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2019 Supreme(Kar) 1177

IN THE HIGH COURT OF KARNATAKA
B.V. NAGARATHNA, K. NATARAJAN, JJ.
Priya — Appellant
Versus
Armugam — Respondent
Miscellaneous First Appeal No. 3889 of 2011
Decided on : 11-06-2019

Advocates:
Advocate Appeared:
K.N. Harish Babu, Adv., Shivakumar M.V., Adv.

Section 163A of the Motor Vehicles Act provides for compensation on a structured formula basis without the need to prove negligence, incorporating the principle of strict liability.

Headnote:

Motor Vehicles Act - Compensation - Section 163A, Section 166, Section 140

Fact of the Case:

The claimants filed a petition under Section 163A of the Motor Vehicles Act seeking compensation for the death of Shivakumar in a road traffic accident. The Tribunal dismissed the claim petition, and the claimants appealed.

Finding of the Court:

The court found that Section 163A of the Act provides for compensation on a structured formula basis without the need to prove negligence. The court set aside the judgment and award of the Tribunal and remanded the case for fresh consideration in light of the law laid down by the Hon'ble Supreme Court.

Issues: 1. Whether the Tribunal was justified in dismissing the claim petition filed under Section 163A of the Act? 2. What order?

Ratio Decidendi: The court held that Section 163A of the Act provides for strict liability and compensation on a structured formula basis, overriding the need to prove negligence. The court also emphasized the principle of strict liability incorporated under Section 163A of the Act.

Final Decision: The appeal was allowed, and the matter was remanded to the concerned Tribunal for fresh consideration. The Tribunal was directed to issue notice to the owner of the vehicle and dispose of the claim petition in accordance with the law.

JUDGMENT :

B.V. Nagarathna, J.

This appeal is listed to ascertain the status of Civil Appeal No.9694 of 2013 arising out of S.L.P. (Civil) No.7586 of 2012 before the Hon'ble Supreme Court. Learned counsel for the respective parties submit that the said Civil Appeal was considered by a Three Judge Bench of the Hon'ble Supreme Court and an opinion has been rendered on 24.11.2017 which is reported in AIR 2017 SC 5710 and that this appeal may be disposed of. Therefore, with the consent of learned counsel on both sides, the appeal is heard finally.

2. The claimants in M.V.C. No.3860 of 2009 have preferred this appeal being aggrieved by the dismissal of their claim petition by judgment and award dated 13.12.2010 passed by the Motor Accident Claims Tribunal, Bengaluru (hereinafter referred to as the 'Tribunal' for the sake of brevity).

3. For the sake of convenience, the parties shall be referred to in terms of their status before the Tribunal.

4. The claimants filed the petition under Section 163A of the Motor Vehicles Act, 1988 (hereinafter referred to as the 'Act', for the sake of brevity) seeking compensation on account of the death of Shivakumar in a road traffic accident that occurred on 29.03.2009. On the fateful day at 3.00 p.m., Shivakumar, being the father of claimant Nos.2 and 3 and husband of claimant No.1, was riding motor cycle bearing Reg. No.KA-53-L-4079 on old Madras road near Tin Factory, Bengaluru. Suddenly the motor cycle skidded and Shivakumar fell off the motor cycle, sustained grievous injuries and later succumbed to the said injuries. Contending that Shivakumar was hale and healthy and that he had suffered a premature death on account of the road traffic accident, his legal representatives filed the claim petition under Section 163A of the Act seeking compensation under the provisions of the Act.

5. The claim petition was resisted by second respondent insurer contending that Shivakumar was intoxicated and was riding the vehicle without a helmet, lost control, fell down and hit his head towards the side of the road and the accident took place due to his own negligence. While admitting the issuance of policy in respect of the vehicle in question, the insurance company sought dismissal of the claim petition.

6. On the basis of the rival pleadings, the Tribunal framed following issues for its consideration :

    1. Whether petitioners prove that on 29.03.2009 at 3.00 p.m., on old Madras road, near Tin Factory, Bangalore, Shivakumar, being rider of the motor cycle, bearing Reg. No.KA-53-L-4079 drove the said vehicle in a rash and negligent manner so as to endanger human life and caused accident resulting in grievous injuries to him and later he succumbed to the said injuries?

2. Whether the petitioners are the dependants of the deceased Shivakumar?

3. Whether the petitioners are entitled to for compensation and if so, what amount and from whom?

4. What order and award?

7. In support of their case, the claimant examined P.W.1, Priya, the widow of the deceased. She produced 15 documents which were marked as Exs.P-1 to P-15. While the insurance company examined R.W.1 and produced the insurance policy as Ex.R-1. On the basis of the evidence on record, the Tribunal answered issue No.1 in the negative, issue Nos.2 and 3 as "do not survive for consideration" and dismissed the claim petition. Being aggrieved by the dismissal of the claim petition, the claimants have preferred this appeal.

8. We have heard learned counsel for the appellants and learned counsel for the respondent insurance company and perused the material on record.

9. Appellants' counsel contended that the claimants had preferred the claim petition under Section 163A of the Act and not under Section 166 as stated in the judgment of the Tribunal. The said Section is a special provision to pay compensation on structured formula basis. The said Section has been inserted by an amendment made to the Act with effect from 14.11.1994. Section 163A begins with a non obstante clause

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