High Court of Judicature at Bombay Allows Appeal by Claimants in Motor Accident Compensation; Reverses 50% Deduction for Contributory Negligence. Multiplier of 17 Under Section 163-A Second Schedule Applied for Deceased Aged 32 Years; Non-Joinder of Truck Parties Not Fatal in Third-Party Claim.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The appeal arose from a motor accident claim under Section 163-A of the Motor Vehicles Act, 1988. The appellants were the widow, minor son, and mother of Pralhad Dhole, who died on 14 June 2001 when the State Transport (ST) bus in which he was travelling overturned near a bridge at village Hivra. The deceased, a Gramsevak aged about 32 years, was earning Rs 6,617 per month. The claimants sought Rs 9,50,000 with 18% interest per annum. The Motor Accident Claims Tribunal, Hingoli, in M.A.C.P. No. 256/2001, partly allowed the claim, awarding Rs 4,27,000 with 6% interest, but deducted 50% of the assessed compensation holding that the bus driver and truck driver were each 50% negligent. The appellants challenged the award under Section 173 of the Act before the High Court of Judicature at Bombay, Bench at Aurangabad. The court considered whether the deduction for contributory negligence was legally sustainable, whether multiplier 16 or 17 applied, and whether non-joinder of the truck driver, owner, and insurer was fatal. The appellants argued that the deceased was a passenger and could not be contributorily negligent; that multiplier 17 under the second schedule to Section 163-A applied for age group 31-35; and that enhanced compensation should be awarded for loss of future income, loss of love and affection, and filial consortium under recent Supreme Court decisions. The respondent contended that the bus driver was not negligent and that multiplier 16 under Sarla Verma applied; non-joinder of truck parties was also raised. The High Court found that the Tribunal's finding of contributory negligence was erroneous because there was no head-on collision and the passenger was a third party; the bus driver alone was rash and negligent. Deducting 50% from the passenger's compensation was legally incorrect. On multiplier, since the claim was specifically under Section 163-A, the second schedule multiplier of 17 for the age group 31-35 had to be applied, not the Section 166 multiplier of 16. The non-joinder objection was rejected as meritless in a third-party claim. The available text does not include the final recomputed amount or formal operative order, but the court indicated these errors needed correction.

Headnote

A) Motor Vehicle Accident Compensation - Contributory Negligence - Passenger is a third party and cannot be held liable for the driver's negligence; deduction of 50% compensation for bus driver's fault is erroneous - Motor Vehicles Act, 1988, Sections 163-A, 166, 173 - The Tribunal held the bus driver and truck driver each 50% negligent and deducted 50% from compensation, but the deceased was a passenger and no head-on collision occurred; the bus driver alone was rash and negligent. Held that the approach was erroneous and the deduction must be corrected (Paras 16-19).

B) Motor Vehicle Accident Compensation - Multiplier - Second schedule under Section 163-A prescribes multiplier 17 for age group 31-35, not multiplier 16 under Sarla Verma for Section 166 claims - Motor Vehicles Act, 1988, Section 163-A - The claim was filed under Section 163-A, not Section 166, so the multiplier in the second schedule applied; deceased's age was 35 (or 32 not disputed), requiring multiplier 17. Held that the Tribunal erred in applying multiplier 16 (Paras 20-21).

C) Motor Vehicle Accident Compensation - Non-Joinder of Necessary Parties - In a third-party claim where the bus driver's sole negligence is established, non-joinder of truck driver, owner and insurer is not fatal - Motor Vehicles Act, 1988, Section 163-A - Respondent argued claim was bad for non-joinder of truck parties, but the court rejected this as no merit; it was a third-party claim and the bus driver was negligent. Held that the claim was not defective (Para 22).

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Issue of Consideration

Whether the Tribunal erred in deducting 50% of compensation on account of contributory negligence of the bus driver when the deceased was a passenger; whether multiplier 17 under the second schedule to Section 163-A should have been applied instead of 16; whether the claim petition was bad for non-joinder of truck driver, owner and insurer.

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Final Decision

The High Court found that the Tribunal erred in deducting 50% compensation on account of contributory negligence of the bus driver and in applying multiplier 16 instead of 17 under Section 163-A second schedule. Non-joinder of truck parties was not fatal. The available text does not include the final recomputed amount or formal operative order.

