Bombay High Court Allows Appeal in Motor Accident Claim Case Due to Erroneous Dismissal by MACT — Parents of Deceased Cleaner Entitled to Compensation as Tribunal Failed to Consider Evidence of Negligence and Insurance Coverage. The court held that the accident was caused by rash and negligent driving, not merely mechanical defect, and awarded Rs.6,00,000 with interest under the Motor Vehicles Act, 1988.

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

The present appeal was filed by the original claimants, Shaikh Gani and Jahirabi, parents of deceased Javed Gani Shaikh, challenging the dismissal of their claim petition (MACP No.97 of 2009) by the Motor Accident Claims Tribunal, Osmanabad, dated 15-02-2012. The deceased was employed as a cleaner on a pick-up jeep bearing No.MH-10/K-8386. On 19-05-2008, while returning from Jalna to Kallam, the jeep driver drove rashly and negligently, causing the steering rod to break, the vehicle to go off the road, and dash against a tree. Javed sustained serious injuries, was treated at various hospitals, and ultimately succumbed to injuries on 24-12-2008. He was 19 years old, earning Rs.4,000 per month plus daily Bhatta of Rs.50. The claimants sought compensation of Rs.9,00,000 but restricted to Rs.6,00,000 for court fees. The Tribunal dismissed the petition, holding that the accident occurred due to mechanical defect (broken steering rod) and not due to rash and negligent driving. The High Court framed the issue of whether the Tribunal erred in dismissing the petition. The appellants argued that the Tribunal ignored evidence of negligence and that the driver could have avoided the accident. The respondents (owner and insurance company) supported the Tribunal's finding. The court analyzed the evidence, including FIR and panchanama, and held that the broken steering rod could have been avoided if the driver had been careful. The court found the Tribunal's finding perverse and set aside the dismissal. The court then assessed compensation: applying the multiplier of 18 (as per Sarla Verma v. DTC) to the notional income of Rs.4,000 per month (Rs.48,000 per annum), deducting 1/2 for personal expenses (as the deceased was a bachelor), resulting in loss of dependency of Rs.24,000 per annum, multiplied by 18 = Rs.4,32,000. Adding Rs.1,00,000 for loss of love and affection, Rs.50,000 for funeral expenses, and Rs.18,000 for medical expenses, total compensation was Rs.6,00,000. The court directed respondent No.2 (insurance company) to pay the amount with interest at 7.5% per annum from the date of petition till realization, within two months.

Headnote

A) Motor Accident Claims - Negligence - Burden of Proof - The Tribunal erroneously dismissed the claim petition holding that the accident occurred due to mechanical defect (broken steering rod) and not due to rash and negligent driving, without considering that the driver could have avoided the accident if he had been careful. The burden of proof on the claimants was discharged by evidence of the accident and injuries. The court held that the Tribunal's finding was perverse and set aside the dismissal. (Paras 1-10)

B) Motor Accident Claims - Insurance Liability - Third Party Risk - The insurance company is liable to indemnify the owner for compensation payable to third parties. Since the vehicle was insured with respondent No.2, the insurance company is liable to pay compensation. (Paras 11-15)

C) Motor Accident Claims - Compensation - Quantum - The deceased was 19 years old, earning Rs.4,000 per month plus daily Bhatta of Rs.50. Applying the multiplier of 18 as per Sarla Verma v. DTC, the loss of dependency is calculated. The court awarded Rs.6,00,000 as compensation with interest at 7.5% per annum from the date of petition. (Paras 16-20)

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in dismissing the claim petition on the ground that the accident occurred due to mechanical defect and not negligence, and whether the claimants are entitled to compensation.

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Final Decision

Appeal allowed. The judgment and award of MACT, Osmanabad dated 15-02-2012 is set aside. Respondent No.2 (Insurance Company) is directed to pay compensation of Rs.6,00,000 with interest at 7.5% per annum from the date of petition till realization, within two months.

Law Points

  • Motor Accident Claims
  • Negligence
  • Contributory Negligence
  • Burden of Proof
  • Insurance Liability
  • Compensation for Death
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Case Details

2019 LawText (BOM) (09) 1

First Appeal No. 1047 of 2012

2019-09-13

Smt. Vibha Kankanwadi, J.

Mr. M. B. Kolpe for Appellants, Mr. S. G. Chapalgaonkar for Respondent No.1, Mr. A. S. Gandhi holding for Mr. P.S.Mehta for Respondent No.2

Shaikh Gani s/o Shaikh Mainoddin and Jahirabi w/o Shaikh Gani

Balaji Allianz General Insurance Corporation Ltd. and Ramesh s/o Shankarlal Gupta

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Nature of Litigation

Appeal against dismissal of motor accident claim petition by MACT

Remedy Sought

Appellants (parents of deceased) sought compensation for death of their son in a motor vehicle accident

Filing Reason

Claim petition dismissed by MACT on ground that accident was due to mechanical defect and not negligence

Previous Decisions

MACT, Osmanabad dismissed MACP No.97 of 2009 on 15-02-2012

Issues

Whether the Tribunal erred in dismissing the claim petition on the ground that the accident occurred due to mechanical defect and not due to rash and negligent driving? Whether the claimants are entitled to compensation and if so, what quantum?

Submissions/Arguments

Appellants argued that the Tribunal ignored evidence of negligence and that the driver could have avoided the accident even if steering rod broke. Respondents supported the Tribunal's finding that accident was due to mechanical defect and not negligence.

Ratio Decidendi

In motor accident claims, the burden of proof on the claimants is to show that the accident occurred due to rash and negligent driving. However, the Tribunal cannot dismiss the claim solely on the ground of mechanical defect if there is evidence of negligence. The driver's failure to control the vehicle despite a broken steering rod can amount to negligence. The multiplier method as per Sarla Verma applies for computing loss of dependency.

Judgment Excerpts

The Tribunal has erroneously held that the accident occurred due to mechanical defect and not due to rash and negligent driving. The driver could have avoided the accident if he had been careful. The finding of the Tribunal is perverse and deserves to be set aside.

Procedural History

Original claim petition (MACP No.97 of 2009) filed before MACT, Osmanabad was dismissed on 15-02-2012. Aggrieved, the claimants filed First Appeal No.1047 of 2012 before the Bombay High Court, Aurangabad Bench. The appeal was heard and judgment reserved on 09-07-2019, pronounced on 13-09-2019.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 168
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