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Devji v. Anwarkhan
Factual and Procedural Background
On 19 January 1977, Ratanlal (aged 22) died in a motor accident involving motor bus No. MPU 5039. The bus was owned by respondent 1 (Anwar Khan), driven by respondent 2 (Prabhusingh), and insured at the relevant time by respondent 4 (The New India Assurance Company Ltd.). The deceased's poor parents and siblings filed an application under Section 110-A of the Motor Vehicles Act, 1939 claiming Rs. 30,000 as compensation.
The learned Tribunal found that the accident was caused by rash and negligent driving and held the driver, owner and insurer liable. The Tribunal awarded Rs. 4,200 as compensation (annual dependency calculated at Rs. 420, multiplier 10) and interest at 6% per annum from the date of the application. The claimants appealed seeking Rs. 30,000; the owner, driver and insurer filed cross-objections. The appeal was pending since 1979. An application by the insurer for adjournment based on ongoing compromise negotiations was refused. The appeal and cross-objections were heard on merits.
Legal Issues Presented
- Whether the Tribunal's award of Rs. 4,200 was inadequate as a matter of law for the loss of human life and whether the minimum compensation provision (Section 92-A of the Motor Vehicles Act) should be applied or considered in appeals relating to accidents that occurred before the insertion of Section 92-A.
- Whether interest should be awarded at 12% per annum from the date of application (instead of 6%) on the enhanced compensation, in light of precedents of the Apex Court and this Court.
- Whether the cross-objections filed by the owner, driver and insurer are maintainable when the award passed by the Tribunal is within the statutory limit and in light of precedent regarding insurer appeals.
- Whether a single Judge of the High Court can grant a certificate/leave to appeal to the Supreme Court under Articles 132, 133 or 134 (specifically whether a single Judge may grant leave under Article 133(3)).
Arguments of the Parties
Appellants' Arguments
- The Tribunal's award of Rs. 4,200 is grossly inadequate for the death of a young earning member; Rs. 15,000 should be the minimum compensation for death in a motor accident as intended by the insertion of Section 92-A of the Act.
- Although Section 92-A is not retrospective, the court should consider its intent and award at least Rs. 15,000 as just compensation; courts have a constitutional duty to dispense substantial justice.
- The interest awarded by the Tribunal (6% from date of claim petition) is too low; interest should be 12% per annum from the date of application, relying on Apex Court authorities and a recent Division Bench judgment of this Court that allowed 12% interest.
- Relied on authorities including Shamsher Khan v. M.P. Electricity Board, Rukmabai v. Ramlal, Oriental Fire & General Insurance Co. Ltd. v. Shantabai, and others to support the contentions on compensation and interest.
Respondents' Arguments
- Section 92-A cannot be applied in the present case because the accident occurred in 1977 and Section 92-A is not retrospective; therefore appellants cannot invoke its analogy to claim Rs. 15,000.
- The Tribunal's calculation (monthly dependency Rs. 35, multiplier 10, award Rs. 4,200) was just and proper, particularly since the widow had remarried and was impleaded as a non-applicant herself.
- Awarding 12% interest from date of application would be excessive given the long pendency of the appeal since 1979 and the respondents should not be penalised for delay in disposal of the appeal by the High Court.
