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  • provisions of section 110-B of the Motor Vehicles Act, 1939 (hereinafter referred to as the Act).
  • MOTOR VEHICLES ACT
  • Workmen's Compensation Act
  • section 110-B
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Citation Codes
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  • provisions of section 110-B of the Motor Vehicles Act, 1939 (hereinafter referred to as the Act).
  • MOTOR VEHICLES ACT
  • Workmen's Compensation Act
  • section 110-B
Smart Summary

Case Summary — Motor Accidents Appeal (G.B. Patnaik, J.)

Factual and Procedural Background

The appellant is the claimant who appealed against the decision of the Second Motor Accidents Claims Tribunal. On 27.2.1980 the claimant, then 24 years old and employed as a conductor on bus registration No. ORB 2620, sustained serious injuries (fractures of the left leg and hand) when the bus went off the road and capsized at village Sarang near Soro at about 11:30 a.m. He was initially admitted to a hospital at Bhadrak and thereafter to S.C.B. Medical College Hospital, Cuttack. The claimant alleged the accident resulted from the rash and negligent driving of the bus driver, that his incapacity remained with no prospect of future earning, his monthly wage had been Rs. 500, and he claimed Rs. 40,000 as compensation.

The vehicle owner admitted the occurrence of the accident but denied rashness or negligence on the part of the bus driver, describing a scenario in which another vehicle coming at speed swerved to the right to avoid a cyclist, causing the bus driver to swerve left onto loose soil and thereby capsize. The insurer also denied negligence.

The Claims Tribunal framed five issues, found the bus driver to have driven rashly and negligently, and assessed various heads of loss: Rs. 3,600 for medical expenses, Rs. 1,500 for future nursing/attendance, Rs. 15,000 for pain and suffering and loss of amenities, and a lump-sum assessment of future earnings loss initially calculated as Rs. 1,20,000 from which a 30% deduction produced about Rs. 80,000. Because the claimant had claimed only Rs. 40,000, the Tribunal awarded Rs. 40,000. The claimant appealed against the limitation of the award to the claimed amount.

Legal Issues Presented

  1. Whether the Claims Tribunal has jurisdiction under section 110-B of the Motor Vehicles Act, 1939 to award compensation in excess of the amount claimed in the claim petition.

Arguments of the Parties

Appellant's Arguments (as presented in the opinion)

  • Counsel for the appellant (Mr. Jena) submitted that section 110-B requires the Tribunal to hold an inquiry and to make an award determining the amount of compensation that appears to it to be just; accordingly the Tribunal's power is not limited by the amount claimed in the petition.
  • Consequently, the Tribunal erred in restricting the award to the claimed sum of Rs. 40,000 when it had determined that the claimant's loss amounted to about Rs. 80,000.
  • The appellant relied on several authorities (including decisions of the Bombay, Kerala and Orissa High Courts) in support of the proposition that the Tribunal may award compensation in excess of the amount claimed.

Respondent / Insurer and Owner Arguments (as presented in the opinion)

  • The vehicle owner admitted the accident but denied negligence by the bus driver, explaining that an oncoming vehicle's evasive action caused the sequence that led to the bus capsizing.
  • The insurer denied allegations of negligence in its written statement.
  • Counsel for the insurer (Mr. Roy) contended that even if the award were enhanced, the insurer's liability would be limited under the Workmen's Compensation Act insofar as the claimant was governed by that Act (i.e., the insurer would be liable only to the extent fixed under that statute).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Municipal Corporation of Greater Bombay v. Kisan Gangaram Hire, 1987 ACJ 311 (Bombay) Held by the Division Bench that a tribunal may, in proper cases, award compensation in excess of the amount claimed in the original application. The court adopted and agreed with the view expressed by this Division Bench decision and relied on it as persuasive authority to hold that there are no fetters on the Tribunal's power to award compensation beyond the claimed amount.
Sharifunnisa v. Basappa Ramchandra Date, 1986 ACJ 792 (Bombay) Earlier Division Bench decision of the Bombay High Court relied upon in Municipal Corporation's case. Referenced as precedent that formed part of the reasoning in the Bombay Division Bench decisions supporting awards in excess of claim amounts.
Kela Devi v. Ram Chand, 1986 ACJ 818 (Delhi) A Single Judge of the Delhi High Court allowed compensation in excess of the claim where post-claim events (an enhancement in scale of pay) would have benefited the deceased. Cited as an example where a tribunal/court permitted enhancement of compensation beyond the original claim on factual grounds affecting the quantum.
Sheikhupura Transport Co. Ltd. v. Northern India Transporters' Insurance Co. Ltd., 1971 ACJ 206 (SC) Principle that pecuniary loss often depends on data that cannot be ascertained with precision and that estimation by a tribunal is appropriate. Invoked to support the proposition that a tribunal, possessing expertise, must estimate proper compensation and that strict expectation of precise pre-statement of quantum by a claimant is unreasonable.
Mohammed Koya v. Balan, 1987 ACJ 534 (Kerala) Workmen's Compensation Act case where compensation is statutorily fixed and principles of waiver were held inapplicable. Noted by the court as a Workmen's Compensation Act decision; the court observed such cases are of limited assistance in deciding whether a Tribunal under the Motor Vehicles Act can award in excess of the claim.
Balavadra Patra v. Chief Engineer, Orissa, 1987 ACJ 1016 (Orissa) Another Workmen's Compensation Act decision where compensation is statutorily fixed. Similarly noted as not helpful for the Motor Vehicles Act question because the statutory scheme differed.
Ramu Tolaram v. Amichand Hansraj Gupta, 1988 ACJ 24 (Bombay) Case cited by the appellant among other Bombay High Court authorities. Listed among the authorities relied upon by the appellant; the opinion records reliance but does not elaborate further factual or doctrinal detail from it.

Court's Reasoning and Analysis

The court began its analysis with an interpretation of section 110-B of the Motor Vehicles Act, 1939. It observed that under section 110-B the Tribunal is duty-bound to determine the amount of compensation that "appears to it to be just." The expression "just compensation" was construed to mean an amount that is fair, moderate and reasonable in the proved circumstances of the case.

The court emphasised that the phrase "which appears to it to be just" vests a wide discretion in the Claims Tribunal to determine compensation, subject to the requirement that such determination must not be arbitrary. The award must be based on data establishing a reasonable nexus between the loss suffered and the compensation awarded.

The court examined the statutory scheme (sections 110-A to 110-F) and noted that nowhere in those provisions is the statute expressly requiring that the amount of claim be specified in a way that fetters the Tribunal's discretion; though section 110-A(2) prescribes that an application be made in a prescribed form containing prescribed particulars, the court found no statutory prohibition on awards in excess of the claimed amount.

Turning to authority, the court considered the Division Bench decision of the Bombay High Court in Municipal Corporation's case (which relied upon Sharifunnisa). It also referenced the Supreme Court's observation in Sheikhupura Transport that pecuniary loss must often be estimated and that it is unreasonable to expect litigants to state precise amounts. By contrast, Workmen's Compensation Act decisions (Mohammed Koya and Balavadra Patra) were distinguished on the ground that compensation there is fixed by statute and therefore those decisions did not assist in resolving the Motor Vehicles Act question.

On this basis the court concluded that there are no legal fetters preventing a Claims Tribunal from awarding compensation in excess of that claimed. Consequently, the Tribunal in the present case erred in restricting the award to Rs. 40,000 when it had assessed the claimant's loss at about Rs. 80,000.

Rather than deciding the exact enhanced quantum itself, the court set aside the award and remitted the matter to the Claims Tribunal for re-determination in the light of the Bombay High Court decision. The court directed that both parties be given an opportunity of hearing, that the Tribunal may permit the claimant to amend the claim petition to enhance the claimed amount (as had been done in the Bombay case), and that the Tribunal should thereafter proceed in accordance with law. The court fixed a date for the parties to appear before the Tribunal (1.3.1993).

Holding and Implications

Holding: Appeal allowed.

Direct consequences for the parties:

  • The award of the Second Motor Accidents Claims Tribunal is set aside insofar as it limited the compensation to the sum claimed (Rs. 40,000).
  • The matter is remitted to the Tribunal for re-determination of the quantum of compensation after giving both parties an opportunity to be heard.
  • The Tribunal is expressly permitted to allow the claimant to amend the claim petition to enhance the claimed amount and then proceed in accordance with law; parties were directed to appear before the Tribunal on 1.3.1993.

Broader legal implication (as stated in the opinion):

  • The court agreed with the view that a Claims Tribunal under section 110-B of the Motor Vehicles Act is not precluded from awarding compensation in excess of the amount claimed; the Tribunal has wide discretion to determine "just" compensation, subject to being guided by data and lawful principles of assessment.

