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Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • provisions of Section 147(2)(a), Section 217(2) of the New Act, and Section 6 of the General Clauses Act, observed that Section 217(2)(a) of the New Act
  • Section 95 (2)(b)(i) of the Motor Vehicles Act, 1939 as amended (for short, the 'Act of 1939')
  • Section 217(2) of the New Act and Section 6 of the General Clauses Act,
  • provisions of Section 147(2)(a) and Section 217 (2)(a) of the New Act,
  • SECTION 6 A GENERAL CLAUSES ACT
  • Clauses (b) and (c) of Section 6
  • Sub-section (2) of Section 95.
  • MOTOR VEHICLES ACT 1988
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of Section 147(2)(a), Section 217(2) of the New Act, and Section 6 of the General Clauses Act, observed that Section 217(2)(a) of the New Act
  • Section 95 (2)(b)(i) of the Motor Vehicles Act, 1939 as amended (for short, the 'Act of 1939')
  • Section 217(2) of the New Act and Section 6 of the General Clauses Act,
  • provisions of Section 147(2)(a) and Section 217 (2)(a) of the New Act,
  • SECTION 6 A GENERAL CLAUSES ACT
  • Clauses (b) and (c) of Section 6
  • Sub-section (2) of Section 95.
  • MOTOR VEHICLES ACT 1988
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The two appeals arise from an award dated 24-12-1991 in Claim Case No. 1 of 1989 by the Member, Motor Accidents Claim Tribunal, Datia. Misc. Appeal No. 74 of 1992 was filed by the claimants seeking enhancement of compensation and to set aside the Tribunal's apportionment of liability, which had apportioned payment equally between the insurer and owners of the two offending vehicles. Misc. Appeal No. 66 of 1992 was filed by the owner and driver of the passenger bus No. CPW 6790 challenging the award as excessive and contesting the Tribunal's specification limiting the Insurance Company's statutory liability to Rs. 50,000/- under Section 95(2)(b)(i) of the Motor Vehicles Act, 1939.

The underlying accident occurred on 23-9-1988 when the deceased, Arun Kumar, a pillion-rider on scooter No. MPI 8656 driven by Ashok Kumar, was struck by a passenger bus (driven by respondent No. 2, owned by respondent No. 1, insured by respondent No. 3). The deceased sustained severe injuries and later died in hospital. The claim petition sought Rs. 5,95,000/- from the owner, driver and Insurance Company of the bus, without impleading the owner, driver and insurer of the scooter. The Tribunal found both drivers negligent and contributing equally to the accident, assessed various heads of compensation and apportioned liability equally between the two offending vehicles, while fixing the insurer's liability to the statutory limit of Rs. 50,000/- under Section 95 of the 1939 Act. These appeals challenge aspects of that award.

Legal Issues Presented

  1. Whether the Insurance Company's liability for third-party damages is limited to the statutory amount under Section 95(2) of the Motor Vehicles Act, 1939 in the absence of evidence of payment of any additional premium to cover unlimited or higher liability?
  2. Whether the Tribunal's method of assessing dependency (monthly dependency, choice of multiplier and a 15% deduction for lump-sum/uncertainties) was correct and whether the award of various heads of damages requires enhancement or adjustment?
  3. Whether the finding of equal responsibility (composite negligence) between the two drivers permits apportionment of liability between them, or whether both are jointly and severally liable for the whole loss?
  4. If joint/several liability is found, whether it is appropriate for the Tribunal or Court to specify the inter se shares to expedite payment where some tort-feasors (here the scooter's owner/driver/insurer) are not parties to the claim petition?

Arguments of the Parties

Claimants' (Appellants') Arguments

  • The claimants appealed for enhancement of compensation awarded by the Tribunal.
  • They sought to set aside the Tribunal's apportionment which required the insurer and owners of both offending vehicles to pay equal shares, arguing for greater compensation to reflect loss to the dependents.

Owner and Driver (Appellants) — Bus

  • The owner and driver of the bus challenged the award as excessive.
  • They specifically challenged the Tribunal's direction specifying the amount of compensation payable by the Insurance Company and the limitation of the insurer's liability to Rs. 50,000/- under Section 95(2)(b)(i) of the Motor Vehicles Act, 1939.
  • Additionally, counsel for the owner argued that the enforcement of the Motor Vehicles Act, 1988 (the 'New Act'), particularly Section 147(2)(a) (corresponding to Section 95(2) of the 1939 Act), together with Section 217(2) of the New Act and Section 6 of the General Clauses Act, meant that insurer's liability should not remain limited (i.e., the New Act provisions should affect the insurer's liability).