Law Points

  • passenger cannot be contributorily negligent for driver's fault
  • contributory negligence distinct from composite negligence
  • multiplier under second schedule to Section 163-A applies to Section 163-A claims
  • Section 166 multiplier different
  • non-joinder of other tortfeasor not fatal in third party claim
  • rash and negligent driving of bus driver established
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Case Details

2021 LawText (BOM) (11) 3

First Appeal No. 1482 of 2004

2021-11-25

Shrikant D. Kulkarni, J.

Mr. Sachin Deshmukh, Mr. Anand Wange

Sindhu w/o Pralhad Dhole, Ganesh s/o Pralhad Dhole (minor through guardian Sindhu), Prayagbai w/o Kishanrao Dhole

Maharashtra State Road Transport Corporation through its Divisional Controller, Gangakhed Road, Parbhani

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Nature of Litigation

First appeal under Section 173 of the Motor Vehicles Act, 1988 against the award in M.A.C.P. No. 256/2001 passed by Motor Accident Claims Tribunal, Hingoli.

Remedy Sought

Original claimants sought enhanced compensation without 50% deduction and with multiplier 17 under Section 163-A, plus additional heads of compensation.

Filing Reason

The Tribunal allowed the claim partly but deducted 50% for alleged contributory negligence of the bus driver and applied multiplier 16 instead of 17, leading to inadequate compensation.

Previous Decisions

The Motor Accident Claims Tribunal, Hingoli, in M.A.C.P. No. 256/2001, awarded Rs. 4,27,000 with 6% interest per annum from date of petition, holding bus driver and truck driver each 50% negligent.

Issues

Whether the Tribunal erred in deducting 50% of compensation on account of contributory negligence of the bus driver when the deceased was a passenger? Whether multiplier 17 under the second schedule to Section 163-A should have been applied instead of 16? Whether the claim petition was bad for non-joinder of truck driver, owner and insurer?

Submissions/Arguments

Appellants submitted that the deceased was traveling as a passenger and could not be contributorily negligent; the Tribunal's deduction of 50% compensation was improper and incorrect. Appellants argued that multiplier 17 under the second schedule to Section 163-A should be applied for age group 31-35, not multiplier 16, and relied upon Pranay Sethi, Magma General Insurance, and Satinder Kaur for enhanced heads of compensation. Respondent contended that the bus driver was not negligent and took proper care; the accident occurred due to urgent braking and heavy rains; multiplier 16 under Sarla Verma was correctly applied. Respondent further argued that the claim was bad for non-joinder of necessary parties (truck driver, owner, and insurer) and should be dismissed.

Ratio Decidendi

A passenger in a motor vehicle is a third party and cannot be held contributorily negligent for the driver's rash and negligent act; deduction of compensation on that ground is erroneous. In a claim under Section 163-A of the Motor Vehicles Act, 1988, the multiplier prescribed in the second schedule must be applied, not the multiplier under Sarla Verma applicable to Section 166 claims. Non-joinder of the other alleged tortfeasor is not fatal where the claim is grounded on the sole negligence of the bus driver.

Judgment Excerpts

The Tribunal seems to have committed grave error in deducting 50% amount of compensation, about the rash and negligent manner of driving of the bus driver and that error needs to be corrected. However, the claim petition is governed by Section 163-A of the Motor Vehicles Act and as such, the multiplier given in the second schedule under Section 163-A of the Motor Vehicles Act needs to be applied.

Procedural History

The original claim was filed as M.A.C.P. No. 256/2001 before the Motor Accident Claims Tribunal, Hingoli, under Section 163-A of the Motor Vehicles Act, 1988. The Tribunal by its judgment and award partly allowed the claim, directing the respondent to pay Rs 4,27,000 with 6% interest per annum, after deducting 50% for contributory negligence and applying multiplier 16. Aggrieved, the original claimants filed First Appeal No. 1482 of 2004 under Section 173 of the Act before the High Court of Judicature at Bombay, Bench at Aurangabad. The appeal was heard on 25 November 2021.

Acts & Sections

  • Motor Vehicles Act, 1988: 163-A, 166, 173
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