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2018 Supreme(SC) 283

SUPREME COURT OF INDIA
Dipak Misra, CJI., A.M. Khanwilkar, J.
Mangla Ram – Appellants
Versus
Oriental Insurance Co. Ltd. & Ors. – Respondents
Civil Appeal Nos. 2499-2500 of 2018 (Arising out of SLP (Civil) Nos. 28141-42 of 2017)
Decided On : 06-04-2018

Advocates Appeared:
For the Appellants :- Rishabh Sancheti, Ms. Padma Priya, Anchit Bhandari, P. V. Saravana Raja, Advocates.
For the Respondents:- Jaideep Singh, Ms. Aishwarya Bhati, Dr. Nupur Bhati, Ms. Chitrangada R., T. Gopal, Ms. Vaidruti Mishra, Vishwajeet Singh, Ms. Tanuja Patra, Ms. Ritu A., Amit Verma, Dasharath Singh, Ajay Pal, Advocates.

MAIN POINTS
Tribunal stricto sensu not bound by pleadings of parties. Its function is to determine amount of fair compensation.
Even if Insurance company is not held liable, principle of ‘pay and recover’ can be invoked.

Headnote:(a) Motor Vehicles Act, 1988 – Section 166 – Tribunal stricto sensu not bound by pleadings of parties – Its function is to determine amount of fair compensation – Standard of proof – Preponderance of probability – Tribunal taking a holistic view in reference to statements of witnesses forming part of the charge-sheet, FIR, Jeep Seizure Report in particular, to hold that Jeep No.RST-4701 driven by respondent No.2 was involved in the accident in question – Held, High Court not correct in reversing the finding – Negligence only one species for compensation in respect of the motor accident – There are other premises for such cause of action. (Para 16, 17, 20, 22)

       (2009) 13 SCC 530; (1980) 3 SCC 457; (2013) 10 SCC 646; (2011) 10 SCC 509; (2001) 2 SCC 9; (1990) 1 SCC 613; (1991) 4 SCC 584; (1987) 3 SCC 234 – Relied upon

       (1861-73) All ER Rep 1; (2012) 9 SCC 284; (2014) 1 SCC 244; 2015 SCC OnLine P& H 9926; 2011 SCC OnLine Ker 1881; 2014 SCC OnLine Del 362; 2015 SCC OnLine Bom 4613; 2017 SCC OnLine Pat 1145 – Referred

       (2007) 5 SCC 428; (1977) 2 SCC 441; (2012) 4 SCC 552 – Distinguished

       (b) Motor Vehicles Act, 1988 – Section 166 – Contributory negligence – Map showing spot where motor cycle was found lying – Tribunal taking it to be spot of accident and inferring contributory negligence of victim on account of being on wrong side of the road – Not proper – Motor bike pushed by accident and rested at spot in the map – Not the place of accident. (Para 23, 24)

       © Motor Vehicles Act, 1988 – Section 166 – Compensation – Tribunal not analyzing evidence of income of appellant in proper perspective – Not providing anything for loss of future prospects or loss of income due to permanent disability on account of amputation – Held appellant entitled to enhanced compensation – Compensation computed at Rs. 2,77,792/-. (Para 25, 27)

       AIR 2017 SC 5157 – Relied upon

       (d) Motor Vehicles Act, 1988 – Section 166 – No premium received, no policy issued – Cover note issued by the then Development Officer fraudulently – Insurance company not liable – However, principle of ‘pay and recover’ invoked. (Para 26)

       (2004) 3 SCC 297 – Relied upon

       (2000) 3 SCC 195 – Distinguished

       Facts of the case:

       The appellant, while he was riding his motorcycle, was hit by jeep No. RST-4701, owned by respondent No.3 and purportedly being driven by respondent No.2 at the time, resulting in serious injuries and ultimately, amputation of his right leg above the knee.

       The appellant subsequently filed an application before the Tribunal, seeking compensation against the respondents, including the respondent No.1 insurance company. He claimed 40% permanent disability and 100% functional disability and sought compensation to the tune of Rs. 11,17,000/-. Respondent Nos.2 and 3 denied the accident and the involvement of the jeep in question. The respondent No.1 insurance company argued that the jeep was not validly insured.

       The Tribunal calculated compensation of Rs. 1,27,000/- but, owing to the purported negligence of the appellant, reduced the amount by half and finally awarded a sum of Rs. 63,500/- to the appellant payable by the respondent Nos. 2 and 3 jointly.

