Case Note & Summary
The present appeal was filed under Section 173 of the Motor Vehicles Act, 1988, by the original claimants, being aggrieved and dissatisfied with the judgment and award dated 29th November 2013 passed by the learned Motor Accident Claim Tribunal (Auxiliary) at Bhavnagar in Motor Accident Claim Petition No.721 of 1999. The Tribunal had partly allowed the claim petition preferred under Section 166 of the Act, holding the claimants entitled to compensation of Rs.5,23,600/- with interest at 7.5% per annum from the date of filing till realization, from the original opponent Nos.1, 2, 4, and 5 jointly and severally. The Tribunal held the driver of the Max Metador (opponent No.4) responsible for causing the accident and exonerated the driver, owner, and insurer of the truck (opponent Nos.1, 5, and 6) from liability. The claimants sought enhancement of compensation and challenged the exoneration of the truck's driver, owner, and insurer. The High Court, after hearing the parties, held that both vehicles were jointly and severally liable as joint tortfeasors, and the Tribunal erred in apportioning liability solely on one driver. The court enhanced the compensation by adding 40% towards future prospects, applying multiplier of 16, and increasing the interest rate to 9% per annum. The total compensation was enhanced to Rs.10,24,000/- with interest at 9% per annum from the date of filing till realization, and all respondents were directed to pay jointly and severally, with right of contribution among themselves.
Headnote
A) Motor Accident Claims - Compensation - Apportionment of Liability - Section 166, 173 Motor Vehicles Act, 1988 - The appeal challenged the Tribunal's award which partly allowed the claim petition but exonerated the driver, owner, and insurer of the truck from liability, holding only the driver of the Max Metador liable. The High Court held that both vehicles were jointly and severally liable as joint tortfeasors, and the Tribunal erred in apportioning liability solely on one driver. The court enhanced compensation and directed all respondents to pay jointly and severally, with right of contribution among themselves. (Paras 2-22) B) Motor Accident Claims - Quantum of Compensation - Future Prospects - Section 166 Motor Vehicles Act, 1988 - The Tribunal had not considered future prospects of the deceased who was a driver aged 35 years. Following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, the court added 40% towards future prospects and applied multiplier of 16, enhancing the compensation from Rs.5,23,600/- to Rs.10,24,000/-. (Paras 15-20) C) Motor Accident Claims - Interest Rate - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded interest at 7.5% per annum. The High Court, in line with prevailing rates, enhanced the interest rate to 9% per annum from the date of filing of the claim petition till realization. (Para 21)
Issue of Consideration
Whether the Tribunal erred in exonerating the driver, owner, and insurer of the truck from liability and in not awarding just compensation to the claimants.
Final Decision
The appeal is partly allowed. The judgment and award dated 29th November 2013 passed by the Motor Accident Claim Tribunal (Auxiliary) at Bhavnagar in MACP No.721 of 1999 is modified. The total compensation is enhanced from Rs.5,23,600/- to Rs.10,24,000/- with interest at 9% per annum from the date of filing of the claim petition till realization. All respondents (original opponent Nos.1, 2, 4, 5, and 6) are held jointly and severally liable to pay the compensation, with right of contribution among themselves. The award is to be satisfied within eight weeks.
Law Points
- Section 173 of Motor Vehicles Act
- 1988
- Section 166 of Motor Vehicles Act
- Joint and several liability of tortfeasors
- Apportionment of compensation between joint tortfeasors
- Contributory negligence
- Right of contribution among joint tortfeasors