- Relied on cases including Yashoda Kumari v. Rajasthan State Road Transport Corporation and Ram Mani Gupta v. Mohammad Ibrahim to support the position regarding non-retrospectivity of Section 92-A; also cited Kulwant Singh v. Nand Kaur and Krishnammal v. Associated Apparel (P) Ltd. as comparable awards.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| New India Assurance Company Limited v. Smt. Shakuntalabai, 1987 Jab LJ 462 : (AIR 1987 Madh Pra 244) | That the insurer, after joining owner and driver, cannot file an appeal where the award is within the statutory limit. | The Court relied on this authority to hold the cross-objections of respondents 1, 2 and 4 not maintainable and dismissed the cross-objections. |
| Shamsher Khan v. M.P. Electricity Board, 1987 Jab LJ 721 | Authority relied upon to support awarding higher/minimum compensation (used by appellants and by this Court). | The Court expressly relied on this authority (along with Rukmabai) in awarding Rs. 15,000 instead of Rs. 4,200. |
| Rukmabai v. Ramlal, 1988 Acc CJ 351 | Authority relied upon to support awarding higher/minimum compensation (used by appellants and by this Court). | The Court expressly relied on this authority (along with Shamsher Khan) in awarding Rs. 15,000 instead of Rs. 4,200. |
| Oriental Fire & General Insurance Co. Ltd. v. Shantabai, 1987 Acc CJ 198 : (AIR 1987 Bom 52) | Cited by counsel for the appellants in support of the argument for higher compensation (Section 92-A considerations). | This case was cited by the appellants' counsel; the opinion records that the appellants relied on it. |
| Narcinva V. Kamat v. Alfredo Antonio Doe Martins, 1985 Acc CJ 397 : (AIR 1985 SC 1281) | Authority for awarding interest at the rate of 12% per annum. | The Court treated this Apex Court authority as binding on the question of interest and followed it in awarding 12% per annum. |
| Jagbirsingh v. General Manager, Punjab Roadways, 1987 Acc CJ 15 : (AIR 1987 SC 70) | Authority for awarding interest at 12% per annum. | The Court relied on this Apex Court authority for the mandate to award 12% interest. |
| State of M.P. v. Ashadevi wd/o Krishna Murari (Misc. Appeal No. 255 of 1984) (decided 7-5-88) reported in AIR 1989 Madh Pra 93 | Division Bench decision of this Court allowing interest at 12% per annum (used as supporting authority). | The Court referred to and followed this Division Bench decision in awarding 12% interest. |
| Yashoda Kumari v. Rajasthan State Road Transport Corporation, 1984 Acc CJ 716 | Cited by respondents to support the contention that Section 92-A is not retrospective. | The opinion records that respondents relied on this case in support of their non-retrospectivity argument. |
| Ram Mani Gupta v. Mohammad Ibrahim, 1985 Acc CJ 476 | Cited by respondents to support the contention that Section 92-A is not retrospective. | The opinion records that respondents relied on this case in support of their non-retrospectivity argument. |
| Kulwant Singh v. Nand Kaur, 1977 Acc CJ 414 | Authority cited by respondents showing a previous award of Rs. 3,100 (used to argue that the Tribunal's award was not unprecedentedly low). | Recorded as relied upon by respondents in support of the Tribunal's award being reasonable. |
| Krishnammal v. Associated Apparel (P) Ltd., 1970 Acc CJ 17 | Authority cited by respondents showing a previous award of Rs. 4,500 (used to argue comparative reasonableness). | Recorded as relied upon by respondents in support of the Tribunal's award being reasonable. |
| State Bank of India v. State Bank of India Employees Union, (1988) 1 UJ (SC) 171 : (AIR 1987 SC 2203) | Authority that a single Judge of the High Court is not empowered to issue a certificate under Article 133(3) for appeal to the Supreme Court. | The Court relied on this Apex Court decision to hold that a single Judge cannot grant a certificate/leave for appeal to the Supreme Court under Article 133(3); therefore the Court refused to issue such a certificate. |
Court's Reasoning and Analysis
The Court proceeded through the following key steps in its analysis (as stated in the opinion):
- Maintainability of cross-objections: The Court held that cross-objections filed by respondent owner, driver and insurer were not maintainable because the Tribunal's award was within the statutory limit and, referring to the New India Assurance case, the insurer could not file an appeal after joining owner and driver. On this basis the cross-objections were dismissed.
