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2024 Supreme(HP) 399

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SUSHIL KUKREJA, J.
 
United India Insurance Company Limited - Appellant
Versus
Kirna Devi & others – Respondent
FAOs No.141, 166 & 277 of 2023
Decided on : 24-12-2024
 

Advocates:
Advocate Appeared:
For the Appellant:Mr. Pritam Singh Chandel, Advocate.
For the Respondent:Mr. Sanjay Bhardwaj, Advocate Mr. B.S. Chauhan, Senior Advocate, with Mr. Munish Datwalia, Advocate Mr. Rajinder Singh Verma, Advocate

The court upheld that failure to prove the invalidity of a driver's license imposes compensation liability on the insurer, reiterating principles for calculating dependency and future prospects in wrongful death claims.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Appeal against MACT award for compensation - Insurance Company contended driver lacked valid license; court held failure to prove this invalidated their liability. Compensation calculated; future prospects adjusted as per judicial precedents. (Paras 10, 12, 18, 22, 29)

(B) Compensation - Need for appropriate adjustments in determining income and fixing future prospects - Court clarified formula for loss of dependency and consortium distributions reflecting entitlements. (Paras 20, 22, 29)

Facts of the case:
Claimants sought compensation for the death of Om Prakash following a motor vehicle accident caused by the negligent driving of the offending vehicle driver. The deceased was self-employed and a key family provider. (Paras 4, 6)

Findings of Court:
Tribunal awarded Rs.16,64,200/- as compensation; the appeal modified this to Rs.16,07,584/- emphasizing proper calculation of dependency. (Paras 27-29)

Issues: Did the driver possess a valid driving license? Were the compensation calculations justified, particularly future prospects and consortium claims? (Paras 10, 20)

Ratio Decidendi: Insufficient proof of licensing validated compensation liability upon the insurer. The court established rules for calculating contributions and highlighted the legal definition and importance of consortium reflecting the deceased's familial roles. (Paras 10, 20, 29)

Result: Appeals allowed in part; modified award granted to claimants.

Table of Content
1. appeals filed against compensation award. (Para 1 , 2 , 3)
2. details of the accident leading to the claim. (Para 4)
3. defenses raised by respondents regarding liability. (Para 5 , 6 , 7)
4. arguments regarding validity of the driving license. (Para 10 , 11)
5. court's acknowledgment of undisputed facts. (Para 12 , 13)
6. assessment of the driving license evidence. (Para 14 , 15 , 16)
7. court's analysis of insurance liability. (Para 17 , 18 , 19)
8. correct calculation of future prospects in compensation. (Para 20 , 21 , 22)
9. calculation of family dependency deductions. (Para 23 , 24 , 25)
10. assessment of conventional damages awarded. (Para 26 , 27 , 28)
11. conclusion regarding total compensation calculation. (Para 29)
12. final order on appeals and compensation. (Para 30 , 31)

JUDGMENT :

Sushil Kukreja, J.

1. Since all these appeals are the offshoot of impugned award dated 01.05.2023, passed by learned Motor Accident Claims Tribunal, Kinnaur at Rampur Bushahr, District Shimla, H.P. (hereinafter referred to as the learned “Tribunal below”) in MACT Case No. 127 of 2016, they are being taken up together for disposal.

2. The appeal (FAO No. 141 of 2023) is maintained by the appellant/United India Insurance Company Limited (hereinafter referred to as “the Insurance Company”), under Section 173 of the MOTOR VEHICLES ACT , 1988 (for short “the Act”), against award dated 01.05.2023, passed by the learned Tribunal Below, in a claim petition filed by the petitioner/claimants (hereinafter referred to as “the claimants”) under Section 166 of the Act, which was allowed and the claimants were held entitled for compensation of Rs.16,64,200/-, with a prayer to exonerate the appellant-Insurance Company from the liability to bear the amount of compensation, interest etc. by quashing and setting aside the impugned award.

3. Appeals, i.e., FAO No. 166 of 2023 and FAO No. 277 of 2023, have been filed by Shah Nawaj and Dalip Kumar (since deceased through LRs), who were driver and owner of the offending vehicle, i.e., HP50-0642, respectively, under Section 173 of the Act, with a prayer to quash and set-aside the impugned award to the extent of recovery of the compensation amount from them.

4. Succinctly, the facts giving rise to the present appeal are that the claimants/petitioners maintained a petition under Section 166 of the Act seeking compensation on account of death of Shri Om Prakash (deceased), being his legal representatives. As per the claimants, the deceased died in a motor vehicle accident, which took place on 11.06.2016, at around 10:30 a.m. It has been averred in the claim petition by the claimants that when the deceased was going on foot near Satluj Cafe at Khopari, he was hit by Auto Rickshaw, bearing No. HP-50-0642, which was being driven by Shah Nawaj (appellant in FAO No. 166 of 2023), and he sustained multiple head injuries, as a result of which he died at PGI, Chandigarh, while he was under treatment. As per the claimants, the accident occurred due to the rash and negligent driving of the driver of the offending vehicle, as he was driving the vehicle on wrong side of the road that too in a rash and negligent manner. It was further averred that the deceased was self-employed, as a Private Contractor of RCC buildings etc. and he also used to manage the entire domestic affairs of the family. He was the only bread winner of the family and the entire family was dependent upon him. As per the claimants, the deceased was earning Rs.40,000/50,000.00 per month from contractor ship and Rs.1,00,000/- per annum from agricultural and horticulture.

5. The owner of the offending vehicle, i.e. late Shri Dalip Kumar, who was respondent No. 1 before the learned Tribunal below, by filing reply to the petition, contested the petition, wherein he averred that there was no fault of respondent No. 2- Shah Nawaj @ Kaku (driver of the offending vehicle), as there was a stationary vehicle on the road side. The deceased tried to cross the r

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