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1987 Supreme(MP) 265

High Court Of Madhya Pradesh
B. C. VARMA, RAM PAL SINGH
MALTI - Appellant
Versus
SUNDER TRANSPORT CO.REWA - Respondents
M. F. A. 64 Of 1981
Decided On : 08/31/1987

Advocates Appeared:
N.K.SHUKLA, P.C.Naik, S.Q.HASAN

The court reiterated the principles for assessing just compensation in motor accident cases, including the consideration of the deceased's age, life expectancy, income, contribution to the family, and the application of appropriate multipliers and interest rates. It also clarified that insurance amount, provident fund, gratuity, and family pension are not deductible from the compensation amount, except for the ex gratia grant.

Headnote:

MOTOR VEHICLES ACT - SECTION 110-B - COMPENSATION - ASSESSMENT - PRINCIPLES - JUST COMPENSATION - FACTORS TO BE CONSIDERED - MULTIPLIERS - INTEREST - DEDUCTIONS - EX GRATIA GRANT - INSURANCE AMOUNT - PROVIDENT FUND - GRATUITY - FAMILY PENSION.

Fact of the Case:

A passenger bus carrying more than 100 passengers met with an accident due to rash and negligent driving, resulting in the death of over 90 passengers. The widows of two deceased passengers filed claims for compensation before the Motor Accidents Claims Tribunal.

Finding of the Court:

The Tribunal awarded compensation to one of the claimants, considering the deceased's age, life expectancy, income, and contribution to the family. However, it denied compensation to the other claimant, holding that she had received various benefits, including ex gratia grant, family pension, and inheritance, which exceeded the assessed compensation amount.

Issues: 1. Whether the compensation awarded by the Tribunal was just and proper. 2. Whether the Tribunal erred in deducting certain amounts from the compensation, including insurance amount, provident fund, gratuity, and family pension.

Ratio Decidendi: 1. The court held that the compensation awarded by the Tribunal was inadequate and unjust. It observed that the multiplier of 8 years used by the Tribunal to calculate the deceased's income was too low and should be increased to 10 years. The court also held that the rate of interest awarded by the Tribunal was too low and should be increased to 12% per annum. 2. The court held that the Tribunal erred in deducting certain amounts from the compensation, including insurance amount, provident fund, gratuity, and family pension. It held that these amounts, except for the ex gratia grant, are not deductible from the compensation amount.

Final Decision: The court modified the award of the Tribunal in one appeal and set aside the award in the other appeal, directing the payment of compensation to the claimants along with interest and costs.

RAM PAL SINGH, J.

( 1 ) THIS order shall also dispose of M. A. No. 74/81 (Smt. Nirmala Tiwari v. Tekchand ). In both these appeals u/s. 110-D of the Motor Vehicles Act, the claimants/appellants have challenged the correctness and legality of awards passed by the Motor Accidents Claims Tribunal, Satna, in Claim Cases Nos. 63 and 64 of 1977 by judgement dated 3-11-80.

( 2 ) ON 22-8-76 a passenger Bus No. M. P. A. 2983, whose registered owner is respondent No. 1, was proceeding with passengers from Satna to Govindgarh via Bela. The bus is alleged to be over-loaded and is said to be carrying more than hundred passengers. When it passed the embankment road of Lilji dam, beyond Bela towards Govindgarh at or about 11-30 a. m. , the front tyres which were not only weak, old and remoulded, suddenly burst and the bus swerved towards dam, fell in the water. The bus was also allegedly being driven rashly and negligently by respondent No. 2. The result was that more than 90 men, women and children died in the liquid grave. Those who could extricate themselves from the watery grave, swam to safety. On receiving the information of this tragedy, Government machinery moved, rescue operation commenced, a team of doctors examined the dead bodies and in the end the dead bodies were handed over to the relatives with death certificates and post-mortem reports, for final disposal. Claimants/appellants are respectively 19 years and 25 years, widows of Suresh Kumar Vishwakarma and Ravi Shankar Tiwari and it is they, along with other unfortunate claimants, who filed the claims before the Motor Accidents Claims Tribunal. Respondent 3 is the Insurance Company. Smt. Malti, a 19 years widow, in M. A. No. 64/81, originally claimed the compensation before the Tribunal, for the death of her 20 years old young husband, Rs. 4,47,000/- and Smt. Nirmala Tiwari along with her young children, in M. A. No. 74/81, claimed Rs. 2,38,000/ -. Respondents 1, 2 and 3 contended before the Tribunal that they are not liable to pay compensation as claimed, but it was the State of M. P. who was the real culprit who had not planted any road signs by the side of the road. They also contended that the Public Works Department of Madhya Pradesh had not maintained the road properly at the site of the accident. They further contended that they had not lifted the passengers more than the permissive limit, but the unfortunate passengers forcibly entered the bus at Bela for reaching their home by evening because of 'khajulaivan' festival.

( 3 ) THE learned Claims Tribunal answered the issues by a lengthy common judgement and thus disposing of more than 50 claims pending before it. Issues were answered thus in Claim Case No. 63/80 : (I) Suresh Kumar, husband of claimant was a passenger in ill-fated bus No. M. P. A. 2983 on 22-8-76 and said Suresh Kumar died in the accident while the vehicle was being driven rashly and negligently. (II) Deceased Suresh Kumar was of 20 years of age at the time of his death and his life expectancy was 50 years. (III) Deceased Suresh Kumar, after passing High School examination, passed first year of his training as Turner and was studying in second year at the time of his death. (IV) After completing his training as Turner, Suresh would have contributed Rs. 1800/- per year to the dependents of his family. (V) Due to untimely demise of Suresh, his dependents were deprived of Rs. 14,400/- only. Reason for not awarding the costs was given by the Tribunal that the claim filed was inflated. (VI) Claimant is entitled to receive only Rs. 12000/- as compensation without costs. The Tribunal has evaluated the evidence and has given the reasons for these conclusions from paras 93 to 98 of the impugned judgement.

( 4 ) IN claim case No. 64/80, Smt. Nirmala Tiwari claimed compensation of Rs. 2,38,000/- for the death of her 32 years old husband Ravi Shankar Tiwari, who died in the said accident. The Tribunal answered the issues thus :- (I) Deceased Ravi Shankar Tiwari was










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