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Smart Summary

Factual and Procedural Background

The present appeal challenges an award dated 11.07.2006 by the learned Tribunal, which granted compensation of Rs. 9,26,415/- with 6% annual interest from the date of filing the claim petition (19.02.1996) until realization. The claim arose from an accident on 18.08.1995, where Dr. Asha Gupta was fatally injured by a bus driven by respondent No. 3. An FIR was registered and a chargesheet filed against the driver under Sections 279 and 304-A of the Indian Penal Code (IPC). However, the driver was acquitted by the Judicial Magistrate on 30.07.2003 due to lack of eyewitness identification. The claim petition was filed under Section 166 of the Motor Vehicles Act, 1988 (MV Act). Respondent Nos. 2 and 3 (owner and driver) were proceeded ex parte before the Tribunal. The Tribunal awarded compensation holding the owner and driver responsible, and this appeal by the insurer challenges the finding of negligence.

Legal Issues Presented

  1. Whether negligence on the part of the driver (respondent No. 3) was proved in a claim petition filed under Section 166 of the Motor Vehicles Act?
  2. Whether the acquittal of the driver in the criminal case affects the liability in the claim petition under the MV Act?
  3. Whether the Tribunal erred in awarding compensation without proving negligence in a Section 166 claim petition?
  4. Whether the case should be remanded to be decided under Section 163-A of the MV Act, where negligence need not be proved?

Arguments of the Parties

Appellant/Insurance Company's Arguments

  • The claimant failed to prove negligence of the driver, as no eyewitness was examined to establish rash or negligent driving.
  • Although FIR and chargesheet were filed, the driver was acquitted by the Judicial Magistrate due to lack of eyewitness evidence identifying the driver.
  • Since the claim petition was filed under Section 166 MV Act, it was incumbent on the claimant to prove negligence, which was not done.
  • The Tribunal incorrectly held the owner and driver liable despite absence of proof of negligence.
  • Relied on Supreme Court precedent (Minu B. Mehta v. Balkrishna Ramchandra Nayan) emphasizing negligence as essential for liability and rejecting owner's liability without negligence.
  • Also relied on Oriental Insurance Co. Ltd. v. Meena Variyal to support the principle that negligence must be proved in Section 166 claims.
  • Requested that the impugned order be set aside or remanded for fresh decision under Section 163-A MV Act where negligence is not required to be proved.

Respondent No. 1/Claimant's Arguments

  • The accident occurred on 18.08.1995 when Dr. Asha Gupta was hit by a rashly and negligently driven bus by respondent No. 3, causing her death.
  • Respondent Nos. 2 and 3 were proceeded ex parte, so no defence was put forth to rebut accident or negligence.
  • FIR No. 603/95 was registered and chargesheet filed against respondent No. 3 under Sections 279/304-A IPC.
  • Acquittal by the Magistrate was solely because the eyewitness did not identify the driver who fled the scene.
  • Neither the owner nor the insurer rebutted the involvement of the vehicle or the driver at the time of accident.
  • Relied on National Insurance Co. Ltd. v. Pushpa Rana to argue that criminal records including FIR and chargesheet are sufficient to establish negligence in accident claims.
  • Also relied on Ranu Bala Paul v. Bani Chakraborty and Basant Kaur v. Chatarpal Singh to support the principle that proof of criminal investigation and chargesheet is adequate to prove negligence.
  • Argued that acquittal in criminal case does not affect civil claim as standards of proof differ.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Minu B. Mehta v. Balkrishna Ramchandra Nayan, (1977) 2 SCC 441 Negligence is essential to fasten liability; owner's liability without negligence is against law. The Court noted that negligence must be proved in claims under Section 166; mere injury from vehicle use is insufficient for liability.
Oriental Insurance Co. Ltd. v. Meena Variyal, (2007) 5 SCC 428 Reiterated the principle that negligence must be proved in Section 166 claims. The Court relied on this to emphasize the necessity of proving negligence in such claims.
National Insurance Co. Ltd. v. Pushpa Rana, 2009 ACJ 287 Proof of FIR, investigation, and chargesheet under Sections 279/304-A IPC is sufficient to establish negligence in accident claims. The Court applied this principle to hold that criminal records can serve as adequate proof of negligence when no defence is raised.
Ranu Bala Paul v. Bani Chakraborty, 1999 ACJ 634 Supportive precedent for reliance on criminal case documents to prove negligence in motor accident claims. Used to strengthen claimant's argument regarding proof of negligence.
Basant Kaur v. Chatarpal Singh, 2003 ACJ 369 Similar principle allowing reliance on chargesheet and investigation to establish negligence. Applied to reinforce claimant's position on proof of negligence.

