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1985 Supreme(Guj) 255

IN THE HIGH COURT OF GUJARAT
D.C. Gheewala, J.P. Desai, JJ.
New India Assurance Company Ltd., Ahmedabad – Appellant
Versus
Manjulaben and Ors. – Respondents
F.A. No. 970 of 1978
Decided On : 11-12-1985

Advocate Appeared:
For the Appellant :S.N. Soparkar for S.B. Vakil, Advocates.
For the Respondents:A.C. Rathod, Advocate, J.M. Acharya, Advocate.

The liability of the Insurance Company for compensation claims arising from a single motor vehicle accident should be limited collectively for all related claims, as established by relevant legal precedent.

Headnote:

Liability - Motor Vehicle Accident - The court limited the liability of the Insurance Company to Rs. 50,000 collectively for all the MAC Applications related to the same accident, rejecting the argument that the liability should be limited to Rs. 50,000 for each individual application.

Fact of the Case:

A motor vehicle accident resulted in the death of three individuals, leading to multiple claims for compensation. The Motor Accidents Claims Tribunal awarded varying amounts of compensation, and the Insurance Company, dissatisfied with the decision, filed an appeal.

Finding of the Court:

The court rejected the argument that the liability of the Insurance Company should be limited to Rs. 50,000 collectively for all the MAC Applications related to the same accident. It clarified that the liability of the Insurance company shall be limited to Rs. 50,000 collectively for the awards passed by the Tribunal in all related MAC Applications.

Issues: The main issue was the determination of the liability of the Insurance Company for the compensation claims arising from a single motor vehicle accident.

Ratio Decidendi: The court's decision was influenced by the interpretation of the Supreme Court's decision in the case of Motor Owners Insurance Co. Ltd. v. Jadavji Keshavji Modi and Ors. 22 GLR 1208, which established that the liability of the Insurance Company should be limited collectively for all claims related to the same accident.

Final Decision: The appeal was dismissed, and the court clarified that the liability of the Insurance company shall be limited to Rs. 50,000 collectively for all the awards passed by the Tribunal in the related MAC Applications.

JUDGMENT :

J.P. Desai, J.

1. In a motor vehicle accident that took place on 2-3-1975 near Hingrai bus stand on the Idar-Himatnagar Highway, three persons viz. Pravinchandra Ramanlal, Rajeshkumar Mohanlal and Jethalal Bhogilal Soni sustained injuries and ultimately succumbed to the injuries. The heirs of Pravinkumar Ramanlal filed MACP No. 16 of 1975 claiming Rs. 80,000/- as compensation. The heirs of Rajeshkumar Mohanlal filed MACP No. 17 of 1975 claiming compensation of Rs. 18,000/- Different heirs of Jethalal Bhogilal who died in this accident filed different applications, viz. MAC Applications Nos. 19 of 1975 to 25 of 1975 each claiming Rs. 9999/- as compensation. The learned Motor Accidents Claims Tribunal, Sabarkantha at Himatnagar passed an award for Rs. 57,610/- in MAC Application No. 16 of 1975, for Rs. 14,000/-in MAC Application No. 17 of 1975, for Rs. 8,500/- in MAC Application No. 20 of 1975 and Rs. 8,000/- each in MAC Applications 19 of 1975 and No. 21 to 25 of 1975. The learned Tribunal directed that the liability of the Insurance Company shall be limited to Rs. 50,000/- in MAC Applications No. 19 of 1975 and to Rs. 50,000/- collectively in MAC Applications Nos. 19 and 21 to 25 of 1975. Being dissatisfied with the same, this appeal has been filed by the Insurance Company original opponent No. 3 in all the MAC Applications.

2. The learned advocate Mr. S.N. Soparkar who appears for Mr. S.B. Vakil for the appellant in this appeal took us through the judgment of the learned Tribunal and also through the material evidence on record. He submitted that though three persons had lost their lives. it was only one accident and, therefore, the liability of the Insurance Company should be limited to Rs. 50,000/- collectively for all these MAC Applications. In view of the decision of the Supreme Court in the case of Motor Owners Insurance Co. Ltd. v. Jadavji Keshavji Modi and Ors. 22 GLR 1208 Mr. Soparkar was not able to satisfy us as to how his submission can be accepted. We, therefore, reject that contention.

3. Mr. Soparkar then submitted that even though MAC Application No. 20 of 1975 was in respect of the death of Jethalal Bhogilal Soni in respect of whose death MAC Applications No. 19 and 21 to 25 of 1975 were filed, no directions were given limiting the liability of the Insurance Company to Rs. 50,000/- including this application We are inclined to accept his submission because even though different applications viz. MAC Applications Nos. 19 of 1975 to 25 of 1975 were filed, they relate to the death of Jethalal Bhogilal Soni and that way only one accident and, therefore, the liability of the Insurance Company should be limited to the extent of Rs. 50,000/- collectively for all these above applications.

4. As a result of the aforesaid discussion, the appeal is dismissed with the following clarification that the liability of the Insurance company shall be limited to Rs. 50,000/- collectively for the awards passed by the Tribunal in MAC Applications Nos. 19 of 1975 to 25 of 1975, i.e. including MAC Application No. 20 of 1975. No order as to the costs of this appeal.

Order Accordingly.

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