       The High Court concluded that the Tribunal's findings were incorrect, unconvincing and not supported by evidence. The High Court, therefore, was pleased to set aside the Tribunal's award and allowed the appeal filed by the driver and owner of the jeep (respondent Nos. 2 and 3 respectively) while dismissing the appeal filed by the appellant.

       Finding of the Court:

       Appellant is entitled to enhanced compensation.

       Result : Appeals allowed.

Judgement Key Points

Key Points: - Tribunal must decide compensation based on preponderance of probability, not beyond reasonable doubt (!) (!) . - Insurance company not liable if no premium paid and no policy issued, but principle of "pay and recover" may apply (!) (!) . - Compensation includes medical expenses, disability loss, future prospects, and prosthetic costs computed on 40% permanent disability (!) (!) (!) .

What is the standard of proof applicable to motor accident claims before a Tribunal?

What are the liabilities of an insurance company when no valid policy was issued but a cover note existed?

What compensation heads are recoverable for permanent disability under the Motor Vehicles Act?


JUDGMENT

A.M. Khanwilkar, J.

In the present appeals, the appellant/claimant has challenged the judgment dated 5th January, 2017 passed by the High Court of Judicature for Rajasthan, Jodhpur Bench, in SB Civil Miscellaneous Appeal Nos.273 of 2001 and 290 of 2001, which set aside the award of the Motor Accident Claims Tribunal ['the Tribunal'] granting compensation to the appellant at the instance of respondent Nos.2 and 3 (driver and owner of the offending vehicle, respectively) as also negatived the appellant's prayer for enhancement of the compensation amount.

2. The appellant alleges that on or about 10th February, 1990, while he was riding his motorcycle, bearing No. RJ-19-6636, he was hit by jeep No. RST-4701, owned by respondent No.3 and purportedly being driven by respondent No.2 at the time, resulting in serious injuries and ultimately, amputation of his right leg above the knee. The appellant subsequently filed an application before the Tribunal, Jodhpur, seeking compensation against the respondents, including the respondent No.1 insurance company. He claimed 40% permanent disability and 100% functional disability, contending that his primary livelihood of driving heavy transport vehicles (HTVs) had been curtailed on account of his amputation, and sought compensation to the tune of Rs. 11,17,000/-. Respondent Nos.2 and 3 denied the accident and the involvement of the jeep in question. The respondent No.1 insurance company argued that the cover note purportedly taken for the jeep in question was fraudulent. The cover note had been given unauthorisedly by its then Development Officer, no premium had been deposited with the company and no policy had been issued in that regard. Thus, the jeep was not validly insured.

3. In its judgment dated 22nd November, 2000, the Tribunal discussed the evidence on record in detail. PW2 (Chainaram) and PW4 (Thanaram), who had taken the appellant to the hospital after the accident, deposed that after the accident, the jeep which caused the accident stopped ahead and they noted the jeep number in the backlight and further, they heard the driver's name being called out by the passengers in the jeep. The Tribunal, however, found that their version of having noted the jeep number and heard the driver's name seemed to be unnatural. The Tribunal also discarded the version of the appellant (PW1) about the details of the vehicle as being not reliable. The Tribunal then noted the evidence of the defence witnesses, that the jeep in question was nowhere near the area of the accident. The Tribunal, however, opined that the accident had been caused by the jeep in question, based on the investigation report filed by the police mentioning that when they seized the jeep after one month of the accident, the jeep bore a scratch on the mudguard of the tyre on the upper footboard on the left side. The Tribunal also relied on the charge sheet (Exh.1) filed by the police, wherein it has been stated that the accident was caused by the jeep in question on the basis of statements made by the appellant and other witnesses (Roopram, Thanaram and Pratap Singh). The Tribunal held that there was no reason to disagree with the conclusion of the police. In short, the Tribunal disbelieved the evidence of the appellant's witnesses, regarding the commission of accident by the jeep in question, as unreliable but nevertheless relied upon the investigation report as also the charge sheet filed by the police in that regard which was supported by two other witnesses who did not depose before the Tribunal.

4. The Tribunal then referred to the site map of the accident (Exh.2), to conclude that the appellant was riding his motorcycle one foot on wrong side from the middle of the road and hence, had contributed to the accident by being negligent. The Tribunal also accepted the plea of the respondent No.1 insurance company that the c



























































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