IN THE HIGH COURT AT CALCUTTA
CIVIL APPELLATE JURISDICTION
APPELLATE SIDE
PRESENT : Hon’ble Justice Dipankar Datta
and
Hon’ble Justice Debi Prosad Dey
CAN 4022 of 2017
in
FMAT 419 of 2017
Future General India Insurance Co. Ltd.
v.
Soumita Roy anr.
For the applicant/appellant : Mr. Rajesh Singh, Advocate.
For the opposite : Mr. Ashique Mondal, Advocate.
party no.1/respondent no.1
Amicus Curiae : Mr. Sakti Nath Mukherjee, Sr. Advocate.
Hearing concluded on : August 8, 2017
Judgment on : January 5, 2018
DIPANKAR DATTA, J.:-
1. FMAT 419 of 2017 is an appeal under section 173 of the Motor Vehicles Act,
1988 (hereafter the 1988 Act) at the instance of the insurer/opposite party no.2
(hereafter the appellant) in M.A.C. Case No.51 of 2016 on the file of the Motor
Accident Claims Tribunal, Fast Track 8th Court, Alipore (hereafter the tribunal). It
is directed against the award dated January 27, 2017 passed by the tribunal,
whereby a sum of Rs.1,22,62,015/- was awarded to the claimant (hereafter the
first respondent) as monetary compensation on account of death of her only
brother in a motor vehicular accident, together with interest @ 9% per annum
from the date of filing of the claim application till date of actual payment. The
compensation was directed to be paid within 2 months from date.
2. CAN 4022 of 2017 is an application for stay of operation of the award filed in the
said appeal.
3. At the first hearing of CAN 4022 of 2017 on July 13, 2017, Mr. Mondal, learned
advocate for the first respondent submitted that a pure question of law is
involved in the appeal and accordingly, he urged us to decide the appeal finally
dispensing with all formalities. Mr. Singh, learned advocate for the appellant did
not object. Having satisfied ourselves that the appellant had put in Rs.25,000/-
being the statutory deposit, we proceeded to hear the parties on the merits of the
appeal.
4. In course of hearing Mr. Singh and Mr. Mondal, we perceived the involvement of
a question of law of substantial importance in the appeal. After they had
concluded their arguments, we requested Mr. Sakti Nath Mukherjee, learned
senior advocate to assist us as amicus curiae. As is usual, we have benefitted
from his erudite arguments and at the outset record our sincere appreciation for
the invaluable service rendered by him at our request.
5. The undisputed facts giving rise to the appeal in a nutshell are these. The first
respondent’s elder brother (hereafter the deceased) passed away on April 23,
2011, upon sustaining multiple injuries on his head and abdomen in a road
accident involving the use of a motor cycle. An application under section 166 of
the 1988 Act was presented before the tribunal by the deceased’s father
(hereafter the original claimant) on December 6, 2013. It was pleaded in the
claim application that the deceased was a qualified cinematographer and that his
net income for the financial year 2011-12 was Rs.10,89,069/-. He died a
bachelor at the age of 39 years 5 months leaving his parents, who were totally
dependent on him. However, the mother of the deceased could not bear the
mental shock after hearing her son’s death and passed away a few days
thereafter.
6. Unfortunately, during the pendency of the application, the original claimant
passed away on August 7, 2016. On his death, the first respondent applied for
substitution and such application was allowed by the tribunal. The first
respondent thus stepped in as the only surviving heir of the original claimant as
well as the deceased. The tribunal heard the claim against the owner of the
offending vehicle and its insurer. It framed 8 (eight) issues upon recasting the
issues originally framed. Bearing in mind substitution as referred to above, the
issue as to whether the first respondent could claim compensation upon
maintaining the claim application was considered in the light of section 166 of
the Act. Relying upon the decisions reported in 1991 ACJ 767 (Narinder Kaur v.
State of Himachal Pradesh) and 2010 ACJ 401 (Sarama Das v. Bhutnath Ghorai)
as well as section 2(11) of the Code of Civil Procedure (hereafter the CPC), the
tribunal proceeded to hold that the first respondent as the sole surviving heir
and legal representative of the deceased could maintain the application under
section 166 of the 1988 Act and claim compensation. Insofar as the other issues
are concerned, the tribunal upon discussion of the evidence that was led
returned finding to the effect that the deceased was indeed a victim of the road
accident in question and that the offending vehicle which was driven rashly and
negligently had dashed the deceased from behind as a result whereof he fell
down and sustained injuries. Since the offending vehicle had been insured by a
policy issued by the appellant, the compensation payable to the first respondent
was directed to be borne by the appellant.
7. The only point raised by Mr. Singh is that the first respondent being the married
sister of the deceased and not being dependent on his income at the time of his
death and there being no evidence of her future dependence on him, she did not
suffer any pecuniary loss and/or loss of dependency and as such no amount
could have been awarded under such head and the awarded amount is a
‘windfall’ for her; if at all, the first respondent could be compensated for the loss
of estate of the deceased. Referring to various decisions of the Supreme Court, it
was contended by him that the object of compensation in terms of the scheme
envisaged in Chapter XII of the 1988 Act is to put the claimants in the same
position so far as money can, had the victim not suffered the casualty. It is,
therefore, just compensation that the first respondent is entitled to and not a
bonanza, arising out of death of her elder brother on whom she was not
economically dependent. Referring to section 21 of the Hindu Adoptions and
Maintenance Act 1956, it was contended that the definition of dependants does
not include ‘married sister’ and, therefore, this aspect ought to be borne in mind
while deciding the appeal.
