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2019 Supreme(Gau) 514

IN THE HIGH COURT OF GAUHATI
Nelson Sailo, J.
New India Assurance Company Ltd. - Appellant
Vs.
Lalmihriata - Respondent
MAC. App. No. 3 of 2019
Decided On : 03-05-2019

Advocates Appeared:
For the Appellant : Mr. Lalfakawma, Mr. T. Lalzekima,
For the Respondent: Mr. C. Lalfakzuala Ms. Lalthianghlimi, Mr. Lalremsanga,

Headnote:

Motor Vehicle Act – Sections 163-A, 149 (2), 170 – Insurance Issue – This is an appeal filed by the appellant Insurance Company against the Judgment & Award passed by the learned Presiding Officer, MACT, Aizawl in MACT Case whereby, a sum of Rs. 10,25,200/- along with 7% interest per annum from the date of filing of the claim application has been awarded by the learned Tribunal to the respondent No. 1 on account of 80% permanent disability of the respondent No. 1 due to a motor accident while he was walking on the road in W. Phaileng, Mamit District, Mizoram – The respondent No. 1 was hit by a moving Truck, which was travelling towards Pukzing to Aizawl – The rear tyre of the Truck ran over his left leg and as a result, his left leg was amputated below the knee – Held, court is of the considered view that the learned counsel for the appellant is correct in pointing of the fact that no evidence or rather direct evidence was led in this regard and therefore, the Tribunal could not have awarded a sum of Rs. 2 Lakhs under this head – The authority relied upon by the learned counsel for the appellant i.e., Raj Kumar (Supra) and Syed Sadiq (Supra) have been duly considered – However, one aspect of the matter, which is undisputed is that the left leg of the respondent No. 1 above the knee was amputated, rendering him 80% disabled – A disability certificate from the competent authority was duly obtained and produced by the respondent No. 1 before the Tribunal – Having regard to the nature of his disability and also the decision of the Apex Court in Syed Sadiq (Supra) and in Rekha Jain (Supra), court therefore, of the considered opinion that ends of justice will be served if the amount of compensation awarded under the head Future Medical Expenses is modified to Rs. 1 Lakh instead of Rs. 2 Lakhs – Order Accordingly

JUDGMENT :

1. Heard Mr. Lalfakzuala, the learned counsel for the appellant and Mr. C. Lalfakzuala, the learned counsel for the respondent No. 1.

2. Considering the issue involved and the nature of grievance projected by the appellant, the appeal is taken up for final disposal at the admission stage with the consent of the learned counsels for the rival parties.

3. This is an appeal filed by the appellant Insurance Company against the Judgment & Award dated 20.06.2018 passed by the learned Presiding Officer, MACT, Aizawl in MACT Case No. 51/2017 whereby, a sum of Rs. 10,25,200/- along with 7% interest per annum from the date of filing of the claim application has been awarded by the learned Tribunal to the respondent No. 1 on account of 80% permanent disability of the respondent No. 1 due to a motor accident on 21.12.2016, while he was walking on the road in W. Phaileng, Mamit District, Mizoram. The respondent No. 1 was hit by a moving Truck, which was travelling towards Pukzing to Aizawl B/R No. AS-01- EC/0331. The rear tyre of the Truck ran over his left leg and as a result, his left leg was amputated below the knee.

4. Appearing for the appellant Insurance Company, Mr. Lalfakawma, the learned counsel submits that although the appellant does not dispute the liability to pay the compensation but the learned Tribunal in fact has excessively awarded compensation to the respondent No. 1 by applying the Second Schedule of Section 163 (A) of the Motor Vehicles Act, 1988 (M.V. Act). The learned counsel submits that Sub-Section (3) of Section 163-A of the M.V. Act provides that the Central Government may, keeping in view the cost of living by Notification in the Official Gazette, from time to time amend the Second Schedule. Accordingly, as per the said provision, the Government of India in the Ministry of Road Transport & Highways has come up with a Notification on 22.05.2018 whereby, the Second Schedule of the M.V. Act has been substituted. As per the said notification, in accidents resulting in permanent disability, the compensation payable shall be Rs. 5 Lakhs x percentage of disability. Further, the minimum compensation payable in case of permanent disability of any kind shall not be less than Rs. 50,000/-. Besides this, w.e.f. 01.01.2019, the amount of compensation as specified in Clauses (a)(c) of paragraph (1) shall increase by 5% annually. The effective date of the Notification is from the date of its publication in the Gazette of India i.e., 22.05.2018.

5. Mr. Lalfakawma, the learned counsel submits that on the date of passing the impugned Judgment & Award i.e., 20.06.2018, the Gazette Notification already being in force, the learned Tribunal ought to have awarded compensation to the respondent No. 1 as prescribed there-under and not by relying upon the Second Schedule of the M.V. Act as amended. In this connection, the learned counsel relies upon the decision of the Apex Court in Rathi Menon Vs. Union of India reported in (2001) 3 SCC 714.

6. Mr. Lalfakawma, the learned counsel further submits that the appellant has the right to challenge the quantum of the compensation awarded by the learned Tribunal even without obtaining permission under Section 170 of the M.V. Act to contest the appeal on grounds other than those available under Section 149 (2) of the M.V. Act. Referring to the Apex Court decision in United India Insurance Company Limited Vs. Shila Datta and Others reported in (2011) 10 SCC 509, the learned counsel submits that if the Insurance Company is not merely a noticee but impleaded as a party respondent/opposite party before the learned Tribunal, the insurer need not obtain permission U/S 170 of the M.V. Act to contest the claim on all other grounds other than Section 149 (2) of the same Act.

7. By referring to paragraph 12 of the impugned Judgment & Award, the learned counsel further submits that the loss of income under the heading pecuniary damages will only have to be awarded as per the Notification dated 22.05.201

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