Bombay High Court Partly Allows Owner's Appeal in Motor Accident Claim — Reduces Compensation for Death of 15-Year-Old Boy Due to Contributory Negligence. Owner of Tractor Held Liable for Negligence of Driver but Compensation Reduced by 50% for Deceased's Contributory Negligence in Sitting on Tractor.

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

The case arises from a motor accident claim filed by the original claimants (respondents No. 1 to 4) under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the death of Nagnath, a 15-year-old school-going boy, who died in a vehicular accident on 09-01-2001. The deceased was returning from the field and was given a lift on the tractor by the driver, respondent No. 4 (Shaikh Gaus). The tractor was owned by the appellant (Chandrakant Pasame) and insured with respondent No. 5 (National Insurance Co. Ltd.). The Motor Accident Claims Tribunal, Nilanga, partly allowed the claim petition and awarded compensation of Rs. 2,25,000 with interest at 6% per annum, holding the owner and driver jointly and severally liable, and exonerating the insurance company on the ground that the deceased was a gratuitous passenger. The appellant-owner filed the present appeal under Section 173 of the Act, challenging the award. The High Court examined the evidence and found that the deceased himself contributed to the accident by sitting on the tractor without any authority, and the driver was also negligent in driving. The court assessed contributory negligence at 50% each. Applying the structured formula under the Second Schedule, the court computed the loss of dependency at Rs. 2,25,000 (Rs. 15,000 per annum notional income x 15 multiplier), and after deducting 50% contributory negligence, reduced the compensation to Rs. 1,12,500. Additionally, funeral expenses and loss of estate were reduced proportionately. The court partly allowed the appeal, modifying the award accordingly.

Headnote

A) Motor Accident Claims - Contributory Negligence - Section 166, Motor Vehicles Act, 1988 - Deceased minor boy aged 15 years was a gratuitous passenger on tractor-trolley - Held that the deceased himself contributed to the accident by sitting on the tractor without any authority, and the driver was also negligent - Contributory negligence assessed at 50% each - Compensation reduced accordingly (Paras 10-15).

B) Motor Accident Claims - Compensation for Minor - Section 166, Motor Vehicles Act, 1988 - Deceased minor aged 15 years, student of 7th standard - Held that notional income of Rs. 15,000 per annum as per Second Schedule is applicable - Applying multiplier of 15, loss of dependency calculated at Rs. 2,25,000 - After deducting 50% contributory negligence, compensation reduced to Rs. 1,12,500 - Additional amounts for funeral expenses and loss of estate also reduced proportionately (Paras 16-20).

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Issue of Consideration

Whether the appellant-owner of the offending vehicle is liable to pay compensation for the death of a minor who was a gratuitous passenger on the tractor, and whether the compensation awarded by the Tribunal is just and proper.

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Final Decision

The appeal is partly allowed. The impugned judgment and award is modified. The compensation amount is reduced from Rs. 2,25,000 to Rs. 1,12,500 with interest at 6% per annum from the date of petition till realization. The appellant-owner and respondent No. 4 (driver) are jointly and severally liable to pay the compensation. The insurance company is exonerated.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Section 173
  • Contributory Negligence
  • Compensation for Minor
  • Multiplier Method
  • Structured Formula
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Case Details

2017 LawText (BOM) (11) 57

First Appeal No. 980 of 2004

2017-11-21

K.K. Sonawane

Mr. S.C. Swami holding for Mr. V.D. Gunale for appellant, Mr. S.G. Rudrawar for Respondent No. 1, Mr. R.C. Bora holding for Mr. R.P. Bafna for respondent No.5

Chandrakant S/o Trimbak Pasame

Majlasbai w/o Mohanrao Jadhav, Nilawati d/o Mohanrao Jadhav, Anju d/o Mohanrao Jadhav, Shaiksh Gous s/o Shaikh Rasul, National Insurance Co. Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal partly allowing claim petition for compensation under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

Appellant-owner sought reduction of compensation awarded by Tribunal, challenging liability and quantum.

Filing Reason

Dissatisfaction with the impugned judgment and award dated 29-11-2003 passed by the Motor Accident Claims Tribunal, Nilanga, District Latur, in MACP No. 88 of 2002.

Previous Decisions

The Tribunal partly allowed the claim petition and awarded Rs. 2,25,000 with interest at 6% per annum, holding the owner and driver jointly and severally liable, and exonerating the insurance company.

Issues

Whether the appellant-owner is liable to pay compensation for the death of a minor who was a gratuitous passenger on the tractor? Whether the compensation awarded by the Tribunal is just and proper?

Submissions/Arguments

Appellant argued that the deceased was a gratuitous passenger and the accident occurred due to his own negligence in sitting on the tractor, and the insurance company should be liable. Respondents-claimants argued that the driver was negligent and the owner is vicariously liable, and the compensation awarded is just.

Ratio Decidendi

The deceased minor contributed to the accident by sitting on the tractor without authority, amounting to contributory negligence of 50%. The owner is vicariously liable for the driver's negligence but compensation is reduced proportionately. The notional income of a minor is Rs. 15,000 per annum as per Second Schedule, and multiplier of 15 is applicable.

Judgment Excerpts

Being dissatisfied with the impugned judgment and Award dated 29-11-2003, passed by the learned Motor Accident Claims Tribunal, Nilanga, District Latur... the appellant-original respondent No.1 owner of the offending vehicle tractor, preferred the present appeal by invoking remedy under section 173 of the Act of 1988. The deceased Nagnath, 15 years old was the school going boy and lone son of claimant No. 1 Majlasbai Mohanrao Jadhav... The deceased himself contributed to the accident by sitting on the tractor without any authority, and the driver was also negligent in driving. Contributory negligence assessed at 50% each.

Procedural History

The original claimants filed MACP No. 88 of 2002 before the Motor Accident Claims Tribunal, Nilanga, District Latur, under Section 166 of the Motor Vehicles Act, 1988. The Tribunal partly allowed the claim petition on 29-11-2003, awarding Rs. 2,25,000 with interest. The appellant-owner filed First Appeal No. 980 of 2004 before the Bombay High Court, Bench at Aurangabad, under Section 173 of the Act. The appeal was reserved on 23-08-2017 and pronounced on 21-11-2017.

Acts & Sections

  • Motor Vehicles Act, 1988: 166, 173
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