8. Reliance was placed by Mr. Singh on the following decisions:
1. AIR 1985 AP 83 [The Chairman, A.P.S.R.T.C. Hyderabad v. Smt. Shafiya
Khatoon ors.];
2. 1995 (1) T.A.C. 557 (SC) [R.D. Hattangadi v. Pest Control (India) Pvt.
Ltd.];
3. 2002 (1) T.A.C. 138 (SC) [Lata Wadhwa ors. v. State of Bihar ors.];
4. 2003 (3) T.A.C. 284 (SC) [Divisional Controller, KSRTC v. Mahadeva
Shetty];
5. 2003 (3) T.A.C. 569 (SC) [State of Haryana anr. v. Jasbir Kaur anr.];
6. 2007 (2) T.A.C. 71 (MP) [Smt. Bhagwati Bai anr. v. Bablu alias
Mukund ors.];
7. 2009 (2) T.A.C. 677 (SC) [Smt. Sarla Verma ors. v. Delhi Transport
Corporation anr.];
8. 2009 (3) T.A.C. 1 (SC) [R.K. Malik anr. v. Kiran Pal ors.];
9. 2011 ACJ 2161 (SC) [Suba Singh anr. v. Davinder Kaur anr.];
10. 2011 (4) KLT 952 [Omana P.K. and others v. Francis Edwin and others]
11. Civil Appeal No(s) 8964 of 2012 [Francis Edwin v. Omana P.K. and
others].
9. Finally, Mr. Singh contended that rules 342 and 343 of the West Bengal Motor
Vehicles Rules, 1989 (hereafter the 1989 Rules) do not include section 146 and
Order XXII of the Code of Civil Procedure 1908 (hereafter the CPC) in relation to
claims arising for decision by claims tribunals; therefore, even though the first
respondent was substituted in place of her deceased father, who was the original
claimant, she would not be entitled to the amount of compensation that her
deceased father would have received under various heads including pecuniary
loss, ~ but only the amount for loss of estate.
10. Per contra, Mr. Mondal contended that the first respondent being the only
surviving heir and legal representative, was entitled to step into the shoes of the
original claimant and she is entitled to claim compensation under all possible
heads the original claimant was entitled. In support of the submission that the
first respondent as a legal heir of the deceased could maintain the claim
application and that the tortfeasor is not entitled to be free from its liability or
pay lesser compensation due to economic non-dependency of the legal
representative, reliance was placed by him on the decisions reported in 1987 ACJ
(Gujarat State Transport Corporation, Ahmedabad v. Ramanbhai Prabhatbhai
and anr.), 2007 ACJ 1279 (Manjuri Bera v. Oriental Insurance Co. Ltd. anr.),
AIR 2007 SC 2086 (Mrs. Hafizun Begum v. Md. Ikram Heque ors.), 2008 ACJ
2014 (Debanshu Guha Roy v. National Insurance Co. Ltd.), and 2016 Supreme
(Madras) 640 (Branch Manager, ICICI Lombard General Insurance Company Ltd.
v. Kaliayamoorthy anr.) apart from the decision in Sarama Das (supra). He,
thus, prayed for dismissal of the appeal.
11. Mr. Mukherjee first referred to the common law maxim actio personalis moritur
cum persona (a personal right of action dies with the person) and submitted that
at common law, if an injury were done either to the person or the property of
another for which damages only could be recovered in satisfaction, the action
died with the person to whom or by whom the wrong was done. However,
referring to the decision reported in (1973) 1 SCC 602 [Official Liquidator of
Supreme Bank Ltd. v. P.A. Tendolkar], it was submitted that the Supreme Court
has neither particularly liked nor approved of this maxim.
12. Mr. Mukherjee then took pains to take us through the provisions of the Legal
Representatives Suits Act, 1855 being Act XII of 1855 (hereafter Act XII), the
Indian Fatal Accidents Act, 1855 being Act XIII of 1855 (hereafter Act XIII), the
Motor Vehicles Act, 1939 (hereafter the 1939 Act), Chapter XII of the 1988 Act
and the Indian Succession Act, 1925.
13. Submission of Mr. Mukherjee on Act XII is this. The preamble which says,
“Whereas it is expedient to enable executors, administrators or representatives in
certain cases to sue and be sued in respect of certain wrongs which, according to
the present law, do not survive to or against executors, administrators or
representatives”, tends to cut down the rigours of the maxim actio personalis
moritur cum persona. Act XII, according to him, proceeds to provide for actions by
the representative of a deceased person, and action against the representative of
a deceased person. Under Act XII, an action may be maintained by the executors,
administrators or representatives of a deceased person for any wrong committed
in the lifetime of the deceased which has occasioned pecuniary loss to the estate
of such person (and for no other wrong), committed within one year before his
death.
14. Thereafter, Section 306 of the Indian Succession Act, 1925 was placed, which
effectively provides as follows: –
“All demands whatsoever and all rights to prosecute or defend any action
or special proceeding existing in favour of or against a person at the time of
his decease survive to and against his executors or administrators; except
causes of action for defamation, assault, as defined in the Indian Penal
Code, or other personal injuries not causing the death of the party.”