The opinion did not purport to lay down a novel rule of law beyond adopting the reasoning of earlier authorities; instead it applied and followed existing decisions (notably the Bombay Division Bench authority) and remitted the quantum for fresh adjudication.

    Mulla Md. Abdul Wahid v. Abdul Rahim And Another

    G.B Patnaik, J.:— This appeal is against the decision of the Second Motor Accidents Claims Tribunal and claimant is the appellant.

    2. The short question that arises for consideration in this appeal is whether the Claims Tribunal has jurisdiction to award compensation more than the amount claimed by the claimant. The answer to the aforesaid question depends upon a true and correct interpretation of the provisions of section 110-B of the Motor Vehicles Act, 1939 (hereinafter referred to as ‘the Act’). The case of the claimant is that he was going in the bus bearing registration No. ORB 2620 as its conductor on 27.2.1980 The said vehicle went off the road and capsized at village Sarang near Soro at about 11.30 a.m On account of such accident the left leg and the hand of the claimant got fractured and the accident occurred on account of rash and negligent driving of the driver of the vehicle. The claimant was then shifted to the hospital at Bhadrak and from there he was shifted to the S.C.B Medical College Hospital, Cuttack, but the incapacity of the claimant remained and there is no prospect of any future earning. He was 24 years old at the time of accident and was getting Rs. 500/- per month as his wage. He claimed Rs. 40,000/- as compensation.

    3. The owner of the vehicle in his written statement admitted about the accident, but took the stand that there was no rashness or negligence on the part of the driver in driving the vehicle. According to him, a vehicle was coming from the opposite direction with great speed and in order to avoid running over a cyclist, the said vehicle suddenly moved to its right. The driver of the vehicle which was carrying the claimant to avoid being hit by the vehicle coming from the front took his vehicle to the left not knowing that the soil was loose and on that score the vehicle capsized and the accident occurred.

    4. The insurer also filed a written statement denying the allegations of negligence on the part of the driver of the vehicle on which the claimant was going as conductor.

    5. The Tribunal framed 5 issues and on discussion of materials before it came to the conclusion that the accident occurred on account of the rash and negligent driving of the vehicle by its driver. The Tribunal further found that the claimant is entitled to get a sum of Rs. 3,600/- towards the medical expenses and Rs. 1,500/- for future nursing and attendance. So far as pain and suffering and loss of amenities are concerned, the Tribunal found him to be entitled to an amount of Rs. 15,000/-. So far as future earning is concerned, the Tribunal came to hold that the total loss would be Rs. 1,20,000/- and by deducting 30 per cent on lump sum amount being paid, it would stand around Rs. 80,000/-. But since the claimant had claimed only Rs. 40,000/-, the Tribunal awarded compensation to the tune of Rs. 40,000/- and, therefore, the claimant has preferred this appeal.

    6. Mr. Jena appearing for the appellant contends that under section 110-B of the Act, the Claims Tribunal is required to hold an enquiry and may make an award determining the amount of compensation which appears to it to be just and, therefore, the power of the Tribunal is not restricted by the amount of claim made in the claim petition and consequently, the Tribunal having determined the compensation in the present case to the tune of Rs. 80,000/- erred in law in restricting the amount to a sum of Rs. 40,000/- merely because the claimant had claimed Rs. 40,000/- in the claim petition. In support of the aforesaid contention, reliance has been placed on a Bench decision of the Bombay High Court in the case of Municipal Corporation of Greater Bombay v. Kisan Gangaram Hire, 1987 ACJ 311 (Bombay); a decision of the Kerala High Court in the case of Mohammed Koya v. Balan, 1987 ACJ 534 (Kerala); a decision of the Orissa High Court in the case of Balavadra Patra v. Chief Engineer, Orissa, 1987 ACJ 1016 (Orissa) and another decision of the Bombay High Court in the case of Ramu Tolaram v. Amichand Hansraj Gupta, 1988 ACJ 24 (Bombay). The aforesaid question requires a careful examination of the provisions of the Motor Vehicles Act and the decisions relied upon by the learned counsel for the appellant.

