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2008 Supreme(Ker) 700

High Court of Kerala
M.N. Krishnan, J.
Mathew K V - Appellant
Versus
Paul Varghese & Ors - Respondent
M.A.C.A. No. 1781 of 2006
Decided On : 22-07-2008

Depreciation cannot be granted when the vehicle is repaired by replacing new spare parts, as the actual cost of new spare parts had to be given to the owner of the vehicle in order to put it back into a roadworthy condition.

Headnote:

Depreciation - Motor Accidents Claims - The court held that depreciation cannot be granted when the vehicle is repaired by replacing new spare parts, as the actual cost of new spare parts had to be given to the owner of the vehicle in order to put it back into a roadworthy condition.

Fact of the Case:

The claimant appealed against the award of the Motor Accidents Claims Tribunal, seeking higher compensation for the damages incurred in a motor accident.

Finding of the Court:

The court partially allowed the appeal, revising the award and granting the claimant damages of Rs.55,041/- with 6% interest, directing the insurance company to deposit the same within sixty days.

Issues: The main issue was the determination of compensation for damages incurred in a motor accident, specifically regarding the calculation of depreciation and the actual expenses incurred for repairs and replacement of spare parts.

Ratio Decidendi: The court held that depreciation cannot be granted when the vehicle is repaired by replacing new spare parts, as the actual cost of new spare parts had to be given to the owner of the vehicle in order to put it back into a roadworthy condition.

Final Decision: The claimant was awarded damages of Rs.55,041/- with 6% interest, and the insurance company was directed to deposit the same within sixty days.

JUDGMENT

M.N. Krishnan, J.

1. This appeal is preferred against the award of the Motor Accidents Claims Tribunal, Ernakulam in OP (MV) 2755/00. The claimant has been awarded a total compensation of Rs.26,830/-. Dissatisfied with the same the claimant has come up in appeal. The Tribunal estimated the value of the spare parts at Rs.36,660/-, deducted 50% and it also reduced the labour charges to Rs.7,500/-. In the decision reported in M. R. Narahari Pandit v. Veenadevi Jalan, 1997 ACJ 245, the Karnataka High Court had taken the view following an earlier decision of the same Court to the effect that the question of depreciation would arise only when the vehicle becomes a scrap or suffers total loss for which the damages have to be determined. When it is granted, to meet the actual expenses incurred for the repairs and replacement, the question of depreciation will not arise. It is also held that when the vehicle is repaired by replacing new spare parts, the actual cost of new spare parts had to be given to the owner of the vehicle. It has to be remembered it is to put back the vehicle into a roadworthy condition, the spare parts are changed. Therefore I am inclined to hold that the depreciation cannot be granted. A similar view has been taken by a Division Bench of this Court in MACA 693/04.

2. I had totalled the bills of purchase of spare parts. It comes to Rs.33,241/-.The estimate of the surveyor for labour charges is Rs.20,900/- whereas the document produced is much more than that. So at least Rs.20,900/- has to be given. Similarly, towing charges of Rs.900/- also has to be granted. Therefore the total damages would come to Rs.55,041/-.

In the result the MACA is partly allowed and a revised award is passed. The claimant is entitled for damages of Rs.55,041/- with 6% interest on the said sum from the date of petition till realisation and the 3rd respondent, insurance company is directed to deposit the same within a period of sixty days from the date of receipt of a copy of the judgment.

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