15. It was then submitted that there were conflicting decisions on the effect of these
statutory provisions and changes in India. The controversy was finally settled by
the Apex Court by its decision reported in AIR 1988 SC 506 [M. Veerappa v.
Evelyn Sequeira], holding that the expression ‘personal injuries’ in the said
provision does not mean injuries to the body alone but all injuries to a person
other than those which cause death and the expression is to be read ejusdem
generis with the words ‘defamation’ and ‘assault’ and not with ‘assault’ alone. It
was also held in that case that the maxim has no application when the claim is
decreed and the plaintiff dies pending an appeal against the decree since the
claim becomes merged in the decree and the decretal debt forms part of the
plaintiff’s estate devolving on his death on his heirs, executors and
administrators.
16. Continuing his submissions, Mr. Mukherjee brought it to our notice that Indian
courts have even gone so far as to hold that where personal injuries cause the
death of the party injured then the cause of death does not abate, as held in the
decision reported in AIR 1977 Delhi 201 (Klaus Mittelbachert v. The East India
Hotels Ltd.), though there it was also held alternatively that the suit was based
on contract with the hotel management and hence the maxim of actio personalis
moritur cum persona did not apply.
17. Having submitted on the aforesaid aspects of the matter, reference was made to
Act XIII. Section 1A thereof ordained that the claim should be confined only for
the benefit of wife, husband, parent and child, if any, of the person whose death
has been caused by the accident.
18. However, this was replaced by the provisions of the 1939 Act, a beneficial statute
and in the light of this statute, the Supreme Court was pleased to give a wider
interpretation to those who were entitled to claim compensation. In Gujarat State
Road Transport Corporation (supra), a case covered by the 1939 Act, the
claimant was a brother of a deceased killed in a motor vehicle accident. The
Court rejected the contention of the appellant that since the term ‘legal
representative’ is not defined in the 1939 Act, the right of filing the claim should
be controlled by the provisions of Act XIII. It was specifically held that the 1939
Act creates new and enlarged right for filing an application for compensation and
such right cannot be hedged in by the limitations on an action under Act XIII.
Paragraph 11 of the report reflects the philosophy which should guide the Courts
interpreting legal provisions of beneficial legislations providing for compensation
to those who had suffered loss. The Supreme Court even held that “legal
representative is one who suffers on account of death of a person due to a motor
vehicle accident and need not necessarily be a wife, husband, parent and child”.
19. The difference in approach becomes stark when one considers the next statutory
replacement, being the 1988 Act and the provisions made therein, particularly
Section 155 of the Act of 1988, which provides in clear terms that:
“Notwithstanding anything contained in section 306 of the Indian
Succession Act, 1925 (39 of 1925), the death of a person in whose favour a
certificate of insurance had been issued, if it occurs after the happening of
an event which has given rise to a claim under the provisions of this
Chapter, shall not be a bar to the survival of any cause of action arising
out of the said event against his estate or against the insurer”.
20. It was, thus, submitted that the provisions of section 1A of Act XIII and the 1988
Act are clearly at variance and having regard to clause (c), sub-section (1) of
section 166 of the 1988 Act, any legal representative of a deceased victim could
file an application under section 166 thereof before the tribunal and if successful
in proving such status as legal representative as well as the accident, would be
entitled to claim just compensation from the owner of the offending vehicle
and/or its insurer as the tribunal deems fit and proper.
21. Our attention was further drawn by Mr. Mukherjee to Section 163-A of the 1988
Act whereunder, compensation on ‘no fault liability’ principle could be claimed by
the ‘legal heir’ and not the ‘legal representative’ of the victim if he were no more.
This distinction, according to him, is sufficient to suggest the intention of the
legislature that the benefit of compensation payable under Section 166 of the
1988 Act was not intended to be restricted to a ‘legal heir’ of a motor vehicular
accident victim.
22. Mr. Mukherjee also contended that the decision in Sarama Das (supra) proceeded
to award compensation to the married sisters of the victim, as if the decision in
Manjuri Bera (supra) were an authority for the issue that it decided. Reference
was made by him to the penultimate paragraph of the concurring opinion of
Hon’ble S.H. Kapadia, J. (as His Lordship then was), wherein it was observed
that the opinion was confined to “no fault liability” under section 140 of the 1988
Act. According to him, the decision in Manjuri Bera (supra) may not be applicable
proprio vigore to an application under section 166 of the 1988 Act by an
economically non-dependent sister of a victim of a road accident and this
particular aspect was not noticed in Sarama Das (supra).
23. While summing up, Mr. Mukherjee contended that a survey of the decisions cited
by the parties would lead one to the unmistakable conclusion that a legal
representative of a motor vehicular accident victim most certainly has the right to
apply for compensation under Section 166 of the 1988 Act, unlike Act XIII which
restricts lodging of claim only by the wife, husband, parent and child of the
victim. A dependent legal representative of such victim, according to him,
obviously has the right to apply for compensation for both ‘pecuniary’ and ‘non-
pecuniary’ loss, but while being entitled to compensation for ‘non-pecuniary’ loss
almost as of right if rash and negligent driving and other facts are proved, to
succeed in his claim for compensation even for ‘pecuniary’ loss the applicant is
under legal obligation to prove that he was dependent on the victim at the time
the accident occurred leading to death; and, if the applicant were a non-
dependent legal representative, he would only be entitled to compensation for
‘non-pecuniary’ loss, if rash and negligent driving and other facts are proved.