Insurance Company's Position / Evidence

  • The opinion records that the Insurance Company exhibited a cover note (Ex. D/2); the actual policy was not produced. The Court noted that non-production of the policy did not make a difference because the cover note follows the policy.
  • There is no material placed before the Court by the insured or insurer to demonstrate that any additional premium had been paid to cover unlimited third-party liability. On that factual basis, the Court treated the insurer's liability as governed by Section 95(2)(b) of the 1939 Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
National Insurance Co. Ltd. v. Jugal Kishore, 1988 ACJ 270 Comprehensive insurance or a cover for the vehicle does not automatically render third-party liability unlimited; a specific agreement and separate premium are required to extend liability beyond the statutory limit. Applied to hold that in absence of proof of payment of additional premium or specific agreement, the insurer's liability remains limited by Section 95(2) of the 1939 Act.
Prabhavati Sharma v. Brijmohan Parihar, 1990 ACJ 399 Followed Jugal Kishore: comprehensive policy does not make insurer liability exceed statutory limit absent specific agreement/payment. Relied upon to support the Court's view that the insurer's liability under a comprehensive policy is limited to Rs. 50,000/- where the policy so provides and no extra premium was paid.
National Insurance Co. Ltd. v. Roy George, 1993 ACJ 343 (Kerala FB) Held that provisions in the New Act (Section 147(2)(a)) relating to unlimited liability do not have retrospective application to alter insurer liability as it stood on date of accident. Referred to and followed to reject the contention that the New Act retrospectively enlarged insurer liability for accidents under the 1939 Act.
Oriental Insurance Co. Ltd. v. Gowramma, 1994 ACJ 63 (Karnataka DB) Supported the view that comprehensive policies do not extend third-party liability beyond statutory limits absent specific agreement. Cited as one of several High Court decisions consistent with the Jugal Kishore principle, reinforcing the conclusion on insurer liability.
United India Insurance Co. Ltd. v. Alanti Venkata Subba Rao, 1991 ACJ 206 (Andhra SB) Similar proposition: comprehensive policy does not automatically enlarge third-party liability beyond statutory limit. Referred to as supporting authority for limiting insurer liability where no additional premium was paid.
National Insurance Co. Ltd. v. Swaranlata Das, 1993 ACJ 748 (AIR 1993 SC 1259) Principles on assessment of compensation by capitalization of net income and choice of appropriate multiplier (Supreme Court authority). Used to justify adopting an appropriate multiplier and the capitalization method rather than the Tribunal's approach; cited for multiplier selection and for the rule that no separate deduction for lump-sum/uncertainties should be made once multiplier is applied.
State of M.P. v. Ashadevi, 1989 JLJ 541 (AIR 1989 MP 93) Local decision on choice of multiplier: if deceased in twenties/threshold of career multiplier of 16 is appropriate (Court's view referenced). Applied to select multiplier of 16 for the deceased (in his late twenties) instead of the multiplier used by the Tribunal.
Kashmirah Mathur, 1983 JLJ 113 (AIR 1983 MP 24) (FB) Authority for the proposition that when multiplier is applied, no deduction for lump-sum/uncertainties should be made. Relied on with Ashadevi and Fizabai to conclude that the Tribunal erred in deducting 15% after applying a multiplier; court removed such deduction in recalculation.
Fizabai's case, 1993 MPLJ 38 Also cited in support of the rule against deductions after applying multiplier. Used with other authorities to support recalculation without the 15% deduction.
Manjula Devi Bhuta v. Manjusri Raha, 1968 ACJ 1 (DB) On composite negligence: when both drivers are jointly responsible the case amounts to joint and several liability rather than contributory negligence; rule of apportionment applies differently. Cited to support the proposition that composite negligence gives rise to joint and several liability and that apportionment as in contributory negligence is not applicable.
M.P.S.R.T. Corporation v. Mst. Sushiladevi, Misc. Appeal No. 80 of 1984 (decided 19-2-90) Division Bench had apportioned liability equally where both drivers were held equally liable, to avoid delay in payment. Referred to as precedent for specifying inter se shares to expedite payment where some tort-feasors are not parties or to ensure timely relief to claimants.
Mahila Jammadevi v. The M.P.S.R.T. Corporation, Misc. Appeal No. 19 of 1987 (decided 2-3-1993) (unreported) Another decision specifying inter se liability between two offending vehicles where both drivers were held equally responsible. Referred to alongside M.P.S.R.T. decision to justify Court specifying the portion payable by insurer/owner/driver to avoid delay in compensation to claimants.

