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2024 Supreme(MP) 239

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
ANIL VERMA, J.
CHOLAMANDALAM MS GENERAL INSURANCE – Petitioner
Versus
HAJARILAL – Respondent
Misc. Appeal No. 3433 of 2022
Decided On : 16-02-2024

Advocates:
Advocate Appeared:
For the Petitioner: Pankaj Kumar Jain.
For the Respondent: Akhil Godha.

IMPORTANT POINT
Legal representatives of a deceased can claim compensation under the Motor Vehicles Act irrespective of their dependency status.

Headnote:

Compensation - Motor Vehicles Act - Sections 166, 173 - The court interpreted the provisions regarding legal representatives entitled to claim compensation, emphasizing that dependency is not a prerequisite for filing a claim under the Act.

Fact of the Case:

The appellant, an insurance company, challenged an award of compensation granted to the deceased's brother after a fatal motorcycle accident caused by a negligent driver. The deceased was unmarried and had no surviving parents.

Finding of the Court:

The court found that the respondent, as a legal representative of the deceased, was entitled to claim compensation despite not being financially dependent on him. The court also noted the omission of the deceased's younger sisters as legal representatives.

Issues: Whether the brother of the deceased, who was not financially dependent on him, could claim compensation under the Motor Vehicles Act, and whether the younger sisters should be included as legal representatives.

Ratio Decidendi: Legal representatives can claim compensation regardless of dependency, and the definition of 'legal representative' includes siblings. The court emphasized the need for all legal heirs to be considered in compensation claims.

Result: The appeal was allowed, the award set aside, and the matter remanded for fresh consideration including all legal representatives.

ORDER :

1. With the consent of both the parties, matter is heard finally at the stage of motion hearing.

2. This Misc. appeal has been filed by the appellant/Insurance Company under Section 173(1) of the Motor Vehicles Act, 1988 (in short ‘MV Act’) for setting aside the impugned award dated 30-3-2021 passed by the 2nd Additional Member, MACT, Rajgarh in MACC No. 5/2018, whereby an award of compensation of Rs. 16,32,200/- has been awarded in favour of respondent No. 1.

3. The relevant and necessary facts are that on 23-9-2017 at about 11:45 pm, while the deceased Rambabu along with his friend Peerulal was going to village Choma on a motorcycle, at that time, nearby the College, respondent No. 2/driver of the Tractor bearing Registration No. MP-70-A-0769 had driven the said vehicle at high speed rashly and negligently and hit the deceased’s motorcycle, due to which 32 years old deceased Rambabu seriously injured. The vehicle was insured offending by appellant’s Company.

4. The respondent No. 1 has preferred a claim petition before the claims Tribunal and claims Tribunal after scrutinizing the evidence available on record, awarded the compensation of an amount of Rs. 16,32,200/- in favour of the respondent No. 1. Being aggrieved by the impugned award, appellant has preferred this Misc. Appeal.

5. Learned counsel for the appellant submits that deceased Rambabu was unmarried and his parents have already been died. Respondent No. 1 is the brother of deceased. He has his own source of income and was not dependent upon the deceased. The respondent No. 1/ claimant being legal representative of the deceased is entitled to get compensation to the extent of no fault liability i.e. Rs. 50,000/-. These material aspects are not considered by the below Tribunal. In absence of proof of income, notional income of Rs. 9,000/- per month is on much higher side. Insurance Company of the motorcycle is a necessary party. Hence, he prays that impugned award be set aside.

6. Per contra, learned counsel for respondent No. 1 opposes the prayer and prays for its rejection by submitting that impugned award passed by below Tribunal is just and proper and does not deserve for any interference.

7. Counsel for both the parties heard at length and perused the record of below Tribunal with due care.

8. In the case of National Insurance Company Ltd. vs. Birender and others, 2020 (11) SCC 356, Hon’ble Apex Court has held that “even major married and earning sons of deceased being legal representatives have a right to apply for compensation and it would be bounden duty of Tribunal to consider application irrespective of whether they were fully dependent on deceased or not, in accordance with law.” Para numbers 12 and 14 are reproduced as below:

    “12. The legal representatives of the deceased could move application for compensation by virtue of clause (c) of Section 166(1). The major married son who is also earning and not fully dependent on the deceased, would be still covered by the expression “legal representative” of the deceased. This Court in Manjuri Bera Manjuri Bera vs. Oriental Insurance Co. Ltd. (2007) 10 SCC 643 : (2008) 1 SCC (Cri) 585 had expounded that liability to pay compensation under the Act does not cease because of absence of dependency of the legal representative concerned. Notably, the expression “legal representative” has not been defined in the Act. In Manjuri Bera Manjuri Bera vs. Oriental Insurance Co. Ltd. (2007) 10 SCC 643 : (2008) 1 SCC (Cri) 585, the Court observed thus: (SCC pp. 647-648, Paras 9- 12)

“9. In terms of clause (c) of sub-section (1) of Section 166 of the Act in case of death, all or any of the legal representatives of the deceased become entitled to compensation and any such legal representative can file a claim petition. The proviso to said sub-section makes the position clear that where all the legal representatives had not joined, then application can be made on behalf of the legal representatives of the deceased by impleading tho

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