24. However, before concluding, Mr. Mukherjee raised a very important point. He
reminded us that the mere fact of the first respondent in the present case not
being a dependent on the income of the deceased would not warrant a conclusion
that she is not entitled to any amount except on account of loss of estate.
According to him, the first respondent lost her only brother in the unfortunate
accident. There has been no reported decision on the aspect of loss of love,
affection, care and company that is suffered by a sister owing to untimely death
of her brother in a road accident. At times of need, it is the brother’s shoulder
that a sister looks for to rest. The loss created by the vacuum, according to him,
needs to be quantified by the tribunal/appellate court while assessing just
compensation payable under section 168 of the 1988 Act.
25. These being the arguments advanced at the bar by Mr. Singh and Mr. Mondal as
well as Mr. Mukherjee’s submissions, we now proceed to consider the issue that
has emerged for decision here. The issue is, to what extent, if at all, a non-
dependent sister of a victim of a motor vehicular accident entitled to claim
compensation from the tortfeasor upon her substitution on the death of the
original claimant (being a Class II heir of the deceased).
26. We prefer to preface our decision by taking note of certain decisions relevant for
the present purpose.
27. The Supreme Court in the decision reported in AIR 1967 SC 1124 (Girja
Nandini Devi v. Bijendra Narain Choudhury) observed as under:
“The maxim ‘actio personalis moritur cum persona’ — a personal action dies
with the person — has a limited application. It operates in a limited class of
actions ex delicto such as actions for damages for defamation, assault or
other personal injuries not causing the death of the party, and in other
actions where after the death of the party the relief granted could not be
enjoyed or granting it would be nugatory. An action for account is not an
action for damages ex delicto, and does not fall within the enumerated
classes. Nor is it such that the relief claimed being personal could not be
enjoyed after death, or granting it would be nugatory.”
28. In its decision reported in (1994) 1 SCC 292 (Rameshwar Manjhi v. Sangramgarh
Colliery), it was observed that though part of English Common Law, the maxim
has been subjected to criticism even in England. It has been dubbed as an
unjust maxim, obscure in its origin, inaccurate in its expression and uncertain
in its application, It has often caused grave injustice.
29. The said maxim, therefore, may not be of any aid, more particularly having
regard to Chapter XII of the 1988 Act.
30. Next, we take note of the decisions in Sarama Das (supra) and Debangsu Guha
Roy (supra) which were delivered by coordinate Benches of this Court comprising
of a common set of member judges.
31. In Sarama Das (supra), the claim application under section 166 of the 1988 Act
at the instance of three married sisters of the victim, not dependent upon him,
was dismissed as not maintainable. Considering the decision of the Supreme
Court in Manjuri Bera (supra) the Bench was of the view that the tribunal
committed a blatant mistake in dismissing the application on the ground
indicated in the award. It was thereafter held as follows:
“It is now settled law, as pointed out in the aforesaid decision of the Hon’ble
Supreme Court that the heirs and legal representatives of the victim can
maintain an application under section 166 of the Act irrespective of the fact
that whether they are financially dependent upon the victim.”
Thereafter the Bench proceeded to hold that since the victim was a Hindu,
according to the Hindu Succession Act his elder married sisters would be the sole
heirs and legal representatives, in the absence of the parents of the victim who
predeceased him; and all the three married sisters having filed the claim
application under section 166 of the 1988 Act they are entitled to compensation
reckoning Rs.15000/- p.a. as notional income with 8% interest.
32. The decision in Debanshu Guha Roy (supra), delivered a few months prior to the
decision in Sarama Das (supra), dealt with a case where an application under
section 166 of the 1988 Act was filed by the brother and the nephew of the
victim, who died a bachelor in a motor vehicle accident. The tribunal dismissed
the application on the ground that none of the claimants was dependent upon
the victim and they had also failed to prove that they were deriving some sort of
financial benefit from the victim, and in the absence of any dependency the
application was not maintainable. The decisions in Hafizun Begum (supra) and
Manjuri Bera (supra) were read to lay down the law that in terms of section
166(1)(c) of the 1988 Act, any of the legal representatives of the victim can
maintain an application and if all the legal representatives do not join, the other
legal representatives should be made parties to the proceedings and it would the
duty of the tribunal to decide the amount of compensation and specify the
person or persons to whom the compensation should be payable. In the light of
the above the Bench proceeded to determine the amount of compensation that
was payable to the claimants by the insurer.
33. At this stage it may not be inapt to notice what was held by a coordinate Bench
of this Court in the decision reported in 2005 ACJ 1622 (Manjuri Bera v. Oriental
Insurance Company Ltd.), which was reversed by the Supreme Court in the
decision referred to above. There, the question arising for decision was “whether
the expression ‘legal representative’ appearing in Section 166 of the Motor
Vehicles Act, 1988 (MV Act) includes married daughters in order to enable her to
get compensation on account of death of her father irrespective of the question
whether the daughter was dependent on the victim or not simply because of her
being a legal representative”. The question was answered in the negative since
from the evidence it appeared that the victim was not living with the daughter
but with her maternal uncle. The evidence on record also indicated that the
claimant was not dependent on the victim and, therefore, could not also claim
compensation for loss of association. Before dismissing the appeal, the Bench
made the following observation.
