Case Note & Summary
The case involves multiple appeals filed by the Oriental Insurance Company Limited under Section 173(1) of the Motor Vehicles Act, 1988, against the judgment and award dated 01.08.2008 passed by the XIX Additional SCJ & Member, MACT, Bangalore, in MVC Nos.191/2007, 192/2007, and other connected matters. The Tribunal had awarded compensation of Rs.21,000/- and Rs.30,000/- respectively to the claimants for injuries sustained in motor vehicle accidents. The Insurance Company challenged the awards on the ground that the claimants had not produced any evidence to prove the income of the deceased/injured persons, and therefore the compensation was excessive. The High Court, after hearing the parties, held that in the absence of proof of income, the Tribunal should have assessed compensation based on notional income or reduced the quantum. The court allowed the appeals and reduced the compensation amounts accordingly, modifying the awards.
Headnote
A) Motor Vehicles Act - Compensation - Proof of Income - Section 173(1) MV Act - Claimants failed to produce any evidence regarding the income of the deceased/injured persons - Held that in the absence of proof of income, the Tribunal ought to have assessed compensation based on notional income or reduced the quantum - Appeals allowed and compensation reduced (Paras 1-10).
Issue of Consideration
Whether the compensation awarded by the Motor Accidents Claims Tribunal was excessive in the absence of proof of income of the deceased/injured persons.
Final Decision
Appeals allowed; compensation reduced. The judgment and award of the MACT are modified reducing the compensation amounts.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation
- Proof of Income
- Notional Income
Case Details
2013 LawText (KAR) (03) 26
M.F.A.Nos.1974/2009, 1975/2009, 1976/2009, 1977/2009, 1978/2009, 1979/2009, 55/2009, 10106/2008, 10107/2008 and 10108/2008 (MV)
B.S.Umesh for appellant, N.S.Bhat for R-2, M.C.Umadevamma for R-1
M/s. The Oriental Insurance Company Limited
Abdul Kaleel, M.Vishwanath, S.Nagesh
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Nature of Litigation
Appeals against compensation awards in motor accident claims
Remedy Sought
Reduction of compensation awarded by MACT
Filing Reason
Claimants failed to prove income of deceased/injured persons
Previous Decisions
MACT awarded compensation of Rs.21,000/- and Rs.30,000/- in MVC Nos.191/2007 and 192/2007 respectively
Issues
Whether the compensation awarded by the Tribunal was excessive in the absence of proof of income?
Submissions/Arguments
Appellant argued that claimants did not produce any evidence regarding income of deceased/injured persons, hence compensation should be reduced.
Respondents argued that the compensation was just and proper.
Ratio Decidendi
In the absence of proof of income, the Tribunal should assess compensation based on notional income or reduce the quantum. The burden of proof lies on the claimant to establish income.
Judgment Excerpts
This Appeal is filed Under Section 173(1) of MV Act against the judgment & award dated 01.08.2008 passed in MVC No.191/2007 on the file of XIX, Additional SCJ & Member, MACT, Bangalore, SCCH-17, awarding a compensation of Rs.21,000/- with interest at 6% p.a. from the date of petition till realisation.
Procedural History
The Motor Accidents Claims Tribunal (MACT) passed awards on 01.08.2008 in MVC Nos.191/2007 and 192/2007. The Insurance Company filed appeals under Section 173(1) of the Motor Vehicles Act, 1988, before the High Court of Karnataka.
Acts & Sections
- Motor Vehicles Act, 1988: 173(1)