Court's Reasoning and Analysis

The Court recognized that in claims under Section 166 of the MV Act, negligence must be proved. It noted that the Tribunal erred in holding that negligence need not be proved. However, the Court found that the claimant had successfully established involvement of the offending vehicle and the driver through the FIR, chargesheet, and lack of defence by the owner and insurer. The acquittal in the criminal case was based solely on the absence of eyewitness identification of the driver, which does not adversely affect the civil claim, given the differing standards of proof. The Court emphasized that claims before Motor Accidents Claims Tribunals require a lower standard of proof than criminal or civil cases, being summary in nature. The presence of FIR, chargesheet, and the driver fleeing the scene were sufficient to establish negligence, especially in absence of any rebuttal. Thus, despite the Tribunal's error in stating negligence need not be proved, the claimant effectively discharged the burden to prove negligence. The Court applied established legal precedents to support this conclusion and dismissed the appeal.

Holding and Implications

The appeal is dismissed.

The Court upheld the Tribunal's award of compensation to the claimant, holding that negligence was sufficiently established through the FIR, chargesheet, and absence of defence despite the acquittal in the criminal case. The decision affirms that in claims under Section 166 of the MV Act, negligence must be proved but can be established through criminal investigation documents and absence of rebuttal, even if criminal conviction is not secured. The ruling does not create new precedent but clarifies the application of existing principles regarding standards of proof in motor accident claims. The Registry is directed to release statutory and remaining compensation amounts accordingly.

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    The United India Insurance Co. Ltd. v. Deepak Goel & Ors. S

    SURESH KAIT, J. (Oral)

    1. Present appeal is preferred against the impugned award dated 11.07.2006, whereby the learned Tribunal has granted compensation for a sum of Rs. 9,26,415/- with interest at the rate of 6% per annum in favour of the respondents/claimants from the date of filing of the claim petition, i.e, 19.02.1996 till realization of the amount.

    2. The present appeal is filed by the appellant/Insurance Company only on the ground that the negligence has not been proved by the claimant, despite, the learned Tribunal has awarded compensation.

    3. Learned counsel appearing on behalf of the appellant/Insurance Company submitted that the claimant had not examined any eye witness to prove negligence on the part of respondent No. 3, i.e, driver of the offending vehicle. Although FIR No. 603/95 was registered against the said respondent No. 3 at P.S Singhani Gate, Ghaziabad and thereafter a chargesheet was filed for offences punishable under Sections 279/304-A of the Indian Penal Code (hereinafter referred to as ‘IPC’), however, the learned Judicial Magistrate vide judgment dated 30.07.2003 acquitted the respondent No. 3 on the ground that the eye witness had not seen the driver causing the accident.

    4. Learned counsel further submitted that the claimant had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘MV Act’) and not under Section 163-A MV Act. In a claim petition filed under Section 166 MV Act, it was the bounden duty of the claimant to prove that the respondent No. 3 was rash and negligent in driving the vehicle at the time of accident, whereas, in a claim petition filed under Section 163-A MV Act, the accident is to be proved, however, negligence of the driver is not required to be proved.

    5. He submitted that in the present case also, negligence on the part of the respondent No. 3 had not been proved despite that the learned Tribunal held respondent Nos. 2 and 3, i.e owner and driver of the offending vehicle, responsible for the accident and directed the appellant/Insurance Company, being insurer of the offending vehicle, to pay the compensation amount.

    6. To strengthen his arguments, learned counsel has relied upon a case decided by the Full Bench of the Supreme Court titled as ‘Minu B. Mehta v. Balkrishna Ramchandra Nayan, (1977) 2 SCC 441, wherein it has been observed that merely a party received an injury arising out of the use of a vehicle in a public place cannot be the reason for fastening liability on the owner. The proof of negligence remains the linchpin to recover compensation. The concept of owner's liability without any negligence is opposed to the basic principles of law.

    7. Thereafter, the law settled by the Apex Court in the above noted case was relied upon by the Division Bench of the Apex Court in the case of Oriental Insurance Co. Ltd. v. Meena Variyal(2007) 5 SCC 428.

    8. While concluding the arguments, learned counsel for the appellant/Insurance Company has submitted that in the present case negligence has not been proved, therefore, the impugned order dated 11.07.2006 be set aside or in the alternative case be remanded back to the learned Tribunal to be decided afresh under Section 163-A of MV Act.

    9. On the other hand, learned counsel appearing on behalf of the respondent No. 1.claimant has submitted that on 18.08.1995 at about 12.45 pm, when Dr. Asha Gupta was going to her residence from her dispensary towards Tri Junction, Ghaziabad, she was hit by a bus bearing No. PAB 3325, being driven rashly and negligently by its driver, i.e, respondent No. 3, who brought the bus on the extreme edge of the road and struck against Dr. Asha Gupta. On account of forceful impact from behind, she was thrown on the road and her head was crushed under the front wheel of the bus, due to which she died at the spot.

    10. It is important to note that respondent Nos. 2 and 3, i.e, owner and driver of the offending vehicle, were proceeded ex parte before the learned Tribunal. Therefore, none has rebutted the accident and negligence on the part of the driver while driving the offending vehicle.

    11. Learned counsel further submitted that for the offence committed by the respondent No. 3, an FIR No. 603/95 was registered at P.S Singhani Gate, Ghaziabad. The police investigated the case and thereafter filed the chargesheet under Sections 279/304-A IPC against the respondent No. 3.

