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2021 Supreme(HP) 519

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ajay Mohan Goel, J.
New India Assurance Company Limited - Appellant
Versus
Sarla Devi & Ors. - Respondents
F.A.O. (M.V.A.) No. 115 of 2019
Decided On : 16-06-2021

Advocates appeared:
Praneet Gupta, Advocate, Ashok Verma, Advocate, Romesh Verma, Advocate

Headnote:

Motor Vehicles Act, 1988 - Compensation - Section 166 - Issues 1, 2, 3, 4, 5 - Summary of Acts and Sections: The court discussed the issues related to the death of an individual in a motor vehicle accident and the entitlement to compensation under Section 166 of the Motor Vehicles Act, 1988. The court also considered the validity of the driver's license and the contravention of insurance policy terms and conditions. The judgment referenced the judgments of the Hon'ble Supreme Court in National Insurance Company Limited Vs. Pranay Sethi and others, (2017) 16 SCC 680 and New India Assurance Company Limited Vs. Somwati and others, (2020) 9 SCC 644 to determine the amount of compensation and entitlement to consortium for the deceased's family members.

Fact of the Case:

A petition was filed for compensation under Section 166 of the Motor Vehicles Act, 1988 for the death of an individual in a motor vehicle accident. The claim was resisted by the respondents, and the learned Tribunal framed several issues based on the pleadings of the parties.

Finding of the Court:

The learned Tribunal allowed the claim petition and held the respondents jointly and severally liable to pay compensation to the petitioners. The Insurance Company challenged the award, arguing that the amount of consortium and funeral expenses awarded by the Tribunal were not sustainable in the eyes of the law.

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

Ratio Decidendi: The court modified the amount of consortium and funeral expenses awarded by the Tribunal based on the judgments of the Hon'ble Supreme Court in National Insurance Company Limited Vs. Pranay Sethi and others, (2017) 16 SCC 680 and New India Assurance Company Limited Vs. Somwati and others, (2020) 9 SCC 644.

Final Decision: The court upheld the grant of consortium in favor of all the petitioners but ordered the amount to be reduced. The last rites and funeral charges were also ordered to be reduced. The appeal was disposed of accordingly, and the claim amount was directed to be released to the claimants with interest, while the balance amount was ordered to be refunded to the appellant.

JUDGMENT

Ajay Mohan Goel, J. - CMP No. 5991 of 2021

No order is required to be passed on this application, as with the consent of learned counsel for the parties, the main appeal itself has been taken up for final consideration.

FAO No. 115 of 2019

2. Brief facts necessary for the adjudication of the present appeal are as under:

A petition was filed by respondents No. 1 to 3 herein (hereinafter referred to as 'the petitioners') under Section 166 of the Motor Vehicles Act, 1988 for grant of compensation to the tune of Rs.7,00,000/- on account of death of Shri Ramesh Chand Mehra, son of Shri Nathu Ram before the Court of learned Motor Accident Claims Tribunal-IV, Kangra at Dharamshala, District Kangra, H.P. The case of the petitioners was that they were the legal heirs of deceased Ramesh Chand, who died in a motor vehicle accident on 25.11.2009. As per the petitioners, age of the deceased at the time of accident was 55 years and he used to work as a Munshi (Clerk) with M/s Mahinder Pal & Hari Ram Potato Merchant and was also an agriculturist. His income as Munshi (Clerk) was Rs.5,000/- per month and besides this, he also used to earn Rs.5,000/- per month from agricultural activities. As per the petitioners, the deceased had died in the course of his employment and they were entitled to compensation to the tune of Rs.7,00,000/-.

3. The petition was resisted by the respondents before the learned Tribunal by way of separate replies. The stand of the owner of the vehicle was that the accident in issue did not take place on account of rash and negligent driving of the driver concerned and the deceased in fact was hit near a residence where the vehicle was parked.

4. The claim was resisted by the Insurance Company, inter alia, on the ground that the driver concerned was not holding any valid and effective Driving Licence and at the time of accident and the vehicle was being plied in violation of the terms and conditions of the Insurance Policy.

5. On the basis of pleadings of the parties, learned Tribunal framed the following issues:

"(1) Whether Ramesh Chand died in an accident caused due to rash and negligent driving of vehicle No.HP-68-2482 by respondent No. 2 on 25.11.2009 at 8:30 p.m. at Pathiar Chowk? OPP

(2) If issue number 1 is proved in affirmative, to what amount of compensation, the petitioners are entitled and from whom? OPP

(3) Whether the driver of the vehicle was not holding a valid and effective driving licence at the time of accident? OPR

(4) Whether the deceased was travelling in the vehicle as gratuitous passenger? OPR

(5) Whether the respondent No. 2 was driving the vehicle No. HP-68-2482 in contravention of terms and conditions of the insurance policy? OPR

(6) Relief."

6. On the basis of evidence adduced by the respective parties in support of their respective pleadings and contentions, the following findings were returned by learned Tribunal on the issues so framed:

"Issue No. 1:

Yes.

Issue No. 2:

Yes. The petitioners are entitled to get compensation to the tune of Rs.10,26,000/- (Rupees ten lacs and twenty six thousands only) with interest from all the respondents.

Issue No. 3:

No.

Issue No. 4:

No.

Issue No. 5:

No.

Relief:

The claim petition is allowed as per operative portion of the award."

7. The claim petition was allowed by the learned Tribunal in the following terms:

"34. In view of my findings on the aforesaid issues, the petition is allowed with costs and all the petitioners are held entitled for compensation to the tune of Rs.10,26,000/- (Rupees ten lacs and twenty six thousands only) and all the respondents are jointly and severally held liable to make the payment of the aforesaid compensation amount with 9% simple interest from the date of petition i.e. 15.07.2011 till the compensation amount is deposited. The respondents shall deposit the amount of compensation in the Tribunal within 45 days from the date of order. The amount of compensation so awarded is apportioned between the petitioners/claimants as under:-

Pet

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