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Structured Summary of the Opinion — Motor Accidents Claims Tribunal Appeal (Shimoga)

Factual and Procedural Background

The appellant is the mother of Subbaraya, a boy aged four, who died on 27-8-1963 at about 4 p.m. when the bus (registration MYU 1678) allegedly ran over him while he was alighting at Lingadahalli bus stop. The bus belonged to the first respondent (owner). The appellant filed an application under Section 110-A of the Motor Vehicles Act claiming compensation. Initially only the owner (first respondent) was impleaded; he admitted ownership but alleged the vehicle was on hire to the second respondent under an agreement dated 19-6-1960. The second respondent denied hiring the bus. The third respondent is the insurer of the vehicle.

The Motor Accidents Claims Tribunal, Shimoga, in Misc. Case No. 514/1963, by its order dated 20th June 1967, found that the death occurred as alleged but held that the appellant had not proved that the second respondent had taken the vehicle on hire and further held that the appellant had failed to establish that the accident was due to rash or negligent driving by the vehicle, dismissed the application and refused to hold the respondents liable to pay compensation. The present appeal challenges that tribunal decision.

Legal Issues Presented

  1. Whether the respondents (owner and insurer) are liable to pay compensation for the death of Subbaraya where the conductor signalled the driver to move the bus while the child was still alighting.
  2. Whether negligence on the part of the conductor (who signalled) can be imputed to the owner for the purpose of civil liability under the Motor Vehicles Act.
  3. Whether the accident "arose out of the use of a motor vehicle" so as to attract liability under Section 110 of the Motor Vehicles Act (question raised by the insurer).
  4. Assessment of compensation for a deceased child of four years and the applicable measure of damages (including reliance on precedents cited).

Arguments of the Parties

Appellant's Arguments

  • The deceased was a passenger on the bus and was in the act of alighting when the conductor signalled the driver to start, causing the child to fall and be run over by the rear wheel.
  • The negligent signal by the conductor caused the accident; therefore the owner (and insurer) are liable to pay compensation under the Motor Vehicles Act.
  • Claim for compensation was advanced (before Tribunal) for Rs. 10,000; the appeal is restricted to Rs. 2,000 (though appellate court considered Rs. 3,000 as reasonable in principle).

First Respondent (Owner)'s Arguments

  • The owner admitted ownership but contended the bus was taken on hire by the second respondent under an agreement dated 19-6-1960 for three months, and that if any liability arose it would lie on the hirer (second respondent) because the vehicle was under his control at the time of the accident.

Second Respondent's Arguments

  • The second respondent denied that he had taken the bus on hire from the first respondent.

Third Respondent (Insurer)'s Arguments

  • The insurer contended that the accident did not arise out of the use of the motor vehicle as contemplated by Section 110 of the Motor Vehicles Act, and therefore the respondents (including insurer) were not liable to pay compensation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
C.K. Subbraminia Iyer v. Kunhikuttan Nairs (1970 A.C.J. 110) Authority on assessment of damages for wrongful death of a child and application of Fatal Accidents Act provisions (section 1A and section 2 were referenced in that case). The court relied on this case to illustrate previous assessments of damages for a child (an 8-year-old) and used its reasoning as a comparative guide in fixing reasonable compensation for loss of expectation of life.
Barnett v. Cohen (1921-2 K.B. 461) — observation of Me Cardie, J. Principle that damages for wrongful death are based on pecuniary loss (including prospective losses) rather than solatium; and that prospective pecuniary advantage may be taken into account when reasonable expectation exists. The court quoted and applied this observation to support the proposition that prospective pecuniary loss can be considered in assessing damages for the death of a child, subject to reasonableness of expectation.
Dalton v. South Eastern Rly. Co. (1858) 4 C.B. (N.S.) 296 Definition used for the question whether "there was a reasonable expectation of pecuniary advantage" — relevant to assessing prospective loss. The court referred to the standard articulated in this authority (as quoted in Barnett) in discussing whether the deceased had a reasonable expectation of future pecuniary advantage and therefore how to assess damages for loss of expectation of life.

