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2024 Supreme(Gau) 788

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
PARTHIVJYOTI SAIKIA, J.
Union of India and Another – Appellants
Versus
Nima Lama W/o Late Mingmar Lama – Respondent
MAC App. No. 258 of 2019
Decided On : 28-05-2024

Advocates:
Advocate Appeared:
For the Appellant : A. Gayan.
For the Respondents: B. Talukdar, K. Bhattacharjee.

IMPORTANT POINT
Employer's liability to pay compensation for a motor accident when an ex-gratia payment has already been made to the legal heirs of the deceased employee.

Headnote:

Motor Vehicles Act - Compensation for Motor Accident - Ex-gratia payment and compensation from employer

Fact of the Case:

The deceased was driving a vehicle that fell into a gorge due to brake failure, resulting in his death. His widow filed a claim seeking compensation.

Finding of the Court:

The court found that the employer had already made an ex-gratia payment to the deceased's legal heirs, and therefore, the employer should not be liable to pay compensation twice for the same incident.

Issues: Whether the employer is liable to pay compensation twice for the same incident and whether the ex-gratia payment should be deducted from the compensation granted by the Tribunal.

Ratio Decidendi: The court held that the employer should not be liable to pay compensation twice for the same incident and decided to deduct the ex-gratia payment from the compensation granted by the Tribunal.

Final Decision: The appeal was allowed, and the compensation granted by the Tribunal was to be paid by the appellants after deducting the ex-gratia payment.

JUDGMENT :

PARTHIVJYOTI SAIKIA, J.

1. Heard Ms. A. Gayan, learned counsel representing the appellants. Also heard Mr. K. Bhattacharjee, learned counsel appearing for the respondents.

2. This is an appeal under Section 173 of the Motor Vehicles Act challenging the judgment and award dated 10.04.2014 passed by the Motor Accident Claims Tribunal, Sonitpur in MAC Case No. 311/2008.

3. On 08.01.2008, the deceased Mingmar Lama was driving a vehicle bearing Registration No. 06E-66746. Suddenly, due to break fail, the vehicle fell into a 100 meter deep gorge. As a result of the accident, Mingmar Lama died.

4. The deceased Mingmar Lama was a casual employee under the Commandant of GREF. His widow filed a claim petition before the Tribunal seeking compensation.

5. The appellants contested the case by filing written statement. The appellant pleaded that an amount of Rs. 2,35,627/- was already paid to the claimants as compensation.

6. The appellants further pleaded that at the relevant time, the vehicle bearing Registration No. 06E-66746 had skidded on the ice and that is why the incident took place. The appellants denied the plea of failure of the breaking system.

7. On the basis of the pleadings, the Tribunal framed the following issues:

(i) Whether the victim Mingmar Lama died as a result of vehicular accident of the vehicle bearing Registration No. 06E-66746 as alleged?

(ii) Whether the claimants are entitled to compensation as prayed for?

8. At the time of hearing, the Claimant No. 1/Respondent No. 1 Smti. Nima Lama examined herself.

9. On the basis of the evidence on record, the Tribunal awarded a compensation of Rs. 5,67,000/- along with interest at the rate of 9% per annum.

10. The present appeal has been filed with the plea that the aforesaid amount of Rs. 2,35,627/- should be deducted from the compensation granted by the Tribunal.

11. Mr. Bhattacharjee has submitted that as per the Notification No. F. No. BRDB/04(224)/2006-GE-II dated 14.01.2009 issued by the Border Roads Development Board under the Ministry of Shipping, Road Transport and Highways, ex-gratia payment of Rs. 2,35,627/- was made and according to this Notification, the said ex-gratia payment would be in addition to the Workmen’s compensation as applicable as per Workmen’s Compensation Act, 1923. Mr. Bhattcharjee therefore submitted that the aforesaid amount of Rs. 2,35,627/- is not deductable from the compensation amount awarded by the Tribunal.

12. I have considered the submissions made by the learned counsel of both sides.

13. An employee dies in a motor accident and therefore, the employer pays ex gratia money to the legal heirs of the deceased employee. Thereafter, the legal heirs of the deceased employee files a petition seeking compensation from the same employer and the Tribunal awards a compensation amount to be paid by the same employer.

14. Therefore, the employer would be liable to pay money twice for the same incident. In my considered opinion, this proposition of fact is not acceptable. Had the legal heirs of the deceased filed an application seeking compensation from the Insurance Company, then the position would have been different. But here, the same person has been made liable to pay compensation twice for the same incident.

15. Under the aforesaid circumstances, I have decided to agree that the amount of Rs. 2,35,627/- is liable to be deducted from the compensation granted by the Tribunal.

16. The appeal is allowed. The impugned judgment and award stands modified. The appellants shall pay the compensation granted by the Tribunal after deducting Rs. 2,35,627/- therefrom.

17. The appeal is disposed of. Send back the LCR.

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