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citation codes
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Acts
  • Section 110-AA of the Motor Vehicles Act
  • Workmen's Compensation Act, 1923,
  • Workrren's Compensation Act,
  • Workmen's Compensation Act.
  • MOTOR VEHICLES ACT
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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Acts
  • Section 110-AA of the Motor Vehicles Act
  • Workmen's Compensation Act, 1923,
  • Workrren's Compensation Act,
  • Workmen's Compensation Act.
  • MOTOR VEHICLES ACT
Smart Summary

Factual and Procedural Background

This is a First Appeal against the rejection by the Motor Accident Claims Tribunal of a claim made by the legal representatives of Gurdev Singh, who was run over and fatally injured on the evening of 20-4-1967 at Rohtak Road, Delhi, by car No. DLJ-6212 driven by Dharam Singh. The appellants had claimed Rs. 80,000 as compensation. The Tribunal found that the accident resulted from the rash and negligent driving of the car driver, but ultimately rejected the claim after computing pecuniary loss and allowing various deductions (including amounts obtained from the employer and other statutory or service benefits). The appeal comes before the court some 17 1/2 years after the incident. The deceased was 34 years old at the time, employed as an electrical fitter in the Railways earning Rs. 230 per month, and had a widow, three children (aged 8–13) and elderly parents. The appellants also asserted an additional earning of about Rs. 80 per month from photography.

Legal Issues Presented

  1. Whether the Tribunal erred in refusing any compensation by treating the deceased's salary as static, reducing it by half to account for personal expenses, and thereby underestimating future loss of earnings.
  2. Whether amounts received by the legal representatives from the employer (such as provident fund, gratuity, pension, small savings and a payment of Rs. 8,000/- by the Railways) should be deducted from compensation payable under the Motor Vehicles Act.
  3. Whether Section 110‑AA of the Motor Vehicles Act (introduced w.e.f. 2‑3‑1970) bars recovery under the Motor Vehicles Act where an amount has been paid under the Workmen's Compensation Act, particularly when the accident and the right to claim arose before that provision came into force.
  4. Whether the Workmen's Compensation Act operates to extinguish or limit a claim under the Motor Vehicles Act where the accident took place off duty and not in the course of employment.
  5. Whether non‑pecuniary damages (emotional loss, loss of guidance and affection, shock to elderly parents, widow's loss) were improperly ignored in the computation of compensation.

Arguments of the Parties

Appellants' Arguments

  • The appellants sought Rs. 80,000 as compensation for the death of Gurdev Singh, relying on his earnings as an electrical fitter (Rs. 230 per month) and additional photography income (about Rs. 80 per month).
  • They contended that the Tribunal misapplied compensation principles by treating salary as static, reducing salary by half for personal consumption, and by deducting benefits and payments obtained from the employer (provident fund, gratuity, pension, small savings, and the Rs. 8,000 paid by the Railways), which were not mitigation of damages payable by a tort‑feasor.
  • The appellants asserted they had not specifically pursued compensation under the Workmen's Compensation Act and that payments by the Railways were voluntary/compassionate and should not operate to extinguish a Motor Vehicles Act claim in circumstances where the accident occurred off duty.
  • They emphasised non‑pecuniary losses (emotional suffering of the widow, loss to children and elderly parents) as relevant in computing compensation.

