Bombay High Court Allows No-Fault Compensation Under Section 140 MV Act Despite Deceased's Own Negligence — Volenti Non Fit Injuria Not Applicable to Section 140 Claims.

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

The case involves an appeal by the original claimants, who are the sons and daughter of the deceased Gangaram Zade. On 6 January 2005, Gangaram was driving a Minidor (auto trolley) owned by his wife Leelabai. While driving, he tried to avoid a collision with another vehicle, causing the vehicle to turn turtle, resulting in his death. The claimants filed an application under Section 140 of the Motor Vehicles Act, 1988, seeking compensation on the basis of no-fault liability. The Insurance Company resisted the application, contending that since the death occurred due to the negligence of the deceased himself, the claimants were not entitled to any compensation, and the deceased was not a third party. The Tribunal rejected the application on these grounds. The claimants appealed to the High Court. The court examined the applicability of the maxim volenti non fit injuria to Section 140 claims. The court noted that while the maxim applies to claims under Section 166 of the Act, Section 140 provides for no-fault liability and is not subject to such defences. The court held that the owner of the vehicle is liable to pay compensation under Section 140 irrespective of the negligence of the deceased, and the insurance company is liable to indemnify the owner. The court allowed the appeal, set aside the Tribunal's order, and directed the Insurance Company to pay compensation of Rs. 50,000 to the claimants within six weeks.

Headnote

A) Motor Vehicles Act - No-Fault Liability - Section 140 - Applicability of Volenti Non Fit Injuria - The court considered whether the maxim volenti non fit injuria applies to claims under Section 140 of the Motor Vehicles Act, 1988. The court held that Section 140 provides for no-fault liability and is not subject to the defence of volenti non fit injuria. The owner of the vehicle is liable to pay compensation irrespective of the negligence of the deceased. The insurance company is liable to indemnify the owner. (Paras 6-7)

B) Motor Vehicles Act - No-Fault Liability - Section 140 - Deceased Driver - The court held that even if the deceased was driving the vehicle and died due to his own negligence, the claimants are entitled to compensation under Section 140 of the Motor Vehicles Act, 1988. The Tribunal erred in rejecting the application on the ground that the deceased was not a third party and was himself negligent. (Paras 6-7)

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Issue of Consideration

Whether the maxim volenti non fit injuria applies to an application under Section 140 of the Motor Vehicles Act, 1988, and whether the claimants are entitled to no-fault compensation when the deceased died due to his own negligence while driving the vehicle.

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Final Decision

The appeal is allowed. The order of the Tribunal is set aside. The Insurance Company is directed to pay compensation of Rs. 50,000 to the claimants within six weeks.

Law Points

  • No-fault liability under Section 140 Motor Vehicles Act
  • 1988 is absolute and not subject to defence of volenti non fit injuria
  • owner of vehicle is liable to pay compensation irrespective of negligence of deceased
  • insurance company is liable to indemnify owner.
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Case Details

2010 LawText (BOM) (04) 126

First Appeal No.1087 of 2009

2010-04-12

C.L. Pangarkar

Mr. S.V. Sirpurkar for appellants, Mr. D.K. Paunikar for respondent/Insurance Co.

Bandu Gangaram Zade, Naresh Gangaram Zade, Ku. Vandana Gangaram Zade

Smt. Lilabai Gangaram Zade, Oriental Insurance Company

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Nature of Litigation

Appeal against rejection of application under Section 140 of Motor Vehicles Act, 1988 for no-fault compensation.

Remedy Sought

Claimants sought compensation under Section 140 of the Motor Vehicles Act, 1988 on account of death of Gangaram Zade in a motor vehicle accident.

Filing Reason

The Tribunal rejected the application under Section 140 on the ground that the deceased was not a third party and died due to his own negligence.

Previous Decisions

The Motor Accident Claims Tribunal rejected the application under Section 140 of the Motor Vehicles Act, 1988.

Issues

Whether the maxim volenti non fit injuria applies to an application under Section 140 of the Motor Vehicles Act, 1988? Whether the claimants are entitled to no-fault compensation under Section 140 when the deceased died due to his own negligence while driving the vehicle?

Submissions/Arguments

Appellants' counsel submitted that the Tribunal erred in rejecting the application under Section 140 on the ground that the deceased was not a third party and was himself driving the vehicle. Respondent/Insurance Company's counsel submitted that the case is covered by the maxim volenti non fit injuria and the Tribunal's order is correct.

Ratio Decidendi

Section 140 of the Motor Vehicles Act, 1988 provides for no-fault liability and is not subject to the defence of volenti non fit injuria. The owner of the vehicle is liable to pay compensation irrespective of the negligence of the deceased. The insurance company is liable to indemnify the owner.

Judgment Excerpts

We must, therefore, look into section 140 itself. Section 140 of the Act reads as follows... The submission that this case is one covered by the above maxim cannot be disputed. This maxim has certainly to be applied to all applications filed under Section 166 of the M.V. Act. The present application is one under Section 140 of the M.V. Act. We have, therefore, to see if section 140 of the Act is also covered by the said maxim.

Procedural History

The claimants filed an application under Section 140 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal. The Tribunal rejected the application. The claimants appealed to the High Court by way of First Appeal No.1087 of 2009.

Acts & Sections

  • Motor Vehicles Act, 1988: 140, 166
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High Court Bombay High Court Allows No-Fault Compensation Under Section 140 MV Act Despite Deceased's Own Negligence — Volenti Non Fit Injuria Not Applicable to Section 140 Claims.
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