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citation codes
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  • provisions of section 95(2)(b)(i) of the Motor Vehicles Act, 1939
  • provisions of Order XLI, rule 33 of Code of Civil Procedure,
  • Order XLI, rule 33 of Code of Civil Procedure
  • section 95(2)(b)(i) of Motor Vehicles Act, 1939,
  • Order XLI, rule 33 of Civil Procedure Code
  • section 110-B of Motor Vehicles Act,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • provisions of section 95(2)(b)(i) of the Motor Vehicles Act, 1939
  • provisions of Order XLI, rule 33 of Code of Civil Procedure,
  • Order XLI, rule 33 of Code of Civil Procedure
  • section 95(2)(b)(i) of Motor Vehicles Act, 1939,
  • Order XLI, rule 33 of Civil Procedure Code
  • section 110-B of Motor Vehicles Act,
Smart Summary

Structured Summary of the Opinion (Kamat, J.)

Factual and Procedural Background

The appeal arises from an award dated 30.11.1988 in O.P. (MV) No. 11 of 1987 by the Motor Accidents Claims Tribunal, Wayanad-Kalpetta. The accident occurred on 30.11.1986 at about 3:30 p.m. The claimant, M.N. Sheeja (a nine-year-old schoolgirl at the time), was walking on the eastern side of Kalpetta-Battery Road at Kainatty when a lorry (registration KLC 5633) driven by Aboobacker (original respondent No. 1) and owned by K. Vijayan (original respondent No. 2), insured with the appellant insurance company (original respondent No. 3), knocked her down. The left leg of the claimant was crushed and ultimately amputated at the Medical College Hospital, Calicut.

Following the accident, a claim petition was filed before the Tribunal on 29.1.1987 seeking Rs. 3,00,000/-. The Tribunal awarded Rs. 2,62,000/- with interest at 12% per annum from 29.1.1987 till payment, with proportionate costs. Two appeals were brought: M.F.A. No. 60 of 1989 by the insurance company (challenging liability limit and the award insofar as it made the insurer liable for the full amount), and M.F.A. No. 122 of 1989 by the claimant (seeking enhancement of the award).

Legal Issues Presented

  1. Whether, for an accident occurring on 30.11.1986, the liability of the insurance company is limited to Rs. 1,50,000/- by virtue of section 95(2)(b)(i) of the Motor Vehicles Act, 1939.
  2. Whether the quantum of compensation awarded by the Tribunal (Rs. 2,62,000/-) should be enhanced as urged by the claimant on account of future needs (such as artificial limb) or should be reduced for overlapping/duplicative awards made by the Tribunal.
  3. Whether this Court should exercise its powers under Order XLI, Rule 33 of the Code of Civil Procedure to modify the quantum of compensation despite the insurer's limited scope of challenge under section 96 of the Motor Vehicles Act.

Arguments of the Parties

Appellant (Insurance Company) — Key Contentions

  • The insurance company relied on the statutory provisions of section 95(2)(b)(i) of the Motor Vehicles Act, 1939, governing compensation as on 30.11.1986 (the date of the accident), and submitted that the upper limit of the insurer's liability was Rs. 1,50,000/-.
  • The insurance company specifically grieved against the Tribunal's award treating the insurer as liable for the total sum of Rs. 2,62,000/-.

Claimant (M.N. Sheeja) — Key Contentions

  • The claimant sought enhancement of the Tribunal's award, urging that future requirements—specifically the need for an artificial limb and amounts to be spent in future—were factors warranting an increase over Rs. 2,62,000/-.

The opinion does not contain a detailed account of any other distinct or adversarial arguments by the owner or driver; they did not appeal.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court's reasoning proceeds in two main strands: (A) the insurer's contention on the statutory liability limit; and (B) the claimant's appeal for enhancement (quantum).

A. Liability Limit — Statutory Interpretation and Evidentiary Finding

  • The insurance company relied on section 95(2)(b)(i) of the Motor Vehicles Act, 1939, which the Court accepted as governing the limit of liability for the date of the accident (30.11.1986). The Court acknowledged that, on that date, the limit was Rs. 1,50,000/-.
  • The Tribunal had refused to accept documentary evidence (Exh. R1) as proving the insurer's limit, on the ground that the relevant column was blank and the document was unproved; the Tribunal therefore found the insurer had failed to prove the limit.
  • The High Court found that reasoning "more than curious" and set it aside. The Court held that the statutory limit prescribed by section 95(2)(b)(i) applied and that there was no difficulty in recognizing the Rs. 1,50,000/- limit for the relevant date. Consequently, the insurer's appeal on this point was allowed.
  • The Court relied on the statutory rule rather than the Tribunal's evidentiary finding about Exh. R1 to fix the insurer's liability limit.

