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2020 Supreme(HP) 55

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Sandeep Sharma, J.
United India Insurance Company Ltd - Appellant
Versus
Raj Rani & Ors. - Respondent
First Appeal From Order No. 63 of 2016
Decided On : 04-01-2020

Advocates Appeared:
Ashwani K Sharma, Advocate, Ishan Sharma, Advocate, Karan Veer Singh, Advocate, Poonam Gehlot, Advocate

The main legal point established in the judgment is the liability of the Insurance Company to pay compensation under the Motor Vehicles Act, 1988, based on the validity of the driver's license and computation of loss of dependency.

Headnote:

Motor Vehicles Act - Compensation - Section 166 - 173 - 1988 - [MOTOR VEHICLES] - [COMPENSATION] - [Section 166, Section 173 of the Motor Vehicles Act, 1988] - The court discussed the liability of the Insurance Company to pay compensation under the Motor Vehicles Act, 1988. It highlighted the requirement of a valid and effective driving license, computation of loss of dependency, and the applicability of the judgment in National Insurance Company Limited vs. Pranay Sethi and others, (2017) AIR SC 5157.

Fact of the Case:

The claim petition was filed under Section 166 of the Motor Vehicles Act, for compensation due to the death of Santosh Dass in a motor vehicle accident. The appellant-Insurance Company opposed the claim on the grounds of the driver not holding a valid driving license and violation of insurance policy terms.

Finding of the Court:

The court found that the Insurance Company was liable to pay compensation as it failed to prove the driver's lack of a valid license. It also modified the award based on the judgment in National Insurance Company Limited vs. Pranay Sethi and others, (2017) AIR SC 5157.

Issues: The issues included the cause of the accident, entitlement to compensation, validity of the driver's license, violation of insurance policy terms, and relief.

Ratio Decidendi: The court held that the Insurance Company's failure to prove the driver's lack of a valid license made it liable for compensation. It also applied the judgment in National Insurance Company Limited vs. Pranay Sethi and others, (2017) AIR SC 5157 to modify the award.

Final Decision: The appeal was partly allowed, and the award was modified to include compensation, funeral expenses, loss of estate, and loss of consortium based on the judgment in National Insurance Company Limited vs. Pranay Sethi and others, (2017) AIR SC 5157.

JUDGMENT

Sandeep Sharma, J. - By way of present appeal filed under Section 173 of the Motor Vehicles Act, 1988( for short 'Act'), challenge has been laid to award dated 20.11.2015, passed by learned Motor Accident Claims Tribunal, Una, District Una, Himachal Pradesh, (hereinafter referred to as 'Tribunal',) in MACP No. 58/2014, titled as Raj Rani and others Vs Satnam Singh and another, whereby learned Tribunal below while allowing the claim petition, having been filed by respondents-claimants No.1 to 5 (hereinafter 'claimants'), saddled appellant-Insurance Company with liability to pay compensation to the tune of Rs. 25,40,600/- along with interest @ 7.5% per annum from the date of filing of the petition i.e. 30.4.2014 till the payment is made.

2. Precisely the facts of the case, as emerge from the record are that the claim petition under Section 166 of Motor Vehicles Act, came to be filed at the instance of the claimants on account of death of Santosh Dass, being widow, daughters and sons of the deceased, who died in a motor vehicle accident, which took place on 5.4.2014 involving vehicle bearing registration No. PB-01-1893 owned and driven by respondent No.6 and insured with appellant-Insurance Company. On 5.4.2014, at about 10:00 AM deceased, who was working as a 'Safai Karamchari' in Municipal Council/Nagar Parishad, Una, was hit by white colored Scorpio bearing registration No. PB-01-1893 coming from the red light Chowk, Una in a very high speed, as a consequence of which, deceased Santosh Dass after having suffered multiple injuries on his person died at the spot. Claimants alleged that the deceased died on account of the rash and negligent driving of the driver driving the ill-fated vehicle. Since deceased was the only bread winner of the family, they being their dependents are entitled to compensation to the tune of Rs. 60,00,000/-. Claimants claimed that deceased was getting salary of Rs. 24,400/- per month and besides this, he was also earning Rs, 10,000/- per month from part time job as skilled Band Master.

3. Respondent No.6 refuted the aforesaid claim of the claimants by stating that he was driving the vehicle at the relevant time in a very careful manner, but accident occurred on account of the negligence on the part of the deceased, who without noticing the vehicle coming from opposite side hurriedly crossed the road, as a consequence of which, he struck against the vehicle and died on account of his own negligence.

4. Appellant-Insurance Company opposed the aforesaid claim of the claimants on the ground that the driver of the ill-fated vehicle was not holding valid and effective driving licence and vehicle in question was being driven in violation of the terms and conditions of insurance policy and as such, it is not liable to indemnify the insured.

5. Learned Tribunal below, on the basis of the pleadings adduced on record by the respective parties, framed following issues on9.9.2014:-

    "1. Whether deceased Santosh Dass died on 5.4.2014 bear bus stand, Una due to rash and negligent driving of vehicle i.e. Scorpio No.PB-01-1893 by respondent No.1 as alleged ? OPP

      2. if issue No.1 is proved in affirmative, whether the petitioners are entitled to compensation, if so, to what amount and from whom? OPP.

        3. Whether the respondent No.1 was not holding a valid and effective driving licence at the time of accident in question, if so, its effect? OPR-2.

          4. Whether the vehicle in question was being driven in violation of terms and conditions of insurance policy, as alleged? OPR2

            5. Relief.

            6. Subsequently, learned Tribunal below vide award dated 20.11.2015 allowed the aforesaid claim petition and directed the appellant-Insurance Company to pay a sum of Rs. 25,40,600/- as compensation along with interest @ 7.5% per annum from the date of filing of the petition till the payment is made. In the aforesaid background, appell

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