Court's Reasoning and Analysis

The court reviewed the evidence and findings of the Tribunal and proceeded as follows:

  1. Findings of primary fact: The appellate court accepted that the accident occurred on 27-8-1963 when Subbaraya, a child of four, fell while alighting and was run over by the hind wheel. The evidence of P.W.2 and P.W.3 (fellow passengers) supported that the conductor gave the signal to start while the child was still alighting.
  2. On credibility: The Tribunal had not disbelieved P.Ws 2 and 3 but noted that they were not examined by police nor their statements recorded under Section 161(3) Cr.P.C. The appellate court examined witness backgrounds and cross-examinations and concluded there was no sufficient reason to reject their evidence; therefore their account establishing the timing of the conductor's signal was accepted.
  3. On the Tribunal's legal conclusion: The Tribunal had held that even if the conductor gave a wrong signal inadvertently, such conduct did not amount to negligence giving rise to civil liability, and it required proof of rashness/negligence on the part of the driver alone. The appellate court found this to be erroneous.
  4. On attribution of negligence: The appellate court reasoned that the conductor, by signaling the driver to move the bus when a passenger was still alighting, exercised a form of control affecting the movement of the vehicle. Because the driver's moving of the bus was in direct reliance on the conductor's instruction, negligence of the conductor causing the movement can be imputed to the owner for civil liability purposes.
  5. On the "use of the motor vehicle" point: The insurer's contention that the accident did not arise out of the use of the vehicle under Section 110 was rejected. The court held the deceased was a passenger and the fatal event occurred in the process of alighting from the bus; the accident therefore arose out of the use of the motor vehicle.
  6. On compensation: The Tribunal had not determined compensation because it found no negligence. Having found negligence attributable to respondents, the appellate court turned to assessment. It reviewed precedent (including C.K. Subbraminia Iyer and authorities cited therein) concerning damages for wrongful death of a child and the consideration of prospective pecuniary advantages, and concluded that Rs. 3,000 would be a reasonable amount for loss of expectation of life in the circumstances. Because liability of the insurer under Section 96(2)(b) of the Motor Vehicles Act was limited to Rs. 2,000, the appellate court directed payment of Rs. 2,000 by the insurer (third respondent) and the balance Rs. 1,000 by the owner (first respondent).
  7. On ancillary relief: Both amounts were directed to carry interest at 6% from the date of application to the dates of payment. Costs were awarded against respondents 1 and 3 in proportion to their liability, and an advocate's fee of Rs. 100 was directed.

Holding and Implications

Core Ruling: APPEAL ALLOWED (in part) — the decision of the Tribunal is set aside insofar as it absolved the owner and insurer of liability; the court held the owner and insurer liable to pay compensation.

Direct consequences ordered by the court (as expressly stated in the opinion):

  • The third respondent (insurer) is directed to pay Rs. 2,000 to the appellant (limit of insurer's liability under Section 96(2)(b) of the Motor Vehicles Act).
  • The first respondent (owner) is directed to pay the balance of Rs. 1,000.
  • Both amounts will carry interest at the rate of 6% from the date of application to the dates of payment.
  • The appellant will recover costs from respondents 1 and 3 in proportion to their liability, and an advocate's fee of Rs. 100 is allowed.

Broader implications: The opinion explains and applies the principle that negligence by a conductor (whose signal causes vehicular movement) can be imputed to the owner for civil liability; it rejects a narrow view that only the driver's negligence can attract liability. The decision does not purport to create a sweeping new precedent beyond the application to the facts; the court applied established authorities on assessment of damages for wrongful death in fixing compensation.

Result: Appeal allowed. (Order and monetary directions as above.)

