1. Appeal against High Court order limiting compensation award to the extent of court fees paid under the Motor Vehicles Act, 1988. (Para 2 , 4 )
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2024 Supreme(SC) 630
SUPREME COURT OF INDIA
PAMIDIGHANTAM SRI NARASIMHA, PANKAJ MITHAL, JJ.
Kavita Balothiya & Ors. – Appellants
VERSUS
Santosh Kumar & Anr. – Respondents
Civil Appeal No. 8053 of 2024 (@ SLP (C) No.16558 of 2024) [Diary No(s). 30309 of 2021]
Decided On : 22-07-2024
Advocates appeared:
For the Petitioner(s): Mr. Shishir Kumar Saxena, Adv. Mr. R.N. Parrek, Adv. Mr. Brijendra Singh, Adv. Mr. Jagmohan Pareek, Adv. Mr. Ajit Kulshreshtha, Adv. Mr. S.K. Bhandari, Adv. Mr. Jyotiraditya, Adv. Mr. Nityanand Mahato, Adv. Mr. Praveen Swarup, AOR
For the Respondent(s): Mr. Atul Nigam, Adv. Ms. Tanvi Nigam, Adv. Ms. Parul Sharma, Adv. Mrs. Priya Puri, AOR
For the Petitioner(s): Mr. Shishir Kumar Saxena, Adv. Mr. R.N. Parrek, Adv. Mr. Brijendra Singh, Adv. Mr. Jagmohan Pareek, Adv. Mr. Ajit Kulshreshtha, Adv. Mr. S.K. Bhandari, Adv. Mr. Jyotiraditya, Adv. Mr. Nityanand Mahato, Adv. Mr. Praveen Swarup, AOR
For the Respondent(s): Mr. Atul Nigam, Adv. Ms. Tanvi Nigam, Adv. Ms. Parul Sharma, Adv. Mrs. Priya Puri, AOR
IMPORTANT POINT
Just compensation – There is no restriction upon court to award compensation exceeding amount claimed – It is duty of Tribunal or Court under Section 168 of Motor Vehicles Act, 1988 to award just compensation.
Headnote:
Motor Vehicles Act, 1988 – Section 168 – Just compensation – There is no restriction upon court to award compensation exceeding amount claimed – It is duty of Tribunal or Court under Section 168 of Motor Vehicles Act, 1988 to award just compensation – Since the Act is a beneficial legislation a “just compensation” is one which is fair and reasonable on the basis of evidence adduced irrespective of amount claimed – If appellants are entitled to a higher amount than claimed, they are entitled to be paid actual compensation as determined by court – Appellants had claimed total sum of Rs. 38,34,000/- and just and fair compensation that has been determined by court is Rs. 28,00,375/-, irrespective of appellants confining claim in appeal to Rs. 4,00,000/- in addition to amount awarded by Tribunal i.e. Rs. 19,55,250/-, appellants are entitled to amount of compensation as actually determined by court i.e. Rs. 28,00,375/- – Appellants permitted to amend claim amount in the appeal and to pay court fee on additional amount of compensation. (Paras 6, 7, 8 and 10)
Facts of the case:
Present appeal arises out of the judgment and order passed by High Court of M.P. at Gwalior dated 26-06-2019 in Misc. Appeal No. 691/2016 whereby High Court allowed Misc. Appeal but limited the award of the compensation to the extent court fees was paid by the appellants.
Findings of Court:
Appellants to amend claim amount in appeal and to pay court fee on additional amount of compensation of Rs. 28,00,375/- less the amount awarded i.e. 19,55,250/- and additional amount of Rs. 4,00,000/-, on which court fee appears to be already paid, i.e. Rs. 4,45,125/-, within a period of four weeks from today whereupon the amount of compensation determined by court shall be paid to the appellants within a further period of four weeks thereafter.
Result : Civil Appeal allowed.
