IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT SRINAGAR
VINOD CHATTERJI KOUL, J.
United India Insurance Company Limited – Petitioner
Versus
Jawahira Begum and Others – Respondents
Mac. App. No. 78 of 2019
Decided On : 17-08-2022
Motor Accident Claims Tribunal - Compensation Calculation - Motor Vehicles Act, 1988 - Section 168, Sarla Verma vs. Delhi Transport Corporation, 2009 AIR SC 3104, National Insurance Company vs. Pranay Sethi, AIR 2017 SC 5157, Santosh Devi vs. National Insurance Company Ltd., AIR 2012 SC 2185, K. Suresh vs. New India Assurance Co. Ltd., Reliance General Insurance Company vs. Shashi Sharma, (2016) 9 SCC 627, Sebastiani Lakra vs. National Insurance Company Limited, AIR 2018 SC 5034, National Insurance Company Ltd. vs. Mannat Johal, (2019) 15 SCC 260, Helen C. Rebello and Others vs. Maharashtra State Transport Corporation and Another, (1999) 1 SCC 90 - The court discussed the calculation of compensation under the Motor Vehicles Act, 1988 and referred to various legal provisions and precedents to determine 'just compensation' for the claimants. The court emphasized that the compensation should be a realistic approximation and not a windfall, and it should not be reduced by deducting pensionary benefits, family pension, or other benefits received by the dependents of the deceased. The court also clarified that interest should be paid at 6% per annum from the date of institution of the claim till final realization, setting aside the Tribunal's decision to apply 9% interest.
Fact of the Case:
A claim petition was filed by respondents 1 to 3 before the Motor Accident Claims Tribunal, Kupwara, seeking compensation for the death of Parvaiz Ahmad Wani in a road accident. The appellant Insurance Company resisted the claim, alleging contributory negligence of both drivers and challenging the calculation of compensation. The Tribunal awarded compensation of Rs. 32,43,212/- along with 7.5% interest per annum, which was contested by the appellant.
Finding of the Court:
The court dismissed the appeal and cross-objections/appeal, upholding the Tribunal's decision to award compensation to the claimants. The court set aside the Tribunal's decision to apply 9% interest and modified it to 6% per annum. The court found no merit in the challenges raised by the appellant and the respondents/claimants, affirming the Tribunal's award of compensation.
Issues: The issues included determining the cause of the accident, contributory negligence of the drivers, validity of the driving license, calculation of compensation, and the payment of interest.
Ratio Decidendi: The court emphasized the calculation of 'just compensation' under the Motor Vehicles Act, 1988, and clarified that pensionary benefits, family pension, and other benefits received by the dependents of the deceased should not be deducted from the compensation. The court also set aside the Tribunal's decision to apply 9% interest and modified it to 6% per annum.
Final Decision: The appeal and cross-objections/appeal were dismissed, affirming the Tribunal's award of compensation and modifying the interest rate to 6% per annum.
JUDGMENT :
VINOD CHATTERJI KOUL, J.
1. Impugned in this Appeal is Award dated 25th July, 2019, passed by Motor Accident Claims Tribunal, Kupwara, (for short “Tribunal”) on a Claim petition bearing File No. 04/2016 titled Jawahira Begum vs. United India Insurance and others, directing appellant Insurance Company to pay compensation in the amount of Rs. 32,43,212/- along with 7.5% interest per annum from the date of institution of claim till realization, on the grounds made mention of therein.
2. A claim petition, as is discernible from perusal of the file, was filed by respondents 1 to 3 before the Tribunal on 19.05.2016, averring therein that deceased Parvaiz Ahmad Wani aged 32 years, died in an accident, which took place on 12.02.2016 at Drugmulla, due to rash and negligent driving of driver of offending vehicle, TATA Sumo bearing Registration No. JK-05/5713, which was insured with appellant Insurance Company, Claimants/Respondents 1 to 3 sought compensation to the tune of Rs. 1,00,000,000/-.
3. Appellant Insurance Company resisted the claim before the Tribunal on the ground that claimants had no cause of action against appellant-Insurance Company because as per police report alleged accident took place due to collusion between the two vehicles, i.e. bearing Registration No. JK-09-5769 (Maruti Car) and No. JK-05- 5713 (TATA Sumo) and that the collusion between two vehicles had taken place due to contributory negligence of both the drivers of aforesaid vehicles.
4. The Tribunal, in view of pleadings of parties, framed following Issues for determination, which are:
(2) Whether the accident was the result of contributory negligence of both the drivers of TATA Sumo Bearing Registration No. JK-05-5713 and Maruti vehicle 800 Bearing Registration No. JK-09-5759, as such the respondent company cannot be exclusively saddled with liability of compensation in favour of the petitioners? ...OPR-1
(3) Whether respondent/driver of the vehicle TATA Sumo Bearing Registration No. JK-05-5713 was driving the offending vehicle without valid and effective driving license at the time of accident, as such the respondent company cannot be saddled with liability for payment of compensation? ...OPR-1
(4) In case Issue No. 1 is proved in affirmative, to what amount of compensation the petitioners are entitled to and from whom? ...OPP
(5) Relief? ....O.P. Parties.
5. Claimants, in support of their claim petition, produced and examined three witnesses before the Tribunal besides claimants/respondent no. 1. Appellant Insurance Company also produced two witnesses. By impugned Award, the Tribunal found claimants/respondents entitled to receive compensation of Rs. 32,43,212/- along with 7.5% interest per annum.
6. I have heard learned counsel for parties at length. I have perused the record and considered the matter.
7. Learned counsel for appellant Insurance Company has stated that the Tribunal erred in passing impugned Award while calculating the income of deceased as Rs. 31,93,212/- on account of loss of dependency as monthly income of deceased was taken as Rs. 18,608/-. The deceased is said to have been of the age of 32 years at the time of accident, so 30% of the income was added to the income of deceased as future prospects and net salary of deceased taken as Rs. 24,191/- per month and yearly income taken as Rs. 2,90,292/-.
8. It is also contended by learned counsel for appellant Insurance Company that deceased is having three dependents and the Tribunal deducted 1/3rd of income towards deceased personal and living expenses
Helen C. Rebello and Others vs. Maharashtra State Transport Corporation and Another
K. Suresh vs. New India Assurance Co. Ltd. (2012) 12 SCC 274
National Insurance Company Ltd. vs. Mannat Johal
National Insurance Company vs. Pranay Sethi
Reliance General Insurance Company vs. Shashi Sharma
The main legal point established in the judgment is the determination of 'just compensation' under the Motor Vehicles Act, 1988, and the clarification that pensionary benefits, family pension, and ot....
Compensation under the Motor Vehicles Act must consider gross income without arbitrary deductions and allow future prospects based on statutory guidelines, ensuring just compensation for victims' dep....
The court emphasized that just compensation must be fair and equitable, affirming that family pension should not be deducted from the compensation amount.
Compensation for vehicular accidents must be just and reasonable, focusing on equitable loss recovery, while applying correct legal principles without succumbing to strict technicalities.
Just compensation must be fair and equitable, reflecting the loss suffered; it may exceed the claimed amount, considering future prospects and lawful deductions.
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