Summary of the Court's Opinion — Motor Accidents Claims Tribunal Appeals

Factual and Procedural Background

These Appeals challenge the judgment of the Member of the Motor Accidents Claims Tribunal, Raigad, Ratnagiri, in Accident Claim Case No. 55 of 1980. By the impugned judgment dated 23rd January 1984, the Tribunal ordered that the Applicant recover Rs. 3,00,000/- with interest at 10% per annum from the date of the Application, to be paid jointly and severally by the Opponents, but limited the liability of Opponent No. 4 (the truck insurer) to Rs. 50,000/-. Two First Appeals were filed in 1985: First Appeal No. 247 of 1985 by the owners of the truck (who had a limited liability insurance policy) and First Appeal No. 203 of 1985 by the owners/insurer of the luxury bus (the bus was fully insured and the insurer prosecuted the appeal).

Legal Issues Presented

Whether the Tribunal was correct in finding the truck driver negligent (and thus whether the truck owners and their insurer are liable).
Whether the Applicant was contributorily negligent (to what extent) and whether that should reduce or extinguish his claim.
Whether the computation of compensation by the Tribunal (amounts for medical expenses, pain and suffering, past loss of earnings and future loss of earnings) was excessive or required adjustment.
Whether the liability of the Opponents should be joint and several, and the appropriate apportionment of liability between the truck and the luxury bus (and the limits of insurers' liabilities).
Appropriate rate and commencement date for the award of interest on different heads of damages.

Arguments of the Parties

Appellants — Owners of the Truck (Mr. Kamat)

Contended that the Tribunal erred in holding the truck driver negligent; if that finding is overturned, neither the truck owners nor their insurer would be liable.
Argued that the Applicant contributed to the accident by his own negligence (specifically that a part of his arm was protruding through the window sill), and that contribution should reduce (or in their contention, possibly extinguish) recovery.
Maintained that the Tribunal’s calculation of compensation was improper and excessively high.
Contended that the Tribunal erred in making the truck owners jointly and severally liable with the owners of the luxury bus; further argued that the bus was more at fault than the truck.

Applicant and Other Contentions Noted in the Opinion

The Applicant's case, accepted by the Tribunal in part, was that medical and other expenses amounted to Rs. 3,000/-; pain and suffering awarded by the Tribunal was Rs. 20,000/-.
The Applicant gave evidence about his earnings: he claimed at one point to earn Rs. 100/- per month, and elsewhere deposed to earning about Rs. 200/- per month; he asserted inability to follow his avocation fully after the accident.
Mr. Kudrolli (appears opposing appellants on some points) submitted that the earning for the calculation should be taken at Rs. 2,500/- per month and also cited some Supreme Court observations to support awarding interest on certain heads from the date of the Application.

Table of Precedents Cited

No specific case names or decisions are quoted in the opinion. The text refers generically to "Supreme Court decisions" but does not identify them.

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court reviewed the Tribunal's factual findings and compensation calculations and proceeded step-by-step as follows:

Negligence and contributory negligence:
- The Tribunal had considered factual aspects properly and correctly; however, the court accepted that there was "some substance" to the appellants' complaint that the Applicant contributed to his injury to a limited extent by keeping his elbow on the window sill so that part of the arm protruded.
- The court held that this contributory act was limited in extent and not such negligence as would disentitle the Applicant completely, but it was a factor warranting reduction of the award.
Medical expenses and pain and suffering:
- The Tribunal's acceptance of Rs. 3,000/- for medical and other expenses was reasonable (in the court's view this figure was moderate given the amputation of the right arm).
- The award of Rs. 20,000/- for pain and suffering was also held not to be perverse or exaggerated; appellate courts may only interfere if an award is perverse.
Past loss of earnings:
- The Tribunal considered awarding loss of earnings for the 42 months between accident and disposal. The Applicant claimed limited monthly earnings (Rs. 100/- or Rs. 200/-); the court accepted that he could not have earned immediately and made an evidentiary estimate. It took an assessed earning of Rs. 2,000/- per month for a specified sub-period (see next item for specifics), and adjusted other figures accordingly.
Calculation of future loss of earnings:
- The court adopted Rs. 2,000/- per month as the annual income for loss of future earnings (i.e., Rs. 24,000/- per annum), noting Mr. Kudrolli's submission for Rs. 2,500/- but finding lack of precise details to support that higher figure.
- To assess future loss, the court selected a multiplier of 11 to apply to the annual figure of Rs. 24,000/-, producing Rs. 2,64,000/-. The court explained the multiplier depends on age, presumed earning span, and adjustment for lump-sum payment, and allowed for possible upward adjustments but emphasized these are estimates.
Aggregate computation before adjustments:
- The court aggregated: Rs. 3,000/- (medical), Rs. 20,000/- (pain and suffering), and Rs. 78,000/- (past loss/other adjustments noted in the Tribunal's calculation) plus Rs. 2,64,000/- (future loss) to arrive at a total of Rs. 3,65,000/- before accounting for contributory negligence and apportionment.
Reduction for contributory negligence and apportionment:
- The court applied a 25% reduction (one-fourth) on the aggregate figure to reflect the Applicant's limited contributory negligence, reducing Rs. 3,65,000/- to Rs. 2,73,750/-.
- The court then apportioned liability between the two vehicles in the ratio 2:1 (luxury bus:truck), holding that equal apportionment was inappropriate given the curve at the brushing point and the bus stopping after a considerable distance.
- Accordingly, from Rs. 2,73,750/-, the truck owners' share was fixed at Rs. 91,250/- and the luxury bus owners' share at Rs. 1,82,500/-. The liability of the two drivers was described as composite and not joint and several.
- Regarding insurance: the luxury bus being fully insured meant the bus owner’s insurer's liability would be co-extensive; the truck owners' insurer's liability was limited to Rs. 50,000/- (as per their limited liability policy).
Interest:
- The Tribunal had awarded interest at 10% per annum from the date of the Application. The court accepted the 10% rate and observed that, while the rate might be on the lower side by 2%, it is not so high as to warrant interference.
- The court distinguished heads of damages as to when interest logically should run. It noted that interest from the date of Application could be justified on medical expenses and pain and suffering, but for loss of earnings and future earnings (calculated as of the date of the Award) it is difficult to sustain interest from the date of Application.
- Although Mr. Kudrolli cited Supreme Court observations permitting interest from the date of Application, the court found the basis for such awards not discussed in those decisions. The court indicated that, in an appropriate case, different rates or commencement dates could apply to different amounts, but it declined to split the interest here.
- The court held interest should run on the amounts found due from the date of the Award itself at 10% per annum (simple), with interest on Opponents 1 and 3 to cease for an amount of Rs. 50,000/- from 1st November 1985.
Costs:
- The court quantified costs payable to the Applicant at Rs. 4,500/-. It allocated payment of costs as follows: Opponents Nos. 1 and 3 to pay Rs. 3,000/- and Opponents Nos. 2 and 4 to pay Rs. 1,500/-.
Leave to appeal to the Supreme Court:
- On the application for leave to appeal to the Supreme Court under Article 133 of the Constitution, the court refused the certificate because it found no substantial question of law requiring settlement by the Supreme Court.

Holding and Implications

The Appeals are allowed in part and the Tribunal's award is modified.