Respondent's / Insurance Company's Arguments

  • Mr. Dhir, for the Insurance Company, relied on Section 110‑AA of the Motor Vehicles Act to argue that, because the legal representatives had already received Rs. 8,000 from the employer under the Workmen's Compensation Act, they could not recover compensation under the Motor Vehicles Act (i.e., they must elect one remedy and cannot claim under both statutes).
  • The Insurance Company did not, according to the opinion, dispute the finding of negligence against the driver; their contention focused on legal bar and deduction of amounts already received.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bhagat Singh Sohan Singh v. Om Sharma and others (Punjab High Court Full Bench), 1983 A.C.J. 203 That benefits such as provident fund, family pension and gratuity are the deferred fruits of service and should not be treated as mitigation of damages payable by tort‑feasors. The Court relied on this Full Bench decision to support the proposition that amounts received by way of provident fund, gratuity or pension attributable to employment should not be deducted from compensation payable under the Motor Vehicles Act.
Bhagwanti Devi and others v. Ish Kumar and others, 1975 A.C.J. 56 Authority holding that service‑related benefits are not to be treated as deduction from damages in motor accident claims. Invoked as one of two decisions of this Court supporting refusal to deduct provident fund/gratuity/pension from compensation under Motor Vehicles Act.
Satyawati Pathak v. Hari Ram others, 1983 A.C.J. 424 Another decision of this Court aligned with the view that statutory/service benefits should not be deducted from tort compensation. Cited alongside Bhagwanti Devi as supporting precedent for not treating employer‑provided benefits as mitigation of damages.
Smt. Gayatri Devi v. Tani Ram and others, AIR 1976 Himachal Pradesh 75 Recognises legislative intervention preventing simultaneous recovery under Workmen's Compensation Act and Motor Vehicles Act (i.e., election between remedies where both arise). Used to note the legislative purpose behind Section 110‑AA — to prevent double recovery where right to claim arises both under Workmen's Compensation Act and Motor Vehicles Act.
Kanaria Overseas Corporation v. Damyanti Vyas and others, 1982 A.C.J. 222 (Patna) Case where death of a worker occurred in the course of employment and Workmen's Compensation principles applied. The present court considered reliance on this case misplaced because in Kanaria the death occurred during course of employment, whereas in the present case the accident occurred off duty and independent of employment.
National Insurance Co. Ltd. v. Harerrushna Sahu and others, 1977 A.C.J. 512 Deals with interplay of insurance, compensation and employment‑related incidents where accidents happened in course of duties. The court distinguished or disagreed with aspects of that decision to the extent it suggested that rights of third parties (unconnected with employment) are abridged by the Workmen's Compensation Act; in the present case the court held that Workmen's Compensation Act did not affect Motor Vehicles Act claim arising off duty.

Court's Reasoning and Analysis

The court proceeded in a structured manner:

  1. Liability for the accident: The court agreed with the Tribunal's factual finding that the accident was the direct result of rash and negligent driving by the driver of car No. DLJ‑6212. The evidence (witness testimony and a plan showing the vehicle crossing to the wrong side and proceeding ahead after striking the deceased) left no doubt. The driver and the Insurance Company did not challenge the Tribunal's factual attribution of negligence in this appeal.
  2. Flaws in computation of pecuniary loss: The court held the Tribunal misdirected itself by assuming the deceased's salary would remain static at Rs. 230 per month and by reducing that salary by one half on the premise that the other half would be spent on the deceased's personal needs. The court observed that ordinary increments, promotions, and revision of pay scales should have been taken into account, especially since departmental officers had testified that the deceased was a good worker likely to be promoted. The court considered that the deceased (a skilled technical hand) could have had earnings beyond retirement and noted family longevity (parents over 80).
  3. Improper deductions of service benefits and payments: The court found no justification for deducting provident fund, gratuity, pension, small savings and the Rs. 8,000 paid by the Railways from compensation payable under the Motor Vehicles Act. Those benefits resulted from the deceased's service and efforts and were not to be treated as mitigation of damages by a tort‑feasor. The court explained the distinct legal concepts: Workmen's Compensation Act liability is statutory and arises from employer‑servant relationship, whereas damages in tort require proof of negligence. The court emphasised that compensation under the Motor Vehicles Act is in the context of the accident and is apart from what the deceased's estate might receive under employment or other sources.
  4. On Section 110‑AA and timing: The Insurance Company's reliance on Section 110‑AA (introduced with effect from 2‑3‑1970) was rejected for two reasons: (a) the accident and the right to claim arose in 1967, well before Section 110‑AA came into force, so that provision could not affect vested rights; and (b) Section 110‑AA by its terms applies where the death/injury arises out of or in the course of employment — a condition the court found not satisfied here because the accident occurred off duty while the deceased was going home on his cycle.
  5. Distinction drawn from precedents: The court relied on case law (including the Full Bench Punjab decision in Bhagat Singh Sohan Singh and two decisions of this Court) to support the principle that service‑related benefits are not deductible from compensation in tort and to distinguish cases where Workmen's Compensation governed because the injury arose in the course of employment (e.g., Kanaria Overseas; National Insurance Co. Ltd.). The court expressly stated that reliance on those cases was misplaced where the death was independent of employment.
  6. Non‑pecuniary loss: The court criticised the Tribunal for failing to account for the emotional and mental suffering of the widow, children and parents. It recognised the widow's loss (particularly acute in a social context where widow remarriage was uncommon), the children's loss of guidance and affection, and the elderly parents' shock — all of which were relevant in computing fair compensation.
  7. Relief granted: Considering the totality of circumstances, the court found that the appellants were entitled to compensation and awarded Rs. 50,000. The court ordered interest at 9% per annum from the date of filing of the petition before the Tribunal until realization, awarded costs throughout and taxed counsel's fee of Rs. 500.

