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2024 Supreme(Bom) 1167

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.M. SATHAYE, J.
Cholamandalam M.S. General Insurance Co. Ltd.  - Appellant 
Versus
Smt. Poonam Gupta - Respondent 
First Appeal No. 596 of 2023, CROSS OBJECTION (ST) NO. 6039 OF 2023 WITH INTERIM APPLICATION NO. 7177 OF 2024 IN FIRST APPEAL NO. 596 OF 2023
Decided on : 10-10-2024

Advocates Appeared:
For the Appellant : Mr. Rajesh Kanojia a/w Ms. Prachi Pawar i/b Res Juris
For the Respondent: Mr. Yogesh Pande

Determination of compensation under the Motor Vehicles Act requires a balance between earnings lost and reasonable deductions for personal expenses, recognizing future stability for dependents.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal by Insurance Company against Judgment and Award of Motor Accident Claims Tribunal granting Rs.50,60,000/- to Claimant. Court held that Tribunal's decision involved both severity of driver’s negligence and validity of driver's documents. (Paras 2, 3, 4, and 6)

(B) Compensation - Just and fair compensation determined based on income tax returns for assessing loss of income post-accident, considering managerial loss and future prospects as entitlements. Court endorsed the principle that damages should aim for future stability in the claimant's life. (Paras 17, 24, and 26)

Facts of the case:
Respondent No.1, widow of deceased who died in a road accident involving a dumper, filed a claim for compensation. Respondent contended deceased was earning from a telecom business. Insurance Company argued about inadequacies in claimant's assertions. (Paras 1, 3, and 4)

Findings of Court:
Compensation calculated at Rs.1,20,00,330/- inclusive of loss of income, consortium loss, and other expenses, distributed among the claimants as per differential entitlements. (Paras 24, 26, and 28)

Issues: Main questions concerned the quantum of compensation based on earnings and determining the managerial loss appropriate for the claim. Court also addressed entitlement issues for family members of the deceased. (Paras 3 and 6)

Ratio Decidendi: Court ruled that benefits under the Motor Vehicles Act are aimed at providing stability, thus necessity in calculating potential income loss fairly emphasized. (Paras 17 and 19)

Result: Appeal and cross-objections partly allowed with compensation awarded as stated.

Table of Content
1. overview of the accident and claim. (Para 2 , 3)
2. disputes regarding liability and dependency. (Para 4 , 5)
3. tribunal's findings and conclusions. (Para 6 , 7)
4. arguments regarding income and compensation calculation. (Para 8 , 9)
5. discussion on claimant's ability and income post-accident. (Para 10 , 11)
6. consideration of evidence and it returns. (Para 12 , 13 , 14 , 15 , 16)
7. approach to compensation calculation. (Para 17 , 18 , 19 , 20)
8. assessment of applicable legal precedents. (Para 21 , 22)
9. final compensation awarded. (Para 23 , 24 , 25)
10. distribution of awarded compensation and directive for payment. (Para 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33)

JUDGMENT :

M.M. SATHAYE, J.

1. Heard learned counsel for the Appellant/Insurance Company, learned counsel for the Respondent No.1-Claimant. Respondent nos. 3 and 4 are duly served through newspaper publication as permitted by the Court under order dated 13.12.2022. An Affidavit of service dated 05.06.2023 has also been filed with relevant newspapers. However, none appears for them. Appeal is already dismissed against Respondent No.2 under conditional order dated 25.04.2022. The appeal was posted for final hearing under earlier order dated 23.08.2024. Taken up for final disposal by consent of learned counsel appearing for the parties.

2. This is an appeal by the Insurance Company under Section 173 of the Motor Vehicles Act, 1988 (‘the said Act’ or ‘the M.V.Act’ for short) challenging the Judgment and Award dated 19.04.2018 passed by the Member, Motor Accident Claims Tribunal (MACT), Pune in Motor Accident Claim Petition (MACP) No.129 of 2015. By the impugned Judgment and Award, the claim of Respondent No.1 is granted and the Appellant Insurance Company is directed to pay Rs.50,60,000/- to Respondent No.1 Claimant and Respondent Nos. 3 and 4 along with interest @7.5% per annum from the date of claim application till its realization. It is further directed that the Appellant/ Insurance Company will deposit the amount, but will be entitled to recover it from Respondent No.2 owner/driver of offending dumper (registration No. MH-12-DT-1855). The learned Tribunal has thereafter apportioned the compensation amongst Respondent No.1 and Respondent Nos. 3 and 4.

Thus, the impugned award is a ‘pay and recover’ award.

CASE

3. Few facts necessary for disposal of this appeal are as follows. The claim is under Section 166 of the said Act. On 16.01.2014 at about 10.30 a.m., deceased Prabin Kumar was proceeding from Pashan towards Chandani Chowk on his motorcycle bearing No. MH-12-GG- 398. When he reached a spot in front of Jain Temple, Bavdhan, the offending dumper was proceeding in the same direction, when due to high speed, the driver of the dumper lost control over the vehicle and gave dash to the said motorcycle from cleaner side. In the said accident, the deceased sustained severe multiple injuries, who was rushed to the hospital, but he was declared dead. Respondent No.1 is the widow of the deceased and Respondent Nos. 3 and 4 are parents of deceased. Claim is filed only by widow. It is the case of the Claimant/widow that the offending dumper was being driven in rash and negligent manner due to which accident occurred. Hinjewadi police station has registered crime against the driver of the offending dumper. It is the case of the Claimant/widow that the deceased was 39 years old at the time of accident, who was running business in the name and style of M/s. Rajhans Telecom and Peripheral Services since 2004. They had no children. Deceased was wholesaler, reseller and retailer of Tea/coffee vending machines, fax, printer, projector, video conferencing equipment, cartridges, vending machines, photocopiers etc. It is contended that the deceased was an Income Tax payee (‘IT’ for short) having bright future. Based on his IT returns, compensation of Rs.1,81,00,000/- was claimed form the Appellant Insurance Company and owner/driver of the offending dumper jointly and severally

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