Bombay High Court Allows Insurance Company's Appeals in Motor Accident Claims, Reduces Compensation for Death of Three Pillion Riders. Held that Contributory Negligence of Deceased Pillion Riders Must Be Considered When They Were Traveling in a Goods Vehicle in Violation of Permit Conditions.

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

The New India Assurance Company Limited filed four first appeals under Section 173 of the Motor Vehicles Act, 1988, challenging the common judgment and award dated 30th June 2006 passed by the Motor Accident Claims Tribunal, Chandrapur in four claim petitions arising out of the same accident. The accident occurred on 18th February 2005 when a motorcycle bearing registration No. MH-34/B-3427, driven by one Raju Lambade, dashed against a stationary goods vehicle (tempo) bearing registration No. MH-34/B-3426, which was parked on the road without parking lights. Three pillion riders on the motorcycle died in the accident. The claimants, being the legal representatives of the deceased, filed claim petitions under Section 166 of the Motor Vehicles Act, 1988, seeking compensation. The Tribunal held that the accident occurred due to the rash and negligent driving of the motorcycle driver and that the tempo driver was not negligent. The Tribunal awarded compensation to the claimants, holding the insurance company liable to pay the same. The insurance company appealed, contending that the deceased pillion riders were guilty of contributory negligence as they were traveling in a goods vehicle in violation of permit conditions, and that the compensation awarded was excessive. The High Court analyzed the evidence and found that the motorcycle driver was solely responsible for the accident as he lost control and dashed against the stationary tempo. The court held that the pillion riders, by traveling in a goods vehicle, contributed to the accident and were guilty of contributory negligence. Accordingly, the court reduced the compensation by 50% on account of contributory negligence. The court also upheld the multiplier of 17 and deduction of 1/3rd towards personal expenses as per the principles laid down in Sarla Verma v. DTC. The appeals were partly allowed, modifying the award to reduce the compensation by 50%.

Headnote

A) Motor Accident Claims - Contributory Negligence - Pillion Riders in Goods Vehicle - Deceased were traveling as pillion riders on a motorcycle which dashed against a stationary goods vehicle parked without parking lights - Held that the pillion riders were guilty of contributory negligence as they were traveling in a goods vehicle in violation of permit conditions and the driver of the motorcycle was solely responsible for the accident - Compensation reduced by 50% on account of contributory negligence (Paras 10-14).

B) Motor Accident Claims - Quantum of Compensation - Multiplier and Deductions - Tribunal applied multiplier of 17 and deducted 1/3rd towards personal expenses - Held that the multiplier and deductions were correctly applied as per Sarla Verma v. DTC - However, compensation reduced due to contributory negligence (Paras 15-18).

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Issue of Consideration

Whether the deceased pillion riders were guilty of contributory negligence and whether the compensation awarded by the Motor Accident Claims Tribunal was excessive.

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Final Decision

The appeals are partly allowed. The impugned award is modified to the extent that the compensation awarded is reduced by 50% on account of contributory negligence of the deceased pillion riders. The insurance company is directed to pay the reduced compensation with interest as per the Tribunal's order.

Law Points

  • Contributory negligence
  • Motor accident compensation
  • Goods vehicle carrying passengers
  • Violation of permit conditions
  • Apportionment of liability
  • Section 166 Motor Vehicles Act
  • 1988
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Case Details

2017 LawText (BOM) (11) 188

First Appeal No.357 of 2006 with First Appeal No.718 of 2006 with First Appeal No.727 of 2006 and First Appeal No.729 of 2006

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Shri Sahare h/f. Shri S.S. Sanyal for the Appellant; Shri B.B. Raipure for Respondent Nos.1 to 3 (in FA 357/2006) and Respondent Nos.1 to 4 (in FA 718/2006); Ms. Aakanksha h/f. Shri Anilkumar for Respondent No.3 (in FA 357/2006) and Respondent No.6 (in FA 718/2006)

The New India Assurance Company Limited

Paikaji s/o. Asuji Lambade and Others (in FA 357/2006); Mohammad Karim Kureshi and Others (in FA 718/2006); Sheikh Daut Shiek Ismile Sheikh and Others (in FA 727/2006); and Others (in FA 729/2006)

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Nature of Litigation

Appeals by insurance company against award of compensation in motor accident claims.

Remedy Sought

The appellant insurance company sought reduction of compensation awarded by the Tribunal, contending contributory negligence of the deceased pillion riders and excessive quantum.

Filing Reason

The insurance company challenged the Tribunal's award holding it liable to pay compensation for the death of three pillion riders in a motor accident.

Previous Decisions

The Motor Accident Claims Tribunal, Chandrapur, by common judgment and award dated 30th June 2006, allowed the claim petitions and awarded compensation to the claimants, holding the insurance company liable.

Issues

Whether the deceased pillion riders were guilty of contributory negligence? Whether the compensation awarded by the Tribunal was excessive?

Submissions/Arguments

The appellant insurance company argued that the deceased pillion riders were traveling in a goods vehicle in violation of permit conditions and thus contributed to the accident. The respondents/claimants contended that the accident was solely due to the negligence of the motorcycle driver and the pillion riders had no role in it.

Ratio Decidendi

Pillion riders traveling in a goods vehicle in violation of permit conditions are guilty of contributory negligence, and the compensation payable to their legal representatives must be reduced proportionately. The driver of the motorcycle was solely responsible for the accident, but the pillion riders' decision to travel in a goods vehicle contributed to the risk.

Judgment Excerpts

The pillion riders were traveling in a goods vehicle in violation of permit conditions. They were guilty of contributory negligence. The compensation awarded by the Tribunal is reduced by 50% on account of contributory negligence.

Procedural History

The Motor Accident Claims Tribunal, Chandrapur, passed a common judgment and award on 30th June 2006 in four claim petitions arising from the same accident. The insurance company filed four first appeals before the High Court challenging the award.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 173
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