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Structured Summary of the Opinion — Motor Accident Claims Appeals (1994)

Factual and Procedural Background

The appeals arise out of a fatal motor accident on 27.12.1988 in which Late Dr. Vikas Chandra Rai (age 36), a Lecturer in Commerce at Bhopal University, died while travelling as a passenger in stage carriage bus No. MPH 7893. The bus was driven by respondent No. 4 (Omar Khan) in the course of employment of M.P. State Road Transport Corporation (respondent No. 3). The bus collided with truck No. CPL 6583, owned by M.P. Electricity Board (respondent No. 1) and driven by respondent No. 2 (Bali-ram Rai), which was insured with respondent No. 5.

The legal representatives of the deceased (appellants) filed a claim under Section 110-A of the Motor Vehicles Act, 1939 on 17.3.1989 seeking Rs. 60,91,600. The Second Motor Accidents Claims Tribunal, Raisen, by award dated 10.8.1994, assessed compensation at Rs. 4,20,000 (after a deduction for ex gratia payments) with 12% interest, and held the accident was caused due to the sole negligence of the bus driver (respondent No. 4), making respondent Nos. 3 and 4 jointly and severally liable.

Two appeals were filed against that award: Misc. Appeal No. 853 of 1994 (by the appellants-claimants seeking enhancement) and Misc. Appeal No. 982 of 1994 (by M.P. State Road Transport Corporation, aggrieved by the award). The High Court heard the appeals and delivered the opinion summarized here.

Legal Issues Presented

  1. Whether the bus driver alone was responsible for the accident, or whether the truck driver was solely or partly responsible (i.e., apportionment of liability between the two drivers).
  2. What is the correct quantum of compensation to the legal representatives of the deceased and the correct application of the multiplier method and other heads of damages.

Arguments of the Parties

Appellants (Legal representatives of the deceased)

  • Filed a claim under Section 110-A seeking Rs. 60,91,600 in compensation.
  • Sought enhancement of the Tribunal's award through Misc. Appeal No. 853 of 1994.
  • Did not examine any eyewitnesses to the occurrence (the opinion records the appellants adduced no eyewitness evidence).

Respondents

  • Respondent Nos. 1 and 2 (owner and driver of the truck): Pleaded that the accident was caused due to the sole negligence of the bus driver. Their driver (respondent No. 2) stated that, on a foggy morning, he took the truck to the left extreme of the road with dim lights on and stopped; the bus, driven negligently at high speed, dashed into the right front of the standing truck and thereafter left the road.
  • Respondent Nos. 3 and 4 (M.P. State Road Transport Corporation and bus driver): Denied negligence on the part of the bus and contended the accident was inevitable because of negligent driving of the truck.
  • Only respondent No. 2 (truck driver) was examined in support of the truck's version (as NAW 1); the bus driver did not give evidence.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
New India Assurance Co. Ltd. v. Surgyan Singhaniya, 1999 ACJ 675 (MP) Support for the proposition that a heavy vehicle owner/driver cannot be completely absolved from liability where steps were taken to avert an accident but were insufficient. The Court relied on this decision to justify not fully absolving the truck driver of liability and to support partial apportionment of fault (holding truck driver 1/4th and bus driver 3/4th liable).
General Manager, Kerala State Road Trans. Corpn. v. Susamma Thomas, 1994 ACJ 1 (SC) Endorsement of the multiplier method as a logically sound and legally established approach for determining 'just' compensation in fatal accident cases. The Court applied the multiplier method in quantifying future loss of dependency and other heads of damages, citing Susamma Thomas as authority for that approach.
Lilaben Udesing Gohel v. Oriental Insurance Co. Ltd., 1996 ACJ 673 (SC) Principles and guidelines for disbursement of deposited compensation by the Tribunal (well-settled principles on distribution to claimants). The Court directed that on deposit the Tribunal should disburse amounts keeping in mind the settled principles laid down in this case (used to guide post-deposit disbursement).