    Varadamma v. H. Mallappa Gowda And Others

    1. This is an appeal against the decision of the Motor Accidents Claims Tribunal; Shimoga, dated 20th June, 1967, in Misc. Case No. 514/1963, dismissing the application of the appellant filed under Sec. 110-A of the Motor Vehicles Act. The Appellant is the mother of the victim of a motor accident which took place at 4 p.m, on 27-8-1963 on account of the bus, MYU 1678, belonging to the first respondent, running over the deceased who was a boy of 4 years, by name Subbaraya. He was traveling with his elder brother, Ganapathi, having boarded the bus at Sagar at about 3.45 p.m, bound for his destination at Lingadahalli,. The bus reached Lingadahalli round about 4 p.m, and stopped at the recognised bus stop on the road. That stop on the road is said to be an inclined plane sloping towards the front of the bus. When the bus stopped some passengers got down from the bus. According to the case of the appellant, the deceased boy was about to get down from the bus and was standing on the foot board and his elder brother, Ganpathi had already got down from the bus. When the boy was thus standing on the foot board; the conductor of the bus is alleged to have signalled to the driver to start by calling out the usual word ‘right’. On such a signal, the driver is said to have started the vehicle and the boy who was on the point of alighting from the bus accidentally fell under the hind wheels of the bus and died on the spot. In the first instance only the first respondent, the owner of the bus, was impleaded. He admitted that he was the owner of the bus in question but alleged that the bus was taken on hire by the second respondent under an agreement dated 19-6-1960, to be in force for a period of three months, and that the bus was under the control of the second respondent at the time of the accident. He, therefore, contended that it is the second respondent who is responsible, if at all, to pay the compensation claimed by the appellant. The second respondent, thereafter was impleaded as a party. The second respondent in his objections, denied that he had taken the bus on hire from the first respondent. The third respondent is the Insurance Company with whom the vehicle was insured.

    2. The tribunal held that the death of Subbarayya was due to the alleged accident which took place at 4 p.m, on 27-8-63. It has further held that it has not been proved that the second respondent had taken the vehicle on hire from the first respondent at the time of the accident. It further held, on issue No. 3 that the appellant had failed to establish that the accident was due to the rash and negligent driving of the vehicle, that respondents are not liable to pay compensation and therefore dismissed the application.

    3. P.Ws 2 and 3 were passengers travelling in the bus on that day to Lingadahalli. They also got down from the bus at Lingadahalli. According to their evidence, Ganapathi got down from the bus and was trying to bring down Subbarayya. Ganapathi was standing below and asking Subbarayya to come down. When Subbarayya was getting down the Conductor gave the signal to start the bus by saying ‘right’. The driver drove the bus forward and Subbaraya fell on his face on the ground and the hind wheel of the bus went over his head.

    4. The conductor of the bus was examined as R.W 1 on behalf of the first respondent. According to his evidence, at the place where the bus was stopped the road was sloping towards the front of the bus and he prevented the bus from moving forward on the downward slope by placing a ‘Katta’ in front of the hind wheel. Some passengers got down from the bus including Ganapathi and Subbaraya and about 5 minutes later he removed the ‘Katta’ or wedge and gave the signal to the driver to start the bus. When the bus went a distance of 8 or 10 marus, he heard people shouting from behind, the bus was stopped and he found a boy lying down on the road. He has also stated that he had helped the boy Subbaraya to get down from the bus.

    5. On behalf of the respondents, R.W 2 was examined. According to his evidence he was also a passenger in the said bus on that day and he supported the evidence of R.W 1.

    6. P.W 2 has stated that after he got down from the bus at Lingadahalli, he was not present at the scene of accident when the police came there. It was also elicited in cross-examination that he was a distant relative of the appellant, that he knew Ganapathi and the deceased, Subbaraya, since two years prior to the date of incident and that he is a native of Bhimanakone which is; bout 10 miles from the native place of the appellant. Nothing is elicited in the cross-examination to show why he should be disbelieved and the fact that he is a distant relative of the appellant is by itself not a ground to disbelieve his evidence, but, on the other hand, it supports his statement that he knew Ganapathi and the deceased Subbaraya who were also traveling in the bus with him.

