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2017 Supreme(MP) 273

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BENCH
Vivek Rusia, J.
Oriental Insurance Co. Ltd. - Appellant
Versus
Asha Devi Potdar and others - Respondents
Miscellaneous Appeals Nos. 3432 & 3900 of 2006
Decided On : 18-05-2017

Advocates:
Advocate Appeared:
For the Appellant : S.V. Dandwate
For the Respondent: Sourabh Neema

The main legal point established in the judgment is the application of legal principles from various judgments to determine just and proper compensation under the Motor Vehicles Act, considering factors such as gross income, future prospects, multiplier, dependency, family members' earning, and loss of love and affection.

Headnote:

Compensation - Motor Accident Claims Tribunal - Motor Vehicles Act - 2008 ACJ p.614 SC, 2011 ACJ p. 141 SC, 2015 ACJ p. 1985 SC, 2013 ACJ p. 1403 SC, 2011 ACJ p.743 SC, 2012 ACJ p.2131 SC, 2009 ACJ p. 1298 SC, 2003 ACJ p.1382M.P.D.B., 2007 ACJ p.959 M.P. D.B., Miscellaneous Appeal No. 188/98 - Gross income, Future prospects, Multiplier, Dependency, Family members' earning, Loss of Love and affection

Fact of the Case:

The case involved a road accident resulting in the death of Vishal Potdar, leading to a dispute over the quantum of compensation between the claimants and the insurance company. The claimants sought enhancement of compensation, while the insurance company challenged the amount awarded by the Motor Accident Claims Tribunal (MACT).

Finding of the Court:

The court found that the MACT had erred in assessing the compensation and proceeded to enhance the compensation amount based on various legal principles and judgments cited by both parties. The court considered the deceased's future prospects, gross income, multiplier, dependency, and family members' earning, ultimately allowing the claimants' appeal and dismissing the insurance company's appeal.

Issues: Dispute over the quantum of compensation, proper assessment of compensation under the Motor Vehicles Act

Ratio Decidendi: The court applied legal principles from various judgments to determine the appropriate compensation, considering factors such as gross income, future prospects, multiplier, dependency, family members' earning, and loss of love and affection.

Final Decision: The court allowed the claimants' appeal, enhancing the compensation amount to Rs. 49,37,500/- along with interest at 6% from the date of filing of the claim till payment, and dismissed the insurance company's appeal.

ORDER :

Vivek Rusia, J.

Both the miscellaneous appeals are arising out of the award dated 23.8.2016, passed in the Claim Case No.37/2006, hence, both the appeals are being decided co-jointly.

2. Miscellaneous Appeal No.3432/2006 has been filed by the Oriental Insurance Company challenging the quantum of compensation awarded in favour of respondents No. 1 and 2 (claimants). The Miscellaneous Appeal No.3900/ 2006 has been filed by the claimants No.1 and 2 for enhancement of the compensation amount.

3. For disposal of these two appeals, the facts from Miscellaneous Appeal 3900/2006 are being taken which are as under:

4. On 22.9.2004, at about 2:15 p.m. near Yadav Dhaba Indore-Dhar Road, Gram Billor a Car bearing registration No.MP09/T-0363 had an accident with a Truck bearing registration No.MP09/K/5 863. The said car was owned by non-appellant No.4 and driven by late Gauri Shankar. Both the Car and Truck were insured by Oriental Insurance Company. In the said accident Mr. Anil Mittal, Mrs. Mridula Mittal, Ku. Amrita Mittal and Mr. Vishal Potdar received grievous injuries and immediately they were taken to Choithram Hospital. Due to the said accident Kumari Amrita Mittal died on the way to hospital and Mr. Anil Mittal and Mr. Vishal Potdar died on 22.9.2004 in Choithram Hospital during their treatment. Their dead bodies were sent for the post-mortem by the police after lodging the FIR in Betma Police Station, District Indore.

5. After getting the information about said accident, appellants No. 1 and 2 the claimants i.e. mother and father of Vishal Potdar came to Indore from Mumbai and took his dead body to Mumbai to perform last rites.

6. Appellants No. 1 and 2 respondent No. 1 filed claim case before the Motor Accident Claims Tribunal, Indore which was registered as Claim Case No.68/2005. According to the claimant, after acquiring the degree of BMA from Drexel University, USA in the year 2003. Vishal has started his career as Executive in Siyaram Silk Mills Ltd., Mumbai w.e.f. 1.7.2003 on salary of Rs.34,250/- per month. At the time of death of Vishal was aged about 25 years 8 months. His future was very bright, he could have been promoted to the post of Executive Officer with the salary of Rs. 1.00 lac. He was only son of claimants, therefore, they were totally dependent on his income. The tmck was driven by the driver rashly and negligently and dashed the car due to which Vishal has died. Before the MACT, Indore, the claimants have claimed the amount of Rs.2.50 crore under different heads as compensation.

7. After notice, the Oriental Insurance Company filed the reply opposing the compensation on the ground that it is highly excessive and on a higher side. In support of the claim, claimants has got exhibited as many as 58 documents including passport, salary certificate, income tax return of late Vishal Potdar. Claimant No. 1 examined himself as PW 1, Ashok Jalaan as PW2, Surendra S. Shetty as PW3, Ramesh Sisodiya as PW4.

8. Insurance Company did not examined any witness and did not produce any document in the claim case. Learned MACT has passed the award dated 23.8.2008 by recording the finding that Vishal Potdar has died due to the accident caused by the truck driver while driving the truck rashly and negligently. There was no violation of terms and conditions of the insurance policy by the truck and the claimants are entitled to get the compensation. Learned MACT has awarded the amount of Rs.20.35 lacs as compensation along with the interest @ 6% from 13.4.2005 till payment. Learned MACT while assessing the compensation has considered the income of Vishal Potdar as Rs.34,456/-per month (Rs.5.40 lacs per annum) on the basis of salary certificate and income tax return. Looking to the age of claimants No. 1 and 2 as 50 and 55 years, multiplier of 11 was applied and since Vishal Potdar was unmarried, therefore, the dependency was as







































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