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2024 Supreme(Online)(GUJ) 24836
HIGH COURT OF GUJARAT
MR. JUSTICE J. C. DOSHI, J
NANDABEN WD/O DECEASED DILIPBHAI @ DIWANSINGH DAYABHAI – Appellant
Versus
JAYANTIBHAI HARIBHAI PATEL – Respondent
FIRST APPEAL NO. 1199 of 2012
The court established that compensation under the Motor Vehicles Act must be calculated based on just and fair principles, emphasizing a holistic approach to reflect the actual loss suffered by the claimants.
Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - First Appeal against the judgment and award dated 7.12.2011 by the Motor Accident Claims Tribunal - The Tribunal erred in calculating compensation, failing to consider prospective income, negligence, and family circumstances. (Para 3)
(B) Just and fair compensation - The principle of just compensation is integral to the MV Act, requiring a holistic and pragmatic approach in determining compensation. (Para 5)
(C) Compensation Calculation - The court held that claimants are entitled to an enhanced compensation of Rs.3,01,160/- with 8% interest from the date of filing the claim petition. (Para 7)
(D) Liability of Insurance Company - The court determined that the Insurance Company is vicariously liable to pay the awarded compensation. (Para 9.2)
Facts of the case:
The accident occurred on 5.11.1998, resulting in the immediate death of the deceased. The Tribunal originally awarded Rs.4,00,500/- as compensation.
Findings of Court:
The claimants are entitled to Rs.7,01,660/- as total compensation, which includes additional amounts for future dependency and other losses.
Issues: The main issues were the adequacy of the compensation awarded and the liability of the Insurance Company.
Ratio Decidendi: The court emphasized that the Tribunal must adopt a liberal approach to compensation, ensuring it is just, fair, and equitable.
Result: The appeal is partly allowed, and the Insurance Company is directed to pay the enhanced compensation.
ORAL ORDER
1. The present First Appeal, under Section 173 of Motor Vehicles Act, 1988, is preferred by the appellants – original claimants being aggrieved and dissatisfied with the judgment and award dated 7.12.2011 passed by the Motor Accident Claims Tribunal, Ahmedabad Rural at Mirzapur in Motor Accident Claim Petition No.945 of 1999.
2. Brief facts of the case are as under:
2.1 As per the case, the accident was occurred on dated 5.11.1998. Due to the accident, deceased sustained serious injuries and he died on the spot.
3. Learned advocate for the appellants - claimants has submitted that the Tribunal has committed an error in not properly calculating the amount of compensation. He has submitted that amount of award is on lower side as the Tribunal has not properly considered the various aspects; like prospective income of the deceased, negligence, liability and family circumstances, etc.
3.1 He has submitted that the compensation is required to be enhanced by modifying the award impugned accordingly and this appeal may be allowed.
4. Per contra, learned advocate for respondent – Insurance Company has submitted that the impugned judgment and award passed by the Tribunal is just and proper. The Tribunal has rightly considered the income of the deceased, the age of the deceased, the dependency and future aspect of income. He has submitted that under the head of loss of estate and funeral expenses, the Tribunal has rightly awarded compensation. He has submitted that the amount under the head of loss of consortium is just and proper. He has submitted that this appeal may be dismissed and no interference be made by this Court.
5. Apt to note that the Motor Vehicle Act, 1988 is a beneficial piece of Legislation. The concept of just and fair compensation is integral and seminal to the MV Act. The compensation to be awarded under the principle of just and fair compensation to the injured of the road accident or the legal representative/s of the deceased person is based on the principle of fairness, reasonableness and equability. Anguish of the heart or for mental turbulence being consequential result of the road accident cannot be actually compensated, but the quint essentiality lies in adopting holistic and pragmatic view to the computation of the compensation for the loss sustained, which is to be in the realm of realistic approximation. Although exact or perfect arithmetical calculation of compensation for reparation of the loss arrived from the road accident is almost impossible. The Tribunal is bestowed with duty to make an endevour to award just compensation regardless of the amount claimed by the claimants. The determination of the quantum of compensation therefore, must be liberal and not niggardly since the law values life and limb in a free country in generous scale. Needless to state that money may be awarded, so that something tangible may be procured to reach something else of the like nature, which has been destroyed or lost, but money cannot renew physical frame that has been battered and shattered being a result of the road accident. Yet Tribunal to endavour to bring back victim to stage of pre-road accident as far as possible Thus, the award must be reasonable and cannot be assessed with moderation though it cannot at the same time be pity and what could be granted must be just, fair and equitable compensation.
6.1 I have considered the submissions made by the rival parties. I have perused the record and proceedings of the Tribunal. I have gone through the impugned judgment and award passed by the learned Tribunal. From the record, it transpires that the learned Tribunal has erred in not properly considering the prospective future in income. Further, considering the ratio laid down by the Hon’ble Apex Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi reported in (2017) 16 SCC 680, the general and non-pecuniary damages, Rs.18,150/- each towards loss of estate and funeral expenses should be awarded. Towa