B. Quantum — Overlap, Duplication and Exercise of Appellate Power

  • The Court reviewed the Tribunal's findings on facts: it upheld the Tribunal's conclusion as to negligence and rash driving because the claimant was not cross-examined and the photographs (Exh. A9 series) established that the lorry went off the road into a roadside channel.
  • The Tribunal had awarded Rs. 50,000/- for pain and suffering, and an additional Rs. 1,00,000/- each for personal disability and loss of earning capacity (totaling Rs. 2,50,000/- on those heads, plus the Rs. 50,000/- earlier, giving the award of Rs. 2,62,000/-). The Court analyzed the Tribunal's reasoning and found overlapping/duplicative awards: pain and suffering (both immediate and lifelong), permanent disability, and loss of earning capacity were interrelated and had been compensated multiple times.
  • The Court observed that the Tribunal treated several connected consequences (life-long pain and suffering, permanent disability, loss of earning capacity, and prospects of marriage and social position) as distinct heads, which resulted in an "obvious error of granting Rs. 1,00,000/- more than once almost on the same count."
  • Invoking Order XLI, Rule 33 of the Code of Civil Procedure, the Court asserted its power to make appropriate orders even though the appeals before it related only to parts of the proceedings and other parties had not appealed. Exercising that power, the Court considered it necessary to modify the quantum to eliminate the duplication.
  • The Court emphasized the statutory object under section 110-B of the Motor Vehicles Act: the court must award "just and adequate compensation" — not charity or an emotionally inflated award. The Court warned against emotion-driven awards and underlined the need to extricate compassionate impulses when determining just compensation.
  • Weighing the factors (pain and suffering at the time and thereafter, permanent disability, loss of earning capacity, requirement for an artificial limb and future expenses), the Court concluded that the just and adequate compensation should be Rs. 1,62,000/-. It allocated liability such that the insurance company's share was limited to Rs. 1,50,000/ (by operation of section 95(2)(b)(i)) with the balance to be borne by the owner and driver.

Holding and Implications

Core Rulings:

  • The insurance company's appeal (M.F.A. No. 60 of 1989) is allowed insofar as it relates to the statutory limit of liability; the insurer's liability is limited to Rs. 1,50,000/- for the accident dated 30.11.1986 under section 95(2)(b)(i) of the Motor Vehicles Act, 1939.
  • The claimant's appeal for enhancement (M.F.A. No. 122 of 1989) is dismissed.
  • The impugned Tribunal award is modified and the total compensation is fixed at Rs. 1,62,000/- with interest at 12% per annum on that sum from 29.1.1987 until payment and with proportionate costs. The insurance company (respondent No. 3) is liable up to Rs. 1,50,000/- (plus interest thereon); the remaining liability is left on the owner and driver (respondent Nos. 1 and 2) respectively.

Implications and immediate effects:

  • Direct effect on the parties: the claimant's recoverable amount as against the insurer is limited to Rs. 1,50,000/- (plus interest), and the Tribunal's overall award is reduced to Rs. 1,62,000/-. Any payments made will be adjusted in the ordered apportionment between insurer and owner/driver.
  • The Court exercised its appellate power under Order XLI, Rule 33 CPC to modify the quantum to avoid duplicative awards and to ensure the compensation is "just and adequate" under section 110-B of the Motor Vehicles Act.
  • The opinion does not state that it establishes any novel legal precedent; the decision operates to correct the award in the present proceedings by applying statutory limits and recognized appellate powers.

Disposition: The Court allowed M.F.A. No. 60 of 1989 (insurance company) with regard to the Rs. 1,50,000/- limit; dismissed M.F.A. No. 122 of 1989 (claimant for enhancement); and modified the award to Rs. 1,62,000/- in exercise of Order XLI, Rule 33 CPC, with the insurance company's liability fixed at Rs. 1,50,000/- plus interest.

    New India Assurance Co. Ltd. v. M.N Sheeja And Others

    Kamat, J.:— These are appeals by the insurance company and the claimant respectively.

    2. The proceedings of the award dated 30.11.1988 in O.P (MV) No. 11 of 1987 of the Motor Accidents Claims Tribunal, Wayanad-Kalpetta was brought before us. The insurance company relying on the statutory provisions of section 95(2)(b)(i) of the Motor Vehicles Act, 1939 governing compensation as on 30.11.1986 when the accident took place, urged that the upper limit is Rs. 1,50,000/- and consequential grievance against the award for the total sum of Rs. 2,62,000/- as liability of the appellant insurance company in the first instance.

