IN THE HIGH COURT OF DELHI AT NEW DELHI
Gaurang Kanth, J.
The New India Assurance Company Ltd. – Appellant
Versus
Ram Kumar Gupta & Ors. – Respondents
MAC.APP. 395 of 2013
Decided On : 13-02-2023
Motor Vehicles Act - Contributory Negligence - Section 173 - Summary of Acts and Sections: The court discussed the apportionment of liability under Section 173 of the Motor Vehicles Act, 1988, and modified the compensation awarded by the learned Claims Tribunal. The court highlighted the negligence of both vehicles involved in the accident and the assessment of contributory negligence at 50:50. The court also discussed the determination of notional income and future prospects of the deceased, as well as the selection of the multiplier for calculating the compensation.
Fact of the Case:
The case involved a fatal accident between a truck and a three-wheeler, resulting in multiple fatalities and injuries. The bereaved parents of the deceased filed a claim petition for compensation, which was awarded by the learned Claims Tribunal. The appellant, an insurance company, appealed against the award, disputing the apportionment of liability and the quantum of compensation.
Finding of the Court:
The court found that the accident was a clear case of contributory negligence, with both vehicles being reckless and negligent. The court modified the apportionment of liability to 50:50 and enhanced the compensation awarded by the learned Claims Tribunal. The court also allowed the application for enhancement of compensation filed by the bereaved parents.
Issues: The main issues included the apportionment of liability, determination of notional income and future prospects, and the selection of the multiplier for calculating compensation.
Ratio Decidendi: The court held that the accident was a case of contributory negligence, with both vehicles being reckless and negligent. The court also emphasized the need for just compensation and considered the notional income, future prospects, and multiplier in determining the compensation.
Final Decision: The court partly allowed the appeal, modified the compensation awarded by the learned Claims Tribunal, and directed the appellant and respondent to deposit their respective shares of the enhanced compensation.
JUDGMENT
Gaurang Kanth, J. The present appeal has been preferred by the Appellant being the Insurance Company of the offending Truck bearing No.HR-45-2917 under Section 173 of the Motor Vehicles Act, 1988 ("the Act") against the award dated 31.01.2013 ("the impugned award") passed by the Presiding officer, MACT, Karkardooma Courts, Delhi in M.A.C Petition No. 882/2010.
2. By way of the impugned award, the learned Claims Tribunal held that this is a case of contributory negligence and negligence on the part of the truck bearing no. HR-45-2917 and three wheeler bearing no. HR-45-9155 was assessed as 75% and 30% respectively. Learned Claims Tribunal awarded a compensation of Rs.19,75,000/- (Nineteen Lakhs Seventy Five Thousand rupees) @ 7.5% per annum from the date of filing of the claims petition till realization of the amount. Learned Claims Tribunal directed the appellant, being the Insurance Company of the Truck bearing no. HR-45-2917, to satisfy the 70% of the awarded compensation i.e. Rs.13,82,500/- within a period of one month. Learned Claims Tribunal awarded compensation under the following heads:
| Head | Amount |
| Total loss of dependency (Rs.1,29,000 X 15) | Rs.19,35,000/- |
| Loss of love and affection | Rs.25,000/- |
| Loss of estate | Rs.10,000/- |
| Funeral expenses | Rs.5,000/- |
| TOTAL | Rs.19,75,000/- |
FACTS RELEVANT FOR ADJUDICATION OF THE MATTER
3. Facts of the matter as recorded by the learned Claims Tribunal are as under:
"2. The brief facts, as stated by petitioners, are that on 19.08.2009 at about 3.15 p.m. one Sh. Naveen Nagar along with Sikandar Khan, Sh. Amit Kumar, Himanshu Gupta, Parvesh Verma, Arvind and one more person belonging to Bihar along with a lady were travelling in Three wheeler no. HR-45-9155 and when the three wheeler reached near Bus stand, Village Patti Kalyana, a Tanker bearing no. HR-45-2917 driven rashly, negligently and at high speed came from Panipat side and hit the three wheeler due to which Sh. Himanshu, Amit Kumar, Parvesh, Sikandar and Lady from Bihar suffered fatal injuries and died. Sh. Arvind, Naveen Nagar and a person from Bihar sustained grievous injuries."
4. A claim petition (M.A.C. Petition no. 882/2010) was filed u/s 166/140 of the Act by the bereaved parents of the deceased i.e. Respondent nos.1&2/claimants for claiming compensation of Rs.40,00,000/- (Forty Lakh Rupees) towards the death of their deceased son. A similar claim was brought before the learned Claims Tribunal by the parents of another deceased/Sh. Sikandar Khan vide M.A.C Petition No. 881/2010.
5. Vide an order dated 14.02.2012, the learned Claims Tribunal passed an interim award for the sum of Rs.50,000/- in favour of Respondent nos. 1 and 2. Learned Claims Tribunal directed the appellant to deposit 50% of the awarded amount in favour of Respondent nos. 1&2/claimants and rest 50% of the awarded amount will be deposited by Respondent no. 6 i.e. Reliance General Insurance Company Ltd.
6. Vide a common impugned Award dated 31.01.2013, the learned Claims Tribunal disposed of both the aforesaid Claim petitions holding that this is a case of contributory negligence as both the vehicles involved in the accident are negligent. Learned Claims Tribunal assessed the negligence on the part of the truck bearing no. HR-45-2917 and three-wheeler bearing no. HR-45-9155 as 70% and 30% respectively. In the M.A.C Petition no. 882/2010, the learned Claims Tribunal was pleased to award a compensation of Rs.19,75,000/- and directed the appellant and Respondent no.6 to deposit 70% and 30% of the awarded compensation within period of a month.
7. Aggrieved by the impugned award dated 31.01.2013, the appellant, being the insurance company of the Truck bearing No. HR-45-2917, has preferred present appeal praying for quashing of the same.
8. An application C.M. No. 6756 of 2020 has been filed by Respondent Nos. 1&2 for seeking enhancement of the compensation awarded by the learned Claims Tribunal.
9. This Court vide its order dated 03.05.2013 stayed the execution o
Contributory negligence cannot be assumed solely based on the absence of a driving license; clear evidence of negligence is required to establish liability.
The court affirmed the application of the multiplier method for calculating compensation in motor vehicle accident cases, ensuring just compensation for dependents.
The court established that compensation for motor vehicle accidents must be just and can be enhanced even without cross-objections from claimants, following the multiplier method.
Negligence in motor accident cases is established primarily by evidence; contributory negligence must be substantiated. Enhanced compensation granted based on established income and future prospects ....
The court affirmed the principle of just compensation in motor accident claims, emphasizing the need for adequate assessment of loss of dependency and future prospects based on established income.
The court applied the Uttar Pradesh Motor Vehicles Rules, 1998 to determine the compensation, including income, future prospects, and conventional heads, and upheld the interest and manner of payment....
The main legal point established in the judgment is the obligation of the insurer to initially pay compensation, the consideration of future prospects in compensation assessment, and the correct dedu....
Motor Vehicles Act, 1988 is a beneficial legislation which has been framed with object of providing relief to victims, or their families, in cases of genuine claims.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.