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High Court of Delhi
THE HONOURABLE MR. JUSTICE SURESH KAIT
United India Insurance Co. Ltd.
Versus
Phool Chand & Others
MAC.APP. No. 211 of 2010
Decided On : 03-03-2014
Compensation - Motor Vehicles Act - The court addressed the issue of compensation under the Motor Vehicles Act, 1988 and the Second Schedule of the Act. The court found that the compensation awarded by the learned Tribunal did not align with the Second Schedule of the MV Act, leading to a reduction in the compensation amount and a direction for release of the balance compensation amount to the respondents/claimants.
Fact of the Case:
The appellant/Insurance Company appealed against the compensation awarded by the learned Tribunal under the Motor Vehicles Act, 1988. The claim petition was filed under Section 166 of the MV Act but was converted under Section 163-A MV Act and adjudicated accordingly by the learned Tribunal.
Finding of the Court:
The court found that the compensation awarded did not align with the Second Schedule of the MV Act, resulting in a reduction of the compensation amount and a direction for release of the balance compensation amount to the respondents/claimants.
Issues: The issues involved the conversion of the claim petition under the Motor Vehicles Act, the applicability of the Second Schedule of the MV Act, and the calculation of compensation.
Ratio Decidendi: The court applied the provisions of the Motor Vehicles Act, 1988 and specifically referred to the Second Schedule of the Act to determine the appropriate compensation amount.
Final Decision: The appeal was allowed, and the court directed the release of the statutory amount and excess amount in favor of the appellant, with the balance compensation amount to be released in favor of the respondents/claimants in accordance with the award passed by the learned Tribunal.
Suresh Kait, J. (Oral)
The present appeal is directed against the impugned award dated 15.01.2010, whereby the learned Tribunal has awarded compensation as under:
“1. Loss of dependency Rs.5,78,880/-
2. Loss of love and affection Rs. 50,000/-
3. For Funeral charges Rs. 25,000/-
TOTAL Rs.6,53,880/-
The same was rounded off to Rs.6,53,900/- and the interest at the rate of 7.5% per annum was also awarded on the compensation amount.
2. Learned counsel appearing on behalf of the appellant/Insurance Company submits that the claim petition was filed under Section 166 of the Motor Vehicles Act, 1988 (for short ‘MV Act’), however, the same was converted under Section 163-A MV Act and adjudicated accordingly by the learned Tribunal. Consequently, the learned Tribunal ought to have granted the compensation as per the Second Schedule of the Act, but failed to do so.
3. Learned counsel appearing on behalf of the respondents/claimants does not dispute the arguments advanced by the counsel for the appellant.
4. Accordingly, as per the IInd Schedule of MV Act, the compensation comes as under:
“1. Loss of income Rs.4,53,334/-
2. Loss of Estate Rs. 2,500/-
3. Loss of consortium Rs. 5,000/-
4. For Funeral charg Rs. 2,000/-
TOTAL Rs.4,62,834/-”
5. Thus, an amount of Rs.1,91,066/- (Rs.6,53,900/- - Rs.4,62,834/-) is reduced from the compensation amount.
6. The Registry of this Court is directed to release the statutory amount and excess amount alongwith proportionate interest in favour of the appellant and balance compensation amount be released in favour of the respondents/claimants in terms of the award dated 15.01.2010 passed by the learned Tribunal on taking necessary steps by them.
7. In view of above, the appeal is allowed.
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