Case Note & Summary
The appeal was filed by The New India Assurance Company Limited against the judgment and award dated 25.03.2022 passed by the Motor Accident Claims Tribunal (Auxi.), Kalol, in MACP No.1256 of 2014. The claim petition was filed by the legal heirs of Darshan Hiteshbhai Pandya, who died in a motor vehicle accident on 15.04.2018. The accident occurred when the deceased was riding a motorcycle with claimant No.1 as pillion rider, and a Eicher Truck driven rashly and negligently dashed against the motorcycle, causing the deceased to fall and the truck's wheel to roll over his head and chest, resulting in his death. The Tribunal partly allowed the claim, holding 80% negligence on the part of the truck driver and 20% contributory negligence on the deceased, and awarded compensation of Rs.35,84,800/- with 9% interest. The insurance company appealed on the ground that the compensation was exorbitant, particularly the assessment of the deceased's income at Rs.2,61,000/- per annum based on income tax returns filed after the accident, which were not reliable. The High Court found that the income tax returns for AYs 2015-16, 2016-17, and 2017-18 were filed after the accident and raised doubts, and there was no bank statement or other evidence to support the income. Therefore, the Court assessed the deceased's income notionally at Rs.1,80,000/- per annum (Rs.15,000/- per month) and recalculated the compensation. The Court reduced the total compensation from Rs.35,84,800/- to Rs.22,80,000/-, with interest at 9% per annum from the date of the claim petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Assessment - Income Proof - Section 166, Motor Vehicles Act, 1988 - The Tribunal awarded compensation based on deceased's income of Rs.2,61,000/- per annum relying on income tax returns filed after the accident, which raised doubts. The High Court held that in the absence of reliable evidence, the income should be assessed notionally at Rs.1,80,000/- per annum, and reduced the compensation accordingly. (Paras 4-5) B) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - The Tribunal found 20% contributory negligence on the part of the deceased motorcyclist. The High Court did not interfere with this finding as it was based on evidence. (Para 3.1)
Issue of Consideration
Whether the learned Tribunal erred in awarding exorbitant compensation by considering the income of the deceased at Rs.2,61,000/- per annum without any evidence?
Final Decision
Appeal partly allowed. Compensation reduced from Rs.35,84,800/- to Rs.22,80,000/- with interest at 9% per annum from date of claim petition. Rest of the award confirmed.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation assessment
- Income proof
- Notional income
- Contributory negligence