    7. P.W 3 also has stated that he knew the deceased and his brother since 3 to 4 years prior to the date of the incident and that his native place is about 7-8 miles from Khandika, the native place of the appellant. He has stated that about 4 to 6 persons got down from the bus at Lingadahalli. In cross-examination he was asked whether he knew the names of any of the passengers who got down at Lingadahalli. He gave the names of two passengers who got down from the bus at Lingadahalli. He has stated in his evidence that he was present at the scene of accident for sometime when the patel and others arrived there. He has also stated that he went to Lingadahalli to meet one Lingadahalli Thimmappa on that day. He is a resident of Kavalkodu which is about 8 miles from Lingadahalli. Nothing is elicited in his cross-examination to show that he is not a reliable witness. Merely because P.Ws 2 and 3 were not examined by the police and were also not examined as witnesses in the criminal case on the complaint filed by the police against the driver, it cannot be said that their evidence cannot be relied on.

    8. R.W 2 has stated that he went to Sagar to purchase some electrical equipments for his contract work, that he undertakes electrical work and that he purchased the material from one Srinivasa Rao. But he has admitted that he does not possess any licence to undertake electrical contract work and also stated that he did not get down at Lingadahalli bus stop.

    9. According to P.Ws 2 and 3, Ganapathi and Subbaraya were sitting in the ladies' seat which was in the middle portion of the bus and the conductor was sitting in the hind seat of the bus. According to R.W 2, the conductor got down from the bus after it was stopped and opened the door of the ladies' seat and after the ladies got down from the bus, he again closed the door, came to the rear side and then helped the boy to get down from the bus. Even R.W 1, the conductor, does-not state that he opened the door of the ladies' seat and that he closed it after the lady passengers got down from the bus. Thus, this statement of R.W 2 shows that he is anxious to help the respondents. No such suggestion was made in the cross-examination of P.Ws 2 and 3. R.W 2's evidence cannot therefore be relied on.

    10. The evidence of P.Ws 2 and 3, therefore, establishes the fact that the conductor of the bus gave the signal to the driver to take the bus forward at the time when the deceased, Subbaraya; was still in the act of getting down from the bus. Due to the fact that the signal was given to the driver even before the deceased had got down from the bus, the deceased Subbaraya fell down from the bus, the deceased Subbaraya fell down having lost his balance and the hind wheel of the bus ran over him and caused his death.

    11. The Tribunal has not disbelieved the evidence of P.Ws 2 and 3 but has merely observed that they were neither examined by the police nor were their statements recorded under sec. 161(3) Criminal Procedure Code. It was contended on behalf of the respondents before the Tribunal that even if every one of the words of P.Ws 2 and 3 is totally believed, there is no case of rashness or negligence on the part of the driver or the conductor. The Tribunal has observed thus:

    “Even if it is conceded that the child was about to get down the bus and was on the foot-board and this unqualified conductor gave a wrong signal inadvertently, I am totally unable to infer how such a conduct on the part of the conductor amounts to negligence giving rise to civil liability for payment of compensation.”

    12. It has held that in order to render the respondents liable, the rashness of the driver must be established and that an inadvertent wrong signal given by the conductor does not amount to negligence which gives rise to civil liability. It is on this ground that the Tribunal has held that the respondents are not liable.

    13. The Tribunal has erred in holding that in order to make the respondents liable, negligence on the part of the driver alone should the proved and that the negligence of the conductor in having given the signal to the driver would not constitute negligence on the part of the employees of the first respondent. It cannot be denied that the driver was in control of the vehicle. According to the evidence, the driver moved the bus forward on account of the signal given by the conductor. The conductor appears to have been under the impression that all the passengers had got down from the bus and therefore gave the signal to the driver to start the bus. To the extent that the movement of the bus by the driver depended upon the instructions given by the conductor to take the bus forward after some of the passengers alighted, the conductor was also in control of the vehicle. If due to the negligence of the conductor in giving the signal to the driver to move the bus forward even though one of the passengers was still in the act of getting down from the bus the accident took place, as it has done in this case, it cannot be said that the owner of the vehicle is not liable for the consequences of the negligent act of the conductor.

