SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2018 Supreme(Cal) 968

IN THE HIGH COURT AT CALCUTTA
ASHA ARORA, DIPANKAR DATTA, JJ.
Smt. Ruma Raha Roy & Ors - Appellant
Versus
United India Insurance Company Ltd. & Anr - Respondent
FMA 1037 of 2013
Decided On : 03-10-2018

Advocates:
Advocate Appeared:
For the Appellant : Mr. Krishanu Banik.
For the Respondent: Mr. Rajesh Singh.

The main legal point established in the judgment is the entitlement to compensation under Section 166 of the Motor Vehicles Act, the maintainability of the claim application in light of Section 53 of the Employees’ State Insurance Act, 1948, and the entitlement to interest from the date of filing the claim application.

Headnote:

Motor Vehicles Act - Compensation - Section 166, Section 171, Section 53 of the Employees’ State Insurance Act, 1948 - The court discussed the provisions of the Motor Vehicles Act, particularly Section 166, and the interpretation of Section 53 of the Employees’ State Insurance Act, 1948. The court also referred to the principles laid down in Sarla Verma v. DTC and National Insurance Company Limited v. Pranay Sethi, regarding the determination of compensation and the entitlement to interest. The court's decision was influenced by the legal provisions and their interpretations, leading to the re-determination of compensation and the award of interest to the claimants.

Fact of the Case:

The case involved a claim for compensation under Section 166 of the Motor Vehicles Act for an accident resulting in the victim's physical disability and eventual death. The claimants sought Rs.29,00,000/- in compensation, but the MACT awarded Rs.15,16,625/-. The appellants appealed, challenging the amount of compensation and the denial of interest from the date of filing the claim application.

Finding of the Court:

The court found that the claim application was maintainable and that the appellants were entitled to a higher compensation amount. It also held that the claimants were entitled to interest at 7.5% p.a. from the date of filing the claim application. The court re-determined the compensation to be Rs.17,03,671/- and directed the insurer to pay the balance amount with interest to the claimants.

Issues: The issues included the determination of compensation under Section 166 of the Motor Vehicles Act, the maintainability of the claim application in light of Section 53 of the Employees’ State Insurance Act, 1948, and the entitlement to interest from the date of filing the claim application.

Ratio Decidendi: The court held that the claim application was maintainable, re-determined the compensation amount based on the principles laid down in Sarla Verma v. DTC and National Insurance Company Limited v. Pranay Sethi, and awarded interest to the claimants at 7.5% p.a. from the date of filing the claim application.

Final Decision: The court disposed of the appeal, re-determined the compensation to be Rs.17,03,671/-, and directed the insurer to pay the balance amount with interest to the claimants. No costs were awarded.

JUDGMENT :

DIPANKAR DATTA, J.

1. MAC Case No. 112 of 2010, registered on an application under Section 166 of the Motor Vehicles Act (hereafter the 1988 Act), was decided by the Motor Accident Claims Tribunal, Alipore, South 24 Parganas (hereafter the MACT) by an award dated June 27, 2012. The claimants in such case have carried the said award in appeal before us under Section 173 of the 1988 Act.

2. The husband of the appellant no. 1 and the father of the appellants 2 and 3 (hereafter the victim) in the evening of February 4, 2005, was walking down Deshapran Sasmal Road, Kolkata from south to north direction. He was knocked down by a Tata Sumo (hereafter the offending vehicle) from behind, which allegedly was being driven at a tremendous speed. The victim sustained severe injury on his person and was immediately taken to M. R. Bangur Hospital, whereafter he was shifted to National Medical College and ultimately admitted at Woodlands Nursing Home (hereafter Woodlands). The victim was discharged from Woodlands on April 20, 2005. As a result of the injury suffered on the head together with other injuries all over his body, the victim completely lost his vision and was rendered physically disabled. In the claim application filed before the MACT under Section 166 of the 1988 Act, the appellants claimed compensation in a sum of Rs.29,00,000/-. Despite service of notice, the owner of the offending vehicle did not contest the proceedings. However, the insurer of the offending vehicle opposed the claim application by filing written objection. During the pendency of such application, on September 28, 2010, the victim passed away at Durgapur Steel Plant Hospital, Durgapur at the age of 44 years. In the proceedings before the MACT, oral evidence was adduced by five witnesses in support of the claim case which, inter alia, included the appellant no. 1 (PW – 1). The MACT, upon consideration of the oral and documentary evidence that were adduced, returned a finding that rash and negligent driving of the offending vehicle caused the accident that initially resulted in the victim being rendered physically disabled and ultimately caused his death as a consequence thereof.

The MACT, however, did not accept the version of the appellants that the victim had a yearly income of Rs.1,45,406/-; on the contrary, it proceeded to compute loss of dependency treating Rs.1,00,000/- as the yearly income of the victim. Upon deduction of one-third towards personal and living expenses of the victim and selecting the multiplier of 13, the MACT held that the appellants would be entitled to compensation of Rs.8,66,710/-. In addition, Rs.6,49,915/- was awarded towards expenses incurred by the appellants for treatment of the victim at Woodlands as well as other hospitals. It was also the finding of the MACT that the offending vehicle was covered by an insurance policy issued by the insurer and, therefore, it was liable to bear the compensation payable to the appellants. Accordingly, an award was made for an amount of Rs.15,16,625/- to be paid by the insurer within eight weeks, failing which the insurer would be liable to pay interest @ 8% p.a. from such failure till realisation.

3. Appearing in support of the appeal, Mr. Banik, learned advocate urged several grounds to assail the amount of compensation worked out by the MACT.

4. First, Mr. Banik contended that there was no reason for the MACT not to accept the version of the appellants that the victim was in receipt of Rs.1,45,406/- every year from his employer and hence, compensation should have been worked out upon acceptance of such amount as the yearly income of the victim. Secondly, it was contended that the victim being in permanent employment, the appellants were entitled to addition of 30% of the income towards his future prospects. Thirdly, it was contended that the tribunal grossly erred in not granting any

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top