Court's Reasoning and Analysis

The Court's analysis proceeded in distinct steps, based strictly on evidence and documents placed before the Tribunal and the High Court:

  1. Admitted Accident and Parties' Blame: The accident itself was admitted by the parties, and the drivers had blamed each other. The Court therefore considered liability allocation despite the claimants not producing eyewitnesses.
  2. Evidence Considered: The Court considered the oral evidence of NAW 1 (truck driver), the certified copies of the First Information Report, the spot-map (Exh. P.11-A), seizure memos of both vehicles (Exhs. P.9-A and P.10-A), and witness AW 4 (Balmukund) and AW 6 (constable who prepared the spot-map).
  3. Observation from Site-map and Damage: The site-map and the condition of both vehicles showed severe damage on the right (driver's) sides of both vehicles. The Court inferred from this that the collision occurred on the road, not off it ("kacha"), contradicting the truck driver's statement that the truck had been taken onto the kacha.
  4. Assessment of Truck Driver's Conduct: Even accepting parts of NAW 1's statement (that he stopped with dim lights and one wheel on kacha), the Court found that the truck did not leave sufficient space on the road for the bus to pass. NAW 1 himself admitted seeing the bus approaching at high speed. The pleading by the truck owner/driver said the truck was stopped at the extreme end of the road, not on kacha.
  5. Rules of the Road and Duty of Heavy Vehicles: The Court invoked the principle that heavy goods vehicles should give way to passenger vehicles and leave sufficient space for them to pass. Although the truck driver took steps to avert the accident, those steps were insufficient to absolve him of responsibility.
  6. Apportionment of Fault: Balancing the evidence, damage pattern and the bus having gone 85 paces into the field after impact (indicating high speed and lack of control), the Court concluded the bus driver was primarily at fault. Using the support of the New India Assurance decision, the Court apportioned liability as: 3/4th to the bus (owner/driver/SRTC) and 1/4th to the truck (owner/driver/insurer).
  7. Quantum of Compensation — Application of Multiplier Method: Relying on Susamma Thomas, the Court determined 'just' compensation using the multiplier approach. The Court adjusted the multiplicand to account for future prospects and circumstances of the deceased:
    • Estimated gross monthly income: increased from recorded Rs. 4,325.25 to Rs. 6,000 to reflect future prospects;
    • Deduction for personal living expenses: Rs. 2,500 per month;
    • Net dependency: Rs. 3,500 per month (Rs. 42,000 per year);
    • Appropriate multiplier applied: 14, producing Rs. 5,88,000 as the basic dependency award;
    • Added heads: loss of consortium Rs. 15,000; loss to the estate Rs. 15,000; funeral expenses Rs. 2,000; total gross compensation fixed at Rs. 6,20,000.
  8. Allocation of Monetary Liability and Interest: Applying the apportionment, the Court computed the truck's share (1/4th of Rs. 6,20,000 = Rs. 1,55,000) and directed the truck insurer (respondent No. 5) to pay Rs. 1,50,000 with 12% interest from date of application till deposit, and the truck owner/driver to pay Rs. 5,000 with the same interest. The bus-owner/driver/SRTC's share (3/4th = Rs. 4,65,000) was reduced by Rs. 15,000 (ex gratia previously paid) to Rs. 4,50,000, which the M.P. State Road Transport Corporation was directed to deposit with accrued interest at 12% from date of application till deposit.
  9. Disbursement Direction and Adjustments: The Court directed that on deposit, the Tribunal should disburse amounts keeping in mind the well-settled principles in Susamma Thomas and Lilaben (i.e., established guidelines for distribution and interim adjustments). Adjustments were to be made for any interim compensation already paid under Section 92-A (Motor Vehicles Act, 1939) or Section 140 (Motor Vehicles Act, 1988) or during execution.
  10. Costs and Result: The Court allowed Misc. Appeal No. 853 (claimants' appeal) and dismissed Misc. Appeal No. 982 (filed by M.P. SRTC). Costs of the two appeals were quantified at Rs. 3,000, to be borne equally (Rs. 1,500 each by the truck insurer and M.P. SRTC).

Holding and Implications

Core Ruling: The High Court allowed Misc. Appeal No. 853 of 1994 (appellants' appeal) and dismissed Misc. Appeal No. 982 of 1994 (filed by M.P. State Road Transport Corporation). The Tribunal's award is substituted in the terms set out by the Court.