Holding and Implications

Holding:

APPEAL ALLOWED — The appellants are awarded compensation of Rs. 50,000/-.

The court also ordered interest at 9% per annum from the date of filing of the petition before the Motor Accident Claims Tribunal until realization, awarded costs to the appellants and fixed counsel's fee at Rs. 500.

Implications:

  • The Tribunal's rejection of compensation was set aside insofar as it had denied any award by reason of inappropriate deductions and erroneous assumptions about future earnings.
  • The court reaffirmed the legal principle (supported by precedent) that amounts payable to or recovered by legal representatives from the employer by way of provident fund, gratuity, pension or similar service benefits are not to be treated as mitigation of damages payable by a tort‑feasor under the Motor Vehicles Act where the claim arises from a motor accident.
  • The court ruled that Section 110‑AA could not be invoked retrospectively to defeat rights that accrued before its commencement, and that the Workmen's Compensation Act does not extinguish a Motor Vehicles Act claim when the accident occurred off duty and independently of employment.
  • No broader or novel legal doctrine was expressly formulated; the decision applies the established principles to the facts and grants a specific monetary award and ancillary relief to the appellants. The opinion does not assert that a new precedent was created beyond the application of cited authorities to the facts at hand.

    Smt. Surendra Kaur & Ors v. Dharam Singh & Anr.

    D.R Khanna, J.:— It is indeed unfortunate that this First Appeal against the rejection of the claim of the legal representatives of Gurdev Singh, deceased, who was killed on the evening of 20-4-1967 at Rohtak Road, Delhi, as a result of an accident caused by car No. DLJ-6212, is coming up for hearing after 17 1/2 years of the incident, and the discussion as hereinafter will show, the legal representatives were denied their substantial legitimate compensation by unwarranted, unsustainable and a sort of wooden approach adopted by Shri P.S Shukla, Motor Accident Claims Tribunal.

    2. The legal representatives had sought Compensation of Rs. 80,000/-

    3. Gurdev Singh was run over at about 5.30 P.M On 20.4.67 in front of Anup Service Station, Rohtak Road, Delhi when he was going on a cycle from his office to his home. Car bearing No. DLJ 6212 driven by Dharam Singh, respondent, came from the opposite direction, and went to the wrong side of the road and knocked him down. At that time he wag three steps aways from the left end of the road. It was, the refore, apparent that the accident took place by the act of rash and negligent driving by Dharam Singh, and Gurdev Singh was seriously injured when he was going on the cycle on almost extreme left side of the road. The Tribunal had after considering the entire evidence come to the opinion that the accident was the direct result of the rash and negligent driving of the ear, and after going through the same, I am firmly in agreement with the findings given. The evidence of the witnesses and the plan which was prepared displaying the place where the accident took place, and how the car had gone to the wrong side and then proceeded fairly ahead after knocking down Gurdev Singh, leave no manner of doubt in this regard. In fact, no appearance was made by Dharam Singh at the time of the hearing of this appeal, and the Insurance Company too did not assail, in any manner, the finding of fact attributing entire negligence to the car driver.