Court's Reasoning and Analysis

The Court's analysis proceeded in two main veins: (A) liability of the Insurance Company; and (B) assessment of compensatory damages and apportionment.

(A) Liability of the Insurance Company

The Court examined the insurance documentation and factual material on record. Although the policy itself was not produced, a cover note (Ex. D/2) was exhibited and the Court observed that non-production of the policy did not alter the position since a cover note follows the policy. The cover note and premium particulars did not indicate payment of any additional premium to cover unlimited or higher third-party liability beyond the statutory limits prescribed by Sub-section (2) of Section 95 of the Motor Vehicles Act, 1939.

Relying on established precedent (notably National Insurance Co. Ltd. v. Jugal Kishore and Prabhavati Sharma v. Brijmohan Parihar), the Court reiterated the principle that comprehensive insurance in itself does not enlarge third-party liability beyond statutory limits; an explicit agreement and separate premium are required to do so. The Court cited other High Court decisions (Roy George, Gowramma, Alanti Venkata Subba Rao) that adopted the same view.

The Court rejected the owner/driver's contention that provisions of the Motor Vehicles Act, 1988 (the New Act), namely Section 147(2)(a) and Section 217(2) together with Section 6 of the General Clauses Act, operated retrospectively to enlarge insurer liability for accidents occurring under the 1939 Act. The Court accepted the reasoning in Prabhavati Sharma and Roy George that the New Act's provisions did not have retrospective effect to alter insurer liability as it stood on the date of the accident; Section 217(2) does not deal with liability under the 1939 Act in a way that would enlarge insurer liability retrospectively.

(B) Assessment of Compensation and Apportionment

On compensation, the Court found the Tribunal's approach flawed in two respects. First, the Tribunal had chosen a minimum monthly income of Rs. 1,000 for the deceased and then determined dependency at Rs. 500 per month (Rs. 6,000 yearly), applied a multiplier of 20, and then deducted 15% for lump-sum/uncertainties. The Court observed that the appropriate and more scientific approach is capitalization of net income and the choice of a multiplier appropriate to the age of the deceased (or dependents), citing the Supreme Court in Swaranlata Das and this Court in Ashadevi.

Applying the authorities cited, the Court concluded that for a deceased in his late twenties a multiplier of 16 is appropriate. It further held that once the multiplier principle is applied, no separate deduction for lump-sum payment or for uncertainties should be made, as the multiplier accounts for imponderables and future erosion of money value. Consequently, the Court recalculated the dependency to Rs. 96,000 and adjusted other heads: increased consortium to Rs. 15,000 (from Rs. 10,000), retained Rs. 20,000 for loss of estate, and left the special damages (watch, funeral, medical/travel, thirteenth-day rites) as awarded by the Tribunal since they were not excessive. The total revised compensation aggregated to Rs. 1,45,500.

On apportionment, the Tribunal had earlier found that both drivers equally contributed to the accident. The Court reiterated the legal distinction between contributory negligence and composite negligence: where both drivers are equally responsible (composite negligence) the liability is joint and several and the ordinary rule of apportionment applicable to contributory negligence does not apply. The Court relied on Manjula Devi Bhuta v. Manjusri Raha for the proposition that composite negligence leads to joint and several liability.

Nevertheless, to expedite payment to claimants and because the scooter's owner/driver/insurer were not parties to the claim petition, the Court considered precedent where inter se liability had been specified to avoid delay (M.P.S.R.T. Corporation v. Mst. Sushiladevi and Mahila Jammadevi). Following that approach, the Court specified that out of the total compensation of Rs. 1,45,500 the owner, insurer and driver of the bus shall be liable to pay 50% with interest at 12% per annum from the date of application until payment. The Insurance Company’s statutory liability being fixed at Rs. 50,000, it shall pay Rs. 50,000 with accrued interest (12% p.a.) and costs; the balance of the 50% share shall be payable by the owner and driver of the bus with interest at 12% p.a. Parties entitled to adjust payments deposited with proportionate interest.

