High Court of Bombay at Aurangabad Dismisses Insurance Company's Appeals in Motor Accident Claims — Upholds Tribunal's Award for Injuries to Passengers in Tempo. Insurer Liable to Pay Compensation Under Section 166 of Motor Vehicles Act, 1988 as Vehicle Was Insured and Accident Occurred Due to Negligence of Driver.

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

The Oriental Insurance Co. Ltd. filed two appeals under Section 166 of the Motor Vehicles Act, 1988, challenging the judgment and order dated 11.01.2012 passed by the learned Chairman, Motor Accident Claims Tribunal, Osmanabad, in M.A.C.P. No.262/2006 and M.A.C.P. No.261/2006. The Tribunal had partly allowed the claim petitions filed by Prakash Shahuraj Mali (respondent No.1 in FA 799/2012) and Jairam Ankush Deshmukh (respondent No.1 in FA 800/2012) for injuries sustained in a motor vehicle accident. The accident occurred on 18.10.2006 when the claimants were traveling in a tempo bearing registration No. MH 25/P174 from Gaur to Latur to sell soybean bags. The tempo overturned due to the rash and negligent driving of its driver, causing injuries to the claimants. The Tribunal awarded compensation of Rs. 1,00,000/- to Prakash Mali and Rs. 50,000/- to Jairam Deshmukh, along with interest at 6% per annum from the date of petition till realization. The insurance company appealed, contending that the quantum was excessive and that the Tribunal erred in holding the insurer liable. The High Court, after hearing arguments, found that the Tribunal's findings were based on evidence and not perverse. The court noted that the vehicle was insured with the appellant at the time of the accident, and the driver's negligence was established. The court also considered the nature of injuries and the medical evidence, and held that the compensation awarded was just and reasonable. Consequently, both appeals were dismissed with no order as to costs.

Headnote

A) Motor Accident Claims - Compensation for Injuries - Section 166 Motor Vehicles Act, 1988 - Claimants were passengers in a tempo carrying soybean bags when the vehicle overturned due to driver's negligence - Tribunal awarded compensation for injuries - Insurance company appealed challenging quantum and liability - Held that the Tribunal's findings on negligence and quantum were based on evidence and not perverse, hence appeals dismissed (Paras 1-10).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in awarding compensation to the claimants for injuries sustained in a tempo accident, and whether the insurance company is liable to pay the awarded amount.

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Final Decision

Both appeals are dismissed. The judgment and order of the Motor Accident Claims Tribunal, Osmanabad, dated 11.01.2012 in M.A.C.P. No.262/2006 and M.A.C.P. No.261/2006 are confirmed. No order as to costs.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Compensation for injuries
  • Liability of insurer
  • Negligence of driver
  • Quantum of compensation
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Case Details

2019 LawText (BOM) (10) 7

First Appeal No.799 of 2012 and First Appeal No.800 of 2012

2019-10-01

Smt. Vibha Kankanwadi, J.

Mr. U.S. Malte for the appellant; Mr. A.V. Patil for the respondent No.1

The Oriental Insurance Co. Ltd.

Prakash Shahuraj Mali and others (in FA 799/2012); Jairam Ankush Deshmukh and others (in FA 800/2012)

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Nature of Litigation

Appeals by insurance company against award of compensation in motor accident claims.

Remedy Sought

The insurance company sought to set aside the Tribunal's award and reduce the compensation.

Filing Reason

The insurance company challenged the quantum of compensation and liability imposed by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal, Osmanabad, partly allowed the claim petitions and awarded compensation.

Issues

Whether the Tribunal erred in awarding compensation to the claimants? Whether the insurance company is liable to pay the awarded amount?

Submissions/Arguments

Appellant (Insurance Company): The quantum of compensation is excessive and the Tribunal erred in holding the insurer liable. Respondents (Claimants): The award is just and based on evidence; no interference is warranted.

Ratio Decidendi

The Tribunal's findings on negligence and quantum of compensation were based on evidence and not perverse. The insurance company is liable to pay the compensation as the vehicle was insured and the accident occurred due to the driver's negligence.

Judgment Excerpts

Both these appeals have been filed by the insurance company challenging the Judgment and order passed by the learned Chairman, Motor Accident Claims Tribunal, Osmanabad in M.A.C.P. No.262/2006 and 261/2006 respectively dated 11.01.2012, whereby the petition filed under Section 166 of the Motor Vehicles Act came to be partly allowed. Both the claimants had come with a case that they were proceeding in tempo bearing No.MH 25/P174 on 18.10.2006 to Latur.

Procedural History

The claimants filed M.A.C.P. No.262/2006 and M.A.C.P. No.261/2006 before the Motor Accident Claims Tribunal, Osmanabad, under Section 166 of the Motor Vehicles Act, 1988. The Tribunal partly allowed the petitions on 11.01.2012. The insurance company filed First Appeal No.799/2012 and First Appeal No.800/2012 before the High Court of Bombay at Aurangabad, which were dismissed on 01.10.2019.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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