High Court of Bombay at Aurangabad Upholds Compensation Award in Motor Accident Claim — MSRTC Liable for Negligent Driving Causing Fracture to Claimant. Permanent disability assessed at 20% with multiplier of 16 applied for loss of earning capacity under Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The appellant, Maharashtra State Road Transport Corporation (MSRTC), filed an appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 08-06-2016 passed by the Motor Accident Claims Tribunal, Ahmednagar, in Motor Accident Claim Petition No. 855 of 2011. The respondent, Kiran Laxman Chabukswar, the original claimant, had sought compensation for injuries sustained in a road accident on 31-08-2011 at about 6.00 to 6.30 p.m. while crossing the Ahmednagar-Pune Highway near hotel Yash Palace. An S.T. Bus bearing registration No. MH-12/EF-6826, owned by the appellant, driven rashly and negligently, knocked down the claimant, causing him to fall and sustain serious fracture injuries to his knee. He was immediately taken to the hospital, where medical examination revealed an intra-articular fracture of the right tibia. He underwent two surgeries and was hospitalized for a considerable period, incurring medical expenses of Rs.1,75,000. The claimant, aged 35 years, worked as a driver earning Rs.6000 per month plus Rs.100 bhatta per day. Due to the injury, he could not perform his duties as a driver and claimed compensation for loss of income due to permanent physical disability. The Tribunal, after considering the evidence, held the appellant liable for the accident due to the rash and negligent driving of its bus driver. The Tribunal assessed the permanent disability at 20% and awarded compensation of Rs.5,00,000, which included loss of earning capacity, medical expenses, and other heads. The appellant challenged the award, primarily arguing that the compensation was excessive. The High Court, after hearing both sides, found no merit in the appeal. The court noted that the appellant did not challenge the finding of negligence. The court upheld the Tribunal's assessment of disability and the application of the multiplier method as per the principles laid down in Sarla Verma v. DTC. The court also found the medical expenses to be adequately proved. Consequently, the High Court dismissed the appeal, confirming the award of Rs.5,00,000 as just and fair compensation.

Headnote

A) Motor Accident Claims - Negligence - Rash and Negligent Driving - The appellant MSRTC's bus driver was held negligent for knocking down the claimant while crossing the road. The Tribunal found the driver rash and negligent, which was not challenged by the appellant. (Para 2-3)

B) Motor Accident Claims - Permanent Disability - Assessment of Disability - The claimant suffered intra-articular fracture of right tibia, operated twice, resulting in 20% permanent disability to the lower limb. The Tribunal assessed disability at 20% based on medical evidence. (Para 2, 4)

C) Motor Accident Claims - Compensation - Loss of Earning Capacity - Multiplier Method - The claimant, aged 35 years, a driver earning Rs.6000 per month plus Rs.100 bhatta per day, was awarded compensation for loss of earning capacity using multiplier of 16 as per Sarla Verma v. DTC. (Para 5-6)

D) Motor Accident Claims - Medical Expenses - Reimbursement - The claimant incurred Rs.1,75,000 towards medical expenses, which was awarded by the Tribunal. (Para 2, 7)

E) Motor Accident Claims - Just and Fair Compensation - The High Court upheld the Tribunal's award of Rs.5,00,000 as just and fair compensation, considering the nature of injuries, disability, and loss of income. (Para 8)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal is just and proper, and whether the appellant MSRTC is liable for the accident.

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Final Decision

The High Court dismissed the appeal and confirmed the award of Rs.5,00,000 passed by the Motor Accident Claims Tribunal, Ahmednagar, in Motor Accident Claim Petition No. 855 of 2011.

Law Points

  • Negligence in driving
  • permanent disability assessment
  • multiplier method for loss of earning capacity
  • medical expenses reimbursement
  • just and fair compensation
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Case Details

2017 LawText (BOM) (12) 51

First Appeal No. 4134 of 2016

2017-12-19

K.K. Sonawane

Mr. B.S. Deshmukh for appellant, Mrs. M.D. Thube-Mhase for respondent

The Divisional Controller, Maharashtra State Road Transport Corporation, MSRTC, Division- Ahmednagar, District Ahmednagar

Kiran Laxman Chabukswar

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Nature of Litigation

Appeal against compensation award in motor accident claim

Remedy Sought

Appellant MSRTC sought to set aside or reduce the compensation awarded by the Tribunal

Filing Reason

Appellant challenged the judgment and award dated 08-06-2016 passed by the Motor Accident Claims Tribunal, Ahmednagar, in Motor Accident Claim Petition No. 855 of 2011, on the ground that the compensation was excessive.

Previous Decisions

The Motor Accident Claims Tribunal, Ahmednagar, awarded Rs.5,00,000 as compensation to the claimant.

Issues

Whether the compensation awarded by the Tribunal is just and proper? Whether the appellant MSRTC is liable for the accident?

Submissions/Arguments

Appellant argued that the compensation awarded is excessive and not based on proper assessment of disability and income. Respondent supported the Tribunal's award, contending that it is just and fair.

Ratio Decidendi

The court held that the finding of negligence was not challenged and the Tribunal's assessment of 20% permanent disability and application of multiplier 16 as per Sarla Verma v. DTC was correct. The compensation awarded was just and fair.

Judgment Excerpts

The appellant - Maharashtra State Road Transport Corporation, (for short “MSRTC”) has preferred present appeal under section 173 of the Motor Vehicles Act, 1988 (for short “Act of 1988”) and put in question the judgment and award dated 08-06-2016 passed by the Chairman, Motor Accident Claims Tribunal, Ahmednagar (for short “Tribunal”) in Motor Accident Claim Petition No. 855 of 2011. The claimant sustained serious fracture injuries to his knee. He was immediately escorted to the hospital for medical treatment. The medical expert examined him and opined that claimant received intera articular fracture of right tibia. The claimant incurred sum of Rs. 1,75,000/- towards medical expenses.

Procedural History

The claimant filed Motor Accident Claim Petition No. 855 of 2011 before the Motor Accident Claims Tribunal, Ahmednagar, which awarded Rs.5,00,000 on 08-06-2016. The appellant MSRTC filed First Appeal No. 4134 of 2016 before the High Court of Bombay at Aurangabad, which was dismissed on 19-12-2017.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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