IN THE HIGH COURT OF CALCUTTA
ASHIM KUMAR BANERJEE AND SHUKLA KABIR SINHA, JJ.
New India Assurance Co. Ltd. – Appellant
Vs.
Kirti Lakhotia and Others – Respondent
F.M.A. No. 1608 of 2008
Decided On: 29.06.2012
Motor Accident Claims Tribunal - Contributory Negligence - Apportionment of Liability - Insurance - Liability of Insurer - Multiplier - Calculation of Compensation
Fact of the Case:
A Maruti van collided with a stationary truck insured by New India Assurance Co. Ltd. The truck driver claimed that the truck was parked with indicators and lights on, while the van driver claimed that the truck was parked without any indicators and that the van was traveling at a speed of 34-40 kmph. The Tribunal found both vehicles to be contributorily negligent and apportioned liability at 75% for the truck and 25% for the van.
Finding of the Court:
The High Court held that the van was primarily responsible for the accident, but gave the benefit of doubt to the claimant and made the truck secondarily responsible. The court apportioned liability at 25% for the truck and 75% for the van, and reduced the compensation awarded by the Tribunal from Rs. 1,30,00,000 to Rs. 1,00,00,000.
Issues: 1. Whether the insurance company was liable to pay compensation for the accident involving the stationary truck and the Maruti van. 2. Whether the Tribunal erred in apportioning liability at 75% for the truck and 25% for the van. 3. Whether the multiplier used by the Tribunal to calculate compensation was appropriate.
Ratio Decidendi: 1. The insurance company was liable to pay compensation as the truck was insured with New India Assurance Co. Ltd. and the policy was valid at the time of the accident. 2. The apportionment of liability by the Tribunal was erroneous as the van was primarily responsible for the accident. The court apportioned liability at 25% for the truck and 75% for the van. 3. The multiplier used by the Tribunal to calculate compensation was not appropriate as the deceased was in the higher income group. The court applied a multiplier of 10 to calculate compensation.
Final Decision: The appeal was allowed in part. The insurance company was directed to pay Rs. 25,00,000 to the claimants, and the balance Rs. 75,00,000 was to be paid by the owner of the Maruti van. The awarded sum was to carry interest at the rate of 7% per annum from the date of the accident till the date of payment.
Ashim Kumar Banerjee, J.
1. One Suresh Chandra Lakhotia residing at 1/A, Love Lock Place, Calcutta was returning from North Bengal in a Maruti van bearing No. WB 74-4409 on 29.5.2000 along with one of his friends. The vehicle dashed a truck that was standing on the road having registration No. WB 23-2354. The truck was insured with New India Assurance Co. Ltd. whereas Maruti van was also insured with New India Assurance Co. Ltd. However, such insurance was taken for the period 14.7.2000 to 13.7.2001. As noted above, the accident occurred much prior to the start date of the policy of insurance. The claimants claimed that the truck was parked on the road without any indicator. The backlight was not on. Hence, the said truck was responsible for the accident and the insurance company was liable to pay compensation. The insurance company denied the claim on the ground that the truck was standing hence, the insurance company was not liable. The accident was caused due to rash and negligent driving of Maruti van. The insurance company denied the fact that Maruti van was having valid insurance as on the date of accident.
The police initiated a case against the two vehicles including the respective drivers.
Siddharth Lakhotia, PW 1, was the son of the victim who deposed that his father had been receiving salary from L.C.C. Infotech Limited. He had other income aggregating to Rs. 21.87,721 (rupees twenty-one lakh eighty-seven thousand seven hundred and twenty-one). He also proved the income of the deceased.
2. Santan Barik, PW 2, is a Chartered Accountant. He was the auditor of the deceased. He also proved the income.
3. Rathin Chakladar, PW 3, is the Income Tax Officer who deposed to support the case of the petitioner as to the income of the deceased. He proved the income tax return and the assessment for the relevant year.
4. Sankar Barman, PW 4, was a vital witness. He was the driver of Maruti van involved in the accident. He deposed that he could not see the backlight of the truck. As there was no backlight, Maruti van dashed the truck. He tried to stop the vehicle by applying the brakes suddenly. However, the tyre slip caused the accident. He suffered grievous injury whereas the other two co-passengers suffered injury and were rushed to the nearby Health Centre. According to him, he was driving at the speed of 34 to 40 kmph.
5. Mahussin Shaik, DW 1, was the driver of the lorry. He deposed that he had been standing on the road unloading the sand. The lorry was standing at the side of the road having the lighting indicator, backlight and sidelight on. Good number of vehicles had passed keeping safe distance from the lorry. In the cross-examination by the petitioner no suggestion was given on his assertion that the vehicle had been kept parked on the side of the road and not in the middle of the road and indicators had been on.
6. Deba Prasad Malakar, DW 2, was the khalasi of the truck. He also supported the driver being DW 1. In cross-examination, no suggestion was put to him on that score.
7. The Tribunal considered each and every aspect and ultimately held both the vehicles having contributory negligence in the accident. According to the learned Judge, New India Assurance Co. Ltd. being the insurer of the truck was responsible for 75 per cent of the compensation whereas balance 25 per cent should be borne by Maruti van owner. The Tribunal awarded compensation of Rs. 1,30,00,000 subject to adjustment of the statutory compensation under section 140, if any paid. Hence, this appeal by the insurance company.
8. Mr. Kamal Krishna Das, the learned counsel appearing for the insurance company, contended that the evidence of the truck driver, as corroborated by khalasi, stood uncontroverted that would clearly absolve the truck from the liability to pay compensation. Hence, its insurer had no liability. On the issue of Maruti van, Mr. Das contended that from the records it would show that the owner of the vehicle categorically admitted that th
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