High CourtsDivision Bench(2018) 02 BOM CK 0033

The National Insurance Co. Ltd., vs Smt. Kantabai wd/o Shrawan Nagdeve

Bombay High Court · Decided on 1 February 2018

HON’BLE JUDGES
Manish Pitale
RESULT
Disposed
CASE NUMBER
165 of 2018

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Judgment

117 paragraphs · 1,302 words
1.

Heard. Admit. Heard finally with the consent of the learned

Counsel appearing on behalf of the respective parties.

2.

By this appeal, the appellant/Insurance Company has

challenged the judgment and order dated 07.11.2016 passed by the Motor

Accident Claims Tribunal, Bhandara in MACP No. 30/2009.

3.

The facts leading to the present appeal are that on 24.12.2008,

the husband of respondent No.1 was hit by a Maruti Omni vehicle, while

he was taking his morning walk. As a result of the accident, he suffered

serious injuries and died. The said vehicle was being driven by respondent

No.4 and was owned by respondent No.3.

4.

On the basis of the aforesaid incident, an FIR was registered

and respondent No.4 was prosecuted for the offence punishable under

Sections 279, 337, 338 and 304-A of the Indian Penal Code as also Section

184 of the Motor Vehicles Act, 1988. The respondent No.1 filed claim

petition before the Tribunal claiming compensation of Rs.5,00,000/-

(rupees five lakhs only) from respondent Nos.3 and 4 as also the appellant/

Insurance Company.

5.

By the impugned judgment and order, the Tribunal has held

that notwithstanding the acquittal of respondent No.4 in the criminal

proceedings initiated in respect of the said incident, the claim petition

deserved to be allowed. The Tribunal found that the monthly income of

the deceased was Rs.6,000/- and on that basis, by applying deductions and

multiplier and thereafter adding compensation under various heads, came

to the conclusion that the respondent Nos.1 and 2 were entitled to

payment of compensation of Rs.6,57,000/- along with interest at the rate of

eight per cent per annum from the date of institution of the claim petition.

6.

Aggrieved by the said judgment and order, the appellant/

Insurance Company has filed the instant appeal as it has been held to be

jointly and severally liable to pay the aforesaid amount of compensation to

respondent Nos.1 and 2.

7.

Shri V.P. Maldhure, learned Counsel appearing on behalf of the

appellant has submitted that the Tribunal had committed an error in

appreciating the effect of acquittal of respondent No.4 in the criminal

proceedings initiated in respect of the said incident, because the said

respondent had denied the involvement of vehicle in the accident

although it was admitted that at the time of accident, the said respondent

was proceeding in the offending vehicle on the concerned road. It is

further submitted that the calculation of monthly income by the Tribunal

is based on conjectures and surmises and that, therefore, there is an error

in the total amount of compensation calculated by the Tribunal. It is

further submitted that in view of the latest Constitution Judgment of the

Hon''ble Supreme Court in the case of National Insurance Company

Limited .v. Pranay Sethi and others (order dated 31.10.2017 passed in

SLP (C) No. 25590 of 2014), compensation of the amount towards loss of

consortium needs to be reduced.

8.

On the other hand, Shri Sudhir Moharir, learned Counsel

appearing on behalf of respondent Nos.1 and 2 submits that merely

because respondent No.4 was acquitted in criminal proceedings, it does

not mean that the claim petition filed by the said respondents before the

Tribunal could not be entertained on merits. The learned Counsel placed

reliance on the judgment of Guwahati High Court in the case of Ranu Bala

Paul and others .v. Bani Chakraborty and others (reported in 1999 ACJ

634), which, in turn, places reliance on the judgment of the Hon''ble

Supreme Court in the case of N.K.V. Bros. ( P) Ltd. .v. M. Karumai Ammal

and others (reported in 1980 ACJ, 435).

9.

Having considered the contentions of the rival parties, I find

that the acquittal of respondent No4 in the criminal proceedings

concerning the incident in question would not adversely affect the right of

respondent Nos.1 and 2 to claim compensation before the Tribunal under

the provisions of Motor Vehicles Act, 1988. The Tribunal is justified in

holding that when respondent No.4 admitted the fact that the offending

vehicle, which he was driving, was actually driven through the road on

which the incident took place, there was no reason to hold that the said

vehicle was not involved in the incident. In any case, acquittal of

respondent No.4 in criminal proceedings would not be beneficial to either

respondent No.4 or the appellant to avoid liability in proceedings initiated

under the provisions of the said Act while seeking compensation. Reliance

placed by the learned Counsel for respondent Nos.1 and 2 on the

judgment of Guwahati High Court in the case of Ranu Bala Paul and

others .v. Bani Chakraborty and others (cited supra) and the judgment of

the Hon''ble Supreme Court in the case of N.K.V. Bros. ( P) Ltd. .v. M.

Karumai Ammal and others (cited supra) is correct. Even otherwise the

record shows that there was charge-sheet filed against respondent No.4 in

respect of the said incident in which the number of offending vehicle was

very much mentioned. Therefore, I do not find any substance in the

contention raised by the learned Counsel for the appellant that the

presence of the vehicle at the time of incident was not established before

the Tribunal.

10.

As regards the issue of calculation of monthly income of the

deceased, it has come on record that the deceased was running a shop in

the name and style "Dipak Book Depot and General Stores" and

respondent No.1 had deposed about the said fact in her evidence. She had

also claimed that the deceased was earning about Rs.10,000/- per month.

Although there was lack of documentary evidence to support the aforesaid

claim of respondent No.1, the finding rendered by the Tribunal that the

monthly income of the deceased could be taken at the rate of Rs.6,000/-

per month cannot be said to be of the mark or erroneous. Therefore, I do

not find any error in the basis of calculation of compensation by the

Tribunal.

11.

There is no dispute as regards the deduction and the multiplier

applied by the Tribunal because it is in terms of law laid down by the

Hon''ble Supreme Court in the case of Smt. Sarla Verma and others .v.

Delhi Transport Corporation and another (reported in 2009 ACJ, 1298).

12.

In the latest Constitution Bench judgment rendered by the

Hon''ble Supreme Court in the case of National Insurance Company

Limited .v. Pranay Sethi and others (cited supra), it has been held that the

compensation of Rs.40,000/- is payable for loss of consortium and that

compensation under the head of funeral expenses has to be reduced to

Rs.15,000/-. Therefore, to that extent, the order of the Tribunal is required

to be modified and the amount granted under the aforesaid heads is to be

reduced. Accordingly, the amount of compensation will stand reduced by

a sum of Rs.70,000/-. As a result, the amount of compensation payable to

respondent Nos.1 and 2 comes to Rs. 5,87,000/-.

13.

In the light of above, the instant appeal is partly allowed and

the order of the Tribunal is modified to the extent that respondent Nos.1

and 2 shall be entitled to compensation of Rs.5,87,000/- along with interest

at the rate of eight per cent per annum from the date of institution of claim

petition i.e. 12.02.2009. Since the appellant/Insurance Company had

deposited the entire amount in terms of the impugned judgment and

order in this Court, the respondent Nos.1 and 2 are permitted to withdraw

the amount as indicated above upon modification in terms of this order.

The balance amount shall be returned to the appellant/Insurance

Company. The amount of costs deposited by the appellant, as directed by

this Court while condoning the delay, is also directed to be disbursed to

respondent Nos.1 and 2.

The appeal is disposed of in aforesaid terms with no order as to

costs.