IN THE HIGH COURT OF DELHI AT NEW DELHI
Anish Dayal, J.
Reliance General Insurance Co. Ltd. - Appellant
Versus
Reena & Ors. - Respondents
MAC.APP. 356 of 2015 & CMA 6948 of 2015
Decided On : 19-12-2023
Motor Vehicles Act - Compensation for Road Accident - Section 173 - Factual Background - Issues - Motor Vehicles Act, 1988, Section 166 - The court discussed the proof of rash and negligent driving, assessment of compensation, and rate of interest. The judgment referenced the Motor Vehicles Act, 1988, Section 166, and relied on the decision of the Hon'ble Supreme Court in National Insurance Co. Ltd. v. Pushpa Rana, 2007 SCC OnLine Del 1700.
Fact of the Case:
The deceased succumbed to injuries sustained in a road accident. The MACT calculated compensation for the LRs of the deceased based on loss of financial dependency, love and affection, loss of estate, funeral expenses, and loss of consortium to the wife.
Finding of the Court:
The court dismissed the appeal by the Insurance Company, confirming the MACT award. It found evidence of rash and negligent driving and upheld the compensation awarded by the MACT.
Issues: The issues included the proof of rash and negligent driving, assessment of compensation, and rate of interest.
Ratio Decidendi: The court found evidence of rash and negligent driving and upheld the compensation awarded by the MACT. It also discussed the assessment of compensation and the rate of interest.
Final Decision: The appeal was dismissed, and the impugned award of the MACT was confirmed. The respondents were directed to take steps for the release of the remaining awarded compensation.
JUDGMENT
Anish Dayal, J.
1. This appeal has been filed under Section 173 of the Motor Vehicles Act, 1988 ("the Act") assailing award dated 17.01.2015 by the Presiding Officer, MACT, Central District, Delhi in Suit No. 188/2010 titled as "Smt. Reena & Ors. v. Shri Sandeep & Ors." The Tribunal held that the claimants were entitled to Rs. 26,11,000/- with interest @ 9% p.a. from the date of filing the claim. The wife of the deceased, Reena was held entitled to 50%, and the parents were held entitled to 25% each of the awarded amount.
Factual Background
2. Respondent No. 1 is widow of Late Rajiv Singh while respondent no. 2 and 3 are mother and father of deceased Rajiv Singh, respectively. The deceased succumbed to injuries sustained by him in a road accident.
3. On 02.12.2009, at about 9:30 P.M. the deceased, Rajiv Singh, was travelling along with one Sandeep, the driver of the vehicle, which was loaded with vegetables, bearing registration No. DL 1 LG 8898 (Tata 407). Their vehicle met with an accident near Maan Dhaba, Murthal, District Sonepat, Haryana and Rajiv Singh was rushed to the local government hospital. From there he was moved to Lok Nayak Jai Prakash Hospital Delhi, where he succumbed to his injuries on 03.12.2009. The accident was attributed to rash and negligent driving of Sandeep.
4. The MACT framed the following issues:
"(i) Whether the deceased Sh. Rajeev Singh had died due to the injuries sustained by him in an accident which took place on 02.12.2009 because of rash and negligent driving of vehicle bearing registration No. DL 1 LG 8898 by respondent No. 1?
(ii) Whether the petitioners are entitled to any compensation if so, to what amount and from whom?
(iii) Relief."
5. The MACT found that as per the testimonies of PW-1 and the petitioner (respondent No. 1 herein) as well as the record, that the deceased suffered fatal injuries in the accident due to rash and negligent driving of the vehicle. As regards the compensation for the LRs of the deceased, the MACT calculated it on the basis of the following factors:
| S.No. | Component of Compensation | Amount |
| 1. | Loss of financial dependency | (1,98,000 X 18 X 2/3) Rs. 23,76,000/- |
| 2. | Loss of Love and affection | Rs. 1,00,000/- |
| 3. | Loss of Estate | Rs. 10,000/- |
| 4. | Funeral Expenses | Rs. 25,000/- |
| 5. | Loss of consortium to wife | Rs. 1,00,000/- |
| TOTAL | Rs. 26,11,000/- |
Submissions by Counsel for the Appellant:
6. Counsel for the appellant/Insurance Company, based his contentions in support of the appeal on the following grounds:
a. Firstly, that there is no material evidence on record to prove any rash and negligent driving on the part of the driver of the offending vehicle. Further, respondent no.1 failed to examine any eyewitness to prove any negligence on part of respondent no.4. There is only DD entry No.22 dated 03.12.2009 Ex. PW-6/A which does not indicate any negligence on part of respondent no.4. According to appellant's counsel, MACT erred in appreciating testimonies of PW - 1, PW-5 and PW-6 and attested copies of criminal record produced, in reaching the conclusion that the deceased suffered fatal injuries due to negligent driving of the driver of the offending vehicle. As per him, negligence is required to be proved as per section 166 of the Act. Reliance is placed on a judgment of this Court in New India Assurance Co. Ltd. v. Shashi Negi, 2016 SCC OnLine Del 3044.
b. Secondly, it is contended that monthly income of the deceased has been wrongly assessed at Rs.11,000/- per month despite there being no salary certificate or salary receipt on record. Reliance has also been placed on the bank statement which shows variation in amounts paid by the employer of the deceased. Therefore, minimum wages ought to have been applied instead of Rs.11,000/-.
c. Thirdly, MACT erred in allowing 50% future prospects to income of the deceased which ought not to have been more than 40%. This was contrary to the ratio as per decision of Hon'ble Supreme Court in National Insurance Co. Ltd. V. Pranay Sethi & Ors. (2017) 16 SCC 608.
d. Fo
Age of deceased should be basis for applying multiplier.
The main legal point established in the judgment is the reliance on oral testimony to determine the deceased's income and the application of established legal principles to modify the compensation am....
The main legal point established in the judgment is the application of principles of negligence, contributory negligence, and composite negligence in determining liability and compensation in motor a....
The main legal point established in the judgment is the liability of the insurance company under the Motor Vehicles Act, 1988, and the assessment of compensation based on the deceased's income and fi....
In motor accident claims, assessment of income should incorporate a percentage for managerial skills regarding agricultural management, and the term 'legal representative' must be interpreted liberal....
The court affirmed the principle that compensation under the Motor Vehicles Act must be just and fair, emphasizing the need to consider future prospects and proper income tax deductions.
The main legal point established in the judgment is the determination of just compensation under the Motor Vehicles Act, considering the deceased's income, future prospects, and personal expenses.
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