Bombay High Court Dismisses State's Appeal in Motor Accident Claim — Compensation Upheld as Just and Fair. Monthly income of deceased notionally considered at Rs.1,200/- per month held to be average for able-bodied adult; no evidence of excess.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The State of Maharashtra, through the Executive Engineer, Public Works Division No.1, Gadchiroli, filed an appeal against the judgment and award dated 21/10/2003 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.214/1994. The Tribunal had allowed the claim petition and directed payment of total compensation of Rs.1,88,600/- to the claimants (respondent Nos.1 and 2, the parents of the deceased) along with interest at 12% per annum from the date of the petition until full satisfaction. The facts not in dispute were that the victim, Sanjay Suresh Shahu, aged about 19 years, was employed as a mechanic-cum-helper in Arvind Auto Works (respondent No.3) for a monthly salary of Rs.1,200/-. He died in a motor vehicle accident on 15/09/1993 at about 5.45 p.m. when Nilkanth Suryawanshi (respondent No.4) drove a motor vehicle belonging to the appellant on the pretext of a test drive from the garage of respondent No.3, and the deceased came under the front wheel and died as a result of the accident caused by truck bearing registration No. MTG-9200. The claimants filed a claim petition under Section 166 of the Motor Vehicles Act, 1988. The appellant contended that the compensation awarded was excessive and sans legal evidence. The High Court perused the impugned judgment and award and found that while calculating compensation, the monthly income of the victim was notionally considered as Rs.1,200/- per month, which was the amount the claimants alleged the victim was earning as a mechanic. The Court found no fault with this calculation, noting that it is an average monthly income for any able-bodied adult doing the work. The Court held that just compensation is adequate compensation which is fair and equitable, on the facts and circumstances of the case, to make good the loss suffered as a result of the wrong, as far as money can do so, by applying well-settled principles. The Court found no merit in the appeal and dismissed it, confirming the Tribunal's award.

Headnote

A) Motor Accident Claims - Compensation - Just Compensation - Section 166 Motor Vehicles Act, 1988 - The appeal challenged the award of Rs.1,88,600/- as excessive and without legal evidence. The High Court held that the monthly income of the deceased was notionally considered as Rs.1,200/- per month, which is average monthly income for any able-bodied adult doing the work. Just compensation is adequate compensation which is fair and equitable, on the facts and circumstances of the case, to make good the loss suffered as a result of the wrong, as far as money can do so, by applying the well settled principles relating to award of compensation. The appeal was dismissed as there was no merit. (Paras 1-6)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was excessive and sans legal evidence.

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Final Decision

The appeal is dismissed. The judgment and award passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.214/1994 dated 21/10/2003 is confirmed.

Law Points

  • Just compensation is adequate compensation which is fair and equitable
  • on the facts and circumstances of the case
  • to make good the loss suffered as a result of the wrong
  • as far as money can do so
  • by applying the well settled principles relating to award of compensation
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Case Details

2013 LawText (BOM) (06) 97

First Appeal No.654/2003

2013-06-27

A. P. Bhangale, J.

Shri M.A.Kadu, Asstt. Govt. Pleader for appellant; None for respondent Nos.1 and 2; Shri S.D.Malke, counsel for respondent Nos.3 and 4

State of Maharashtra, through the Executive Engineer, Public Works Division No.1, Gadchiroli (M.S.)

1) Suresh S/o Prayag Shahu, 2) Kanta W/o Suresh Sahu, 3) Arvind Auto Works, through its Proprietor Shri Abhay S/o Bhojraj Patil, 4) Nilkanth S/o Ramchandra Suryawanshi

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of the Motor Vehicles Act, 1988.

Remedy Sought

The appellant (State of Maharashtra) sought to set aside the award of compensation of Rs.1,88,600/- with interest, claiming it was excessive and sans legal evidence.

Filing Reason

The appellant contended that the compensation awarded by the Tribunal was excessive and not based on legal evidence.

Previous Decisions

The Motor Accident Claims Tribunal, Nagpur, in Claim Petition No.214/1994, allowed the petition and directed payment of Rs.1,88,600/- with interest at 12% per annum from the date of petition till full satisfaction.

Issues

Whether the compensation awarded by the Tribunal was excessive and sans legal evidence.

Submissions/Arguments

Learned Assistant Government Pleader argued that the compensation awarded was excessive and without legal evidence.

Ratio Decidendi

Just compensation is adequate compensation which is fair and equitable, on the facts and circumstances of the case, to make good the loss suffered as a result of the wrong, as far as money can do so, by applying the well settled principles relating to award of compensation. The monthly income of the deceased notionally considered as Rs.1,200/- per month is average for any able-bodied adult doing the work, and no fault is found with the calculation.

Judgment Excerpts

Just compensation is adequate compensation which is fair and equitable, on the facts and circumstances of the case, to make good the loss suffered as a result of the wrong, as far as money can do so, by applying the well settled principles relating to award of compensation.

Procedural History

The Motor Accident Claims Tribunal, Nagpur, in Claim Petition No.214/1994, allowed the petition and awarded compensation of Rs.1,88,600/- with interest at 12% per annum from the date of petition till full satisfaction on 21/10/2003. The State of Maharashtra filed First Appeal No.654/2003 before the Bombay High Court, Nagpur Bench, challenging the award. The High Court heard the appeal and dismissed it on 27/06/2013.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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