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2023 Supreme(P&H) 2940

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUKHVINDER KAUR, J.
Royal Sunderam Alliance Insurance Company Ltd. – Appellant
Versus
Manjit Kaur & Ors. – Respondents
FAO-639 of 2017 (O&M)
Decided On : 10-05-2023

Advocates Appeared:
Mr. Dinesh Kumar Prajapati, Advocate; For the Appellant
None; For the Respondents

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for wrongful death in a road accident - Award for Rs.32,59,664/- made by Tribunal, including interest at 6% per annum - Insurance company contended absence of valid driving license - Tribunal found substantial evidence of income and determined compensation based on established salary despite the insurance company's objections regarding documentation. (Paras 2, 6, 10, 12, 18)

(B) Legal Principles - The Tribunal must award just compensation without being bound by the claimants' prayer for a specific sum - Adverse inference arises when the defendant fails to produce crucial evidence, like a valid driving license. (Paras 15, 18)

Facts of the case:
The deceased, Satnam Singh, suffered fatal injuries in a motorcycle accident with a car driven recklessly by the offending vehicle's driver. Claimants sought Rs.20 lakhs alleging complete dependency on the deceased's income. (Paras 2, 4)

Findings of Court:
The Tribunal deemed the deceased's monthly income as Rs.20,787/- based on corroborating salary certificates and awarded a total compensation of Rs.32,59,664/-, later adjusted as Rs.28,80,808/- after accounting for liability. (Paras 6, 11)

Issues: The court addressed the validity of the deceased’s driving license, adequacy of compensation, and evidence regarding the income of the deceased. (Paras 10, 12)

Ratio Decidendi: The court held that the absence of the valid driving license warranted an adverse inference against the respondents, confirming the Tribunal’s assessment of income was justified based on the evidence presented. (Paras 12, 18)

Result: The insurance company is liable for the awarded compensation but has recovery rights against the vehicle owner.

Table of Content
1. appellant seeks modification of compensation award. (Para 1 , 2 , 4 , 5)
2. tribunal awarded compensation based on evidence. (Para 3 , 6 , 8)
3. dispute over validity of salary certificate. (Para 9 , 10 , 11)
4. calculation of compensation and conventional heads. (Para 12 , 13 , 14)
5. court draws adverse inference from non-compliance. (Para 15 , 18 , 19)

JUDGMENT

Mrs. Sukhvinder Kaur, J.

By way of this appeal, appellant-Insurance Company seeks setting aside/modification of the award dated 06.09.2016 passed in CIS No.MACP/0000170/2013 - MACT Case No.5 dated 18.05.2013 vide which the Tribunal has granted a total compensation of Rs.32,59,664/- on account of death of Satnam Singh in the accident along with interest @ 6% per annum from the date of the award till realization.

2. Manjit Kaur widow of deceased Satnam Singh along with her sons Arundeep Singh and Jashandeep Singh jointly filed a petition invoking the provisions of Section 166 of the MOTOR VEHICLES ACT , 1988 (for short 'the 1988 Act') claiming compensation with the averments that on 03.12.2012 deceased Satnam Singh and his son Arundeep Singh were heading towards their village Chohla Sahib from village Sarhali on their motorcycle bearing registration No.PB-47-C-7140. Deceased Satnam Singh was driving the motorcycle whereas his son was the pillion rider. When they reached near bridge canal of village Billianwala and were going at the slow speed on Sarhali Chohla Sahib road, then offending car bearing registration No.PB- 66-5800 being driven at a very high speed in a rash and negligent manner by its driver respondent No.1/Deepak Jindal hit into his motorcycle from the right side while coming on the wrong side of the road. Due to this impact, Satnam Singh along with his son fell down from the motorcycle. Satnam Singh received grievous bodily injuries. Thereafter, one Amrik Singh, Sarpanch of village Chohla Sahib arrived there and helped Arundeep Singh in taking seriously injured Satnam Singh to Civil Hospital, Sarhali. He was thereafter referred to Civil Hospital, Tarn Taran. His condition was serious and when he was being taken to Ajit Singh Randhawa Hospital, Amritsar, he succumbed to his injuries on the same day i.e. 03.12.2012 itself. It was further averred by the claimants that the accident was caused due to rash and negligent driving of respondent No.1/driver of the offending car owned by respondent No.2 Satish Kumar Garg. FIR bearing No.147 dated 04.12.2012 was registered under Sections 304-A/279/427 IPC.

It was further averred that deceased was healthy, teetotaler, active and hardworking person. He was a permanent driver working under the department of Punjab State Civil Supplies Corporation Limited (PUNSUP) and was drawing carry home salary of Rs.20,787/- per month. Besides this, he was running a dairy by rearing 5-6 buffaloes. Claimants were totally dependant upon the income of the deceased, who used to spend his entire income for meeting with the household expenses after retaining only a meagre amount as pocket money. Due to the untimely death of the deceased Satnam Singh, claimants have also suffered loss of love and affection and have also been exposed to pain and agony. It was further averred that the claimants do not have any other source of income for their survival. Therefore, it was prayed that compensation of Rs.20 lakhs be granted qua death of the deceased Satnam Singh.

3. Respondents No.1 and 2 (driver and owner of the offending vehicle) initially caused their appearance through their counsel but thereafter they were proceeded against ex parte by the Tribunal.

4. Respondent No.3/Insurance Company resisted the claim by taking a plea that at the time of the alleged accident, respondent No.1 was not holding a valid driving license and respective No.2 was not holding a valid registration certificate of the offending vehicle. It was also pleaded that there was clear violation of the terms and conditions of the insurance policy. Involvement of th

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