- Adequacy of compensation: The Court found that an award of Rs. 4,200 for the death of a young earning member was "too low" and could not be considered just compensation. Although Section 92-A (which prescribes minimum compensation of Rs. 15,000) is not retrospective, the Court reasoned that in a piece of welfare legislation its provisions should be interpreted liberally and its intendment and analogy can be applied by High Courts while deciding appeals in cases where the accident occurred before the insertion of Section 92-A. The Court observed that Parliament intended a minimum assured amount in "no fault liability" cases, and that compensation on merits (which involves guess work) must at least accord with the principle that compensation for loss of life should be at least Rs. 15,000.
- Reliance on precedent for enhancement: The Court expressly relied on the Court's earlier authorities (Shamsher Khan and Rukmabai) to justify enhancing the award from Rs. 4,200 to Rs. 15,000, without re-opening or re-calculating the detailed dependency and multiplier computations done by the Tribunal.
- Interest: The Court stated it was bound by the mandate of the Apex Court to award interest at 12% per annum, citing Narcinva V. Kamat, Jagbirsingh, and the Division Bench decision in State of M.P. v. Ashadevi. Therefore the Court awarded interest at 12% per annum from the date of application.
- Certificate for appeal to the Supreme Court: When the insurer sought leave to appeal to the Supreme Court, the Court explained that a single Judge is not empowered to grant a certificate under Article 133(3). The Court relied on State Bank of India v. State Bank of India Employees Union to explain that certificates under Articles 132/133/134A can be issued only when conditions of those Articles are satisfied and that a single Judge cannot issue the certificate in a case decided by him.
- Practical considerations: The Court refused an adjournment sought by insurer (based on ongoing compromise negotiations) because the appeal was old (since 1979) and the claimants (the parents) were aged; the Court considered it improper to further delay the final resolution.
Holding and Implications
Final Holding:
The appeal was allowed in part. The Court enhanced the compensation to Rs. 15,000, giving adjustment to the Rs. 4,200 already received by the claimants. The claimants were also awarded interest at the rate of 12% per annum from the date of application under Section 110-A of the Act on the amount of Rs. 15,000, giving adjustment to interest at the rate of 6% per annum already allowed on Rs. 4,200 by the Tribunal until the date of payment.
Other dispositive directions:
- The cross-objections of the owner, driver and insurer were dismissed as not maintainable.
- The insurer was directed to deposit the enhanced award and interest within six weeks (this deposit period carries no interest); if not deposited in time, appellants are entitled to interest at 12% per annum until deposit.
- The Court refused to grant a certificate/leave to appeal to the Supreme Court by a single Judge; the respondents remain free to take steps according to law.
- The appeal was allowed with costs of Rs. 500 and counsel's fees of Rs. 500 (if certified).
Implications:
The Court applied the principle that the minimum compensation value introduced by Section 92-A of the Motor Vehicles Act (Rs. 15,000) should be considered, in analogy, even in appeals arising out of accidents that occurred prior to the insertion of Section 92-A. The Court also followed Apex Court authority requiring interest at 12% per annum from the date of application. The direct effect is an enhanced monetary award and interest in favour of the claimants, dismissal of cross-objections, and directions for deposit. The opinion does not state it is laying down a binding novel precedent beyond the specific orders and the interpretive approach taken in this case; it expressly grounds its directions on the precedents and the statutory provisions referenced in the opinion.
1. Poor parents, brothers and sisters of the young deceased Ratanlal, aged 22 years, who died in a motor accident on 19-1-1977 by motor bus No. MPU 5039 owned by respondent 1, i.e. Anwar Khan, driven by respondent 2 Prabhusingh and insured at the relevant time, with respondent 4, the New India Assurance Company Limited, claimed compensation of Rs. 30,000/- by filing an application under Section 110-A of the Motor Vehicles Act, 1939 (hereinafter referred to as "the Act''). The respondent-non-applicants denied the allegations. After appreciation of the evidence, the learned Tribunal held that the accident occurred due to rash and negligent driving of the driver of the vehicle and held that the driver, the owner and the insurer are liable to pay compensation.
