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Chhattisgarh High Court Enhances Motor Accident Compensation: “Tribunal Erred in Mechanically Relying Only on Oral Deposition—Pleadings Clearly Indicated Victim’s Occupation and Earnings”

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Court’s Decision:

The Chhattisgarh High Court, Bilaspur, allowed the appeal in part and modified the Motor Accident Claims Tribunal’s award by enhancing the compensation from ₹44,879 to ₹66,879. The Court held that “the Tribunal erred in not awarding any amount of compensation towards loss of earning during laid down period” and observed that despite the absence of oral evidence on income, the pleadings and circumstances warranted a just compensation.


Facts:

The appellant, a 45-year-old woman, sustained grievous injuries, including a fractured leg, when the motorcycle on which she was a pillion rider was struck by a tractor-trolley being driven rashly and negligently. The incident occurred on 24.02.2017 at Somwari Bazar, Navapara, when she and her husband had stopped their motorcycle. A police report was registered under Sections 279 and 337 IPC. She was treated at Rajdhani Super Specialty Hospital and claimed that due to the accident, she was unable to work and had to hire a maid for assistance.

She filed a claim under Section 166 of the Motor Vehicles Act, 1988 seeking ₹30,00,000 as compensation, citing her monthly income as ₹6,000 from labour work.


Issues:

  1. Whether the Claims Tribunal erred in awarding inadequate compensation, particularly by not considering:
    • Permanent disability,
    • Loss of income during the treatment period,
    • Mental pain and suffering, and
    • Special diet.
  2. Whether the findings of the Tribunal regarding breach of insurance policy conditions and contributory negligence were sustainable.

Petitioner’s Arguments:

Counsel for the appellant contended that the compensation awarded was grossly inadequate and did not reflect the severity of injuries and resultant hardship. It was argued that:


Respondent’s Arguments:

The insurance company opposed the enhancement of compensation, arguing:


Analysis of the Law:

The Court examined Section 166 of the Motor Vehicles Act and reiterated that compensation must be just, fair, and sufficient to offset both pecuniary and non-pecuniary losses suffered due to the accident. The Court emphasized that the Tribunal had erred in mechanically relying only on oral deposition for income proof when the pleadings specifically mentioned the appellant’s occupation and earnings. The judgment recognized that homemakers or working women, especially in rural settings, may not always produce formal documentation but still contribute to the family’s economic well-being.


Precedent Analysis:

Although no judgments were cited explicitly within the order, the decision is consistent with the Supreme Court’s approach in Raj Kumar v. Ajay Kumar (2011) 1 SCC 343, where it was held that notional income and real-life circumstances must guide the assessment of compensation in the absence of strict proof.


Court’s Reasoning:

The Court held that:


Conclusion:

The appeal was allowed in part. The total compensation was enhanced from ₹44,879 to ₹66,879 with interest at 9% per annum from the date of application till realization. The Court directed that the already paid amount be adjusted from this enhanced sum and retained the other terms of the Tribunal’s award.


Implications:

This judgment underscores that:

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