Legal Category Hierarchy
Table of Contents
2. Contention that just compensation should be awarded regardless of the amount claimed in the petition or the valuation for court fee purposes. (Para 5 , 9 )
3. The Motor Vehicles Act is beneficial legislation requiring courts to award just compensation based on evidence, irrespective of the amount claimed. (Para 6 , 7 )
4. Under Section 168 of the Motor Vehicles Act, 1988, there is no restriction on awarding compensation exceeding the amount claimed. (Para 6 )
5. Appeal allowed; appellants permitted to amend the claim and pay deficient court fees to receive the full determined compensation. (Para 11 )
6. Can a court award compensation exceeding the amount claimed in a petition under the Motor Vehicles Act, 1988?
Yes. There is no restriction on the court awarding compensation exceeding the claimed amount. Under Section 168 of the Act, the court is duty-bound to award just compensation, which is fair and reasonable based on the evidence produced on record. (Para 6 )
7. Does the payment of court fees limit the amount of compensation a court can award?
No. The amount actually due and payable is to be awarded even if the claimants sought a lesser amount or the claim petition was valued at a lower value for court fee purposes. (Para 5 , 6 , 7 )
8. What constitutes just compensation under the Motor Vehicles Act, 1988?
Just compensation is an amount that is fair and reasonable on the basis of evidence produced on record, reflecting the nature of the Act as beneficial and welfare legislation. (Para 6 )
ORDER
1. Leave granted.
2. This appeal arises out of the judgment and order passed by the High Court of M.P. at Gwalior dated 26-06-2019 in Misc. Appeal No. 691/2016 whereby the High Court allowed the Misc. Appeal but limited the award of the compensation to the extent court fees was paid by the appellants. Paragraph 26 of the judgment is quoted hereunder:
“The Claims Tribunal has awarded Rs.19,55,250/- whereas this Court has held that the claimants are entitled for Rs.28,00,375/-. However, as the claimants have claimed only Rs.4,00,000/- in addition to the awarded amount and has valued their appeal accordingly, therefore, it is held that the claimants shall be entitled for an additional amount of Rs.4,00,000/- only”.
3. Heard the learned counsel appearing for the parties.
4. Compensation claimed by the appellants is Rs.38,34,000/- and the Fourth Motor Accident Claims Tribunal, Gwalior (M.P.) has awarded Rs.19,55,250/- and the High Court has held that the claimants are entitled for Rs.28,00,375/-. However, noting that the claimants have claimed only Rs.4,00,000/- in addition to the awarded amount, the High Court has confined the entitlement of the compensation for the additional amount only at Rs.4,00,000/-.
5. Learned counsel for the appellants has brought to our notice the decision of this Court in “Mona Baghel & ors. vs. Sajjan Singh Yadav & Ors. in (Civil Appeal @ out of SLP(C) NO.29207/2018) : 2022 0 Supreme(SC) 1779 wherein the Court has observed as under:
“The law is well settled that in the matter of compensation, the amount actually due and payable is to be awarded despite the claimants having sought for a lesser amount and the claim petition being valued at a lesser value.
Our view, is fortified by the decision of this Court in the Case of Ramla and Others Versus National Insurance Company Limited and Others 2019 2 SCC 192, wherein, it is held as under :
“Though the claimants had claimed a total compensation of Rs.25,00,000 in their claim petition filed before the Tribunal, we feel that the compensation which the claimants are entitled to is higher than the same as mentioned supra. There is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 is to award “just compensation”. The Motor Vehicles Act is a beneficial and welfare legislation. A “just compensation” is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time-barred. Further, there is no need for a new cause of action to claim an enhanced amount. The Courts are duty-bound to award just compensation. (See the Judgments of this Court in (a) Nagappa v. Gurudayal Singh, (b) Magma General Insurance Co. Ltd. v. Nanu Ram, (c) Ibrahim v.Raju).”
6. The above decision clearly lays down that there is no restriction upon the court to award compensation exceeding the amount claimed. It is the duty of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 (hereinafter referred to as “the Act”) to award just compensation. Since the Act is a beneficial legislation a “just compensation” is one which is fair and reasonable on the basis of the evidence adduced irrespective of the amount claimed.
7. In view of the above decision, if the appellants are entitled to a higher amount than claimed, they are entitled to be paid the actual compensation as determined by the court. 8. In the case at hand, the appellants had claimed a total sum of Rs. 38,34,000/- and the just and fair compensation that has been determined by the court is Rs. 28,00,375/-, therefore, irrespective of appellants confining the claim in appeal to Rs. 4,00,000/- in addition to the amount awarded by the Tribunal i.e. Rs. 19,55,250/-, the appellants are entitled to the amount of compensation as actually determined by the court i.e. Rs. 28,00,375/-.
9. Learned counsel for the appellants submits that the appellants are ready and willin
