Back
S.K. Dubey, U Shukla J.
Radhey Shyam Agarwal And Anr.
vs
Gayatri Devi And Ors.
DECIDED ON : 22 November, 1996
MOTOR VEHICLES ACT, 1988 - SECTION 149 - INSURANCE - LIABILITY OF INSURER - OVERLOADING OF PASSENGER BUS - NOT A GROUND FOR REPUDIATION OF LIABILITY - COMPENSATION - QUANTUM - MULTIPLIER METHOD - DEDUCTION FOR LUMP SUM PAYMENT AND UNCERTAINTIES OF LIFE NOT PERMISSIBLE.
Fact of the Case:
Deceased Mahendra Prasad Das was a passenger in a stage carriage bus owned by the appellant. The bus was overloaded and was carrying passengers more than its seating capacity permitted by the conditions of the permit. Due to the rash and negligent driving of the bus, the door of the bus got suddenly opened and the deceased was thrown out of the bus and died instantaneously. The widow and minor children of the deceased filed a claim for compensation under Section 166 of the Motor Vehicles Act, 1988.
Finding of the Court:
The Tribunal awarded compensation of Rs. 1,72,000/- with interest thereon at the rate of 12 per cent per annum from the date of application till payment. However, the Tribunal exonerated the insurer, the United India Insurance Co. Ltd., as the vehicle was being driven in breach of the conditions of the permit and that of the policy, directed the owner and driver of the vehicle to pay the compensation jointly or severally.
Issues: 1. Whether the insurer can disown its liability under Section 149 of the Act because the policy contained a clause that the vehicle would not be allowed to be used for the purpose not allowed by the permit and whether overloading would constitute violation of the purpose of permit? 2. Whether the quantum of compensation awarded by the Tribunal is appropriate?
Ratio Decidendi: 1. The Court held that the insurer cannot disown its liability under Section 149 of the Act because overloading of the passenger bus is not a ground for repudiation of liability. The purpose of the stage carriage was to carry passengers and obviously the bus was carrying passengers. It was not being used for other purposes than carrying the passengers or being used like goods carrier. The vehicle was being used for sanctioned purpose and if any condition or conditions are violated either by overspeeding or overloading or any condition of permit that will be a breach of conditions of permit, but it cannot be said that the vehicle was used for the purpose not authorised by the permit. 2. The Court held that the quantum of compensation awarded by the Tribunal is low. The deceased was a young man of 30 years who left behind six dependants. According to II Schedule under Section 163A, the multiplier of 17 ought to have been applied. If that multiplier is applied to the multiplicand of Rs. 12,000/- the amount of compensation would come to Rs. 2,04,000/-. However, as the claimants have not filed any cross-appeal or cross-objection, hence, the Court is not inclined to enhance the amount of compensation.
Final Decision: The appeal is allowed with no order as to costs. The insurer is directed to deposit the amount awarded with 12 per cent interest from the date of application within two months from the date of receipt of certified copy of the order failing which the amount so awarded would carry interest at the rate of 15 per cent per annum. After deposit the amount shall be disbursed to the claimants keeping in mind the guidelines laid down by the Supreme Court.
S.K. Dubey, J.
1. Owner of stage carriage bus CIL 9025 has filed this appeal under Section 173 of the Motor Vehicles Act, 1988 (Act) against the award dated 17.7.1995 passed in Motor Accident Claim Case No. 7 of 1993 by the First Additional Motor Accidents Claims Tribunal, Ambikapur.
2. Facts giving rise to this appeal are thus: On fateful day of 13.12.1992 the bus No. CIL 9025 owned by appellant, driven by respondent No. 8 and insured by respondent No. 7 was carrying excess passengers than its seating capacity permitted by the conditions of permit 47+1 + 1 + 1 including driver, conductor and khalasi. Deceased Mahendra Prasad Das, aged about 30 years, was one of the passengers travelling in the said bus by standing on the footboard of the gate of the bus which was closed. When it reached near village Raipur, because of rash and negligent driving of the bus, the door of the bus got suddenly opened as a result of which deceased was thrown out of the bus and was dragged to some distance as a result of which he received multiple injuries and died instantaneously.
3. The respondent No. 1, aged 26 years, the widow of the deceased and five minor children of the deceased aged six months to 12 years respectively, the respondent Nos. 2 to 6 filed an application under Section 166 of the Act to claim compensation of Rs. 3,82,000/- with interest thereon for the death of Mahendra Prasad Das caused due to rash and negligent driving of the bus. The appellant and the respondent Nos. 7 and 8 contested the claim. The main defence of the insurer was that the vehicle was overloaded and was carrying passengers more than its seating capacity permitted by the conditions of permit in breach of the conditions of the policy and the permit, therefore, the insurer is not liable to indemnify the insured, the owner of the bus or to pay compensation to the legal representatives of the deceased.
4. Learned Tribunal on the evidence adduced by the parties held that death of Mahendra Prasad Das was a result of rash and negligent driving of the bus, the deceased was earning about Rs. 3,250/- per month from his leather business. The Tribunal on the evidence estimated dependency at Rs. 1,000/- per month, yearly Rs. 12,000/-. Applying the multiplier of 25 calculated compensation of Rs. 2,70,000/- out of which deduction was made towards the lump sum payment and uncertainties of life. The amount was determined at Rs. 1,50,000/- wherein Rs. 5,000/- were awarded towards consortium, Rs. 15,000 for loss of company to minor children and Rs. 2,000/- for funeral expenses. Thus, the total compensation of Rs. 1,72,000/- was awarded with interest thereon at the rate of 12 per cent per annum from the date of application till payment. However, the Tribunal exonerated the insurer, the United India Insurance Co. Ltd., as the vehicle was being driven in breach of the conditions of the permit and that of the policy, directed the owner and driver of the vehicle to pay the compensation jointly or severally.
5. Mr. B.K. Rawat, counsel for the appellants, Mr. Sunil Sinha, counsel for the respondent Nos. 1 to 6 and Mr. N.S. Ruprah, counsel for the respondent No. 7 heard. Record perused.
6. The first question for our consideration is whether insurer can disown its liability under Section 149 of the Act because the policy Exh. NA 1 contained a clause that the vehicle would not be allowed to be used for the purpose not allowed by the permit and whether overloading would constitute violation of the purpose of permit. The policy lays down the limitations as to use of the vehicle, i.e., use only for carriage of passengers in accordance with the permits (contract carriage or stage carriage) issued within the meaning of 1988 Act. Section I of the policy, Exh. NA 1, deals with loss or damage. For the purpose of this appeal, Sub-clause (a) of Clause (2) of section I is relevant which we quote:
Section I - Loss or Damage
xxx xxx xxx
(2) The company shall not be liable to make any payment in respect o
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
