IN THE HIGH COURT OF JHARKHAND AT RANCHI
PRADEEP KUMAR SRIVASTAVA, J.
Divisional Manager, National Insurance Company Limited – Appellant
Versus
Namita Das (Schedule Caste) – Respondent
M.A. No. 99 of 2018
Decided on : 21-12-2023
Motor Vehicle Act - Compensation Award - Section 173 - 1988 - [JUDGMENT]
Fact of the Case:
The case involves an appeal under Section 173 of the Motor Vehicle Act, 1988 against a judgment awarding compensation for the death of an individual in a motor vehicle accident. The claimants sought compensation for the death of Shiv Shankar Rabidas, who was hit by a truck and died on the spot. The main dispute was regarding the assessment of the deceased's income and the calculation of compensation.
Finding of the Court:
The court found that the deceased was earning Rs. 7,500 per month, based on the oral testimony of witnesses. The court also noted that the compensation amount awarded by the tribunal needed modification based on established legal principles.
Issues: The main issues were the assessment of the deceased's income and the calculation of the compensation amount, as well as the violation of settled principles of law in the tribunal's award.
Ratio Decidendi: The court relied on the oral testimony of witnesses to establish the deceased's income and applied legal principles from relevant judgments to modify the compensation amount awarded by the tribunal.
Final Decision: The court allowed the appeal and modified the award, increasing the compensation amount to Rs. 17,64,500 along with 9% simple interest from the date of the institution of the case.
JUDGMENT :
This appeal is preferred under Section 173 of the Motor Vehicle Act, 1988 against the Judgment/award dated 08.12.2017 passed in T(M.V.) Suit No. 246 of 2014 by learned District Judge, XII-cum-M.A.C.T Judge, Dhanbad, whereby and whereunder the learned tribunal has awarded Rs. 9,37,200/-along with interest at the rate of 6 per cent per annum as compensation amount to the claimants along with recovery right of Insurance Company (appellant) from the Insured “owner of the offending vehicle”
2. After service of notice respondent nos. 1-5/claimants appeared and filed their vakalatnama. Respondent no. 6, owner of the offending vehicle no. NL 010 8383 did not turn up in spite of valid service of notice.
3. Above captioned claim case was filed by claimants/respondent Nos. 1 to 5 for award of compensation to the tune of Rs. 10,89,500/-along with interest @ 6 % per annum from the date of filing of this case till its payment, on account of death of one Shiv Shankar Rabidas arising out of use of motor vehicle. It is alleged that on 22.05.2012 at about 16:15 hrs. deceased was standing at the left side of G.T. Road NH2 for crossing the road near Primary Health Centre Nirsa. Meanwhile, a truck bearing registration no. NL 01G 8383 coming from Nirsa and proceeding towards Dhanbad being driven very rashly and negligently by its driver dashed the deceased, who died on the spot. In connection with above accident Nirsa P.S. Case No. 131 of 2012 was registered for the offences under Sections 279/304(A) of the Indian Penal Code, 1860 against the driver of the offending vehicle and after investigation charge sheet was submitted against the driver, Tarani Singh. The post mortem report of the deceased was prepared. It is alleged that at the time of death the deceased was 20 years old and was working as a Raj Mistri and earning Rs. 7,500/-per month. The claimants are widow-wife and mother, brothers and sister of the deceased who were dependents on the income of the deceased.
4. The owner of the vehicle/defendant no.1 appeared before the tribunal and has filed separate written statement stating inter alia that his truck bearing registration no. NL 01G 8383 was insured with defendant no. 2, the National Insurance Company (Appellant). He is equipped with all vehicular documents, hence, insurance company is liable to satisfy the award amount, if any.
5. The Insurance Company in its written statement has denied the factum of accident but admitted the Insurance of the offending vehicle bearing registration no. NL 01G 8383 with this company. It was also pleaded that at the material time of alleged accident driver of the offending vehicle was not having a valid and effective driving license hence, there is violation of terms and condition of policy and thus, company is not liable to satisfy the award and liable to be absolved from any liability.
6. The present appeal has been preferred by National Insurance Company Ltd. challenging the impugned award mainly on the grounds of wrong assessment of income of deceased and calculation of compensation against the settled principles of law which appears to be excessive. In this regard the learned tribunal has settled a specific issue no.6 “whether the deceased Shiv Shankar was earning Rs. 7,500/-per month or not”. The learned tribunal failed to appreciate that there was no documentary evidence about income of deceased to be Rs. 7,500/-per month nor there was any evidence to the effect that deceased was working as a Raj Mistry/skilled labour. The future prospect was also wrongly calculated to the extent of Rs. 2,59,200/-in case of a casual labour against the principles laid down by the Hon’ble Apex Court in National Insurance Company Lmt. vs. Pranay Sethi and Ors. reported in (2017) 16 SCC 680.
7. Per contra learned counsel for the respondent nos. 1 to 5/claimants has submitted that due to poverty the claimants co
National Insurance Company Lmt. vs. Pranay Sethi and Ors. reported in (2017) 16 SCC 680
Sarla Verma (Smt.) & Ors. vs. Delhi Transport Corporation & Anr. reported in (2009) 6 SCC 121
The main legal point established in the judgment is the reliance on oral testimony to determine the deceased's income and the application of established legal principles to modify the compensation am....
The court emphasized the necessity of awarding just and fair compensation under the Motor Vehicles Act, considering future prospects and adjusting interest rates appropriately.
The court established that actual income evidence must be prioritized over notional income in compensation claims under the Motor Vehicle Act.
Compensation under the Motor Vehicles Act must be just, fair, and reasonable, considering future prospects and qualifications of the deceased.
The appropriate income, future prospects, and multiplier for calculating compensation under the Motor Vehicles Act were determined based on legal principles established in previous cases.
The court emphasized the principle of just and fair compensation under the Motor Vehicles Act, including considerations for future prospects and conventional heads.
The main legal point established in the judgment is the re-assessment of notional income and enhancement of compensation under various heads to ensure just and reasonable compensation for the claiman....
Assessment of compensation under non-pecuniary heads and the rate of interest should be in line with established legal principles and specific legal provisions.
The court emphasized that income tax returns are essential for determining compensation in motor accident claims, and the assessment must reflect just and fair compensation principles.
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