000 with interest at 10% per annum.
Finding of the Court:
The court found that the compensation amount awarded by both the Tribunal and the High Court was on the lower side and decided to award an additional sum of Rs.2,00,000 inclusive of interest towards compensation.
Issues: The main issue was the adequacy of the compensation awarded by the lower courts in a motor accidents claim case.
Ratio Decidendi: The court's decision was influenced by the inadequacy of the compensation awarded by the lower courts and the need to ensure just and proper compensation for the claimant.
Final Decision: The court directed the respondent-Insurance Company to deposit a sum of Rs.2,00,000 within a period of eight weeks from the date of the judgment before the Tribunal, to be released in favor of the claimants. The appeal was accordingly disposed of with no orders as to costs.
ORDER
1. Leave granted.
2. Challenge in this appeal is to the order passed by the High Court of Judicature at Allahabad on 29.10.2018 in FAFO No. 877 OF 2000 holding that the appellant- claimant was entitled to compensation of Rs.5,78,800/- (Rupees five lakh seventy-eight thousand) with interest at the rate of 9% per annum from the date of petition till the date of judgment and 4% thereafter till the payment.
3. Before the High Court the claimant had questioned the judgment and Award passed by the Motor Accidents Claims Tribunal/IVth Addl. District Judge, Aligarh on 28.01.2000 in M.A.C.P. No. 305 of 1996 whereby the Tribunal had awarded compensation of Rs.1,93,000/- with interest @ 10% p.a.
4. We have heard learned counsel for the parties and perused the record.
5. Having regard to the facts and circumstances of the case, we are of the view that the compensation amount awarded by the Tribunal as well as by the High Court are on lower side.
6. In our considered view, it is just and proper to award an additional sum of Rs.2,00,000/- inclusive of interest towards compensation.
7. Therefore, we direct the respondent-Insurance Company to deposit a sum of Rs.2,00,000/- within a period of eight weeks from today before the Tribunal, to be released in favour of the claimants.
8. The appeal is accordingly disposed of. No orders as to costs.
The main legal point established in the judgment is the court's authority to award additional compensation when it deems the compensation awarded by lower courts to be inadequate.
The application of the multiplier for granting compensation under the Motor Vehicles Act, 1988.
The assessment of compensation in motor accident cases should be based on sufficient reasons and evidence, and any modification should be justified.
The Court's decision was based on the compromise reached by the parties, highlighting the significance of mutual agreement in settling legal disputes.
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