Direct consequences and specific directions (as ordered by the Court):

  • Total compensation fixed: Rs. 6,20,000 (breakdown: Rs. 5,88,000 dependency; Rs. 15,000 loss of consortium; Rs. 15,000 loss to estate; Rs. 2,000 funeral).
  • Apportionment of liability: 1/4th to truck (owner/driver/insurer) and 3/4th to bus (owner/driver/SRTC).
  • Truck's monetary liability (1/4th): Rs. 1,55,000 — directed that respondent No. 5 (truck insurer) pay Rs. 1,50,000 with 12% p.a. interest from date of application until deposit; respondent Nos. 1 & 2 (truck owner and driver) to pay Rs. 5,000 with the same interest.
  • Bus-owner/SRTC liability (3/4th): Rs. 4,65,000 less Rs. 15,000 ex gratia = Rs. 4,50,000, to be deposited by M.P. State Road Transport Corporation with 12% p.a. interest from date of application until deposit.
  • Tribunal to disburse deposited amounts according to established Supreme Court principles (Susamma Thomas and Lilaben) and after adjusting for any interim compensation under relevant statutory provisions.
  • Costs: Appellants entitled to costs of the two appeals quantified at Rs. 3,000; each of the truck insurer and M.P. SRTC to deposit Rs. 1,500 toward costs.

Broader implications: The opinion applies established Supreme Court authority on the multiplier method and on disbursement principles; it does not announce a new legal precedent but applies existing principles to the facts to (a) apportion fault between drivers and (b) reassess compensation accordingly.

C.C. as per rules.

    Manju Rai And Others v. M.P Electricity Board And Others

    1. Misc. Appeal No. 853 of 1994 has been filed by the appellants-claimants for enhancement of compensation awarded in Claim Case No. 9 of 1989 vide award dated 10.8.1994 passed by the Second Motor Accidents Claims Tribunal, Raisen, while Madhya Pradesh State Road Transport Corporation has filed Misc. Appeal No. 982 of 1994 aggrieved of the said award.

    2. Facts giving rise to the appeals are thus: Late Dr. Vikas Chandra Rai, aged 36 years, a Lecturer in Commerce Department in Bhopal University, was drawing Rs. 4,325.25 as his gross pay, died in a motor accident on 27.12.1988, when he was travelling as a passenger in stage carriage bus No. MPH 7893. On the fateful day the passenger bus was being driven by Omar Khan, respondent No. 4, during the course of employment of M.P. State Road Transport Corporation, the respondent No. 3 in Misc. Appeal No. 853 of 1994. At about 7.00 a.m. when the said bus reached between the villages Naktara and Khandera in Raisen District, it collided with truck No. CPL 6583, owned by M.P. Electricity Board, respondent No. 1, driven by Bali-ram Rai, respondent No. 2 and insured with respondent No. 5 (in M.A. No. 853 of 1994). Because of the collision, deceased Vikas Chandra Rai received severe injuries, who was taken to hospital but succumbed to injuries. The legal representatives of the deceased, that is, appellant No. 1, widow, appellant Nos. 2 and 3, minor children and appellant Nos. 4 and 5, parents, filed an application on 17.3.1989 under Section 110-A of the Motor Vehicles Act, 1939, against the owner, driver of the two offending vehicles and also against insurer of truck No. CPL 6583, for compensation of Rs. 60,91,600. The claim was contested by respondents. Respondent Nos. 1 and 2 in their written statement took a defence that the accident was caused due to sole negligence of the bus driver. On 27.12.1988, at about 7.00 a.m. when the truck reached between villages Khandera and Naktara, the driver of the truck saw the passenger bus coming from the opposite direction at a very high speed from Raisen side going towards Begumganj side. Seeing this the respondent No. 2 stopped the truck on the extreme road side towards its left keeping its dim lights on as it was foggy. The cleaner of the truck got down to answer the call of nature; but, as the bus was not in control of respondent No. 4, the bus driver, it dashed against the right front side of the standing truck, which after dash, left the road and stopped about 85 paces away in the fields. The accident in the circumstances was for no fault of the respondent No. 2. The respondent Nos. 3 and 4 in their written statement denied any negligence on the part of the respondent No. 3 and took the stand that the accident was inevitable due to negligent driving of the truck.

    3. To prove negligence of the drivers of the two offending vehicles, the appellants did not examine any eyewitness to the occurrence. The respondent Nos. 3 and 4 also did not lead any evidence. The respondent No. 4 did not enter the witness-box to establish the defence that the accident did not occur due to rash or negligent driving of the bus. The respondent Nos. 1 and 2, to establish the defence, examined respondent No. 2 only as NAW 1.