    3. The incident is of 30.11.1986, occurred at 3.30 p.m, when the injured M.N Sheeja, walking on the eastern side of Kalpetta-Battery Road at Kainatty side was knocked down by a lorry KLC 5633, driven by Aboobacker, original respondent No. 1, owned by K. Vijayan, original respondent No. 2 and insured with the appellant, original respondent No. 3. The result of the accident was that Sheeja's left leg was crushed and ultimately had to be amputated at the Medical College Hospital, Calicut. The incident led to the presentation of claim petition on 29.1.1987 before the Tribunal claiming a total compensation of Rs. 3,00,000/-.

    4. The Tribunal by the impugned award granted compensation of Rs. 2,62,000/- with interest at 12 per cent per annum from 29.1.1987 till the date of payment with proportionate cost.

    5. With regard to the contention of the appellant insurance company, the Tribunal had dealt with it in para 9 of the award. What is observed by the Tribunal in the context is more than curious and it is as follows:

    “In this case, i.e, in Exh. R1 the said column is kept blank. Moreover, nowhere it is recorded in Exh. R1 that the limit is Rs. 1,50,000/-. Exh. R1 only shows that the insurance premium is Rs. 200/-. None has come to the box to prove Exh. R1 and to say that as per this the limit is Rs. 1,50,000/-. Therefore, I find that the Exh. R1 is not properly proved. Therefore no reliance can be made on Exh. R1. Therefore, I find that the respondent No. 3, insurance company, failed to prove that its limit is Rs. 1,50,000/-.”

    6. It is basing that the limit of the liability is set down by section 95(2)(b)(i) of Motor Vehicles Act, 1939, governing the day on which the accident took place and there is no difficulty that this limit is Rs. 1,50,000. The reasoning of the Tribunal, therefore, is only needed to be stated for setting it aside which we hereby do. The appeal of the insurance company is confined to this submission only and rightly so and it is therefore hereby allowed.

    7. While going through the impugned award and that too for the purpose of considering the merits of M.F.A No. 122 of 1989, preferred by the claimant M.N Sheeja contending for enhancement over and above the amount of Rs. 2,62,000/- granted, urging in support thereof that the requirement for artificial limb and for the amounts to be spent in future are some of the factors needed to consider enhancement, we went through the records of the proceedings.

    8. We have seen that the negligence attributable to respondents flows from the facts which speak for themselves and the Tribunal in the context has emphasised that the claimant Sheeja was not at all cross-examined by the respondents. The Tribunal also emphasised that the fact that the lorry went off from the road and fell into a channel on the roadside is also a speaking situation as seen from Exh. A9 series of photographs. No wonder then that the Tribunal had no difficulty in recording the finding of rashness and negligence at the first instance. We do not find any defect in regard thereto.

    9. The petitioner-claimant, at the time of the incident, was a girl of 9 years and a student. The incident resulted in crush injury on the left leg and fracture of shaft of left femur, with the result that her leg was amputated. Her evidence is supported by that of her father as PW 2. The Tribunal had also considered the case sheet, Exh. XI and had observed, as a consequence the accident gave her great pain and suffering which continued also during the period of treatment. The Tribunal has recorded that petitioner-claimant is otherwise found to be smart, a good looking girl, would have to suffer throughout her life because of the amputation of her leg. The Tribunal seeks to support the above proposal by reference of certificate of merit in pencil drawing, group song and light music. This is sought to be re-inforced by reference to the certificates, Exh. A7, issued by Head Master certifying that she was very active in curricular and extra-curricular activities. The Tribunal referring to the mark list of the Terminal Examination of the academic year 1986-1987 thought that she secured very high marks, performance is securing 304 out of 400 marks (above 70 per cent) and in the annual examination 292 out of 500 marks (little over 50 per cent); she had also appeared for lower secondary scholarship examination.

    10. The material on record led the Tribunal to observe that this young bright girl is going to meet her future life very adversely because of the amputation of the leg due to the accident.

    11. With an effort to avoid the clouding of our judicial vision, we would like to observe that the performance in the examination as is sought to be inferred on the basis of material on record could not be said to be that of a brilliant girl in these days of photo-finish competition, which starts sometime from about 90 per cent. We have to be conscious that it is the function of the court to determine just compensation.