    12. It is not in dispute that vide judgment dated 30.07.2003, learned Judicial Magistrate acquitted the respondent No. 3 only on the ground that the eye witness had not seen the driver as he fled away from the spot after causing the accident.

    13. Learned counsel further submitted that the fact remains that accident was caused by the vehicle in question and neither the appellant/Insurance Company nor the respondent Nos. 2 and 3, i.e, owner and driver of the offending vehicle had rebutted that the vehicle bearing No. PAB3325 was not involved in the accident; and respondent no. 3 was not driving the vehicle on the date and time of the accident.

    14. To strengthen his arguments, learned counsel has relied upon a case of National Insurance Co. Ltd. v. Pushpa Rana, 2009 ACJ 287, decided by this Court on 20.12.2007, wherein it is observed that if the claimant was able to prove the criminal case on record pertaining to involvement of the offending vehicle, whereby the criminal records showing completion of investigation by the police and filing of chargesheet under Sections 279/304-A IPC against the driver have been proved, then the documents mentioned above are sufficient to establish the fact that the driver was negligent in causing the accident.

    15. On the same analogy, learned counsel has relied upon the cases of Ranu Bala Paul v. Bani Chakraborty, 1999 ACJ 634, decided by the High Court of Judicature at Gauhati, Agartala Bench and Basant Kaur v. Chatarpal Singh, 2003 ACJ 369, decided by the High Court of Madhya Pradesh, Indore Bench.

    16. Learned counsel further submitted that in the present case, a criminal case was lodged against the respondent No. 3.driver, who fled away from the spot and the offending vehicle was impounded from the spot itself. The police investigated the case fully and thereafter filed the chargesheet under Sections 279/304-A IPC against the respondent No. 3 and that the respondent No. 3 was acquitted only on the ground that eye witness did not support the prosecution case.

    17. He submitted that acquittal in a criminal case would not affect the trial going on in the accident case for the reason that in the criminal case and civil case as well strict proof of liability is required, whereas in the accidental cases, the claimants have to establish that a particular vehicle was involved in the accident being driven by its driver rashly and negligently.

    18. On perusal of the impugned award, it is clear that the learned Tribunal had opined that the claimant is not required to prove the negligence at all. It is to be bear in mind that the claim petition was decided under Section 166 MV Act where the negligence has to be proved. The claimants have to prove negligence of the driver of the offending vehicle in a claim petition filed under section 166 of mv act, therefore, I do not agree with the findings given by Ld. Tribunal.

    19. Be that as it may, criminal case bearing FIR No. 603/95 was registered against the respondent No. 3.driver at P.S Singhani Gate, Ghaziabad. The police investigated the case and thereafter filed the chargesheet under Sections 279/304-A IPC against the said driver. The claimants have proved both the documents noted above before the learned Tribunal. Acquittal of the driver/respondent No. 3 by the learned Judicial Magistrate vide its judgment dated 30.07.2003 would not have any adverse affect on the claim petition for the reason, he was acquitted only on the ground that eye witness had not seen the driver of the offending vehicle as he fled away from the spot. Neither any document had been placed on record nor any witness had been examined by the owner or Insurance Company to prove that the respondent No. 3 was not driving the bus bearing No. PAB 3325 on 18.08.1995 at about 12.45 pm. Moreover, respondent Nos. 2 and 3 were proceeded ex parte before the learned Tribunal, and they did not place any defence before the learned Tribunal. Thus, the learned Tribunal while deciding the claim petition had relied upon the FIR, chargesheet and the statements of the claimants.

    20. In deciding the accident cases, the Tribunals or the Courts bear in mind the caution struck by the Apex Court that a claim before the Motor Accidents Claims Tribunal is neither a criminal case nor a civil case. In a criminal case in order to have conviction, the matter is to be proved beyond reasonable doubt and in a civil case the matter is to be decided on the basis of preponderance of evidence, but in a claim petition before the Motor Accidents Claims Tribunal, the standard of proof is much below than what is required in a criminal case as well as in a civil case. Undoubtedly, the enquiry before the Tribunal is a summary enquiry and, therefore, does not require strict proof of liability.

    21. Nonetheless, in a case, where FIR is lodged, chargesheet is filed and specially in a case where driver after causing the accident had fled away from the spot, then the documents mentioned above are sufficient to establish the fact that the driver of the offending vehicle was negligent in causing the accident particularly when there was no defence available from his side before the learned Tribunal. Thus, the claimants have prove negligence of the driver of the offending vehicle.

    22. In view of the above discussion, I do not find any merit in the instant appeal. The same is accordingly dismissed.

    23. Consequently, the Registry of this Court is directed to release the statutory amount in favour of the appellant/Insurance Company and the remaining compensation amount in favour of the respondent No. 1.claimant on taking necessary steps by him.

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    The United India Insurance Co. Ltd. v. Deepak Goel & Ors. S
    (Jan 24, 2014)