2000 Supreme(Guj) 617
Gujarat High Court
Judgename :D.C.Srivastava, H.K.RATHOD
Oriental Insurance Company Limited - Appellant
Versus
SUSHILABEN MANUBHAI VALAND - Respondent
C.A.3224 of 1997
Decided On : 08/08/2000
Headnote:(a) Motor Vehicles Act, 1988 (Central Act 59 of 1988) - Sec. 163A - Compensation - Award of Rs. 5,38,068/- being in excess of amount indicated in Second Schedule challenged - Held, for purpose of Sec. 163A claimant is not required to prove or allege rashness or negligence on part of driver but it does not mean that any sum can be awarded on application under Sec. 163A - It is to be within outer limit fixed by legislature - Petition partly allowed - Amount of compensation reduced to Rs. 2,91,500/-.
Court is of the view that though the person applying and / or claiming under Sec. 163-A of the Act can claim more compensation but the Tribunal cannot award compensation beyond what is contemplated and prescribed in the Second Schedule.
[Para 8]
Maximum annual income under second schedule should be Rs.4,00,000/- p.a. because the deceased was aged 54 years on the date of the accident. One third of this amount has to be deducted on account of personal expenditure of the deceased which comes roughly to Rs.1,33,000/-. The total compensation will therefore be Rs.2,67,000/-. Over and above, other compensation awarded by the Tribunal amounting to Rs.24,500/- has to be accepted and in this view of the matter, total compensation payble to the respondents under Sec. 163-A cannot exceed Rs.2,91,500/-. As such, compensation awarded by the Tribunal at Rs.5,38,068/- has to be reduced to Rs. 2,91,500/-.
[Para 9]
The amount of Rs.5,38,068/- in the impugned award shall be read and substituted by Rs.2,91,500/-. The rate of interest awarded by the Tribunal shall remain the same. The cost shall be calculated proportionately in accordance with modified interim award. With this direction, the two appeals are partly allowed with no order as to costs.
[Para 10]
(b) Motor Vehicles Act, 1988 (Central Act 59 of 1988) - Sec. 140 - Fixed amount of compensation - Whether violative of Art. 14 of Constitution and inadequate for person having more income - Held, fixed amount of compensation is awarded in case of no fault liability - Person having more income cannot complain that amount of Rs. 25,000/- in case of injury and Rs. 50,000/- in case of death is inadequate or violative of Art. 14 of Constitution.
( 1 ) THESE two appeals arising out of same accident involving similar questions of law and facts are proposed to be disposed of by common judgment.
( 2 ) THE Motor Accident Claim Tribunal, Nadiad in its interim award dated 3rd May, 1997 awarded compensation of Rs. 5. 38. 068/- together with interest at the rate of 12% per annum from the date of application till the date of payment with proportionate cost. This award was rendered under Sec. 163-A of the Motor vehicles Act. It is this award which is under challenge in these two appeals.
( 3 ) WE have heard Shri R. H. Mehta and Shri K. K. Nair, learned Counsel for the appellants. We also heard the above Advocates representing the appellant on the last date of hearing and we were going to dictate the judgment, when shri B. S. Patel appeared and requested that he wants to show some judgments of the Apex Court to the contrary. Today, we have waited for Shri B. S. Patel right from 11. 00 A. M. to till 4. 10 P. M. and in the meantime, twice or thrice request was made for keeping back these two appeals. We have given sufficient accommodation today in this part-heard matters. Till now even upto 4. 10 p. m. , shri B. S. Patel has not appeared nor there is any information conveyed to this Court as to whether he is busy in some other Court or he has gone. In these circumstances, we are left with no option but to hear the arguments of shri R. H. Mehta and Shri K. K. Nair for the appellants.
( 4 ) THE contention of the learned Counsel for the appellants has been that the award is in excess of the amount indicated in Second Schedule, hence it cannot be sustained. In First Appeal No. 3224 of 1997, monthly income of the deceased was assessed by the Tribunal at Rs. 5836/- and similar amount was assessed in other Appeal namely First Appeal No. 2444 of 1997. The learned counsel for the appellants in both the appeals have drawn our attention to Second schedule for the purpose of Sec. 163-A of the Motor Vehicles Act and contended that while awarding the interim compensation under the Schedule, the Tribunal could not have considered annual income of the deceased beyond Rs. 40,000/- per annum which is the outer limit. Consequently, it was contended that the criteria adopted by the Tribunal in proceeding to assess the compensation at the monthly income of Rs. 5836/- is erroneous and is also contrary to the second Schedule of the Act. We have already accepted this contention of Shri r. H. Mehta and Shri K. K. Nair while deciding First Appeal No. 2445 of 1997 and First Appeal No. 3223 of 1997 on 20th June, 2000. That was also a case where the two appeals arose out of the same accident, and therefore, there is no reasons for us to take different view than that we have already taken. Since no assistance has been rendered on behalf of Shri B. S. Patel by pointing out some authority of the Apex Court to the contrary, we are still affirming the view taken by us in our aforesaid common judgment delivered on 20th June, 2000. We cannot subscribe to the view that a person claiming annual income more than Rs. 40,000/- is not entitled to claim interim compensation at the actual annual income. We had also considered the Division Bench announcement of this Court in Ramdevsingh V. Chudasma v. Hansrajbhai V. Kodala, reported in 1999 (1) GLR 631 and we were unable to agree that the Second Schedule is violative of Art. 14 of the Constitution of India. Needless to say that the vires of the Act or of a Schedule thereunder, cannot be challenged before this division Bench; rather under the Schedule of sitting in the High Court, vires of the Act is to be challenged before the Division Bench specially constituted for the purpose. Prima facie, we found that vires of the Second Schedule of sec. 163-A of the Motor Vehicles Act has not been tested by the Apex Court nor it has been held so far to be ultra vires. Consequently, we are bound to follow the guidelines given in the Second Schedule for the purposes of