Core rulings and direct effects on the parties (as modified by the court):

The Applicant shall recover Rs. 1,82,500/- (Rupees one lakh eighty-two thousand and five hundred) plus interest (from date of Award at 10% per annum simple) from Opponents Nos. 1 and 3 (the luxury bus owners/insurer).
The Applicant shall recover Rs. 91,250/- (Rupees ninety-one thousand two hundred and fifty) plus interest (from date of Award at 10% per annum simple) from Opponent No. 2 (the truck owners); the liability of Opponent No. 4 (the truck insurer) is limited to Rs. 50,000/- plus interest (as indicated).
Interest shall run on these amounts from the date of the Award at 10% per annum simple; interest on Opponents 1 and 3 for an amount of Rs. 50,000/- will stop running from 1st November 1985 (as specified in the opinion).
Costs of Rs. 4,500/- are awarded to the Applicant, with Opponents Nos. 1 and 3 liable for Rs. 3,000/- and Opponents Nos. 2 and 4 liable for Rs. 1,500/-.
The application for a certificate under Article 133 (leave to appeal to the Supreme Court) is refused as no substantial question of law arises for determination by the Supreme Court.

Implications beyond the parties: The opinion does not announce a novel legal principle or set out any named precedential rulings. Its practical implications are limited to modifying the Tribunal's award by (a) reducing aggregate compensation by 25% for contributory negligence, (b) apportioning liability between vehicles in the ratio 2:1 (bus:truck), (c) limiting the truck insurer's liability to Rs. 50,000/-, (d) directing interest from the date of the Award at 10% p.a., and (e) allocating costs as specified. No specific Supreme Court precedents were cited or established by this opinion.

This summary is drawn exclusively from the provided opinion text. No information has been added beyond what appears in that text.

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Gaurish Transport And Anr. v. Pedro Salvador And Ors.

1. These Appeals are preferred against the decision of the learned Member of the Motor Accidents Claims Tribunal, Raigad, Ratnagiri, in Accident Claim Case No. 55 of 1980. By the impugned judgment and order, the Tribunal ordered that the Applicant do recover the sum of Rs. 3 00,000/- along with interest at 10 per cent per annum thereon from the date of the Application till the amount is paid to him jointly and severally by the Opponents. However, it directed further that the liability of Opponent No. 4 (to the Application) was limited to Rs. 50,000/-.

2. Two Appeals have been preferred from the judgment of the Tribunal delivered in favour of the Applicant on 23rd January 1984. First Appeal No. 247 of 1985 is preferred by the owners of the truck which was involved in the accident. As the owners of the truck had insured their vehicle only for limited liability Policy whereunder the liability of the insurer is limited to Rs. 50,000/- under the decree of the Tribunal, the owners of the Transport Company would be liable to pay to the Applicant on execution the full balance amount. The other Appeal viz., First Appeal No. 203 of 1985, is preferred by the owners of the luxury bus which was also involved in the accident. However, as they have taken out full insurance and not restricted, it is in fact their insurer who is prosecuting the Appeal.

3. Mr. Kamat appearing on behalf of the owners of the truck has urged four points: (a) That the Tribunal was in error in holding the truck driver negligent and if that plea was upheld, neither the owners of the truck nor their insurer would be liable in damages. (b) That in any case the victim, i.e. the Applicant, contributed to the accident by his own negligence and some allowance was required to be made for that. Indeed, the plea was that the entire injury was a result of the victim's negligence which would disentitle him to any damages. (c) that calculation of compensation awarded was not proper and was on the high side (d) That the learned Judge was in error in making the owners of the truck jointly and severally liable along with the owners of the luxury bus.

4. Some of the pleas are special to the owners of the truck, whereas some are common to both the owners of the truck as well as the owners of the luxury bus.

5. Mr. Kamat explained the manner in which the accident had occurred. He laid stress on the fact that the truck stopped immediately after the impact, whereas the bus stopped only after about 200 feet or thereabout which would show that either it was being driven at a fast speed or in an extremely careless manner.

6. We have been taken through the judgment and the Tribunal has considered the various factual aspects properly and correctly. There is, however, some substance in the complaint made by both the Appellants that the Tribunal has totally disregarded the fact that the victim contributed to his injury to a certain extent (very limited) by keeping his elbow on the sill of the window in such a manner that a part of the arm was protruding outside. However, this cannot be such "negligence" as would disentitle the Applicant from any compensation but may be a factor required to be considered to reduce the amount of the award against the owners of the vehicles. Comments were also made on the calculation of compensation.