    12. This court becomes conscious especially when the appellant insurance company, in view of provisions of section 96 of the Act, has a limited scope and thereby prevented from challenging the quantum to consider the situation especially when it finds that the quantum is blown out of all proportion, even by a process of unnecessary duplication in regard thereto by the Tribunal. Therefore, we are reminded of provisions of Order XLI, rule 33 of Code of Civil Procedure, with reference to our power to pass or make such order as the case may require, notwithstanding the situation that the appeals before us relate to only a part of the aspect of the proceedings and the real parties (owner and driver) have not appealed or even approached by way of any remedy of their own. Giving our anxious thought, we feel that this is the occasion that requires us to consider the question of quantum because it requires to be suitably modified so that the function of this court to award just and adequate compensation be realised.

    13. The aspect is taken up for consideration by the Tribunal at para 11 of the award. In the first instance, the claim of Rs. 50,000/- is taken up with reference to pain and suffering at the time of the accident and during the period of treatment. The Tribunal without any discussion in regard thereto found it reasonable and has allowed it. Even then without realising that the amount is granted on the ground of pain and suffering not only at the time of accident but throughout her life in future monetising it at Rs. 50,000/-, the Tribunal has also thereafter proceeded to consider the claim with regard to personal disability as well as loss of earning due to personal disability separately, the Tribunal has awarded Rs. 1,00,000/- each on these counts. The process of reasoning would show that brightness in studies and smartness and goodness in looks all fail the claimant throughout as a permanent disability. In the same process of reasoning, the Tribunal has also considered that she will not be able to go for a successful life because of the amputation of her leg which would be an impediment for proper marriage alliance. Thus, it would be found that on these three analogous aspects the Tribunal has awarded Rs. 2,50,000/-. Bare reading of the award would show that Tribunal has not realised the overlapping character of pain and suffering at the time of the accident and thereafter throughout her life, the consequence of permanent disability and loss of earning, all necessarily flowing in an overlapping way. Certainly, the Tribunal is in obvious error of granting Rs. 1,00,000/- more than once almost on the same count. In our judgment, it becomes really necessary to exercise the power of Order XLI, rule 33 of Civil Procedure Code with regard to this consequence of unnecessary duplication. It would follow that the award would have to be modified by reduction of Rs. 1,00,000/- in the context, for the above reasons.

    14. The above discussion would show that the three factors, such as pain and suffering suffered at the time of accident and during the period of treatment resulting in consequential pain and suffering throughout the life of the claimant together with the aspect of permanent disability and loss of earning capacity, the requirement for artificial limb which is required to be changed more often than not once as well as the amounts to be spent in future. In our judgment, it is necessary to bear in mind that what is required to be awarded by the court under section 110-B of Motor Vehicles Act, is just and adequate compensation. It is not in the nature of a gift and definitely the reasoning of the Tribunal and the approach is more than emotional in the context. In all such cases, it is the misfortune of the situation, perhaps which is to be remembered for the rest of the life with sorrowful tears. In this context, the court in its process of determination of adequate and just compensation has to perform the delicate task of extricating the burst of emotion in the process. It becomes an emotional approach, when it is reasoned out that the girl would be without marriage, that the girl would be without work and that the girl would be without capacity. Every situation of calamity brings along with it necessary courage to meet the situation, and younger the age greater is the need and energy that flows into the situation to make up the victim ready for future eventualities. It is the experience and passage of time that is the healer. In the award of compensation, justness and adequacy are factors which are more prominent. Giving our anxious thought, we find that just and adequate compensation would be Rs. 1,62,000/- with liability of the insurance company, the appellant, up to Rs. 1,50,000/- and the rest would be that of the owner and driver.

    15. For the above reasons, the impugned award stands modified and respondent Nos. 1 to 3 are ordered to pay compensation of Rs. 1,62,000/- with interest at 12 per cent per annum on the said sum of Rs. 1,62,000/- from the date of petition (29.1.1987) till the date of payment with proportionate cost, as ordered by the Tribunal making it clear that the liability of the insurance company, respondent No. 3, would be that of Rs. 1,50,000/- and interest thereon, leaving the rest of the liability as of respondent Nos. 1 and 2 (owner and driver) respectively. It is needless to say that all payments that are made would be adjusted in the process. The proceedings are decided as above. Therefore, M.F.A No. 60 of 1989 by the insurance company is allowed with regard to the limit of Rs. 1,50,000/-. Similarly M.F.A No. 122 of 1989 preferred by the claimant for enhancement stands dismissed. The impugned award stands modified in the light of the observations in the judgment to Rs. 1,62,000/- in exercise of the power under Order XLI, rule 33 of Code of Civil Procedure as specified. Ordered accordingly.

    16. Orders accordingly.

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    Comments

    New India Assurance Co. Ltd. v. M.N Sheeja And Others
    (Mar 6, 1997)