2. The learned Tribunal, strangely enough, awarded the compensation for the death of a 22 years' young and an earning member, only Rs. 4,200/- to the claimants after observing that the widow of the deceased has been remarried. The deceased was earning Rs. 110/- per month and as the widow has remarried, after deducting the expenses on the deceased on self, the dependency was calculated at Rs. 35/- per month. The annual dependency was calculated at Rs. 420/- and the multiplier was fixed of 10 years. Thus the compensation was awarded of Rs. 4,200/- and interest at the rate of six per cent per annum from the date of the application. Aggrieved by this award, the claimants have preferred this appeal and have claimed compensation for Rs. 30,000/-. The owner, the driver and the insurer have filed cross-objections. As it seems, they are not satisfied with the said award of Rupees 4,200/-.
3. Learned counsel for the respondent Insurance Company prayed for time submitted that negotiations are going on for compromise. He placed before me the correspondence between his client, the Insurance Company, and him, for granting an adjournment. The appeal is an old one of 1979 and the correspondence is of April 1988. So far, up to this time, the Insurance Company could not come to any conclusion in respect of the compromise. Hence, it would not be proper to grant any adjournment as the appeal is an old one and the parents now old must get the results of the appeal in their life-time and old appeal must see the light of the day. Hence, prayer for adjournment is refused. The appeal and cross-objections' are heard on merits.
4. At the outset, I may say that the cross-objections of respondents 1, 2 and 4, i.e. the owner, the driver and the Insurance Company, are not maintainable in view of the fact that the award, which was passed by the Tribunal, is within the statutory limit and the insurer, even after joining the owner and the driver, cannot file an appeal (see the case of this Court reported in New India Assurance Company Limited v. Smt. Shakuntalabai, 1987 Jab LJ 462 : (AIR 1987 Madh Pra 244)). Hence, the cross-objections are dismissed.
5. Learned counsel for the appellants submitted that the award of compensation of Rs. 4,200/- is too low for a human life. He submits that by insertion of Section 92-A of the Act, the Legislature has intended that for a human life taken by and in a motor accident, the legal representative must be paid Rs. 15,000/- as minimum compensation. The compensation awarded by the Tribunal is not just and proper compensation in view of the provisions of Section 92-A of the Act. These provisions cannot be lost sight of by this Court while hearing an appeal. He, further, submits that there is constitutional mandate imposing on Courts duty to dispense with substantial justice. While awarding just compensation, though the provisions of Section 92-A of the Motor Vehicles Act are not retrospective in operation, even then, the amount of compensation amounting to less than Rs. 15,000/- would not be proper and it would be too low. He relied on the authorities of this Court in the case of Shamsher Khan v. M.P. Electricity Board. 1987 Jab LJ 721 and in the case of Rukmabai v. Ramlal, 1988 Acc CJ 351. He, further, relies on the case of the Bombay High Court reported in 1987 Acc CJ 198 : (AIR 1987 Bom 52) (Oriental Fire and General Insurance Company Limited v. Shantabai). Learned counsel for the appellants further submitted that the award of the interest by the Tribunal at the rate of 6% per annum from the date of the claim petition, i.e. 13-7-1977, is too low and against the mandate of the Apex Court. The award of interest should have been at the rate of 12% per annum from the date of application. He relied on the cases of the Apex Court reported in Narcinva V. Kamat v. Alfredo Antonio Doe Martins, 1985 Ace CJ 397 : (AIR 1985 SC 1281) and Jagbirsingh v. General Manager, Punjab Roadways, 1987 Acc CJ 15 : (AIR 1987 SC 70) and a recent judgment of this Court in State of M.P. v. Ashadevi wd/o Krishna Murari (Misc. Appeal No. 255 of 1984 decided on 7-5-88 (reported in AIR 1989 Madh Pra 93 (Indore Bench) wherein interest at the rate of 12% per annum has been allowed. As such, the learned counsel submitted that the award of interest should be at the rate of 12% per annum on the amount of compensation of Rs. 15,000/- from the date of application till realisation, certainly giving an adjustment to the amount of compensation, which has already been paid by the Insurance Company to the claimants.