    4. It is with regard to the disallowanoe of any compensation to the legal representatives that the arguments have been addressed. Gurdev Singh was 34 years of age when the accident took place, and he died on the next day as a result of the same in Willingdpn Hospital. He left behind his widow and three children between the ages 8 years and 13 years, and old parents who are now both over 80 years of age. They voluntarily stated that the compensation be paid to the widow and the children of the deceased,

    5. At the time of his death, Gurdev Singh was employed as an electrical fitter in the Railways, and was drawing Rs. 230/- per month, It was also claimed by the legal representatives that he had some extra income by way of photography, and in this regard two witnesses were examined, namely, Ishar Dayal Sharma (P.W 15) and Ishar Singh (P.W 17), who stated that he had taken photographs at special functions at their house for which he was paid. In this manner, he was said to be earning Rs. 80/- per month,

    6. The Tribunal took into aecount that the deceased would have normally lived upto the age of 65 years, but observed that it could not be said that he could have earned after his retirement from the service. The computable period during which he could have earned, was, therefore, taken to be 23 years only. The Tribunal next proceeded to compute the loss in salary which resulted from his death, and in doing so unwarrantedly reduced his salary of Rs. 230/- to half on the ground that the other half would have been spent by him on himself. Why he was treated so selfish was not explain-ed. The pecuniary loss computed at the rate of Rs. 115/- per month for 23 years was taken to be Rs. 31,740/-. From this were deducted the provident fund and gratuity which were obtained by the legal representatives from his employer, and the small savings that he or his wife had made during his life time. Another amount of Rs. 8,000/- which had been paid by the Railways as compensation to him was also deducted. Further deduction of pension paid to his widow, was also allowed. The sum total of all these was held to exceed the amount of Rs. 31,740/- which would have been payable as compensation under the Motor Vehicles Act, and as such the entire claim was rejected.

    7. The Tribunal entirely misdirected itself when it proceeded on the premises that the deceased's salary would have remained static at Rs. 230/- per month all through his life. It is not understood why the elementary and well recognised concepts of increments which he was as a matter of course to get were ignored specially when officers from his department had appeared and deposed that he was a good worker and would have been promoted in due course. With the rise in the cost of living, pay scales have also been revised from time to time. Judicial note of the same should have been taken. Moreover, a technical hand as the deceased was could have earnings after his retirement as well. There has been longovity in the family as both the parents have crossed the age of 80 years.

    8. Moreover, there was no justification for the Tribunal to have allowed deductions towards Provident Fund, gratuity, pension and other savings of the deceased which the legal representatives got after his death. They had come as a result of his service career and by dint of his own efforts and service put in. None of them could be attributed as compensation for causing his death by rash and negligent driving. It has not to be ignored that a right which was otherwise available under the common law for damages against tort-feasor was incorporated for expeditious disposal and by special Tribunals in the Motor Vehicles Act, so far as the injuries and deaths resulting from motor vehicles were concerned. The compensation payable is in the context of and resultant from their accidents. This compensation is apart from what the injured or the deceased or his legal representatives would have got, notwithstanding the accident. They, therefore, could not go to reduce the amount of compensation, nor operate to eliminate the same. Any view to the contrary may provide a licence to cause death by accident of any affluent person with immunity without inviting liability for damages/compensation. There is a clear distinction between what as a matter of course belonged to the deceased or which his legal representatives inherited in normal course, and a claim for compensation for wrongful causing of death of the deceased. The Punjab High Court in a Full Bench decision in Bhagat Singh Sohan Singh v. Om Sharma and others, 1983 A.C.J 203 observed that the intrinsic nature of benefits like the provident fund, family pension or gratuity is that they are the deferred fruits of satisfactory service, industry, thrift, contributions and foresight of the employee. Equally, these may be the necessary incidents, of statutory service rules, employment contracts, or beneficient legislation rooted in the employment of the deceased. To attribute these payments entirely to the fortuitous circumstance of the accident and the resultant death appears untenable. The amounts on their score, were therefore, not treated as in mitigation of damages payable by tort-feasors, and, therefore, were held as not deduction from the compensation payable under the Motor Vehicles Act. See in this regard two decisions of this Court as well in the cases Bhagwanti Devi and others v. Ish Kumar and others, 1975 A.C.J 56, and Satyawati Pathak v. Hari Ram others, 1983 A.C.J 424.

