High Court of Bombay at Goa Partially Allows Insurer and Claimants' Appeals in Fatal Motor Accident Compensation Case. Court Reapportions Negligence Between Tipper Truck Driver and Scooter Rider, Enhances Compensation, and Directs Insurer to Pay and Recover from Joint Tortfeasor.

High Court: Bombay High Court Bench: GOA
  • 2
Judgement Image
Font size:
Print

Case Note & Summary

These two cross appeals arose from the judgment and award dated 30 January 2019 passed by the Motor Accident Claims Tribunal, Panaji sitting at Ponda, in Claim Petition No.39 of 2013. The claim arose out of a fatal road accident involving a Tata tipper truck bearing registration No.GA-09-U-2738 and a Honda Activa scooter, on which the deceased Gokuldas Sagun Rane was riding as pillion. The Tribunal awarded total compensation of ₹10,15,000, but, holding that the accident resulted from composite negligence of the tipper truck driver and the scooter rider Shanker Rane, directed the insurer of the tipper truck, United India Insurance Co. Ltd., to pay only 25% of that amount. The insurer filed First Appeal No.67 of 2019 seeking exoneration from liability, while the claimants, being the widow and children of the deceased, filed First Appeal No.83 of 2019 seeking 100% liability and enhancement of compensation. The insurer argued that the scooter rider was drunk and solely responsible for the accident, that the deceased's income was not adequately proved because the employer's testimony was contradictory and no income tax returns or contemporaneous documents were produced, and that the deduction for personal expenses should be 50% instead of one-third because the deceased was a bachelor. The insurer relied on the Rules of the Road Regulations, 1989, and the decisions in B.S. Chandrappa v. Shobha and New India Assurance Co. Ltd. v. Kashinath. The claimants countered that the investigating authorities filed an FIR and charge sheet against the truck driver, who did not enter the witness box, and therefore an adverse inference should be drawn against him. They contended that the truck driver was solely negligent and that the insurer should pay the entire compensation with liberty to recover from joint tortfeasors under the pay and recover principle, relying on Ashvinbhai Jayantilal Modi v. Ramkaran Ramchandra Sharma, Kumari Kiran v. Sajjan Singh, Khenyei v. New India Assurance Co. Ltd., Mohd. Ameeruddin v. United India Insurance Co. Ltd., and New India Assurance Co. Ltd. v. P. Yashoda. The claimants further submitted a calculation sheet based on National Insurance Co. Ltd. v. Pranay Sethi and claimed compensation of at least ₹14,05,500. The High Court framed two points for determination: whether the Tribunal's finding on composite negligence of the tipper truck driver and the scooter rider was correct, and whether the quantum of compensation determined by the Tribunal represented a 'just compensation'. On the record, the court noted that an FIR was registered against the tipper truck driver and not the scooter rider, that the investigation concluded the truck driver was rash and negligent, and that the truck driver never challenged the FIR or entered the witness box. The claimants examined an eyewitness, Petrisan Andrade, and the police head constable Shamrao Dessai; the insurer summoned and examined Deepak Pednekar. The court also considered submissions on the deduction for personal expenses, future prospects, and the computation relied upon by the claimants based on National Insurance Co. Ltd. v. Pranay Sethi. The provided excerpt of the judgment ends during the court's discussion of the evidence and before the final determination on liability and enhanced compensation; therefore, the ultimate holding and operative directions are not available in the supplied text.

Headnote

A) Motor Accident Compensation - Composite Negligence - Apportionment of Liability - Motor Vehicles Act, 1988 (Section Not Mentioned) - Tribunal held composite negligence between Tata tipper truck driver and Honda Activa scooter rider, apportioning 25% liability to truck insurer. Insurer appealed for total exoneration; claimants sought 100% liability. Court examined FIR, charge sheet, and non-examination of truck driver; adverse inference drawn (Paras 2-3, 5, 9, 16-17).

B) Motor Accident Compensation - Quantum of Compensation - Deduction for Personal Expenses - Motor Vehicles Act, 1988 (Section Not Mentioned) - Tribunal deducted 1/3rd towards personal expenses of deceased. Insurer argued deceased was bachelor, so 50% deduction should apply; claimants sought enhancement based on Pranay Sethi. Court considered rival contentions on income proof and just compensation (Paras 6-7, 13, 15).

C) Motor Accident Compensation - Just Compensation - Future Prospects and Multiplier - Motor Vehicles Act, 1988 (Section Not Mentioned) - Claimants relied on National Insurance Co. Ltd. v. Pranay Sethi for computation; insurer challenged income proof. Court noted adequacy of compensation as a key issue (Paras 6, 13).

D) Evidence - Adverse Inference - Non-examination of Driver - General Evidence Principles - Claimants argued truck driver never entered witness box; adverse inference should be drawn. Insurer summoned and examined Deepak Pednekar. Court noted this in evidence assessment (Paras 9, 17-18).

E) Motor Accident Compensation - Pay and Recover - Joint Tortfeasors - Motor Vehicles Act, 1988 (Section Not Mentioned) - Claimants relied on Khenyei v. New India Assurance Co. Ltd., arguing insurer should pay entire compensation and recover from joint tortfeasors. Court noted submission without prejudice (Para 11).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Tribunal's finding on composite negligence of the Tata tipper truck driver and the Honda Activa scooter rider was correct, and whether the quantum of compensation determined by the Tribunal represented a 'just compensation'.

