IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH, NAGPUR
ANUJA PRABHUDESSAI, J.
Snehalata Wd/o Arunkumar Pandya – Appellant
Versus
Premchand Abhyakumar Mishrikotkar and Others – Respondents
First Appeal No. 967 of 2007
Decided on : 26-02-2022
Motor Vehicles Act - Compensation - Section 166 - Summary of Acts and Sections: The court discussed the provisions of Section 166 of the Motor Vehicles Act, 1988 and referred to key legal principles established in various cases related to the determination of compensation for victims, particularly focusing on the valuation of notional income for homemakers. The court emphasized the invaluable contribution of homemakers and the need to award just compensation, considering the duties and sacrifices of homemakers. The court also referred to the assessment of loss of future income and the calculation of total compensation based on the nature and extent of permanent disablement.
Fact of the Case:
The Appellant challenged the compensation awarded by the Claims Tribunal under Section 166 of the Motor Vehicles Act, 1988. The Appellant's wife sustained multiple fractures in a car accident caused by the negligent driving of another vehicle. The Tribunal awarded compensation, which the Appellant found unjust and unreasonable.
Finding of the Court:
The court found that the Tribunal's assessment of compensation based on notional income of the Claimant was inadequate. The court emphasized the invaluable contribution of homemakers and the need to award just compensation, considering the duties and sacrifices of homemakers. The court recalculated the compensation, taking into account loss of future income and additional expenses, and awarded higher compensation to the Claimant.
Issues: The main issue was whether the quantum of compensation awarded by the Tribunal was just and reasonable, particularly in relation to the valuation of notional income for the Claimant, a homemaker who sustained multiple fractures in a car accident.
Ratio Decidendi: The court's decision was based on the interpretation of the provisions of Section 166 of the Motor Vehicles Act, 1988 and the application of key legal principles established in various cases related to the determination of compensation for victims, particularly focusing on the valuation of notional income for homemakers and the assessment of loss of future income based on the nature and extent of permanent disablement.
Final Decision: The Appeal was allowed, and the Claimant was held entitled to higher compensation of Rs. 1,38,000/- with interest at the rate of 6% per annum from the date of the Petition till final realization. The Respondent Nos. 1 and 2 were directed to jointly and severally pay the balance compensation amount within three months.
JUDGMENT :
1. The Appellant (hereinafter referred to as “the Claimant”) has assailed the judgment and award dated 03/03/2007 passed by the Claims Tribunal in Claim Petition No. 457/1993 under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as “the said Act”). By the impugned judgment and award, the Claims Tribunal has partly allowed the claim petition and awarded compensation of Rs. 51, 140/- with interest @ 6% per annum from the date of the application till final realization.
2. The brief facts necessary to decide this Appeal are as under:-
On 26/03/1993, while the Appellant was proceeding to Ramtek by Car No. MUK-6996, which was driven by her husband Arunkumar Pandya, a jeep bearing No. MTE-2004 dashed against their vehicle as a result of which she sustained multiple fractures. The said jeep was owned by the respondent No. 1 and was insured with the respondent No. 2 (hereinafter referred to as “the Insurance Company”). The Claimant had alleged that the accident was caused due to the rash and negligent driving by the driver of the jeep. She further stated that she had sustained multiple fractures resulting in 20% permanent disablement.
The Claimant therefore claimed total compensation of Rs. 2,84,135/-.
3. The Respondent No. 2, the insurer of the offending vehicle, denied that the accident was caused due to rash and negligent driving by the driver of the jeep. The Insurance Company claimed that it was a case of composite negligence. The Insurance Company further claimed that the claim was exorbitant and that it is not liable to pay the compensation as claimed by the Claimant.
4. The learned Tribunal framed the issues and upon considering the evidence adduced by the respective parties, held that the accident was caused due to the rash and negligent driving by the driver of the jeep. The Tribunal has also recorded a finding that the Claimant had sustained multiple fractures which had resulted in permanent disablement of 20%. The Tribunal considered notional income of the Claimant as Rs. 15,000/- per annum as per Schedule II of the said Act and considering disablement of 20%, the Tribunal assessed loss of earning capacity to Rs. 33,000/-. The Tribunal also awarded compensation of Rs. 4,540/- towards medical and hospital bills, Rs. 800/- towards transportation and fees of medical attendant, Rs. 1,500/- towards ambulance charges, Rs. 2,000/- towards special diet, Rs. 5000/- towards pain and sufferings and Rs. 3,500/- towards charges of staff nurse. Thus, the Tribunal awarded total compensation of Rs. 51, 140/-. Being aggrieved by the quantum of compensation awarded by the Tribunal, the Claimant has filed this Appeal under Section 173 of the said Act.
5. Shri G.E. Moharir, learned advocate for the Appellant submits that the Tribunal has erred in considering notional income of the Claimant at Rs. 15,000/- per annum. He further submits that the amount of compensation awarded by the Tribunal is not just and reasonable compensation.
6. Per contra, Shri M.B. Joshi, learned advocate for the Insurance Company submits that the Claimant was a housewife and there is no proof of her income and hence, the Tribunal was justified in awarding compensation on the basis of notional income of Rs. 15,000/- per annum. He submits that the impugned judgment and award does not warrant interference.
7. I have perused the record and considered the submissions advanced by the learned counsel for the respective parties.
8. The only question which falls for consideration is whether the quantum of compensation awarded by the Tribunal is just and reasonable. It is not in dispute that the Claimant was injured in an accident and that she had sustained multiple fractures. It is also not in dispute that at the relevant time, the Claimant was 52 years of age and was a housewife. The Tribunal has determined the compensation on the basis of notional inc
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