IN THE HIGH COURT OF JUDICATURE AT BOMBAY, BENCH AT AURANGABAD
ARUN R. PEDNEKER, J.
M/s. IFFCO-TOKIO General Insurance Co. Ltd. – Appellant
Versus
Smt. Suvarna, w/o. Rajabhau Ghodke & Ors. – Respondents
First Appeal No. 401 Of 2014
Decided On : 01-10-2024
Insurance - Motor Accident Claims - Motor Vehicles Act - Sections 166, 168 - The court upheld the Tribunal's decision attributing negligence to the truck driver, affirming the compensation awarded to the dependents of the deceased while clarifying the treatment of future prospects in compensation calculations.
Fact of the Case:
The deceased, while driving an auto-rickshaw, was involved in a fatal accident with a truck. The dependents filed a claim for compensation against the truck's owner and insurer, leading to a Tribunal ruling in their favor.
Issues: Whether the truck driver was negligent and the appropriate calculation of compensation, particularly regarding future income prospects and interest on such prospects.
Ratio Decidendi: The court affirmed that the truck driver was solely responsible for the accident, and clarified that interest should not be applied to future income prospects in compensation calculations.
Final Decision: The appeal by the Insurance Company was dismissed, and the compensation awarded by the Tribunal was upheld with adjustments.
JUDGMENT :
(Arun R. Pedneker, J.)
1] By the present appeal, the appellant – Insurance Company challenges the judgment and order dated 11.12.2012 passed by the Motor Accident Claims Tribunal, Osmanabad in MACP No.12 of 2009, granting claim to the dependents of the deceased, who had met with an accident with truck while driving an auto-rickshaw.
Brief facts leading to the filing of the present Appeal are as under :
2] One Rajabhau @ Rajaram Rambhau Ghodke was residnet of Padsali, Taluka Uttar Solapur, District Solapur. He owned auto-rickshaw bearing MH-04/AR-7503. On 23.07.2008 at 23.00 hours, he met a friend Bapu Baban Thorat and both of them went to Thane for filling up gas in the auto-rickshaw and the deceased was driving the auto- rickshaw in moderate speed. Truck bearing No.RJ-14/GB- 6314 came from opposite side in high speed and dashed Rambhasu Ghodke’s rickshaw. In the accident, Rambhau Ghodke died on the spot. A crime was registered against the driver of the truck. The claimants [widow, two minor daughters, one minor son and parents of the deceased, total 06] filed an application before the Motor Accident Claims Tribunal, claiming compensation against the owner of the truck and the Insurance Company of the truck. Before the Tribunal, evidence was adduced by the claimants.
3] The claimant no.1, widow, deposed that the deceased was driving his rickshaw on the left hand side of the road and friend of the deceased, namely, Bapu Thorat was also driving his rickshaw behind him. The Truck bearing No.RJ-14/GB-6314 came from opposite side and dashed her husband’s rickshaw. Thereafter, the truck driver took the truck down the road, left the truck and ran away from the spot. FIR was registered by Bhaurao Chandu Dudhale, another rickshaw driver. After investigation, the Police has filed charge sheet against the truck driver. Considering the evidence on record, the Tribunal held that the truck driver was negligent in driving. The Tribunal also held that the deceased was earning Rs.300/- a day i.e. Rs.9000/- per month. His age was 33 years and by the judgment and order dated 11.12.2012, the Tribunal has granted compensation of Rs.13,16,000/- to the claimants. Against the said judgment and order, the present First Appeal is filed by the Insurance Company.
4] The learned counsel for the appellant submits that there was head on collusion between two vehicles and as such the responsibility ought to have fixed on both vehicles. The learned counsel for the appellant has relied upon the judgment in the case of Ranjana Prakash & Ors. Vs. Divisional Manager & Anr. reported in [2011] 14 SCC 639 to contend that 30% income has to be deducted towards income tax. However, the judgment is not applicable to the instant case as the deceased is not in income tax bracket. He has also relied upon the judgment in the case of Kalpana Madhu Gavali and Ors. Vs. Maharashtra State Road Transport Corporation reported in MANU/MH/3837/2023 to contend that interest should not be paid on the future prospects. He has also relied upon the judgment in the case of National Insurance Co. Ltd. Vs. Pranay Sethi reported in [2017] 16 SCC 680 to contend that judicial discipline is required to be maintained and consistent view be taken by the Court in granting compensation. He has also relied upon the judgment in the case of Sandhya Educational Society and another Vs. Union of India and others reported in [2014] 7 SCC 701 to contend that a coordinate Bench has to take consistent view of this Court with earlier judgments.
5] On perusal of the evidence of Bapu Baban Thorat at Exh.46, so also, the spot panchanama at Exh.47, it appears that the dead body of the deceased is away from the centre of the road and is towards the left side. The auto rickshaw was near the centre of the road and the time of accident was 3.00 a.m. However, as per the evidence on record, the truck driver came from the opposite side in a high speed. The deceased was driving the auto rickshaw in moderate speed. Th
Important Point : The court established that negligence in motor accidents is determined by the evidence of speed and road positioning, and clarified the treatment of future income prospects in compe....
The court upheld the Tribunal's finding of negligence against the truck driver and affirmed the compensation amount, emphasizing the necessity of just compensation for dependents.
The court established that dependency must be proven for compensation claims, the correct multiplier for age is crucial, and future prospects should be included in compensation calculations under the....
Insurance companies are liable to pay interest on compensation amounts, including future prospects, to ensure claimants are not unjustly deprived of timely financial relief.
Motor Accident - High Court, after making a substantial enhancement in the award amount, modified the interest component at a reasonable rate of 7.5% p.a. and we find no reason to allow the interest ....
The main legal point established in the judgment is that provident fund contribution should not be deducted from the deceased's salary while computing compensation, and 50% of the actual income shoul....
The court reinforced that just compensation must be determined based on established income, future prospects, and the liability of the insurance company, irrespective of the driver's licensing status....
The court established that in compensation claims, the burden of proof is based on preponderance of probability, and interest cannot be awarded on future prospects.
Compensation for motor vehicle accidents must reflect just and equitable principles, recognizing future earnings potential, with interest rates aligned to judicial precedents.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.