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2019 Supreme(UK) 360

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Sudhanshu Dhulia, J.
Oriental Insurance Company Limited - Appellant
Vs.
Harish Chandra Joshi & Others - Respondents
Appeal From Order No. 647 of 2017
Decided On : 18-09-2019

Advocates Appeared:
T.A. Khan, Adv., Aditya Kumar Arya, Adv., Vinodanand Barthwal, Adv., I.D. Palliwal, Adv.

Liability of the insurance company and the owner of the vehicle under Section 149(2) of the Motor Vehicles Act, 1988, and the calculation of compensation under various sections of the Act.

Headnote:

Motor Accident - Compensation - 1. Motor Vehicles Act, 1988, Section 149(2) - 2. Motor Vehicles Act, 1988, Section 166 - 3. Motor Vehicles Act, 1988, Section 168 - 4. Motor Vehicles Act, 1988, Section 173 - 5. Motor Vehicles Act, 1988, Section 174 - 6. Motor Vehicles Act, 1988, Section 175 - 7. Motor Vehicles Act, 1988, Section 196 - 8. Motor Vehicles Act, 1988, Section 198 - 9. Motor Vehicles Act, 1988, Section 199 - The court discussed the liability of the insurance company and the owner of the vehicle under Section 149(2) of the Motor Vehicles Act, 1988. The court also considered the calculation of compensation under Sections 166, 168, 173, 174, 175, 196, 198, and 199 of the Motor Vehicles Act, 1988, including the notional income of the deceased, deduction towards personal expenses, and the application of a multiplier for calculating the compensation. The court modified the liability to pay compensation, highlighting the insurance company's obligation to deposit the entire amount first before recovering fifty per cent from the owner of the vehicle.

Fact of the Case:

The deceased was the driver of a vehicle that met with an accident, resulting in his death. A claim petition seeking compensation was filed, and the Motor Accident Claims Tribunal awarded a compensation of Rs. 3,36,000/- along with an interest rate of 6 per cent per annum.

Finding of the Court:

The court modified the liability to pay compensation, holding the insurance company liable for fifty per cent of the total compensation and the owner of the vehicle liable for the remaining fifty per cent. The insurance company was directed to deposit the entire amount of compensation first before recovering fifty per cent from the owner of the vehicle.

Issues: The issues included determining the cause of the accident, the validity of the documents of the offending vehicle and the driving licence of its driver, and the amount of compensation the claimants were entitled to.

Ratio Decidendi: The court's decision was based on the liability provisions under Section 149(2) of the Motor Vehicles Act, 1988, and the calculation of compensation under Sections 166, 168, 173, 174, 175, 196, 198, and 199 of the Act.

Final Decision: The court partly allowed the appeal, modifying the liability to pay compensation and directing the insurance company to deposit the entire amount of compensation first before recovering fifty per cent from the owner of the vehicle.

JUDGMENT :

Sudhanshu Dhulia, J.

This appeal from order arises out of an award passed by the Motor Accident Claims Tribunal, Pauri Garhwal dated 31.08.2017 passed in MACP No. 11 of 2016, whereby a compensation of Rs. 3,36,000/- (Rupees Three Lakh Thirty Six Thousand only) has been awarded to the claimants along with an interest rate of 6 per cent per annum from the date of filing the claim petition.

2. Brief facts of the case are that Sonu (deceased) was the driver of the vehicle bearing registration no. U.K.12CA/0352. On 15.06.2012 at about 09:00 P.M., when he was plying the vehicle from Nainidanda to Baijro-Pauri, near Village Sukai, Birokhal, the vehicle met with an accident, as a result of which, driver of the vehicle Sonu sustained grievous injuries and died on the spot.

3. On account of the death of Sonu in a motor accident, a claim petition was filed by the claimants seeking a compensation of Rs.27,54,000/- (Rupees Twenty Seven Lakh Fifty Four Thousand only). It was alleged in the claim petition that the deceased was 28 years of age and was getting Rs.10,000/- (Rupees Ten Thousand only) per month as salary.

4. Written statements were filed by the owner of the vehicle as well as the Insurance Company, with which the vehicle involved in the accident, was insured.

5. On the basis of the rival pleadings of the parties, the Motor Accident Claims Tribunal framed the following issues:-

"1. Whether the accident took place on 15.6.2012, at about 9:00 P.M., near Village Sukai (Bironkhal) by the vehicle bearing No. U.K. 12 CA-0352, due to technical fault in the vehicle, consequently, deceased Sonu, who was driving the offending vehicle, sustained grievous injuries and died?

2. Whether the accident occurred due to own negligence of the deceased (driver)?

3. Whether all the relevant documents of the offending vehicle and driving licence of its driver were not valid and effective at the time of accident?

4. To what amount of compensation, if any, the claimants are entitled and from whom?"

6. So far as issue nos. 1 and 2 are concerned, the learned Tribunal came to the conclusion that on the fateful day, the offending vehicle No. U.K.12 CA-0352 met with an accident, in which deceased Sonu, who was driving the offending vehicle, sustained injuries and died on the spot.

7. So far as issue no. 3 is concerned, the learned Tribunal came to the conclusion that at the time of accident, all the documents of the offending vehicle, including the driving licence of its driver were valid and effective.

8. As regarding the quantum of compensation, the learned Tribunal has taken into consideration the notional income of the deceased as Rs. 3,000/- (Rupees Three Thousand only) per month i.e. Rs. 36,000/- (Rupees Thirty Six Thousand only) per annum. Keeping in view that the deceased was a bachelor, one-half amount was deducted towards personal expenses and the annual dependency income was calculated by the Tribunal as Rs. 18,000/- (Rupees Eighteen Thousand only). Thereafter considering the age of the deceased as 28 years at the time of the accident, a multiplier of 17 was applied by the Tribunal and a compensation of Rs. 3,06,000/- (Rupees Three Lakh Six Thousand only) was calculated.

9. Apart from the above, the learned Tribunal also awarded a sum of Rs. 10,000/- (Rupees Ten Thousand only) towards loss of estate, Rs. 10,000/- (Rupees Ten Thousand only) towards loss of love and affection and Rs. 10,000/- (Rupees Ten Thousand only) towards funeral expenses. Thus a total compensation of Rs. 3,36,000/- (Rupees Three Lakh Thirty Six Thousand only) has been awarded as compensation by the Tribunal.

10. Aggrieved the insurance company has filed the present appeal.

11. The only ground taken by the insurance company is regarding its liability. It does not dispute the amount of compensation determined. According to the appellant/insurance company, the driving licence which was with the driver was of light motor vehicle and the licence clearly stipulated that it is not for the t

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