High Court of Bombay Dismisses Insurance Company's Appeal in Motor Accident Claim — Compensation Awarded to Family of Deceased Engineering Student Upheld. Tribunal's Assessment of Notional Income at Rs. 3,000 per Month and Multiplier of 18 Found Just and Proper Under Motor Vehicles Act, 1988.

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

The present appeal was filed by the Oriental Insurance Co. Ltd. against the judgment and award dated 12/02/2007 passed by the Motor Accident Claims Tribunal, Amravati in M.A.C.P. No.130 of 2003. The Tribunal had granted a sum of Rs. 10,96,500 as compensation inclusive of no fault liability and interest at the rate of 7.5% per annum from the date of petition till realization. The respondents before the Tribunal, i.e., owner/driver and insurer, were held liable to pay compensation to the claimants jointly and severally. The brief facts are that Sandeep Khatri, son of claimant No.1 and brother of claimant No.2, was a student of Final Year B.E. (Civil) studying in the College of Engineering at Badnera. He was riding on a scooter bearing No.MH33/B278 as a pillion rider along with his friend Pankaj Kothe. When the scooter was near Ashish Restaurant, Gupta Petrol Pump, the offending motor vehicle i.e. Truck bearing registration No.MP09/KB5982 came from opposite direction in a rash and negligent manner, lost its balance, fell upon Sandeep and his friend Pankaj and crushed them, resulting in the death of Sandeep. The claimants, being the mother and sister of the deceased, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988. The Tribunal, after considering the evidence, held that the accident occurred due to the rash and negligent driving of the truck driver. The Tribunal assessed the notional income of the deceased at Rs. 3,000 per month, applied a multiplier of 18, and awarded compensation. The Insurance Company appealed, contending that the compensation was excessive. The High Court, after hearing the parties, found no merit in the appeal. The Court noted that the deceased was a 22-year-old final year engineering student and the assessment of income at Rs. 3,000 per month was reasonable. The multiplier of 18 was correctly applied as per the Second Schedule of the Motor Vehicles Act. The Court also upheld the finding of negligence and the joint and several liability of the insurer. Accordingly, the appeal was dismissed with no order as to costs.

Headnote

A) Motor Accident Claims - Compensation - Assessment of Future Income - Deceased was a final year B.E. (Civil) student aged 22 years - Tribunal assessed notional income at Rs. 3,000 per month and applied multiplier of 18 - Held that the assessment was just and proper, no interference warranted (Paras 2-4).

B) Motor Accident Claims - Negligence - Rash and Negligent Driving - Truck lost balance and fell upon scooter rider and pillion - Tribunal found driver negligent - Held that the finding of negligence was based on evidence and not perverse (Paras 2-3).

C) Motor Accident Claims - Liability - Joint and Several - Owner, driver, and insurer held jointly and severally liable to pay compensation - Held that the insurer is liable to indemnify the insured (Para 1).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in awarding compensation of Rs. 10,96,500 to the claimants for the death of Sandeep Khatri in a motor vehicle accident.

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Final Decision

Appeal dismissed. The judgment and award dated 12/02/2007 passed by the Motor Accident Claims Tribunal, Amravati in M.A.C.P. No.130 of 2003 is confirmed. No order as to costs.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Section 168
  • Compensation for death
  • Multiplier method
  • Future prospects
  • Negligence
  • Joint and several liability
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Case Details

2013 LawText (BOM) (07) 182

First Appeal No.205 of 2009

2013-07-17

A. P. Bhangale, J.

Shri A. B. Godbole for appellant, Mrs. R. Dewani for Respondent Nos.1 and 2

The Oriental Insurance Co. Ltd.

Smt. Maya Wd/o Govindrao Khatri, Ku. Varsha D/o Govindrao Khatri, Mr. Shaikh Mubarak Shaikh Gafur, Mr. Vinod S/o Bhagwandas Saini

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Nature of Litigation

Appeal against award of compensation in motor accident claim

Remedy Sought

Insurance company sought reduction of compensation awarded by Tribunal

Filing Reason

Insurance company challenged the quantum of compensation and finding of negligence

Previous Decisions

Motor Accident Claims Tribunal, Amravati awarded Rs. 10,96,500 with interest at 7.5% per annum

Issues

Whether the compensation awarded by the Tribunal is excessive? Whether the finding of negligence against the truck driver is correct?

Submissions/Arguments

Appellant (Insurance Company) argued that the compensation is excessive and the Tribunal erred in assessing income and multiplier. Respondents (Claimants) supported the Tribunal's award and argued it was just and proper.

Ratio Decidendi

The assessment of notional income of a deceased student at Rs. 3,000 per month and application of multiplier of 18 is just and proper. The finding of negligence based on evidence is not perverse. The insurer is jointly and severally liable to pay compensation.

Judgment Excerpts

The present appeal is directed against the judgment and award dated 12/02/2007 passed by Motor Accident Claims Tribunal, Amravati in M.A.C.P. No.130 of 2003 whereby learned Tribunal was pleased to grant a sum of Rs.10,96,500 as compensation inclusive of no fault liability and interest at the rate of 7.5% per annum from the date of petition till realization thereof. The brief facts stated are as under – One Sandeep Khatri, the son of claimantrespondent No.1 and brother of claimantrespondent No.2, who was the student of Final Year B.E. (Civil), studying in the College of Engineering at Badnera, was riding on a scooter bearing No.MH33/B278 as pillion rider along with his friend Pankaj Kothe.

Procedural History

The Motor Accident Claims Tribunal, Amravati passed the award on 12/02/2007 in M.A.C.P. No.130 of 2003. The Oriental Insurance Co. Ltd. filed First Appeal No.205 of 2009 before the High Court of Bombay, Nagpur Bench, challenging the award. The High Court heard the appeal and dismissed it on 17.07.2013.

Acts & Sections

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