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2025 Supreme(Bom) 2044

IN THE HIGH COURT OF BOMBAY AT GOA
M.S.SONAK, J
Bajaj Allianz General Insurance Company Ltd., Through its Authorised Signatory, Mr Digvijay Dyaneshwar Parab - Appellant
Versus
Mrs. Roseline Antonette Mendes, (widow of late Anthony Mendes) and Ors. – Respondents 
First Appeal No.103 of 2023
Decided On : 23-12-2025

Advocates Appeared:
For the Appellant :Mr Amey Kakodkar, Mr Pankaj Shirodkar and Ms O. Fernandes, Advocates
For the Respondents:Mr Ryan Da Piedade Menezes, Advocate, Mr. Gustavo Monteiro, Advocate.

The court affirmed that a bus driver's heightened duty of care due to vehicle size established negligence, and clarified compensation calculations while remanding for insurance liability concerning lack of operating permits.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for fatal accident - Judgment and award of Rs.34,29,000/- set aside and modified to Rs.31,15,000/-; compensation awarded with interest at the rate of 6% per annum. The court affirmed the finding of negligence on the part of the bus driver, determining the bus driver had a heightened duty of care due to the vehicle's size, and found no contributory negligence on the part of the deceased as he was on a straight path. The issue of delay in filing the claim petition over eight years was considered but didn't bar claims. An error in calculating the deceased's annual income was identified, necessitating a reduction in compensation. The tribunal was directed to re-evaluate insurance coverage regarding the bus's operating permit and whether a pay and recover order is to be issued. (Paras 2-24)

Facts of the case:
The appellant insurance company appealed against the award of compensation to claimants after a fatal accident involving a bus and a scooter. The collision resulted from the bus driver's negligence while entering a side road at a traffic circle. The deceased was found to be an employee earning Rs.20,000/- monthly.

Findings of Court:
The compensation amount was adjusted to Rs.31,15,000/-, and the court recognized a need for a fresh determination on the insurance liability concerning the absence of a permit.

Issues: The main issues included the legitimacy of the compensation amount, the finding of negligence, and the propriety of a pay and recover order regarding the insurance agreement.

Ratio Decidendi: The court ruled that the bus driver's negligence was established, the deceased bore no contributory negligence, and the Tribunal's calculation errors warranted modification of the award.

Result: First appeal disposed of with modified compensation award, and the matter remanded for further proceedings regarding insurance liability to the Tribunal.

Table of Content
1. negligence arguments regarding liability (Para 3 , 4 , 5 , 6)
2. defense arguments supporting negligence finding (Para 7 , 8 , 9 , 10)
3. court's analysis on negligence and duty of care (Para 13 , 14 , 15 , 16)
4. compensation calculation and adjustments (Para 17 , 18 , 19)
5. remanding for pay and recover order (Para 22 , 24)
6. final order on compensation modification (Para 25)

JUDGMENT :

M. S. SONAK, J

1. Heard the learned counsel for the parties.

2. The appellant Insurance Company challenges the judgment and award dated 15.05.2023 made by the Motor Accident Claims Tribunal, North Goa, at Panaji Goa, disposing of Claim Petition No.57/2016 by awarding the claimants i.e. respondent Nos.1 to 4 the total compensation of Rs.34,29,000/- along with simple interest at the rate of 6% per annum from the date of filing of the petition till full and final payment.

3. Mr Kakodkar submits that the finding regards negligence on the part of the bus driver i.e. first respondent suffers from perversity. He submitted that the bus driver had already turned at the circle and was about to access the side road. At this stage, the deceased, who was riding the Activa scooter in a rash and negligent manner collided with the bus thereby suffering fatal injury. He submitted that in such circumstances, the bus driver could not be said to have acted rashly and negligently. Mr Kakodkar submitted that in any event, this was a fit case for holding the bus driver and the deceased equally contributing to the accident and that this was a case of contributory negligence.

4. Mr Kakodkar submitted that the accident in this case occurred on 21.01.2008, but the claim petition was filed almost 8 years later, i.e., on 02.05.2016. He submitted that there was no explanation for this delay, and in any event, the Tribunal was not justified in awarding a 10% increase over the rates specified in National Insurance Company Limited Vs. Pranay Sethi and others , (2017) 16 SCC 680 .

5. Besides, Mr Kakodkar pointed out that there was an apparent error on the face of the record in calculating the compensation amount. Mr Kakodkar contended that there is no evidence to sustain the finding that the deceased was earning Rs.20,000/- per month.

6. Finally, Mr Kakodkar submitted that in this case the bus driver had no permit to ply the bus. The insurance policy clearly provided that the same would be subject to the bus having a valid permit. Therefore, he submitted that the appellant Insurance Company was not liable and, in any event, this was a fit case to make a pay and recover order.

7. The learned counsel Mr Menezes for respondent Nos.I to 3 and Mr Gustavo Monteiro for fourth respondent submitted that there was overwhelming evidence on record in support of finding on rashness and negligence on the part of the bus driver. They submitted that if the bus driver's case about the bus being driven slowly was correct, there was no question of an accident. They pointed out that, even otherwise, the bus is a much larger vehicle than the Activa scooter, and therefore, the duty of care expected from the bus driver was much greater. They submitted that the bus driver, when entering the side road after turning at the circle, had to be extra conscious. They submitted that the evidence on record shows that all caution was thrown to the wind, thereby causing an accident in which the deceased succumbed.

8. The learned counsel for the respondents submitted that there was nothing wrong with the calculation or the award of the 1 0°/o increase provided in the case of Pranay Sethi (supra). They submitted that such an increase has been awarded only after 2017 and not with retrospective effect.

9. The learned counsel for the respondents submitted that no limitation period was prescribed for filing claim petitions. In any event, delay was satisfactorily explained and no proper pleadings were objecting to the entertainment of this petition on the ground of delay or laches. They pointed out that not eve


















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