High Court of Bombay at Nagpur Dismisses Insurance Company's Appeal in Motor Accident Claim — Deceased's Income as Shikshan Sewak Assessed at Rs.19,000 per Month Based on 6th Pay Commission. Compensation of Rs.44,21,000 Upheld as Just and Proper.

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

The case involves an appeal filed by Shriram General Insurance Company Ltd. under Section 173 of the Motor Vehicles Act, 1988, challenging the award of the Motor Accident Claims Tribunal, Akola in M.A.C.P. No.65/2012. The Tribunal had awarded compensation of Rs.44,21,000 to the dependents of deceased Ayyub Khan, who died in a motor vehicle accident on 26 November 2011. The deceased was a Shikshan Sewak (teacher) with Zilla Parishad from 6 May 2008 to 6 May 2011, earning an honorarium of Rs.3,000 per month. On the date of the accident, he was proceeding from Akola to Patur on a motorcycle when a truck coming from the wrong side hit him, causing his death. The claim petition was filed by his widow, three minor children, and mother, seeking compensation of Rs.48,00,000. The claimants alleged that the deceased's salary was Rs.19,000 per month as per the 6th Pay Commission, and he also had income from irrigated land. The owner of the offending truck filed a written statement denying all contentions, including negligence. The Insurance Company filed a written statement raising the issue of non-joinder of the motorcycle's insurance company and alleging that the deceased himself was negligent, with 70% negligence on the part of the motorcycle driver. The Tribunal framed issues and, after considering evidence, held that the accident occurred due to the rash and negligent driving of the truck driver. The Tribunal assessed the deceased's income at Rs.19,000 per month based on the 6th Pay Commission and awarded compensation of Rs.44,21,000. The Insurance Company appealed, arguing that the income assessment was excessive and that the Tribunal erred in not considering contributory negligence. The High Court examined the evidence and found that the Tribunal's assessment of income was based on documentary evidence and was not perverse. The Court also noted that the Insurance Company failed to prove contributory negligence. Consequently, the High Court dismissed the appeal, upholding the Tribunal's award.

Headnote

A) Motor Accident Claims - Compensation Assessment - Income Proof - Deceased was a Shikshan Sewak with Zilla Parishad earning honorarium of Rs.3,000 per month - Claimants alleged salary of Rs.19,000 per month as per 6th Pay Commission - Tribunal accepted the higher income based on documentary evidence - Held that the Tribunal's assessment of income at Rs.19,000 per month was justified and not perverse (Paras 1-5).

B) Motor Accident Claims - Contributory Negligence - Composite Negligence - Insurance Company alleged 70% negligence on part of motorcycle driver - Tribunal found no evidence of contributory negligence - Held that the accident occurred due to rash and negligent driving of the truck driver, and the Insurance Company failed to prove contributory negligence (Paras 3-4).

C) Motor Accident Claims - Appeal under Section 173 of Motor Vehicles Act, 1988 - Insurance Company's challenge to quantum of compensation - Court found no error in Tribunal's award - Held that the appeal lacks merit and is dismissed (Paras 5-6).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in assessing the income of the deceased at Rs.19,000 per month and in awarding compensation of Rs.44,21,000, and whether the Insurance Company is liable to pay the awarded amount.

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Final Decision

The High Court dismissed the appeal, upholding the award of Rs.44,21,000 passed by the Motor Accident Claims Tribunal, Akola in M.A.C.P. No.65/2012. No order as to costs.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 173
  • Compensation assessment
  • Income proof
  • Pay commission salary
  • Future prospects
  • Deductions
  • Multiplier
  • Contributory negligence
  • Composite negligence
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Case Details

2017 LawText (BOM) (04) 135

First Appeal No.1252 of 2016

2017-04-17

N.W. Sambre, J.

Shri H.N. Verma for appellant, Shri S.A. Mohta for respondent Nos.1 to 5

Shriram General Insurance Company Ltd.

Rahimabi wd/o Ayyub Khan and others

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Nature of Litigation

Appeal under Section 173 of the Motor Vehicles Act, 1988 against award of compensation by Motor Accident Claims Tribunal.

Remedy Sought

Insurance company sought to set aside the award of Rs.44,21,000 passed by the Tribunal.

Filing Reason

Insurance company challenged the quantum of compensation and alleged contributory negligence.

Previous Decisions

Motor Accident Claims Tribunal, Akola in M.A.C.P. No.65/2012 awarded compensation of Rs.44,21,000 to the claimants.

Issues

Whether the Tribunal erred in assessing the income of the deceased at Rs.19,000 per month? Whether the Tribunal erred in not considering contributory negligence of the deceased? Whether the compensation awarded is just and proper?

Submissions/Arguments

Appellant/Insurance Company argued that the income of the deceased was only Rs.3,000 per month as per the appointment letter, and the Tribunal erred in assessing it at Rs.19,000 per month. Appellant also argued that the deceased was negligent and contributed to the accident, and the Tribunal failed to consider composite negligence. Respondents/Claimants supported the Tribunal's award, submitting that the income assessment was based on the 6th Pay Commission and was justified.

Ratio Decidendi

The Tribunal's assessment of income based on the 6th Pay Commission was not perverse and was supported by documentary evidence. The Insurance Company failed to prove contributory negligence. The compensation awarded was just and proper.

Judgment Excerpts

This appeal under Section 173 of the Motor Vehicles Act by Insurance company questioning the award delivered by the Motor Accident Claims Tribunal, Akola in M.A.C.P. No.65/2012 awarding compensation of Rs.44,21,000. The Tribunal framed issues which reads thus : 1) Do the claimants prove that on 26112011, Ayyubkhan Shabbirkhan died in a vehicular accident arising out of use of vehicle Truck bearing registration No.MH04CU3904 ? The appeal is dismissed. No order as to costs.

Procedural History

The claim petition M.A.C.P. No.65/2012 was filed by the dependents of deceased Ayyub Khan before the Motor Accident Claims Tribunal, Akola. The Tribunal awarded compensation of Rs.44,21,000. Aggrieved, the Insurance Company filed First Appeal No.1252 of 2016 before the High Court of Bombay at Nagpur Bench. The High Court dismissed the appeal on 17 April 2017.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 173
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