6. Learned counsel, appearing for the respondents, submitted that the provisions of Section 92-A of the Act cannot be applied inthe present case as the accident took place in the year 1977, i.e. on 19-1-77, and the provisions of Section 92-A of the Act cannot be made retrospective in operation and hence, he submits that analogy of Section 92-A of the said Act cannot be invoked by the appellants nor it would be justified to hold the appellants entitled for the award of compensation on the basis of Section 92-A of the Act. To support his contention, he relies on the case of the Rajasthan High Court in Yashoda Kumari v. Rajasthan State Road Transport Corporation, Jaipur, 1984 Acc CJ 716 and in the case of the Allahabad High Court in Ram Mani Gupta v. Mohammad Ibrahim, 1985 Ace CJ 476. Therefore, his contention is that the award of the learned Tribunal awarding compensation of Rs. 4,200/- by fixing the monthly dependency at Rs. 35/- and the multiplier of 10 years, was just and proper, particularly in the context of the admitted position that the widow of the deceased has remarried and as such she was impleaded as non-applicant No. 3 by the claimants themselves as she was not interested in claiming compensation for the death of her husband. He, further, submitted that for the death of Ratanlal, the amount of compensation awarded to the claimants, who are old parents, was just and proper and compensation is not too low so as to call for any interference in the award, by this Court. In support of his contention, he relies on two cases of the Punjab & Haryana and the Madras High Courts reported in Kulwant Singh v. Nand Kaur, 1977 Acc CJ 414 and in Krishnammal v. Associated Apparel (P) Ltd., 1970 Acc CJ 17. In the former case, the compensation awarded was Rs. 3,100/-whereas in the latter case, the compensation awarded was Rs. 4,500/-.
7. As regards award of interest, learned counsel for the respondents submits that the award of interest at the rate of 12% per annum from the date of application on the amount of award will be too excessive as the claim petition is of 1977 and this appeal is pending since 1979 for its disposal for no fault of the respondents and the respondents should not be penalised by payment of interest at the rate of 12% per annum because of the pendency of the cases in this Court. He submits that had the appeal been decided earlier, then the things would have been different and even the claim amount would not have been awarded as Rs. 15,000/- as Section 92-A of the Act, by way of amendment in the Act, came into force in the year 1982.
8. After considering the arguments of the learned counsel for the respective parties, I have come to the conclusion that this appeal deserves to be allowed to the extent indicated hereinafter because for a human life, a compensation of Rs. 4,200/-, whether the human life is of a poor or a rich person, is too low. It cannot be considered, in the eye of law, as just compensation and that is why the Parliament intended that in no fault liability cases, compensation of Rs. 15,000/- should be paid immediately as compensation and thereafter the matter may be decided on merits for payment to what extent the claimants are entitled to claim compensation, than the minimum. Therefore, the minimum limit fixed by the Parliament of Rs. 15,000/- should also be considered while deciding cases in appeals arising out of the cases, wherein accident occurred before the insertion of Section 92-A in the Act. The provision of Section 92-A of the Act in a piece of welfare legislation, has to be interpreted liberally and its intendment and analogy can be applied by the High Courts while deciding appeals or cases, on the principle that compensation on merits, which is largely based on guess work, must be in accord with the principle that compensation for loss of life, if not more, has to be at least Rs. 15,000/-. Hence, without going into the calculation of dependency and the multiplier adopted by the learned Tribunal, which, in my opinion, is not correct as it can be safely presumed that a member, who has got large members to support, having low income, cannot afford to spend much on himself and on his wife, I need not dilate on the calculations but, as stated above, I rely on the authorities of this Court in cases of Shamsher Khan (1987 Jab LJ 721) (supra) and Rukmabai (1988 Acc CJ 351) (supra) for awarding the compensation of Rs. 15,000/-instead of Rs. 4,200/-, as awarded by the learned Tribunal.