    9. It is indeed distressing that the Tribunal has not taken into account the tremendous emotional loss of the veritable head of the family, which the legal representatives suffered on account of the death of Gurdev Singh. His wife who was in her early thirties, lost her husband. That was a loss which was invaluable from the point of view of any wife, more so in our country where widow marriage is hardly in vogue. The accident therefore, left behind a desolate and forlone widow. Similarly the young children lost the father's affection and guidance which would be worth any amount of compensation. The parents too got the shock of their lives in their old age. The consequences of mental and emotional agony and the breaking up of the family fabric could not be ignored in the computation of compensation.

    10. Mr. Dhir appearing on behalf of the Insurance Company, has made reference to Section 110-AA of the Motor Vehicles Act in order to plead that since the legal representatives have already been paid Rs. 8,000/- by the employer of the deceased under the Workmen's Compensation Act, the compensation under the Motor Vehicles Act cannot be awarded. That section introduced w.e.f 2-3-1970 is to the following effect:—

    “110-AA. Option regarding claims for compensation in certain cases:

    Notwithstanding anything contained in the Workmen's Compensation Act, 1923, where the death of or bodily injury to any person gives rise to a claim for compensation under this Act and also under the Workmen's Compensation Act, 1923, the person entitled to compensation may claim such compensation under either of those Acts but not under both.”

    11. The accident in the present case took place in the year 1967, and the right to claim compensation thus accrued then. The petition for compensation before the Motor Accident Claims Tribunal was also moved in June, 1967. This new provision of law coming into force in 1970, therefore, could not affect the rights already accrued. The legal representatives thus had no opportunity to exercise option under its provisions, and, therefore, they could not work to their detriment. Moreover, this section covers those cases only in which death or injury is caused to a workman by accident arising out of or in the course of employment. The liability under the Workmen's Compensation Act results from the mere incidence of employment and is independent of any neglect or wrongful act on the part of the employer. The same springs out of the relationship of master and servant, and not out of tort. While for a claim for damages under the common law, one has to establish the element of negligence in order to prove the tortious liability of the employer, in the case of a claim under the Workrren's Compensation Act, the liability is statutory. In each case the right of compensation or dan ages is rooted in a different legal concept. Ordinarily, it could have been possible in such cases for the claim to lie both under the common law as well as under the Workmen's Compensation Act. The legislature has, however, intervened to provide against the grant of relief twice over. (See in this regard Smt. Gayatri Devi v. Tani Ram and others, AIR 1976 Himachal Pradesh 75).

    12. In cases where the right to compensation arises independent of the employment of the worker, as in the present case when he was knocked down by a third person while going on a cycle on the roadside off duty hours, the Workmen's Compensation Act does not come into play, and the right to claim compensation under the Motor Vehicles Act remains unaffected. It was altogether another m atter that the Railways paid Rs. 8,010/- to the legal representatives of their own. The legal representatives have categorically stated that they did not move specifically for grant of compensation under the Workmen's Compensation Act. Reliance by Mr. Dhip on the case Kanaria Overseas Corporation v. Damyanti Vyas and others, 1982 A.C.J 222 (Patna), in my opinion was misplaced inasmuch as in that case the death had resulted to the worker during the course of the discharge of his duties as such. Similarly, in National Insurance Co. Ltd. v. Harerrushna Sahu and others, 1977 A.C.J 512, the accident had taken place when the deceased was moving on the road during the course of performance of his duties. I am, however, unable to subscribe to the other observation made by the learned Judge in that case that right of compensation qua third parties who were not connected with employment at all, and whose negligence and rash act was not corelated to employment, is in any manner, abridged by the Workmen's Compensation Act.

    13. It is relevant here to mention that there are limits imposed upto which compensation is payable under the Workmen's Compensation Act, None such exist under the Motor Vehicles Act, and in case larger compensation liability gets open under its provisions, and the accident was independent of employment there appears no reason why this right should get eliminated even if the employer has out of compassion or otherwise decided to Pay some compensation.

    14. Considering the totality of circumstances therefore, I am of the opinion that the appellants ought to be and are allowed compensation of Rs. 50,000/-, It is ordered accordingly. This amount will carry interest at the rate of 9% per annum till realisation from the date of the filing of the petition before the Motor Accident Claims Tribunal. The appellants will be entitled to costs throughout Counsel's fee Rs. 500/-.

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    Comments

    Smt. Surendra Kaur & Ors v. Dharam Singh & Anr.
    (Dec 3, 1984)