Case Note & Summary
The appeal arose from a judgment of the Motor Accident Claims Tribunal, Latur, which reduced the compensation awarded to the appellants (children of the deceased) from the calculated loss of dependency of Rs.12,01,176/- to Rs.8,00,000/-. The appellants' parents died in a motor accident. The Tribunal found the total loss of dependency to be Rs.12,01,176/- but noted that the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount. Consequently, the Tribunal awarded only Rs.8,00,000/-. The appellants challenged this reduction, arguing that they were willing to pay the deficit court fees. The respondent insurance company supported the Tribunal's order. The High Court framed the issue of whether the Tribunal was proper in reducing compensation contrary to its own findings. The Court held that the Tribunal's approach was erroneous; once the loss of dependency was calculated, the claimants were entitled to that amount, and the restriction of claim in the petition should not have been used to reduce the award, especially when the claimants offered to pay deficit court fees. The Court allowed the appeal, setting aside the Tribunal's order to the extent of reduction and directing the insurance company to pay the full compensation of Rs.12,01,176/- with interest at 6% per annum from the date of the claim petition until realization, along with costs.
Headnote
A) Motor Accident Claims - Compensation - Restriction of Claim - The Tribunal erred in reducing the awarded compensation from the calculated loss of dependency of Rs.12,01,176/- to Rs.8,00,000/- solely on the ground that the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount, despite the claimants offering to pay deficit court fees. Held that the Tribunal ought to have allowed the claimants to pay deficit court fees and award the full calculated compensation. (Paras 5-7)
Issue of Consideration
Whether the Tribunal was proper in reducing compensation by Rs.4,00,000/- contrary to its own finding that the appellants were entitled to Rs.12,01,176/- as loss of dependency, merely because the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount.
Final Decision
The appeal is allowed. The judgment and order passed by the Member, Motor Accident Claims Tribunal, Latur, is set aside to the extent of reduction of compensation. The respondent no.3 (Oriental Insurance Co. Ltd.) is directed to pay the compensation of Rs.12,01,176/- with interest at the rate of 6% per annum from the date of the claim petition till its realization, along with costs.
Law Points
- Motor Accident Claims
- Compensation
- Restriction of Claim
- Court Fees
- Loss of Dependency
- Just Compensation
Case Details
2022 LawText (BOM) (09) 42
First Appeal No. 1151 of 2004
Mr. J.M. Murkute for appellants, Shri R.F. Totla for respondent no.3
Mangal d/o Gangadhar Dongre and Vikas S/o Gangadhar Dongre
Tukaram Babanrao Mate (deleted), Purshottam S/o Bansilal Malu, The Oriental Insurance Co. Ltd.
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Nature of Litigation
Appeal against reduction of compensation awarded by Motor Accident Claims Tribunal in a claim petition for death of parents in a motor accident.
Remedy Sought
Appellants sought enhancement of compensation from Rs.8,00,000/- to Rs.12,01,176/- as calculated by the Tribunal.
Filing Reason
The Tribunal reduced the compensation from the calculated loss of dependency of Rs.12,01,176/- to Rs.8,00,000/- on the ground that the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount.
Previous Decisions
The Motor Accident Claims Tribunal, Latur, awarded Rs.8,00,000/- as compensation to the appellants.
Issues
Whether the Tribunal was proper in reducing compensation by Rs.4,00,000/- contrary to its own finding that the appellants were entitled to Rs.12,01,176/- as loss of dependency, merely because the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount.
Submissions/Arguments
Appellants argued that the Tribunal calculated loss of dependency at Rs.12,01,176/- but arbitrarily reduced it to Rs.8,00,000/- without lawful ground, despite their willingness to pay deficit court fees.
Respondent insurance company contended that the Tribunal correctly awarded just compensation as the claimants had restricted their claim to Rs.5,00,000/- and paid court fees on that amount.
Ratio Decidendi
The Tribunal cannot reduce the compensation below the calculated loss of dependency merely because the claimants restricted their claim in the petition, especially when the claimants offered to pay the deficit court fees. The award must reflect just compensation as per the calculation of loss of dependency.
Judgment Excerpts
The issue involved in this appeal is whether the Tribunal is proper in reducing Rs.4,00,000/- compensation contrary to its findings that the appellants are entitle for amount of compensation of Rs.12,01,176/- ?
The Tribunal has observed that the total loss of dependency would be Rs.12,01,176/-. It is further observed that the claimants have restricted their claims to the tune of Rs.5,00,000/- and also paid the court fees stamp on it.
The Tribunal ought to have allowed the claimants to pay deficit court fees and award the compensation of Rs.12,01,176/-.
Procedural History
The appellants filed a claim petition before the Motor Accident Claims Tribunal, Latur, seeking compensation for the death of their parents in a motor accident. The Tribunal calculated loss of dependency at Rs.12,01,176/- but awarded only Rs.8,00,000/-, citing restriction of claim and court fees paid. Aggrieved, the appellants filed the present appeal before the Bombay High Court, Bench at Aurangabad.
Acts & Sections
- Motor Vehicles Act, 1988:
