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2011 Supreme(All) 1245
2011 (86) ALR 626
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
Devi Prasad Singh,J. and S.C. Chaurasia,J.
Oriental Insurance Co. Ltd. Through Its Senior Division
Vs.
Sri Vinod Kumar Joshi And 2 Ors.
FIRST APPEAL FROM ORDER DEFECTIVE No. - 1105 of 2007
Decided on : 27.4.2011
Suresh Panjwani
The main legal point established is that in cases filed under Section 163-A of the Motor Vehicles Act, the claimant is not required to establish wrongful act or neglect, and the compensation may be awarded as per the Second Schedule, with mandatory deduction for personal expenses.
Headnote:
Motor Vehicles Act - Compensation under Section 163-A - Second Schedule - 163-A
Fact of the Case:
The appeal was filed under Section 173 of the Motor Vehicles Act against an award passed by the Motor Accident Claims Tribunal. The case involved a fatal accident caused by a bus driver's rash and negligent driving, resulting in the death of a 14-year-old boy. The tribunal assessed the compensation under Section 163-A of the Act.
Finding of the Court:
The court found that the compensation awarded by the tribunal needed modification as per the provisions of Section 163-A and the Second Schedule of the Motor Vehicles Act.
Issues: The issues included the assessment of compensation under Section 163-A, deduction for personal expenses, and the application of the multiplier given in the Second Schedule.
Ratio Decidendi: The court held that in cases filed under Section 163-A, the claimant is not required to establish wrongful act or neglect, and the compensation may be awarded as per the Second Schedule. The court also emphasized the statutory nature of the provisions and the mandatory deduction for personal expenses.
Final Decision: The appeal was allowed in part, and the impugned award was modified to award compensation of Rs. 1,54,500 to the claimants. The appellant was directed to deposit the entire compensation within two months.
Heard learned counsel for the appellant and the learned counsel for the respondents.
2. The present appeal has been filed under Section 173 of the Motor Vehicles Act? against the impugned award dated 6.8.2007 passed by the Motor Accident Claims Tribunal/Additional District Judge, Court No. 15 in Claim Petition No. 301 of 2005, Vinod Kumar Joshi & another vs. Thakur Travelling Agency & another.
3. In brief,? claimant Vinod Prasad alongwith his son Kamal Deep alias Aashu were going to their residence from Rajajipuram on Motor Cycle bearing number U.P. 32/A.L.--3062.? When they reached near the hospital situated at nearby Saadat Ganj Police Station, Lucknow, a Bus No. U.P. 32 T/7265 being driven rashly and negligently dashed with the motor cycle.? In consequence thereof, Kamal Deep alias Aashu succumbed to the injuries at the spot.? Kamal Deep was aged about 14 years.? F.I.R. was lodged and the claimants approached the tribunal for payment of compensation.? Issues were framed with regard to accident, insurance policy as well as driving licence.? The tribunal recorded a finding that the accident had occurred because of rash and negligent driving of the bus driver.?? Keeping in view the age of boy as 14 years as also the future prospect, the tribunal? has assessed the income of the deceased to the extent of Rs. 15,000/- and applying the multiple of 16 awarded compensation to the extent of Rs. 2,44,500/-? which includes funeral expenses of Rs. 2000/- and loss of estate of Rs. 2500/-.? Feeling aggrieved, the appellant has preferred the instant appeal.?
4. Admittedly, the claim petition was filed under Section 163-A of the Motor Vehicle Act (hereinafter referred to as the Act).? Now it is well settled law that when ever claim petition is filed under Section 163-A of the Act, then compensation may be awarded on structured formula.? For convenience, Section 163-A of the Act is reproduced as under:-
"163-A- Special provisions as to payment of compensation on structured formula basis.- (1)? Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorized insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be.
Explanation- For the purposes of this sub-section, "permanent disability" shall have the same meaning and extent as in the Workmen's Compensation Act, 1923 (8 of 1923).?
(2) ? ?? In any claim for compensation under sub section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person.?
(3)????? The Central government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule."
5. A plain reading of Section 163-A of the Act reveals that? in any claim for compensation under sub-section (1) of Section 163-A of the Act, the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which claim has been made, was caused due to? wrongful act or neglect or default of the owner of the vehicle and the Court concerned may award compensation under Second Schedule to the legal heirs or the victim, as the case may be.? Second Schedule of the Act provides that the amount of compensation so arrived at shall be reduced by 1/3rd in consideration of expenses which the victim would have incurred towards maintaining himself had he been alive.? The boy having 14 years of age would also be required for the some amount for his maintenance.? Moreover, the provision contained in Second Schedule is statutory in nature and while awarding