Holding and Implications

APPEALS PARTLY ALLOWED

Holding (core rulings):

  • The appeals by the owner/driver and the claimants are partly allowed and the Tribunal's award is modified as set out by the Court (see para 20 of the opinion).
  • The Tribunal's compensation award is revised: total compensation fixed at Rs. 1,45,500 (with specified separate heads and adjustments including increasing consortium to Rs. 15,000 and dependency recalculated at Rs. 96,000 by applying multiplier of 16 and without making the 15% deduction).
  • The Insurance Company's liability is limited to its statutory cover (Rs. 50,000) under Section 95(2) of the Motor Vehicles Act, 1939, in the absence of proof of payment of any additional premium to cover unlimited liability.
  • Because both drivers were held equally responsible (composite negligence), they are jointly and severally liable; however, to ensure timely payment to claimants the Court specified that the owner, insurer and driver of the bus shall pay 50% of the total with interest at 12% p.a., the insurer's contribution being limited to Rs. 50,000 with interest and costs, and the balance to be paid by the owner and driver.
  • The parties to bear their own costs of these appeals in this Court; Tribunal record to be sent back with copy of this order.

Implications:

  • Direct consequence for parties: the compensation payable to the claimants is increased and restructured as stated; the insurance company’s payment obligation is capped at Rs. 50,000 plus interest and costs in the absence of evidence of additional premium for higher liability; remaining liability is to be borne by the vehicle owner and driver.
  • The Court expressly follows and applies earlier authorities on insurer liability and multiplier methodology rather than creating or asserting any new legal principle. The opinion affirms prior case law holding that comprehensive insurance policies do not, without specific agreement and separate premium, extend third-party liability beyond statutory limits.
  • No broader novel precedent is announced; the Court states its agreement with earlier reported decisions and declines to delve further into the retrospective operation arguments applying the New Act.

Order: Misc. Appeal No. 66 of 1992 and Misc. Appeal No. 74 of 1992 are partly allowed; modifications to the Tribunal's award are set out in para 20 of the opinion; parties to bear their own costs in these appeals; tribunal record to be transmitted with copy of this order.

    Vimla Gangotia And Another v. National Insurance Company Ltd. And Others

    1. The two appeals have been filed against the award dated 24-12-1991 passed in Claim Case No. 1 of 1989, by the Member, Motor Accidents Claim Tribunal, Datia (for short, the 'Tribunal').

    2. Misc. Appeal No. 74 of 1992 is of the claimants for enhancement of compensation and for setting aside the award so far it relates to apportionment of the liability of payment of compensation in equal proportion by the insurer and owners of the two offending vehicles.

    3. Misc. Appeal No. 66 of 1992 is by the owner and driver of the passenger bus No. CPW 6790, involved in the accident, which challenges the award as excessive and also the award specifying the amount 'of compensation payable by the Insurance Company limiting to Rs. 50,000/- of its statutory liability under Section 95 (2)(b)(i) of the Motor Vehicles Act, 1939 as amended (for short, the 'Act of 1939')

    4. Claimant No. 1 is the widow and claimant No. 2 is the daughter of the deceased Arun Kumar, who died because of the motor accident, occurred on 23-9-1988. On the day of accident the deceased as a pillion-rider on scooter No. MPI 8656 driven by Ashok Kumar who going from Bhander side to Datia; a passenger bus driven by respondent No. 2, owned by respondent No. 1 and in sured by respondent No. 3 (in Misc. Appeal No. 74 of 1992) was coming from the side of Datia. Near the Octroi post, on the left side of the turning of the road, the bus dashed against the scooter, as a result of which the accident occurred, wherein the deceased received severe multiple injuries. The deceased was taken to the hospital and from there to J.A.

    Group of Hospital, Gwalior, but ultimately could not be survived. The claimants in their petition claimed the compensation of Rupees 5,95,000/- from the owner driver and the Insurance Company of the passanger bus without impleading owner, driver and Insurance Company of scooter as parties to the petition. The Tribunal after appreciating evidence adduced by the parties, held that the accident occurred due to rash and negligent driving, of the two drivers, i.e., the drivers of the bus and scooter, who equally contributed to the accident.