“12. So far as Section 140 of the MV Act is concerned, the rigour of proof
of liability may be exempted but it is not free from the question of
determining the entitlement and dependency. The principle on which
compensation under Section 140 of the MV Act 1988 is to be granted is
one and the same for the purpose of determining the entitlement”.
34. Reading the decision in Manjuri Bera (supra) in between the lines, it appears that
the Supreme Court approved the distinction drawn in the impugned decision of
this Court correctly between “right to apply for compensation” and “entitlement
to compensation”. It was also held that if a legal representative who is not a
dependent of the victim files an application for compensation, the quantum
cannot be less than the liability referable to section 140 of the 1988 Act. The
Division Bench of this Court was also held to be right in holding that even a
married daughter is a legal representative and she is certainly entitled to claim
the compensation [per Hon’ble Dr. Arijit Pasayat, J. (as His Lordship then was)].
35. In Mrs. Hafizun Begum (supra), acceptability of claim for grant of compensation
when the relatives are legal heirs but not dependants of the deceased was the
question that arose for decision before the Supreme Court. For the reasons
assigned in the decision, the Supreme Court remitted the basic issue to be dealt
with by the high court in the light of the decision in Manjuri Bera (supra).
However it was held that the tribunal has a duty to make an award, determine
the amount of compensation which is just and proper and specify the person or
persons to whom such compensation would be paid. Considering the provisions
of section 2(11) of the CPC as well as the decision in Gujarat State Road
Transport Corporation (supra) it was held that the right to file a claim application
has to be considered in the background of right to entitlement.
36. Mr. Singh seems to be right in his contention that a sister who is not dependent
on her deceased brother’s income, is not entitled as claimant to any amount
under general damages. But the matter does not end here.
37. Section 168 of the Act does speak about just compensation but throws no light
on how just compensation ought to be worked out. The Second Schedule to the
Act, which is applicable in respect of claim applications under section 163-A of
the Act, inter alia, sheds light on how compensation is to be worked out for a
non-earning person as well as provides the amount to be awarded on account of
loss of consortium, loss of estate and funeral expenses. In various cases, such
figures have been taken as a guide despite the Supreme Court in a number of
decisions having declared that the Second Schedule, by passage of time, has
become unworkable.
38. While the judgment on the appeal was reserved, we came across the decision of
the Constitution Bench of the Supreme Court dated October 31, 2017 in Special
Leave Petition (Civil) No. 25590 of 2014 (National Insurance Company Ltd. v.
Pranay Sethi). In paragraph 61 it has, inter alia, been held as follows:
“61. In view of the aforesaid analysis, we proceed to record our
conclusions:-
***
(iii) While determining the income, an addition of 50% of actual salary to
the income of the deceased towards future prospects, where the deceased
had a permanent job and was below the age of 40 years, should be made.
The addition should be 30%, if the age of the deceased was between 40 to
50 years. In case the deceased was between the age of 50 to 60 years, the
addition should be 15%. Actual salary should be read as actual salary less
tax.
(iv) In case the deceased was self-employed or on a fixed salary, an addition
of 40% of the established income should be the warrant where the
deceased was below the age of 40 years. An addition of 25% where the
deceased was between the age of 40 to 50 years and 10% where the
deceased was between the age of 50 to 60 years should be regarded as the
necessary method of computation. The established income means the
income minus the tax component.
*****
(viii) Reasonable figures on conventional heads, namely, loss of estate, loss
of consortium and funeral expenses should be Rs. 15,000/-, Rs. 40,000/-
and Rs. 15,000/- respectively. The aforesaid amounts should be enhanced
at the rate of 10% in every three years.”
The departure from the Second Schedule is, thus, clear as crystal. Insofar as
applications under Section 166 of the 1988 Act are concerned, there is no
indication regarding quantum that could be awarded under the heads of “loss of
estate”, “loss of consortium” and “funeral expenses”. At this level, we may only
observe that the archaic Second Schedule being applicable only to applications
filed under Section 163-A of the 1988 Act rightly did not influence the decision
making process of the Court and sub-paragraphs (iii), (iv) and (viii) of paragraph
61 (supra) would henceforth guide all tribunals/courts while dealing with
applications under Section 166 of the 1988 Act.
39. If indeed the first respondent is held entitled only to compensation for loss of
estate, she would receive a paltry sum of Rs.15,000/- + 10% (for lapse of more
than 3 years since the application was presented) in terms of the decision in
Pranay Sethi (supra) and interest, and not the handsome figure of
Rs.1,22,62,015/- that the tribunal awarded in her favour. Even if the original
claimant had applied under Section 140 of the 1988 Act and passed away during
its pendency, the first respondent could have laid claim on Rs.50,000/- but not
more. This is so, because the decision in Manjuri Bera (supra) says that the
quantum of compensation payable to an applicant for compensation, who is a
legal representative of the victim but not his dependent, cannot be less than the
liability referable to section 140 of the Act.