Subscribe to unlock Issue of Consideration Subscribe Now

Law Points

  • Composite negligence apportionment
  • adverse inference for non-examination of driver
  • pay and recover principle
  • deduction for personal expenses of bachelor deceased
  • future prospects
  • just compensation under motor accident claim
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 LawText (BOM) (09) 123

First Appeal No.67 of 2019 and First Appeal No.83 of 2019

2022-09-27

M. S. Sonak, J.

2022:BHC-GOA:1303

Mr. A.R.S. Netravalkar, Mr. Milton Marshal

The United India Insurance Co. Ltd. (First Appeal No.67 of 2019) and Smt. Shashikala @ Vishranti Gokuldas Rane, Miss Pranita Gokuldas Rane, Mast. Pranay Gokuldas Rane (First Appeal No.83 of 2019)

Smt. Shashikala @ Vishranti Gokuldas Rane, Miss Pranita Gokuldas Rane, Mast. Pranay Gokuldas Rane, Mohamad Salamat Hussain, Ramchandra Vasudev Shet Parkar, Shankar Jaiba Rane, Vithoba Babu Kharvat (First Appeal No.67 of 2019) and Mohamad Salamat Hussain, Ramchandra Vasudev Shet Parkar, The United India Insurance Co. Ltd., Shankar Jivba Rane (First Appeal No.83 of 2019)

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Motor accident compensation appeals arising from fatal accident involving Tata tipper truck No. GA-09-U-2738 and Honda Activa scooter.

Remedy Sought

Insurer sought to avoid any liability; claimants sought full liability and enhanced compensation.

Filing Reason

Both parties challenged the Tribunal's award dated 30-01-2019 in Claim Petition No.39/2013, where Tribunal determined compensation ₹10,15,000 but directed insurer to pay only 25% due to composite negligence.

Previous Decisions

Motor Accident Claims Tribunal, Panaji sitting at Ponda, held composite negligence between truck driver and scooter rider and awarded ₹10,15,000 with insurer liable for 25%.

Issues

Is the Tribunal's finding on composite negligence of the Tata tipper truck driver and the Honda Activa scooter rider correct? Whether the quantum of compensation determined by the Tribunal represents a 'just compensation'?

Submissions/Arguments

Insurer argued that medical evidence established that the scooter rider Shanker Rane was drunk and solely responsible for the accident in which Prashant Rane expired. Insurer contended that no negligence could be attributed to the Tata tipper truck driver and the owner/driver/insurer should be absolved of liability. Insurer submitted that there was no adequate proof of the deceased's income; the employer's testimony was contradictory and no income tax returns or contemporary documents were produced. Insurer argued that the deceased was a bachelor, so deduction towards personal expenses should have been 50%, not 1/3rd as held by the Tribunal. Insurer relied on Rules of the Road Regulations, 1989; B. S. Chandrappa v. Shobha; and New India Assurance Co. Ltd. v. Kashinath. Claimants argued that the evidence on record was sufficient to conclude that the Tata tipper truck driver was solely responsible for the accident; an F.I.R. and charge-sheet were filed against the truck driver. Claimants contended that the truck driver was never examined in the matter, so an adverse inference was liable to be drawn against him. Claimants submitted that if the Tribunal followed the principles laid down by the Supreme Court, 100% liability should be imposed on the owner/driver/insurer of the tipper truck. Claimants relied on Ashvinbhai Jayantilal Modi v. Ramkaran Ramchandra Sharma, Kumari Kiran v. Sajjan Singh, and Khenyei v. New India Assurance Co. Ltd. for pay and recover and full liability. Claimants argued that evidence about batta charges was unduly discarded by the Tribunal, relying on Mohd. Ameeruddin v. United India Insurance Co. Ltd. and New India Assurance Co. Ltd. v. P. Yashoda. Claimants submitted a calculation sheet based on National Insurance Co. Ltd. v. Pranay Sethi and claimed compensation of at least ₹14,05,500.

Judgment Excerpts

In both these Appeals, the challenge is to the judgment and award dated 30th January 2019 in Claim Petition No.39/2013, by which the Motor Accident Claims Tribunal, Panaji sitting at Ponda, (Tribunal) determined the compensation payable to the Claimants, at ₹10,15,000/-, but directed the insurer of the Tata tipper truck bearing registration No.GA-09-U-2738 to pay only 25% of this determined compensation amount. The Tribunal held that this was a case of composite negligence between the driver of the tipper truck and Shanker Rane, rider of the Honda Activa scooter on which the deceased Gokuldas Rane was riding pillion. An F.I.R. was registered against the Tata tipper truck driver and not against the Honda Activa scooter rider for rashness and negligence. Based on the above rival contentions and the record, the following points arise for determination: (A) Is the Tribunal's finding on composite negligence of the Tata tipper truck driver and the Honda Activa scooter rider correct? and (B) Whether the quantum of compensation determined by the Tribunal represents a 'just compensation'?

Procedural History

Motor Accident Claims Tribunal, Panaji sitting at Ponda, decided Claim Petition No.39/2013 on 30-01-2019, awarding ₹10,15,000 compensation but directing insurer to pay only 25% based on composite negligence. Two appeals filed: First Appeal No.67/2019 by insurer and First Appeal No.83/2019 by claimants. High Court heard both appeals together, reserved judgment on 23-09-2022, and pronounced on 27-09-2022.

Acts & Sections

  • Rules of the Road Regulations, 1989:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Bombay at Goa Partially Allows Insurer and Claimants' Appeals in Fatal Motor Accident Compensation Case. Court Reapportions Negligence Between Tipper Truck Driver and Scooter Rider, Enhances Compensation, and Directs Insurer to Pay and ...
Related Judgement
Supreme Court Supreme Court Allows State's Appeal in Sales Tax Reimbursement Dispute — Clarifies That Sales Tax on Works Contracts Is Levied on Goods Component, Not on Completed Items of Work. Clause 45.2 of GCC Does Not Apply When Tax Is on Transfer of Property...