    4. The Tribunal after appreciation of evidence on record, that is, of NAW 1 and the certified copies of the first information report, spot-map, Exh. P. 11-A, seizure memos of the bus No. MPH 7893 and of the truck No. CPL 6853 Exh. P. 9-A and Exh. P. 10-A, prepared during the investigation on the first information report lodged by the respondent No. 2 at the Police Station, Deogaon, District Raisen and proved by AW 4, Balmukund, held that the accident was caused due to sole negligence of the respondent No. 4. The Tribunal determined the compensation after assessing the monthly income of the deceased at Rs. 5,000; from that one-third was deducted towards personal living expenses of the deceased; the dependency was arrived at Rs. 3,400 per month; yearly Rs. 40,800 reduced to Rs. 40,000 per year; wherein multiplier of 10 was applied, the amount was worked out to Rs. 4,00,000. In this Rs. 10,000 for mental pain and agony due to injuries received by the deceased and Rs. 10,000 for shock, pain and suffering suffered by the legal representatives of the deceased and Rs. 15,000 towards loss of consortium to widow of the deceased were added; thus a compensation of Rs. 4,35,000 was worked out from which Rs. 15,000 were deducted towards the ex gratia payment made by the respondent No. 3. Thus a compensation of Rs. 4,20,000 was awarded with interest at the rate of 12 per cent per annum from the date of application till realisation which was ordered to be paid by the respondent Nos. 3 and 4 jointly and severally.

    5. We have heard Mr. Samir Seth for the appellants; Mr. M.L. Jaiswal, senior counsel with Mr. P.K. Jaiswal for respondent Nos. 1 and 2; Mr. A.G. Dhande, learned Counsel for respondent Nos. 3 and 4 and Mr. B.D. Jain and Mr. Sunil Jain for respondent No. 5.

    6. True, no evidence has been led on behalf of the claimants-appellants; but even in the absence of the evidence to establish negligence of the drivers of the two offending vehicles or any of the drivers, the claim cannot be thrown out as the accident is admitted and the two drivers had thrown blame for the accident on each other. In the circumstances, the question for our consideration is whether it was the driver of the bus alone who was responsible for the accident or the driver of the truck was solely or partly responsible for the same. The driver of the bus has not appeared in witness-box who had the first hand knowledge about the manner and the circumstances in which the accident had occurred. The driver of the truck, NAW 1, in his statement has thrown the whole burden on the driver of the bus. He stated that it was a foggy morning, the visibility was not clear, seeing the bus coming from the opposite direction, he took his truck to the left of the road and keeping one wheel on the road, stopped the truck. He used the dipper and keeping the dim lights on so that the bus coming from the opposite direction may pass. Even assuming the statement of NAW 1 as correct, it is evident that the road is not wide so that two vehicles may pass on the width of the road. In the written statement of respondent Nos. 1 and 2, it is not stated that the truck was taken on the kacha of the left side of the road; but it is stated that the truck was stopped at the extreme end of the road. From the evidence of AW 4, Balmukund, who is witness to the seizure memos, Exh. P. 9-A and Exh. P. 10-A and of the site-map and of AW 6, Nathuram Sharma, constable of the Police Station Raisen, who prepared the spot-map, it is evident that both the vehicles were badly damaged from the right side, that is of driver's side of the two vehicles. That shows that the accident occurred on the road and not on the kacha. Even if the driver of the truck kept the truck stationary, he did not leave enough space on the road so that the obstruction is not caused to the passenger bus coming from opposite direction and the accident is averted, particularly when NAW 1 has admitted that he saw the bus coming from the opposite direction driven rashly and negligently at a high speed. His statement that he took one wheel of the truck on the kacha, is at variance with the pleading and cannot be accepted, looking to the circumstances and site-map, the conditions of two vehicles and because of collision, the bus had gone 85 paces away. It is the principle of the Rules of the Road, that heavy goods vehicles are required to give pass to the passenger vehicle; it is the duty of the driver of the heavy vehicle to leave sufficient space for the passenger vehicle to pass. The respondent No. 2 had the opportunity to avert the accident but he did not take the wheels of the truck leaving sufficient space so that the passenger bus may pass. Though the respondent No. 2 took steps to avert the accident, but he cannot completely absolve himself from his liability. To say so, we take the support from the decision of this Court rendered at Bench at Indore in New India Assurance Co. Ltd. v. Surgyan Singhaniya, 1999 ACJ 675 (MP). The bus driver was certainly more negligent as it is clear that the bus was not in controllable speed and after dash went about 85 paces away in fields. Therefore, in the circumstances, the liability of the two drivers can be apportioned to the extent of 1/4th of the truck driver and 3/4th of the bus driver.

    Re: Compensation

    7. From the evidence adduced, it is evident that the deceased had a bright career. He was a Gold Medallist and was a Doctor of Philosophy in the Faculty of Commerce. Therefore, on the principles laid down in General Manager, Kerala State Road Trans. Corpn. v. Susamma Thomas, 1994 ACJ 1 (SC), the multiplier method which is logically sound and also legally well established, we have to determine the 'just' compensation. At the time of death, the deceased was aged 36 years and was drawing Rs. 4,325.25. Therefore, to augment the multiplicand the future prospects of advancement in life or career should also be sounded in terms of money; it will be appropriate to estimate the gross income at Rs. 6,000. From this has to be deducted his personal living expenses; looking to his style of living and the fact that he was maintaining a car and a scooter, it would be appropriate to deduct Rs. 2,500 from gross income towards the personal living expenses and treat the balance as amount spent on the expenses on the members of the family, the loss of dependency would come to Rs. 3,500 per month; yearly Rs. 42,000. In this appropriate multiplier of 14 is applied, the amount would work out to Rs. 5,88,000. In this for loss of consortium Rs. 15,000 and for loss to the estate an amount of Rs. 15,000 and Rs. 2,000 for the funeral expenses are added, the total would come to Rs. 6,20,000 which, in our opinion, would be 'just' and fair compensation to which the appellants would be entitled.

    8. As we have held that the owner and driver and the insurer of the truck cannot escape from their liability, which, in our opinion, is to the extent of 1/4th and that '/4th amount of Rs. 6,20,000 would come to Rs. 1,55,000. Therefore, we direct that out of Rs. 1,55,000, Rs. 1,50,000 shall be paid by the respondent No. 5, the insurer of the truck to the extent of its liability with its interest at the rate of 12 per cent per annum from the date of application till deposit; and Rs. 5,000 shall be paid by the respondent Nos. 1 and 2, the owner and driver of the truck jointly or severally with its interest at the rate of 12 per cent per annum from the date of application till deposit. As the liability of the owner and the driver of the bus is fixed at 3/4th, they are liable to pay Rs. 4,65,000. From this Rs. 15,000 is to be deducted towards ex gratia payment made by the M.P. State Road Transport Corporation to the appellants at the time of the accident; the amount would come to Rs. 4,50,000 which will be deposited by the M.P. State Road Transport Corporation with its accrued interest at the rate of 12 per cent per annum from the date of application till deposit. Of course, the adjustment shall be given, if any amount has been deposited by way of interim compensation under Section 92-A of the Motor Vehicles Act, 1939 or under Section 140 of the Motor Vehicles Act, 1988, or after appeal during the execution of the liability of the amount so fixed. On deposit, the amount shall be disbursed by the Tribunal keeping in mind the well settled principles laid down by the Supreme Court in General Manager, Kerala State Road Trans. Corpn. v. Susamma Thomas, 1994 ACJ 1 (SC) and Lilaben Udesing Gohel v. Oriental Insurance Co. Ltd., 1996 ACJ 673 (SC).

    9. In the result, the Misc. Appeal No. 853 of 1994 is allowed with costs. The award of the Tribunal shall stand substituted as indicated hereinabove. Misc. Appeal No. 982 of 1994, filed by M.P. State Road Transport Corporation shall stand dismissed in view of this order. In circumstances, the appellants-claimants shall be entitled to the costs of the two appeals, which are quantified at Rs. 3,000 which shall be borne in equal proportion. The insurer of the truck shall deposit Rs. 1,500 while Rs. 1,500 shall be deposited by the M.P. State Road Transport Corporation.

    C.C. as per rules.

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    Manju Rai And Others v. M.P Electricity Board And Others
    (Feb 28, 1998)