40. The decision of the coordinate Bench in Sarama Das (supra) in a not too identical
matter, placed before us by Mr. Mondal, seemingly answers the issue. The easy
route would have been to draw support from such decision and decide the appeal
in favour of the first respondent. However, for reasons that follow, we have not
been able to persuade ourselves to be ad idem with such decision. Since the
status of the respective claimants before the relevant tribunals were different, we
also do not consider it necessary to refer the issue for a decision by a larger
Bench.
41. We are in complete agreement with Mr. Mukherjee that the decision in Sarama
Das (supra) proceeded on the premise that the decision in Manjuri Bera (supra),
rendered in proceedings originating from an application under Section 140 of the
1988 Act, was also equally applicable to proceedings under Section 166 thereof.
With utmost respect for the members of the coordinate Bench that decided
Sarama Das (supra), we have no option but to disagree and express that the view
taken therein may not be the correct view.
42. Bearing in mind the other limb of Mr. Mukherjee’s submissions, we intend to put
a quietus to the matter at our end and proceed accordingly.
43. The unfortunate accident leading to premature death of the deceased occurred in
April 2011. Till date a little less than seven years have passed by. The facts of the
present case reveal that it was an heir of the deceased lodging the claim for
compensation under Section 166 of the 1988 Act and not a mere legal
representative. The very fact that the heir of the deceased presenting the
application under Section 166 of the 1988 Act passed away during pendency of
the proceedings before the tribunal, and it was not a case where a non-
dependent heir/representative had moved the tribunal made us think twice. The
point raised by Mr. Mukherjee that the first respondent was entitled to
compensation even under general damages having lost her only brother, in our
opinion, could not totally be lost sight of.
44. It is at such stage that we considered it necessary to look into the orders passed
by the tribunal from time to time. Having perused the order sheets provided to
us, at our request, by the office of the tribunal containing the orders passed by
the tribunal on the claim application, we propose to view the issue from an
entirely different perspective.
45. We narrate below briefly the relevant dates and the events transpiring in course
of the proceedings before the tribunal, as evident therefrom. Order no.1 dated
December 6, 2013 of the District Judge, 24 Parganas (South) directed
registration of the claim application and transfer of the case record to an
Additional District Judge mentioned therein. On February 1, 2014, the appellant
entered appearance and sought for time to file written statement. The tribunal
fixed March 5, 2014 for such purpose, accepting the prayer of the appellant. The
appellant prayed for further time on March 5, 2014 to file written statement. The
prayer was considered and allowed and April 16, 2014 was fixed for such
purpose. On that date, the tribunal found that written statement had not been
filed by the appellant and, accordingly, extended time till May 5, 2014 as last
chance. On May 5, 2014, the appellant took no step and written statement was
not filed by it. Perceiving that the appellant was not interested to contest the
claim application, June 20, 2014 was fixed for ex parte hearing. Examination-in-
chief on affidavit of the PWs 1 and 2 were received by the tribunal on June 20,
2014 and upon examination they were discharged. Documents were marked
exhibits. The tribunal fixed August 14, 2014 as the next date for further
evidence. Then, on August 14, 2014, the appellant filed a show cause petition
along with a written statement praying for vacating the claim petition from ex
parte board on the grounds stated therein. Learned advocate for the original
claimant did not oppose the prayer of the appellant and, accordingly, the order
for ex parte hearing was vacated, the written statement of the appellant was
accepted and November 12, 2014 was fixed for framing of issues. On November
12, 2014, although the original claimant was represented by his learned
advocate, none appeared for the appellant and December 12, 2014 was fixed for
framing of issues. Ultimately, on December 12, 2014, issues were framed in the
presence of the learned advocates for the parties and January 5, 2015 was fixed
for peremptory hearing. On January 5, 2015, the original claimant, as PW-1, was
further examined in-chief. The other witness, PW-2 was also cross-examined and
discharged. An application under section 170 of the Act having been filed by the
appellant, the same was allowed noting that the owner of the offending vehicle
had filed the written statement on March 5, 2014 but subsequently did not
contest the application. The claim application was fixed for further consideration
on February 25, 2015. It, however, requires to be noted that the order dated
March 5, 2014 does not record that the owner of the offending vehicle had filed
his written statement. On February 25, 2015 and May 25, 2015, due to cease
work call given by the local bar association, proceedings could not be conducted.
Prayers were made by the original claimant for issue of summons to witnesses,
which stood allowed by orders dated July 9, 2015 and August 20, 2015. Again on
September 2, 2015, due to resolution of the local bar association not to pass any
adverse order, hearing was adjourned till December 9, 2015 for the ends of
justice. On December 9 and 14, 2015, PW-3 and PW-4, respectively, were
examined and cross-examined in full and discharged. Upon a prayer of the
original claimant for issue of summons upon witnesses being allowed by an order
dated February 18, 2016, PW-5 was examined in part and March 9, 2016 was
fixed for his further examination. On that date, PW-5 was examined in full and
cross-examined in part and April 7, 2016 was fixed for his further cross-
examination. Cross-examination of PW-5 concluded on April 7, 2016 and PW-6
was examined and cross-examined in full and discharged on the following date.