    5. While dealing with issues No. 4 to 10, relating to compensation, the Tribunal held that the deceased, who was a law graduate and was entering into legal profession, could have earned at least Rs. 1,000/- per month initially and gradually he would have earned much more by the passage of time and experience. Taking minimum monthly income of Rs. 1,000/- into consideration, the Tribunal calculated the dependency at the rate of Rs. 500/- per month, yearly, Rs. 6,000/-, and by applying the multiplier of 20, determined the dependency of Rs. 1,20,000/-. Out of the amount so determined, the tribunal made a deduction of 15 per cent for uncertainties of life and lump sum payment. In the head of loss of company and love and affection, the tribunal awarded Rs. 10,000/s for consortium to the widow Rs. 10,000/-; for loss of estate Rs. 20,000/-; Rs. 500/- were awarded as the cost of the wrist watch; Rs. 500/- towards funeral expenses; Rs. 1,500/ - for performing rites of the thirteenth day; and Rs. 2,000/ - in the head of medical expenses and transportation charges incurred in treatment of the deceased.

    6. Though, the Tribunal held that it was a case of composite negligence, as the driver owner of the scooter and insurer were not made parties, apportioned the compensation in equal proportion and specified the amount of Rs. 74,500/-, payable by the owner, driver and the insurer of the bus with interest at the rate of 12 per cent per annum and costs. Out of the said amount, the tribunal further made a direction fixing the liability of the Insurance Company to the extent of Rs. 50,000/- to meet the statutory liability under Section 95 of the Act of 1939 with its interest and costs. It is this award, out of which the two appeals arise, as aforesaid.

    7. We heard Shri S. S. Kushwah, counsel for the claimants/ appellants, Shri Lokendra Gupta, counsel for appellants, owner and driver, and Shri B. N. Melhotra, counsel for the Insurance Company.

    8. Before we deal with the contention relating to award of compensation, we deal with the question regarding liability of the Insurance company. The vehicles involved in the accident is a passenger bus, its liability has to be considered in view of the provisions of Section 95 of the Act of 1939, relevant portion of which we quote thus:

    "95. Requirement of policies and limits of liability.-- (1) xxx xxx xxx (2) Subject to the proviso to Sub-section (1), a policy of insurance shall cover any liability incurred in respect of any one accident up to the following limits, namely -

    9. It is not a case of the owner of the vehicle that for covering the unlimited risk of a third party the "additional premium was paid. Though the policy is not placed on record, the cover note is exhibited as Ex. D/2 by the insurer, therefore, non-production of the policy of insurance will not make any difference, as it is settled that cover note follows the policy. In the cover note, in the heading of 'Schedule of Premium', the premium paid is shown as below :

    A perusal of the premium paid do not indicate that any additional premium was paid to cover the unlimited liability of a third party or higher than the statutory liability fixed by Sub-section (2) of Section 95. The appellant insured has also not placed any material before this Court that any additional premium was paid to cover the risk of unlimited liability, therefore, in the absence of the payment of any additional premium for covering the risk of unlimited liability of a third party, the liability of the Insurance Company shall be in accordance with Section 95 (2)(b) of the Act 1939.

    10. In the case of National Insurance Co. Ltd. v. Jugal Kishore, 1988 ACJ 270, the Supreme Court, while considering the question has observed that comprehensive insurance of the vehicle entitles the owner to claim reimbursement of damages suffered by the vehicle. It does not mean that the limit of liability with regard to third party risk becomes unlimited or higher than the statutory liability fixed under Sub-section (2) of Section 95 of the Act of 1939. For this purpose, a specific agreement has to be arrived at between the owner and the Insurance Company and separate premium has to be paid on the amount of the liability undertaken by the Insurance Company in this behalf. Likewise, if risk of any other nature, for instance, with regard to the driver or passengers etc. in excess of statutory liability, if any, is sought to be covered it has to be clearly specified in the policy and separate premium paid therefor, which is the requirement of the tariff regulations framed for the purpose.

    11. A Division Bench of this Court in the case of Prabhavati Sharma v. Brijmohan Parihar , 1990 ACJ 399, following the decision in the case of Jugal Kishore (supra), in case where the death of scooterist occurred in an accident with the mini-bus, has held that as the policy provided liability of Insurance Company, limited to Rs. 50,000/-, the liability of the Insurance Company under a comprehensive Policy does not mean that the limit of liability for third party risk becomes unlimited or higher than the statutory limit in the absence of a specific agreement.