    7. Under section 110-B of the Act, the Tribunal has the duty to determine the amount of compensation which appeals to it to be just. The expression ‘just compensation’ would obviously mean what is fair, moderate and reasonable and awardable in the proved circumstances of a particular case. An award made under section 110-B of the Act determines the amount of compensation which appears to the Tribunal to be just, specifies the person to whom the compensation is to be paid and specifies the amount which shall be paid by the insurer or owner or driver of the vehicle involved in the accident or by all or any of them, as the case may be. The expression ‘which appeals to it to be just’ in section 110-B vests a wide discretion in the Tribunal in the matter of determination of compensation. But all the same, the determination cannot be arbitrary and must be based on certain data establishing reasonable nexus between the loss incurred and the compensation to be awarded. When the compensation awarded under the Act is required to be just, it would mean the amount which would be appropriate or proper. In other words, it signifies that the compensation amount should be so assessed as to make provision for the legal representatives to receive or earn such pecuniary benefits as they could have obtained from the deceased, if he had lived his normal life. In a case of injury, it has to be assessed depending upon the loss of earning of the injured and how much the injured would need for his normal living. If the provisions of sections 110-A to 110-F are examined, it appears that nowhere the statute requires that the amount of claim should be mentioned. But under section 110-A(2), an application is required to be made to the Claims Tribunal in such form and shall contain such particulars as may be prescribed.

    8. Whether a Tribunal can grant an award in excess of the amount claimed came up for consideration before the Division Bench of the Bombay High Court in Municipal Corporation's case, 1987 ACJ 311 (Bombay). Relying upon the earlier Division Bench decision of the said court in the case of Sharifunnisa v. Basappa Ramchandra Date, 1986 ACJ 792 (Bombay), the learned Judges held that the Tribunal would be justified in proper cases in awarding compensation in excess of the amount that is claimed in the original application. A learned single Judge of Delhi High Court in the case of Kela Devi v. Ram Chand, 1986 ACJ 818 (Delhi), allowed compensation more than what was claimed in the claim application on the ground that subsequent to the claim application, the scale of pay has been enhanced and the deceased would have been benefited by the same. Their Lordships of the Supreme Court in the case of Sheikhupura Transport Co. Ltd. v. Northern India Transporters' Insurance Co. Ltd., 1971 ACJ 206 (SC), held that the pecuniary loss to the aggrieved party would depend upon data which cannot be ascertained accurately but must necessarily be an estimate or even partly a conjecture, and if this is so, then it will be unreasonable to expect the party to state precisely the amount of damages or compensation that it would be entitled to. Consequently, it would be for the Tribunal equipped with the expertise in deciding such cases to estimate properly the compensation that a claimant would be entitled to in appropriate cases. The two other decisions, one of Kerala High Court in Mohammed Koya's case, 1987 ACJ 534 (Kerala) and the other of Orissa High Court in Balavadra Patra's case, 1987 ACJ 1016 (Orissa), relied upon by the appellant are cases on Workmen's Compensation Act where compensation is fixed statutorily and, therefore, the courts have held that principles of waiver have no application. But the aforesaid decisions will be of no assistance in deciding the question whether the Tribunal under the Motor Vehicles Act can award compensation more than the amount claimed. No contrary decision has been cited before me by the learned counsel appealing for the insurer respondent No. 2 limiting the power of the Tribunal to the amount claimed in the claim petition. In the aforesaid premises, I am persuaded to agree with the views expressed by the Division Bench of the Bombay High Court in Municipal Corporation's case, 1987 ACJ 311 (Bombay) and hold that there are no fetters on the power of the Tribunal to award compensation in excess of the amount which is claimed in the application. Consequently, the Tribunal having determined the compensation to the tune of Rs. 80,000/- erred in law in restricting the amount to Rs. 40,000/- on the ground that the claimant had made a claim only to the tune of Rs. 40,000/-.

    9. Mr. Roy appearing for the insurer contends that even if the award is enhanced, but the insurer would be liable only to the extent its liability is fixed under the Workmen's Compensation Act since the claimant was governed by the provisions of the said Act. Without entering into the said controversy, I am remitting the matter to the Tribunal for re-determination in the light of the observations made by their Lordships of the Bombay High Court in Municipal Corporation's case, 1987 ACJ 311 (Bombay). I would accordingly set aside the award of the Tribunal and remit the matter to it for re-determination of the award after giving an opportunity of hearing to both parties concerned. I would make it clear that it would be open for the Tribunal to permit the claimant to amend the claim petition enhancing the claim as was done in the Bombay case and the Tribunal may thereafter proceed in accordance with law. This appeal is accordingly allowed with the aforesaid direction and observation. Parties are directed to appear before the Tribunal on 1.3.1993

    10. Appeal allowed.

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    Mulla Md. Abdul Wahid v. Abdul Rahim And Another
    (Feb 9, 1993)