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2022 Supreme(Jhk) 1360

IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANIL KUMAR CHOUDHARY, J.
The Oriental Insurance Company Ltd. – Appellant
Versus
Hari Charan Banra S/o Late Chhota Manu Banra – Respondent
M.A. No. 80 of 2008
Decided On : 13-12-2022

Advocates:
Advocate Appeared:
For the Appellant : G.C. Jha.
For the Respondents: Atanu Banerjee, Suman Kr. Ghosh.

The validity of the driver's license and the established method of computing compensation under Section 166 of the Motor Vehicle Act were central to the judgment.

Headnote:

Motor Vehicle Act - Compensation Case - Section 166 - Ext.A/1, Ext.A/2/2 - The court awarded compensation under Section 166 of the Motor Vehicle Act after determining that the driver of the offending vehicle had a valid driving license, rejecting the appellant-insurance company's claim of a fake license. The court found no merit in the appellant's argument and dismissed the appeal without costs.

Fact of the Case:

The case involved a compensation claim under Section 166 of the Motor Vehicle Act for the death of a person in a motor vehicle accident. The appellant-insurance company contested the claim, alleging that the driver of the offending vehicle had a fake driving license.

Finding of the Court:

The court found that the driver of the offending vehicle had a valid driving license and upheld the compensation awarded by the tribunal. The court dismissed the appeal without costs.

Issues: The issues included the computation of compensation, the entitlement of the claimants, and the validity of the driver's license.

Ratio Decidendi: The court upheld the established principle of computing compensation using the multiplier method in cases of death by a motor vehicle. It also affirmed the entitlement of the claimants as legal representatives of the deceased. The court found no merit in the appellant's argument regarding the validity of the driver's license.

Final Decision: The court dismissed the appeal without costs.

JUDGMENT :

ANIL KUMAR CHOUDHARY, J.

1. Heard the parties.

2. This miscellaneous appeal is directed against the judgment and award dated 30.11.2007 passed by the Additional District Judge-II-cum-Motor Vehicles Accident Claims Tribunal, Chaibasa in Compensation Case No. 52 of 2005 by which the learned Tribunal under Section 166 of Motor Vehicle Act has awarded a compensation of Rs. 3,16,500/- to the claimants and directed the opposite party no. 1-Oriental Insurance Company Limited to pay Rs. 2,66,500/- plus interest on the same amount with the rate of interest at the rate of 6% from the date of filing of the petition as Rs. 50,000/- was earlier paid by the opposite party no. 1-Oriental Insurance Company under Section 140 of Motor Vehicle Act.

3. The brief facts of the case is that on 12.04.2005 when the deceased Vishnu Banra was going by his bicycle, he was dashed by the offending truck being rashly and negligently driven and Vishnu Banra succumbed to the injuries sustained in the accident, at the spot itself.

4. The truck was insured by the opposite party no. 1-appellant/Oriental Insurance Company Limited. The Oriental Insurance Company Limited inter alia took the plea that the driver-Sarda Kumar Gope was originally issued with a driving licence from the Licensing Authority, Hazaribagh but on verification about the issuance of the original driving licence from the District Transport Officer, Hazaribagh, it was found that no such driving licence was issued by the D.T.O. Hazaribagh and the owner of the vehicle knowingly appointed a driver who held fake driving licence and thus, the owner of the vehicle has violated the terms and conditions of the insurance policy; as such, the appellant-opposite party no. 1-insurance company is not liable to pay the compensation.

5. The learned Tribunal framed the issue no. 4 which reads as under:

    “Whether the owner has violated the terms and conditions of the policy for which the vehicle have been insured under the insurer?”

6. The learned Tribunal basing upon the Ext.A/1 which is the report submitted by the D.T.O. Chaibasa to the investigator engaged by the appellant-insurance company and other materials came to the conclusion that the offending truck was being driven by a person who had valid driving licence issued by the competent authority to drive the heavy vehicle, hence, there is no such violation of the terms and conditions of the insurance policy and thus the insurance company is liable to pay the compensation amount. Thereafter, the learned Tribunal assessed the age of the deceased on the basis of postmortem report to be 50 years and assessed his monthly income to be Rs. 3,000/-. The Tribunal applied the multiplier 13 and deducted 1/3rd towards personal expenses of the victim, the annual dependency arrived at was Rs. 24,000/- and after multiplying the same with the multiplier 13 and adding Rs. 2,000/- towards funeral expenses, Rs. 2,000/- towards loss of estate, the Tribunal arrived at a compensation of Rs. 3,16,500/- and after deducting Rs. 50,000/- which was paid under Section 140 of Motor Vehicles Act as ad interim compensation awarded a total net amount of Rs. 2,66,500/- to be paid by the appellant-insurance company.

7. Mr. G.C. Jha, learned counsel for the appellant submits that the method adopted by the Tribunal in computing and assessing and awarding the compensation is unknown to the provision of law as well as motor vehicle rules. It is then submitted by Mr. Jha that the learned Tribunal failed to consider that the claimants has not disclosed that the deceased has left with no other dependant. It is then submitted by Mr. Jha that as in the additional written statement, the appellant-insurance company has taken a specific plea that the driving licence of the driver Sarda Kumar Gope originally issued by the Licensing Authority, Hazaribagh but on verification from the office of District Transport Officer, Hazaribagh, it was found that no such driving licence has been issued in the name of

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