    14. It is contended by Mr. Tirumale, learned Counsel appearing on behalf of the third respondent, that the accident did not arise out of the use of the motor vehicle as contemplated under section 110 of the Motor Vehicles Act and that the respondents are not liable. This contention was rejected by the Tribunal and, in our opinion, rightly. The deceased Subbaraya was a passenger travelling in the bus. He was still in the act of getting down from the bus at the bus stop at Lingadahalli and it was due to the negligence of the conductor in giving the signal to the driver that the deceased fell down and got crushed under the hind wheel of the bus. It cannot be said that the accident was not due to the use of the motor vehicle. The findings of the Tribunal on issue No. 3, are, therefore, wholly unsustainable.

    15. Since the Tribunal held that the accident was not due to the negligence of the driver, it did not determine the amount of compensation payable to the appellant.

    16. The deceased was a boy of four years at the time of his death. According to the evidence of the appellant, the mother of the deceased, Subbaraya, was of a sharp intellect and was able to write all the letters of the alphabet though he had not been admitted to the school. According to her evidence, Subbaraya would have earned Rs. 200/- to Rs. 300/- per year by the time he attained the age of 10 years. Though the appellant claimed compensation of Rs. 10,000/- before the Tribunal, the appeal is restricted to Rs. 2,000/-.

    17. In C.K Subbraminia Iyer v. Kunhikuttan Nairs . 1970 A.C.J 110. and others the deceased was a boy of 8 years at the time of the accident. The damages of Rs. 5000/- awarded by the High Court under section 1. A of the Fatal Accidents Act, and a sum of Rs. 1,000/- awarded under section 2 of the Act, was confirmed by the Supreme Court. The following observations of Me. Cardie, J. in 1921-2 KB 461 (Barnett v. Cohen) was referred to with approval:

    “The basis is not what has been called solatium that is to say, damges given for injured feelings or on the ground of sentiment, but damages based on compensation for a pecuniary loss. But then loss may be prospective and it is quite clear that prospective loss may be taken into account. It has been said that this is qualified by the proposition that the child must be shown to have been earning something before any damages can be assessed. I know of no foundation in principle for that proposition either in the statute or in any doctrine of law which is applicable; nor do I think it is really established by the authorities when you examine them…………I have already indicated that in my view the real question is that which Willes J., defines in one of the cases quoted to us, Dalton v. South Eastern Rly. Co., (1858) 4CB (NS) 296, Aye or no, was there a reasonable expectation of pecuniary advantage?”

    18. It was further observed in that case as follows:

    “Compulsory damages under section 1A of the Act for wrongful death must be limited strictly to the pecuniary loss to the beneficiaries and that under section 2, the measure of damages is to the economic loss sustained by the estate. There can be no exact uniform rule for measuring the value of the human life and the measure of damages cannot be arrived at by precise mathematical calculations but the amount recoverable depends on the particular facts and circumstances of each case.”

    19. In the present case also, how the deceased would have turned out in life later is at best a guess. The accident in the case referred to above took place in the year 1956 and the amount of compensation of Rs. 1,000/- towards the loss of expectation of life was confirmed by the Supreme Court. Due to the fall of the value of the rupee since then and since the accident in the present case took place on 27-8-1963, we consider that a sum of Rs. 3,000/- would be a reasonable amount of compensation towards loss of expectation of life. As the appeal is confined to the sum of Rs. 3,000/-, it is unnecessary for us to consider whether the appellant would be entitled to any compensation towards loss of pecuniary benefits due to the death of the deceased.

    20. The appeal is therefore allowed against respondents 1 and 3 only, the order of the Tribunal is reserved and there will be a direction to the third respondent to pay a sum of Rs. 2,000/- to the appellant, since the liability of the insurer is limited to the said sum under sec. 96(2)(b) of the Motor Vehicles Act, and the balance of Rs. 1,000/- shall be paid by the first respondent. Both the above said amounts will carry interest at the rate of 6 per cent from the date of application to the dates of payment. The appellant will get the costs from respondents 1 and 3 in proportion to their liability. Advocate's fee Rs. 100/-.

    21. Appeal allowed.

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    Comments

    Varadamma v. H. Mallappa Gowda And Others
    (Jul 31, 1972)