    12. The same is the view of the Kerala High Court (FB), Karnataka High Court (DB) and Andhra Pradesh High Court (SB) in the cases of National Insurance Co. Ltd. v. Roy George, 1993 ACJ 343; Oriental Insurance Co. Ltd. v. Gowramma, 1994 ACJ 63; and, United India Insurance Co. Ltd. v. Alanti Venkata Subba Rao, 1991 ACJ 206, respectively.

    13. The contention of Shri Lokendra Gupta, learned counsel for the owner, that enforcement of the Motor Vehicles Act, 1988 (for short, the 'New Act'), in view of section 147(2)(a) which is corresponding to Section 95(2) of the Act of 1939, the liability of the insurer does not remain limited in view of Section 217(2) of the New Act and Section 6 of the General Clauses Act, in our opinion, has no merit. Exactly, the same contention was raised in the case of Prabhavati Sharma (supra), wherein the Division Bench of this Court, after referring to the provisions of Section 147(2)(a), Section 217(2) of the New Act, and Section 6 of the General Clauses Act, observed that Section 217(2)(a) of the New Act does not speak of any liability incurred under the Act of 1939 and does not also deal with adjudication thereunder in respect thereof. It has an entirely different purpose of dealing with cases other than those of tortious liability despite its wide sweep covering penalty or fine imposed and other action taken under the repealed enactment. It does not have the effect of imparting retrospective operation to section 147(2)(a) so as to enlarge the scope of insurer's liability thereunder in regard to accidents occurring, and claims lodged and decided, under the Act of 1939. It has not kept alive for adjudication under the New Act the liability with respect to which, as per Section 6, General Clauses Act, legal proceeding or remedy contemplated under the Act of 1939 has to be continued or enforced. Clauses (b) and (c) of Section 6 are clear and categorical in that regard.

    14. The Full Bench of Kerala High Court in the case of Roy George (supra) has also considered the provisions of Section 147(2)(a) and Section 217 (2)(a) of the New Act, and held that section 147(2)(a), relating to unlimited liability, has no retrospective application, though the provisions are introduced in the New Act, it does not automatically lead to the inference that such provisions arc retrospective in nature altering the liability of the Insurance Company as it stood on the date of accident.

    15. In our opinion, the view taken by this Court in Prabhavati Sharma's case (supra) and the view of Kerala High Court in Roy George's case (supra) are correct, we respectfully agreeing with the views, are not inclined I to delve into the question any further.

    Re.: Conspection

    16. The deceased at the relevant time was in late twenties and was a law graduate, who was to enter into legal profession. True, at the time of accident his income was nill by the profession, but it is also a fact that he was maintaining his wife and the young daughter, therefore, it cannot be said that the dependents of the deceased are not entitled to any compensation. However, on guess work the tribunal has determined the monthly dependency at the rate of Rs. 500 and yearly, Rs. 6,000/-, multiplied it by 20, and, thereafter deducted 15 per cent out of the total amount of dependency so determined, to-

    wards lump sum payment and for uncerlain-ties of life. Now, it is well-settled that appropriate method of assessment of compensation is the method of capitalization of net income choosing a multiplier appropriate to the age of the deceased or the age of the dependents, whichever multiplier in lower. This method of calculating the compensation is not only appropriate but is more scientific method of capitalization of the loss of dependency. See a decision of the Supreme Court in the case of National Insurance Co. Ltd. v. Swaranlata Das, 1993 ACJ 748: (AIR 1993 SC 1259) and, a decision of this Court in the case of .State of M. P. v. Ashadevi, 1989 JLJ 541 : (AIR 1989 MP 93). This Court in case of Ashadevi (supra), observed that if the deceased is in threshold of his career between twenties, multiplier should be chosen of 16, while in case of death of the deceased between 30s to 40s, multiplier of 15 years should be adopted. In case of Swaranlata Das (supra), wherein the deceased was of 26 years of age, for determining the dependency and calculating the compensation, the Supreme Court applied the multiplier of fifteen.