7. Ignoring the question of lack of negligence or contributory negligence for the time being, we shall first concentrate on the quantum of compensation as calculated by the Member of the Tribunal. The Tribunal has accepted the case of the Applicant that medical and other expenses came to Rs. 3,000/-. In a case of this nature, bearing in mind that the right arm of the Applicant was amputated, this figure, if at all, is on the moderate side and, therefore, there will be no warrant for interfering with the computation. In the same vein, bearing in mind the actual pain and suffering, there would not be any warrant for interfering with the figure of Rs 20,000/-awarded by the Tribunal for this head. It is not possible to weigh pain and suffering with any exact scale or balance and all that an Appeal Court can do is to consider whether the determination of compensation can be regarded as perverse. Indeed, it cannot be held in this case that the calculation of compensation under this head is exaggerated or perverse. The Tribunal on some estimation which is required came to the conclusion that it was required, when the Claim Petition took forty two months for disposal, to consider awarding to the Applicant loss of earnings for this period. The case of the Applicant was that he was not able to follow his avocation to the extent he was expecting and all that he earned was a paltry amount of Rs. 100/- per month. It is pointed out that as a matter of fact the Applicant had deposed that he was earning about Rs. 200/- per month. However, he could not have started earning this amount immediately after the accident and we will, therefore, take his earning for this forty-two months' period as about Rs. 6,000/- which is worked out to about Rs. 2000/-per month for a period of thirty months. The learned Member has calculated that he would have been able to earn but for the accident Rs. 2,000/- per month for this period and, therefore, the loss under this head must be Rs. 84,000/- less Rs. 6,000/-. It is pointed out by Mr. Kudrolli that the earning must be taken at Rs. 2,500/- per month, but we think bearing in mind the lack of precise details given by the Applicant that the estimated loss of earnings at Rs. 2,000/- per month for this period would be proper. Indeed, for the period of his vacation in India, the Applicant may not have earned anything. This gives us the three figures, therefore, of Rs. 3000/-, Rs. 20,000/- and Rs. 78,000/-. We have now to consider the loss of future earnings as a result of the accident. It will be appropriate to consider the loss of earnings for the purposes of this head at the rate of Rs. 2,000/- per month which would come to Rs. 24,000/- per annum and the question then arises as to the multiplier to be adopted. This will depend upon the age of the Applicant at the time of the accident, the presumed age upto which the earnings would have been maintained and a reduction for being paid the amount in a lump-sum in anticipation rather than over the period. Some upward adjustment may be required to be made on the footing that his income may go up either by seniority, experience, acquisition of additional qualification or perhaps by reason of fall in the value of rupee. These are not absolutes or tangibles and some estimation is required. In the instant case, we think the proper multiplier to be adopted to the annual income at the rate of Rs. 2,000/-per month should be 11. This would give us the figure of Rs. 2,64,000/-. Tnus ignoring the aspect of negligence or contributory negligence, the total figure would come to Rs. 3,65,000/-. Now, an important question may arise. Is the full amount to be paid by both the Opponents (the principal Opponents) and is their liability going to be joint and several ? Of course, it is not possible to accept the submission of the Appellants that it was the Applicant's own default that solely caused or contributed to the accident and, therefore, he is not entitled to any amount. In our opinion, again a somewhat ad hoc yardstick, the amount of compensation determined on the assumption that the victim has to a limited extent contributed to the accident or to the injury the aggregate compensation will have to be reduced by 25 per cent, i.e. by one-fourth and this leaves us with the figure of Rs. 2,73,750/-. Here we have to deal with the contention of Mr. Kamat on behalf of the truck owners that the luxury bus as well as the truck could not be regarded as equally in fault and it would appear that there is some substance in this contention bearing in mind the curve at the point of the brushing and the fact that the luxury bus stopped after some considerable distance. In our opinion, it would not be appropriate to apportion the liability equally between the two but in the proportion of 2: 1 the liability apportionable to the driver of the luxury bus being double than for the driver of the truck. In other words, from the entire amount considered as compensation viz., Rs. 3,65,000/- (Rupees three lakhs sixty-five thousand), there will be an initial deduction of 25 per cent being attributed to the Applicant for his own default and from the balance amount of Rs. 2,73,750/- (Rupees two lakhs seventy-three thousand and seven hundred and fifty) the liability of the owners of the truck will be restricted to Rs. 91,250/. (Rupees ninety-one thousand two hundred and fifty) and that of the owners of the luxury bus to Rs. 1,82,500/- (Rupees one lakh eighty-two thousand and five hundred). The liability of the two drivers will be composite and not joint and several. Since the luxury bus is fully insured, the liability of the luxury bus and the liability of the insurer of that bus will be co-extensive, whereas in case of the owners of the truck, the liability of their insurer will be limited to Rs. 50,000/- (Rupees fifty thousand) interest and costs.