9. As regard interest, the mandate of the Apex Court is to award interest at the rate of 12% per annum. As such, whatever the cause may be for the delay or pendency of cases, the award of interest has to be at the rate of 12% per annum from the date of application; and for that I am bound by the mandate of the Apex Court reported in 1985 Acc CJ 397 : (AIR 1985 SC 1281) (supra), 1987 Acc CJ 15 : (AIR 1987 SC 70) (supra) and the judgment of the Division Bench of this Court recently delivered in Misc. Appeal No. 255 of 1984 (supra) decided on 7-5-88 (reported in AIR 1989 Madh Pra 93) at Indore Bench, to which I am a party.
10. Hence, the appeal is allowed to the extent that the claimants shall be entitled to the compensation of Rs. 15,000/- (fifteen thousand) giving an adjustment to Rs. 4,200/-which the claimants have already received. The claimants shall also be entitled to receive interest at the rate of 12% per annum from the date of application under Section 110-A of the Act, on the amount of compensation, i.e. Rs. 15,000/-, certainty giving adjustments to the interest at the rate of 6% per annum on the amount of Rs. 4,200/- awarded by the Tribunal till the date of payment.
11. Learned counsel for the respondent Insurance Company submits that the leave to the respondent be granted for filing an appeal before the Hon'ble Supreme Court as was granted in the case of Shamsher Khan (1987 Jab LJ 721) (supra) as the question involved in this case is the same and is of general and public importance. In my opinion, the leave by a single Judge of the High Court, while deciding cases singly, cannot be granted. The High Court can issue a certificate for appeal to the Supreme Court only when it is satisfied that the conditions of Article 132 or Article 133 or Article 134 of the Constitution of India, as the case may be, are satisfied. Article 133(3) of the Constitution of India puts a restriction on a single Judge for granting leave to appeal to the Supreme Court, which is quoted as under : --
"133. Appellate jurisdiction of Supreme Court in appeals from High Court in regard to Civil matter --
(1) and (2) ................
(3) Notwithstanding anything in this article, no appeal shall, unless Parliament by law otherwise provides, lie to the Supreme Court from the judgment, decree or final order of one Judge of a High Court."
As such a certificate cannot be issued by reason of Clause (3) of Article 133 of the Constitution of India by a single Judge. The fact, that in a similar case decided by this Court reported in 1987 Jab LJ 721 (supra), certificate has been granted by a learned single Judge of his own motion, cannot empower me to issue a certificate under Article 133(1) of the Constitution. The restriction placed by Clause (3) of Article 133 of the Constitution cannot be got over by relying upon the judgment of a learned single Judge reported in 1987 Jab LJ 721. The Apex Court held in case of State Bank of India v. State Bank of India Employees Union reported in, (1988) 1 UJ (SC) 171 : (AIR 1987 SC 2203) that a single Judge is not empowered to issue the certificate under Article 133(3) of the Constitution in a case decided by him. The restriction placed by Clause (3) of Article 133 of the Constitution could not be got over by relying upon the order of a Division Bench. As such, the Apex Court, after considering the provisions of Articles 132, 133 and 134A, has held that powers under Article 134A do not constitute an independent provision, in which a certificate can be issued. These powers are ancillary to Articles 132(1), 133(1) and Article 134A(1)(c) of the Constitution. As such, the High Court can issue a certificate only, when it is satisfied that the conditions in Article 132 or Article 133 or Article 134 of the Constitution, as the case may be, are satisfied. Hence, the question of grant of leave or certificate for filing an appeal to the Supreme Court by me does not arise. The respondents are free to take steps according to law, if so advised The appeal is allowed with costs of Rs. 500/- (Five Hundred). Counsel's fees Rs. 500/- (Five Hundred), if certified.
12. The respondent Insurance Company shall deposit the amount of award, so enhanced, and interest within six weeks from today. This period of deposit shall not carry any interest. In case the amount is not deposited in time, the appellants shall be entitled for the interest at the rate of 12% per annum till the period of deposit.
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