Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Smart Summary

Judgment Summary

Factual and Procedural Background

The appeal was filed by New India Assurance Co. Ltd. under Section 173 of the Motor Vehicles Act, 1988, challenging the award dated 9.10.1995 in MCC No. 54 of 1992 by the 9th Additional Motor Accidents Claims Tribunal, Bhopal. On 5.8.1990 at about 10:45 p.m., the deceased Rajendra Singh, while riding his Bullet motorcycle (No. HIB 7313) at the turning of Alpana Talkies, was struck by a mini bus (No. CIC 9508). The mini bus was driven by respondent No. 6, owned by respondent No. 7 and insured with the appellant. The Tribunal held that the accident was caused by the sole negligence of the mini bus driver and awarded total compensation of Rs. 5,32,000 with interest at 12% per annum to the legal representatives of the deceased. The insurer (appellant) appealed against that award.

Legal Issues Presented

  1. Whether the insurer (appellant) is entitled to challenge the quantum of compensation awarded by the Tribunal.
  2. Whether the compensation awarded by the Tribunal was excessive and contrary to the law declared in General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas.
  3. What is the appropriate assessment of the deceased's income, dependency, and the correct application of multiplier and other heads of compensation resulting in the correct quantum payable to the claimants.

Arguments of the Parties

Appellant's Arguments

  • The compensation determined by the Tribunal ignored the law declared by the Supreme Court in General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas (1994 ACJ 1 (SC)).
  • The compensation awarded was highly excessive and constituted a windfall beyond what the statutory table or precedent permit.

Respondents' Arguments

  • The appeal was not maintainable because the insurer cannot challenge the quantum of compensation.
  • The award of compensation was just and fair; in fact, the deceased's income should have been assessed higher (at Rs. 3,000/-), so cross-objections seeking enhancement ought to be allowed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas 1994 ACJ 1 (SC) Guidelines laid down by the Supreme Court (as relied upon by the appellant to challenge excess compensation). The appellant relied on this authority to contend the award ignored the law; the court directed that disbursement on deposit be made keeping in mind the guidelines laid down in this case.
Lilaben Udesing Gohel v. Oriental Insurance Co. Ltd. 1996 ACJ 673 (SC) Guidelines laid down by the Supreme Court. The court directed that disbursement on deposit be made keeping in mind the guidelines laid down in this case along with Susamma Thomas.

Court's Reasoning and Analysis

The court proceeded stepwise:

  1. Maintainability: The court rejected the respondents' contention that the insurer could not challenge quantum. It noted that the owner and driver were ex parte before the Tribunal, but the insurer had been permitted to contest the compensation application on all grounds available to the owner/driver; therefore the insurer's challenge to quantum was permissible.
  2. Assessment of Income and Evidence: The respondents' pleadings alleged the deceased earned Rs. 1,700 per month from tube-well boring and drilling contracts. The widow (AW1) orally stated the deceased earned Rs. 3,000 per month and contributed Rs. 1,800–1,900 to household expenses. The court observed that no legal documentary evidence was produced to prove the higher income and that the only evidence was the oral statement of AW1.
  3. Recalculation of Dependency: The Tribunal had fixed dependency at Rs. 1,200 per month (after deducting Rs. 500 as personal expenses from Rs. 1,700). The court, however, concluded that after deducting Rs. 200 per month as personal expenses from the pleaded monthly earning of Rs. 1,700, the appropriate dependency should be Rs. 1,500 per month. The annual multiplicand thus became Rs. 18,000 (Rs. 1,500 x 12).
  4. Multiplier and Heads of Compensation: Applying a multiplier of 16 (considering the age of the deceased and dependants) to the multiplicand of Rs. 18,000, the compensation under the dependency head was assessed at Rs. 2,88,000. The court then added Rs. 15,000 for consortium, Rs. 15,000 for loss to the estate, and Rs. 3,000 for funeral expenses, bringing the total to Rs. 3,21,000.
  5. Interest and Deposit Directions: The court awarded interest at 12% per annum from 24.1.1991. It directed the appellant to deposit the modified award amount less any amounts already deposited within two months from supply of certified copy; failing which the amount shall carry interest at 15% per annum. On deposit, disbursement was to be made keeping in view the guidelines laid down by the Supreme Court in the cited cases.

Holding and Implications

Core Ruling: The appeal is partly allowed and the award of the Tribunal is modified as indicated in the decision.

Implications and direct effects:

  • The Tribunal's award of Rs. 5,32,000 is reduced and modified to a total compensation of Rs. 3,21,000 (comprising dependency assessed at Rs. 2,88,000 plus Rs. 15,000 consortium, Rs. 15,000 to the estate, and Rs. 3,000 funeral expenses).
  • Interest at 12% per annum is awarded from 24.1.1991. The appellant must deposit the modified amount less prior deposits within two months of supply of certified copy; otherwise the deposited sum shall attract interest at 15% per annum.
  • On deposit, disbursement shall be made in accordance with the guidelines in General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas and Lilaben Udesing Gohel v. Oriental Insurance Co. Ltd.
  • Cross-objections filed by respondents Nos. 1 to 5 are dismissed and the parties are to bear their own costs.
  • The opinion does not purport to lay down a new precedent beyond applying existing Supreme Court guidelines; its effect is the modification of the quantum awarded to the claimants in this case.