On April 15, 2016, prayer made by the original claimant for issue of summons
upon witnesses was allowed. On May 17, 2016, PW-7 was examined and cross-
examined in full and discharged and June 24, 2016 was fixed for further
evidence of the prosecution witnesses. On June 24, 2016, PW-8 was examined
and cross-examined in full and discharged and August 10 and 11, 2016 were
fixed for evidence of the opposite parties in the claim application. The presiding
officer of the tribunal was absent on August 10, 2016 and the original claimant
also did not take any step. The appellant was, however, represented by his
learned advocate. For the ends of justice, hearing of the claim application was
adjourned till August 11, 2016 for evidence of the opposite parties. On that date
too, no step was taken on behalf of the original claimant. In the presence of the
learned advocate for the appellant, November 8, 2016 was fixed for evidence of
the opposite parties. The reason behind the original claimant not taking any step
was obviously because he had passed away on August 7, 2016. The presiding
officer having been transferred, the claim application was placed before the
presiding officer in-charge. An application under Order XXII Rule 3 read with
Order VI Rule 17 of the CPC was filed by the first respondent together with fresh
vakalatnama in favour of her learned advocate. On the prayer of the first
respondent, hearing of the application filed by her was adjourned till December
7, 2016. On that date, the application under Order XXII Rule 3 CPC read with
Order VI Rule 17 thereof filed by the first respondent was considered. Learned
advocate for the appellant did not raise any objection. Upon hearing the parties
and looking into the death certificate of the original claimant and the other
materials on record, the tribunal was of the view that the application had been
filed within time and the same was allowed on consent. Since the case was
running for ‘the evidence of O.P.W.’, January 5, 2017 was fixed for evidence. On
that date, the first respondent filed a petition and prayed that she should be
allowed opportunity to adduce evidence on her behalf. In view of such petition,
the case was shifted back for evidence of the first respondent. She was examined
and cross-examined in full and discharged. After close of evidence of the first
respondent, the tribunal granted opportunity to the appellant to adduce
evidence. It was submitted that the appellant does not wish to adduce any
evidence. Evidence of the appellant was closed in view of such submission and
January 17, 2017 was fixed for argument. Arguments were heard on January 17,
2017 and the judgment and award passed on January 27, 2017.
46. Prior to the original claimant passing away on August 7, 2016, 8 (eight)
witnesses had tendered evidence in support of the claim for compensation and by
the order dated June 24, 2016, the tribunal had fixed August 10 and 11, 2016
for evidence of the opposite parties in the claim application. Ultimately, it turned
out that the original claimant passed away but the appellant did not adduce any
evidence and the award was made by the tribunal considering the evidence
adduced by the original claimant, both oral and documentary.
47. It would appear from the sequence of events captured in paragraph 45 that the
original claimant had approached the tribunal nearly 2 (two) years after his son’s
death [there being no period of limitation in the 1988 Act, but within 3 (three)
years being the period of limitation for instituting a money suit] and, thereafter,
the proceedings before the tribunal were procrastinated for more reason than
one. Apart from the slightly belated approach, which might have been caused
because of the shock and trauma arising out of the death of his only son followed
by the death of the original claimant’s spouse, none of the reasons for such
procrastination is apparently attributable to the original claimant. He had done
what was required of him after the claim application was filed. It was the tribunal
that granted the appellant three opportunities to file written statement, which it
did not avail of. The claim application was put on ex parte board, whereafter on
the prayer of the appellant the order for ex parte hearing was vacated and that
too, because the original claimant did not object. It is, therefore, clear that the
original claimant did not wish to end up having a virtual walkover. After the
written statement was filed, on a few occasions, the claim application could not
be heard either due to cease work call given by the local bar association or
because of the presiding officer not being available. By the time the original
claimant passed away, the evidence of all his witnesses were over. We do
consider these circumstances to be of vital importance for deciding the appeal.
48. The award of Rs.1,22,62,015/- has not been questioned by Mr. Singh on the
ground that the calculation is erroneous; on the other hand, it has been asserted
by him that the first respondent not being a dependent of the deceased the
amount of compensation assessed by the tribunal is a bonanza for her and would
bring about windfall gains for her. This contention gives rise to a clear
impression that had the original claimant been alive at least till arguments were
over and thereafter the tribunal had awarded the sum of Rs.1,22,62,015/-, the
appellant would have no cause for grievance. If he had been alive, the original
claimant would have been entitled to whatever he could legitimately claim as on
date the claim application was presented. We repeat, this was not a case where a
non-dependant legal representative had approached the tribunal; on the other
hand, it was a dependent septuagenarian father as heir of the deceased who was
the claimant. If he had passed away immediately after arguments were closed,
the first respondent would have been entitled to the awarded amount of
compensation as the sole surviving heir of the original claimant. Possibly, the
appellant may not have valid reason to dispute her claim even if such situation
had occurred. It is only because of death preceding closure of arguments that the
first respondent’s claim to compensation is being contested. In our view, while it
is true that compensation awarded under section 168 of the 1988 Act cannot be
a bonanza for dependents of victims of motor accidents, we wonder whether the
death of a claimant could be used by an insurer as a lover to secure a windfall
gain for it or, in other words, the death of the claimant could come as a bonanza
for it. We do not consider the law to be so. The law must be applicable alike to all
the parties, in a situation of the present nature. If we permit an insurer to evade
its contractual liability first by taking clear advantage of its own acts of
omission/commission during the proceedings before the tribunal and secondly
for other reasons for which the tribunal could not decide the claim application
expeditiously, the inevitable casualty in such a case would be justice. We are
inclined to the view that no party to a judicial proceeding ought to be allowed to
reap the benefit of delay caused by it in conclusion of proceeding against his
adversary. If substantial justice were to be dispensed between the parties, for
which the courts of law exist, the approach suggested by Mr. Singh must
obviously take a back seat.
