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2024 Supreme(Cal) 297

IN THE HIGH COURT AT CALCUTTA
AJAY KUMAR GUPTA, J.
The Oriental Insurance Co. Ltd. – Appellant
Versus
Malati Dolai & Ors. – Respondents
FMAT 995 OF 2012 With CAN 1 of 2012 (Old No. CAN 8352 of 2012), CAN 2 of 2012 (OLD No. CAN 8365 of 2012)
Decided on : 22-04-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. P.K. Pahari
For the Respondent: Mr. S. K. Pal

IMPORTANT POINT
The main legal point established in the judgment is the correct application of the legal provisions for condonation of delay under Section 173 and the deduction of personal living expenses of the deceased in a compensation claim under Section 166 of the Motor Vehicles Act.

Headnote:

Motor Vehicles Act - Compensation Calculation - Section 173, Section 140, Section 166 - Pranay Sethi’s Case (Supra), (2017) 16 SCC 680

Fact of the Case:

The Insurance Company filed an application for condonation of delay under Section 173 of the Motor Vehicles Act, and the Court allowed the delay to be condoned. The case also involved a dispute regarding the deduction of the personal expenses of the victim in a compensation claim under Section 166 of the Motor Vehicles Act.

Finding of the Court:

The Court allowed the condonation of delay and modified the judgment and award dated 23.12.2011 to adjust the compensation amount based on the correct deduction of personal living expenses of the deceased.

Issues: Condonation of delay under Section 173, deduction of personal living expenses of the deceased in a compensation claim under Section 166

Ratio Decidendi: The Court found that the delay was condoned based on the cause shown by the appellant in the condonation application. The Court also held that the deduction of personal living expenses of the deceased should be 1/2nd of the total income as the victim was unmarried at the time of the accident, in line with settled legal provisions.

Final Decision: The Court allowed FMAT 995 of 2012 without any order as to costs and directed the release of the compensation amount to the respondents/claimants and the balance amount along with accrued interest to the Appellant/Insurance Company.

JUDGMENT :

Ajay Kumar Gupta, J:

1. It is submitted by the learned advocate appearing on behalf of the Appellant/Insurance Company that vide order dated 05.09.2012, the interim order of stay was granted by this Court subject to deposit of entire awarded amount less the statutory deposit already made with the learned Registrar General of this Court and in the event of such deposit, the interim order shall continue till disposal of the application for condonation of delay

2. In pursuance of the said order dated 05.09.2012, the Insurance Company has deposited Rs. 3,11,000/-vide OD challan No. 5949 dated 17.09.2012 on 04.12.2012. The statutory amount of Rs. 25,000/-has already been deposited vide OD challan NO. 5710 dated 28th August, 2012. It is further submitted that the instant appeal has been filed beyond the period of limitation. Accordingly, Appellant/Insurance Company has filed an application for condonation of delay under Section 173 of the Motor Vehicles Act. He prays for condonation of delay.

CAN 1 of 2012 (Old No. CAN 8352 of 2012)

3. Heard both sides and being satisfied with the cause shown by the appellant in condonation application, let the delay be condoned.

4. Accordingly, CAN 1 of 2012 (old No. CAN 8352 of 2012) is, thus disposed of.

FMAT 995 of 2012

5. It is the contention of the appellant that there is no dispute regarding the involvement of the offending vehicle No. WB 29/0488 on 09.06.1997 at 12.15 hours/12.20 hours and the mode and manner of the said accident. After adducing the evidence of the parties, the learned Tribunal finally awarded a sum of Rs. 3,86,000/-along with interest @ 6 per cent per annum from the date of filing of the case that is from 27.09.2006 till realisation in full. Out of those amount, the claimants have already received Rs. 50,000/-in an application under Section 140 of the Motor Vehicles Act in equal proportion. The issue before this Court is only with regard to the deduction of the personal expenses of the victim, the learned Tribunal while assessing the total compensation has erred in deducting 1/3rd of the victim’s personal living expenses from the annual income though it ought to be 1/2nd as the victim was unmarried at the time of accident. It is settled principles of law that when the victim is unmarried, his personal living expenses should be deducted 1/2nd of the total income of the victim. The Hon’ble Supreme Court also held the said provisions in Pranay Sethi’s Case (Supra), (2017) 16 SCC 680.

6. Both sides did not dispute the legal provision of deduction of personal living expenses of the deceased, who died on account of motor traffic accident from his actual income to arrive for calculation of compensation which is required to be awarded.

7. Upon perusal of record, it reveals while disposing claim application filed by the legal heirs and representatives of the deceased under Section 166 of the Motor Vehicles Act, 1988 being MAC Case No. 590/2006 praying for compensation, The learned Motor Accident Claims Tribunal, Special Court, Paschim Medinipur, after scanning and appreciation of evidence led by the parties, has finally come to conclusion that the claimants are entitled to get compensation from the Insurance Company of the insured vehicle being registration no. WB-29/0488 to the tune of Rs. 3,86,000/-and further directed to pay the claimants a sum of Rs. 3,36,000/-in equal share/proportion vide judgment and award dated 23rd day of December, 2011 as the claimants had already received Rs. 50,000/-in a proceeding filed under Section 140 of the M.V. Act. However, the learned Tribunal wrongly deducted the deduction of personal living expenses of the deceased as 1/3rd instead of 1/2nd from his total income as he was unmarried at the time of accident and it is settled provision of law.

8. No other issue raised by the parties.

9. Thus, keeping in mind the above observation, the calculation of compensation would be assessed as follows:

CALCULATION OF COMPENSATION

Monthly Income

Rs. 3

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