8. We are now left with the final question as to the interest awarded by the Tribunal on the amount which has been awarded from the date of the Application. Interest has been awarded at the rate of 10 per cent per annum and there cannot be any quarrel with that. If at all the rate of interest is on the lower side by 2 per cent, it cannot be regarded as high so as to call for interference.

9. It is undoubtedly true that in respect of the first two items viz., the expenses and the damges for pain and suffering, interest could be awarded from the date of the Application, but logically in respect of loss of earnings and loss of future earnings calculated on the date of the Award, it would be difficult to sustain awarding of interest from the date of the Application. Mr. Kudrolli cited some observations from Supreme Court decisions to the effect that such interest could be awarded, but the basis of the award of interest is not found discussed in those decisions. Indeed, in an appropriate case, interest could be awarded at a lesser amount from the date of the Application and on another amount from the date of the Award. As in our opinion the amount at which interest could be awarded from the date of the Application would only be Rs. 15,000/- (Rupees fifteen thousand), i e. 75 per cent of Rs. 20,000/- (Rupees twenty thousand), we do not propose to split up the award of interest in this manner. In our opinion, therefore, interest should run on the amounts found due to the Applicant from the date of the Award itself and at the specified rate viz. 10 per cent interest will stop running against opponents 1 and 3 or an amount of Rs. 50,000/- (fifty thousand) from 1st Nov. 1985.

10. Accordingly, the Appeals are allowed to the extent that in both the Appeals the Award passed by the Member of the Motor Accidents Claims Tribunal will stand modified for the reasons earlier indicated as under:

11. The Applicant do recover the sum of Rs. 1,82,500/- (Rupees one lakh eighty-two thousand and five hundred) and further interest (as indicated) from Opponents Nos. 1 and 3 and the Applicant will recover a further amount of Rs. 91,250/-(Rupees ninety-one thousand two hundred and fifty) and lurther interest (as indicated from) Opponent No 2 of which the liability of Opponent No. 4 (the insurer) will be Rs. 50,000/- (Rupees fifty thousand) and further interest thereon (as indicated.) On these amounts the Applicant will get interest at the rate of 10 per cent par annum (simple) from the date of the Award till payment. As far as costs are concerned, we quantify the costs payable to the Applicant at Rs. 4,500/- (Rupees four thousand and five hundred), of which costs Opponents Nos. 1 and 3 will pay Rs. 3,000/- (Rupees three thousand) and Opponents Nos. 2 and 4 will pay Rs. 1,500/- (Rupees one thousand and five hundred).

12. Mr. Kudrolli applies for leave to appeal to the Supreme Court. There is no substantial question of law which arises in this matter which is required to be settled by the Supreme Court. The application, therefore, for certificate under Article 133 of the Constitution of India is refused.