    17. It is also settled that when principle of multiplier is applied in determining the compensation, no amount can be deducted towards lump sum payment or for uncertainties of life, as the reduced figure itself takes care of imponderables. It is also well-known circumstance that with rising inflation year after year the value of money goes on getting eroded. There is, therefore, no scope for making any kind of deduction while working out the figure of loss of dependency by applying the principle of Multiplier, See, the decisions of this Court in cases of Kashmirah Mathur, 1983 JLJ 113 : (AIR 1983 MP 24) (FB); Ashadevi's case (supra); and, Fizabai's case, 1993 MPLJ 38. Therefore, in our opinion, the tribunal committed an error in making deduction towards lump sum payment, hence, we are of the view that the claimants are entitled to compensation of Rs. 96,000 in the head of dependency by applying multiplier of 16. As regards amounts of compensation awarded in the heads of loss of company and love and affection, Rs. 10,000/-, and loss of estate,, Rs. 20,000/-, they are proper; however, in the! head of consortium to the young widow award of Rs. 10.000/ - is on lower side, which in our opinion should be Rs. 15,000/-. While, in the head of special damages, i.e., cost of walch, Rs. 500/-; fineral expenses Rs. 500/-; medical and travelling expenses, Rs. 2,000/-; and, expenses of thirteenth day, Rs. 1,500/-, the amounts as awarded are not on higher side but low, therefore, we do not express any opinion in that regard. Hence, after itemising the award in different heads, the total amount of compensation comes to Rs. 1,45,500/-, which, in our opinion, is just, fair and reasonable, to which the claimants are entitled. ' Re.: Apportionment

    18. On evidence adduced by the parties, the'Tribunal has recorded a categorical finding that the drivers of both the vehicles, i.e., bus and scooter, equally contributed to the accident which, ultimately, resulted in the death of the deceased, as the deceased was a pillion-rider and was not driving the scooter, such type of case cannot be of contributory negligence but of composite negligence. In such a situation, both the drivers are jointly and severally liable for whole of the loss and rule of apportionment cannot be applied, which applies only in cases of contributory negligence. If any authority is needed, see, a Division Bench decision of this Court in case of Manjula Devi Bhuta v. Manjusri Raha, 1968 ACJ 1.

    19. However, to avoid further delay in payment of compensation to the claimants, particularly when the owner, driver and insurer of scooter are not parties to the claim petition, a clear and specific direction for making payment was made by the tribunal. A Division Bench of this Court in Misc. Appeal No. 80 of 1984, decided on 19-2-90, in between M.P.S.R.T. Corporation v. Mst. Sushiladevi, wherein both the drivers of the offending vehicles were held to be equally liable for the accident, apportioned the liability between the two tort-feasers equally. There is yet another unreported decision of this Court, wherein the Division Bench of this Court in Misc. Appeal No. 19 of 1987, decided on 2-3-1993, in between Mahila Jammadevi v. The M.P.S.R.T. Corporation, specified the interse liability in between the two offending vehicles.

    20. Therefore, as both the drivers having been found equal responsible for the accident, which finding is unassailable, it would be just and proper in the circumstances of this case also to specify the amount, which shall be paid by the insurer, owner and driver of the vehicle involved in the accident. Out of the total amount of compensation, i. e., Rs. 1,45,500/-, the owner, insurer and driver shall be liable to pay 50 per cent of this amount with interest at the rate of 12 per cent per annum from the date of application till payment. Out of this 50 per cent amount and interest, as the liability of the Insurance Company has been held to be fixed to its statutory limit, i.e., up to Rs. 50,000/-, the Insurance Company shall pay the amount of Rs. 50,000/- with accrued interest at the rate of 12 per cent, per annum till its payment to deposit and the costs awarded by the Tribunal. The balance amount of the compensation shall be payable by the .owner and driver of the bus with its accrued interest at the rate of 12 per cent per annum from the date of application till payment. Of course, the owner, insurer and driver shall be entitled to adjust all the payment deposited with their proportionate interest.

    21. In the result, Misc. Appeal No. 66 of 1992 of owner and driver and Misc. Appeal No. 74 of 1992 filed by the claimants are partly allowed by modifying the award of the Tribunal in the manner as aforesaid in para 20 in relation to the determination of the compensation. In the circumstances of the case, we leave the parlies to bear their own costs of this Court in these two appeals. Record of the Tribunal be sent posthaste with the copy of this order.

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    Vimla Gangotia And Another v. National Insurance Company Ltd. And Others
    (May 13, 1994)