    New India Assurance Co. Ltd. v. Kamla And Others

    JUDGMENT S.K. Dubey and Rajeev Gupta, JJ.

    1. Appellant New India Assurance Co. Ltd. has filed this appeal under Section 173 of the Motor Vehicles Act, 1988 (for short 'the Act'), aggrieved of the award dated 9.10.1995, passed in MCC No. 54 of 1992, by 9th Additional Motor Accidents Claims Tribunal, Bhopal.

    2. The circumstances, in which the accident occurred are not in dispute. When the deceased Rajendra Singh was going on his Bullet motor cycle No. HIB 7313 on 5.8.1990, at about 10.45 p.m., at the turning of Alpana Talkies he was dashed by mini bus No. CIC 9508, driven by the respondent No. 6, owned by respondent No. 7 and insured with the appellant. The Tribunal, after appreciating the evidence on record held that the accident was caused due to sole negligence of the driver of the mini bus. The deceased was 30 years of age. After deducting Rs. 500/- as personal living expenses of the deceased from the monthly earning of Rs. 1,700/-, the dependency was estimated as Rs. 1,200/- per month, yearly at Rs. 14,400/-. Applying the multiplier of 30, the amount worked out to Rs. 4,32,000/-. For loss of company Rs. 25,000/- were awarded each to the widow and to the minor daughter, Rs. 20,000/- to the parents and Rs. 5,000/to the respondent No. 5, the brother were awarded. A sum of Rs. 20,000/- towards loss of future income and Rs. 5,000/- towards funeral expenses were also awarded. Thus, total compensation of Rs. 5,32,000 to the respondents with interest at the rate of 12 per cent per annum till deposit was awarded to the legal representatives of the deceased.

    3. Mr. N.S. Ruprah, learned Counsel for the appellant, contended that the compensation so determined by the Tribunal is completely ignoring the law declared by the Supreme Court in General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas 1994 ACJ 1 (SC). The compensation so awarded is highly excessive and is windfall against the Table.

    4. Mr. V.S. Choudhary, the learned Counsel for the respondents submitted that appeal is not maintainable as the insurer cannot challenge the quantum of compensation. The award of compensation is just and fair and is not so excessive, which deserves to be enhanced as the deceased's income ought to have been assessed at Rs. 3,000/-. Therefore, cross-objections filed by the respondent Nos. 1 to 5 deserve to be allowed.

    5. The owner and driver remained ex pane before the Tribunal. The insurer appellant was permitted to contest the application for compensation on all the grounds which were available to the owner/driver. Hence, the contention that the appellant cannot challenge the quantum of compensation cannot be accepted.

    6. The respondents in their application under Section 166 of the Act, have averred that the deceased was earning Rs. 1,700/- per month by taking contracts of tube-well boring and drilling. However, the widow, AW 1, in her testimony stated that the deceased who was earning Rs. 3,000/- per month used to give Rs. 1,800/- to Rs. 1,900/- per month for the household expenses. To prove the earning of the deceased, no legal evidence was produced except the oral statement of AW 1, therefore, the dependency at Rs. 1,200/- per month was estimated which considering the number of dependants, after deducting Rs. 200/- per month for personal expenses of the deceased from Rs. 1,700/- monthly earning deserves to be increased from Rs. 1,200/- to Rs. 1,500/- per month. Considering the age of the deceased and the dependants, the multiplier of 16 is applied to the appropriate multiplicand of Rs. 18,000/-, the amount would work out to Rs. 2,88,000/-. In that Rs. 15,000/- is added towards consortium and Rs. 15,000 for loss to the estate and a further sum of Rs. 3,000/- towards funeral expenses, the total compensation would come to Rs. 3,21,000/-, which the respondent Nos. 1 to 5 would be entitled to get with interest thereon at the rate of 12 per cent per annum from 24.1.1991. Therefore, we direct the applicant to deposit the amount less the amount already deposited within a period of 2 months from the date of supply of certified copy, failing which the amount shall carry interest at the rate of 15 per cent per annum. On deposit the amount shall be disbursed keeping in mind the guidelines laid down by the Supreme Court in the cases of General Manager, Kerala State Road Transport Corpn. v. Susamma Thomas 1994 ACJ 1 (SC) and Lilaben Udesing Gohel v. Oriental Insurance Co. Ltd. 1996 ACJ 673 (SC).

    7. In the result, the appeal is partly allowed. Cross-objections are dismissed. The award of the Tribunal shall stand modified as indicated hereinabove. In these circumstances the parties to bear their own costs.

    Use AI to get other relevant cases.

    Comments

    New India Assurance Co. Ltd. v. Kamla And Others
    (Jul 1, 1997)