49. Although Mr. Singh has argued by reference to Rules 342 and 343 of the 1989
Rules to contend that substitution is not permissible, we are not impressed by
his argument. Clause (c) of rule 343, in our view defeats the argument of Mr.
Singh. For facility of appreciation, rule 343 is quoted below:
“343 Procedure to be followed by Claims Tribunal in holding enquiries.
–
The following provisions of the Code of Civil Procedure, 1908 (….of 1908) as
subsequently amended, shall, so far as may be, apply to the proceedings
before every Claims Tribunal, namely:-
(a) sections 28, 79 and 82;
(b) in the First Schedule order V rules 9 to 13 (both inclusive) and 15 to 30
(both inclusive); order VI, rule 4, 5,7,10,11,16,17 and 18 and order VII,
rule 10; order VIII, rules 2 to 5 (both inclusive), 9 and 10; order IX;
order XI, rules 12 to 15 (both inclusive) 17 to 21 (both inclusive) and 23;
order XII rules 1, 2, 3A, 4, 7 9;order XIII rules 3 to 10 (both inclusive);
order XIV, rules 2 and 5; order XVI; order XVII; order XVIII rules 1 to 3
(both inclusive); 10 to 12 (both inclusive) and 15 to 18 (both inclusive);
order XX, rules 1 to 3 (both inclusive), 8,11, and 20; order XXIII rules 1
to 3 (both inclusive) order XXIV; order XXVI, rules 1 to 8 (both inclusive)
and 15 to 18 (both inclusive); order XXVIII; order XXIX; order XXX,
rules 1 to 3 (both inclusive) order XXXII, rules 1 to 15 (both inclusive)
order XXXVII, rules 1 to 7 (both inclusive) ;
(c) in so far as the Act and these rules make no provisions, those of the
Code of Civil Procedure, 1908 (5 of 1908) as subsequently amended,
shall, so far as may be, apply to the proceedings before the Claims
Tribunal.”
50. The first respondent having been substituted in the claim application as the
claimant, in terms of the provisions of the CPC, there is no reason as to why she
should be disentitled to the relief which the original claimant could have asked
for and be satisfied with only compensation for loss of estate, as contended by
Mr. Singh.
51. It is true that compensation for loss of love, affection and guidance that could
have been showered by an elder (who dies in a motor vehicular accident) on the
members of his family is not expressly provided for in the 1988 Act; however, at
the same time, it must be remembered that Section 168 of the 1988 speaks of
just compensation on facts and in the circumstances of a given case and not a
specified amount under different heads, as one would find in the Second
Schedule of the Act. Although compensation for loss of estate, loss of consortium
and funeral expenses have been standardized in Pranay Sethi (supra), just
compensation must be “just” in the facts of the case before the tribunal/court
and not any arbitrary or fanciful amount without having any nexus to the extent
of loss suffered by the members of the deceased’s family. To a sister, loss of her
only brother is immeasurable. It is the brother who would always be there when
the sister needs him, the brother would be the person who would pick her up if
she were to trip and fall, it would be the brother’s shoulder on which she could
assuredly rest on faced with turmoil in her life and so on so forth. Since the 1988
Act does not specifically provide how compensation in such a case is to be
assessed, is it for the tribunals/court to fold hands and decline relief? We think
not. Chapter XII of the 1988 Act is a beneficent legislation and Section 168
thereof has left the matter of assessment of compensation to the discretion of the
tribunal/courts. Of course, care and caution have to be exercised while assessing
compensation; but it would tantamount to frustrating the purpose of
compensation if no amount were awarded under any particular head on the
specious ground that the 1988 Act does not provide for it. If indeed such logic
were to be accepted, no amount could also be awarded for future prospects, or
under ‘non-pecuniary’ heads since the same is traceable only in the Second
Schedule which is not applicable for applications under Section 166 of the 1988
Act. We, thus, hold that the issue has to be answered in the light of the peculiar
facts noticed above.
52. Having given our anxious consideration to the facts of the case, we are inclined
to the view that in modification of the award of Rs.1,22,62,015/-, an award of
Rs.50,00,000/- would serve the ends of justice. We order accordingly. In addition
thereto, the said amount shall carry simple interest @ 6% per annum from the
date of filing of the claim application before the tribunal.
53. The appellant-insurer shall deposit Rs.50,00,000/- + interest as aforesaid in the
office of the tribunal as early as possible but not beyond 60 (sixty) days from date
of receipt of a certified copy of this judgment and order, failing which the first
respondent shall be at liberty to initiate proceedings for execution before the
tribunal for realization of the sum awarded as compensation by it.
54. The appeal and the connected application, thus, stands disposed of without
costs.
55. The appellant shall, however, be entitled to be refunded of Rs.25000/- deposited
in terms of section 173 (1) of the 1988 Act.
Urgent photostat certified copy of this judgment and order, if applied, may be
furnished to the applicant at an early date.
(DIPANKAR DATTA, J.)
DEBI PROSAD DEY, J.
I agree.
(DEBI PROSAD DEY, J.)