Raj HC | Court dismisses appeals to revise compensation amount; compensation to be decided by structured formula without requirement of any proof of owner’s negligence

Rajasthan High Court: Sandeep Mehta, J. dismissed an appeal from the Insurance company seeking exoneration of a lower court order.

In the present case, two appeals arose challenging the lower court judgment-cum-award. The parties have challenged the amount awarded by the trial court, primarily disputing over the salary amount earned by the deceased driver. Due to contradictions in the statements of the claimants, the insurance company and the employer of the deceased, the trial court had considered the income being Rs 2000 per month and accordingly had calculated the compensation amount under Section 163A of the Motor Vehicles Act, 1988. The claimants being one of the appellants filed for enhancement of the compensation amount awarded and the Insurance Company, being the other appellants was seeking exoneration of the award.

The counsel representing the insurance company, D.K. Gaur, claimed exoneration on two grounds, that the deceased driver was not having a valid driving license to drive a light motor vehicle and he was driving in a rash and negligent manner.

The Court upon perusal of facts, circumstances, and records dismissed the appeal of the claimants stating the award passed by the trial court is not on the lower end and is absolutely justified. The Court also dismissed the contentions of the insurance company stating that the controversy relating to the deceased not having the valid license was decided as no longer res Integra by Mukund Dewangan v. Oriental Insurance Company Ltd. (2017) 14 SCC 663 and stated that in United India Insurance Co. Ltd. v. Sunil Kumar, (2014) 1 SCC 680, it was decided that regarding negligence of the owner it is “to be decided by the structured formula and the adjudication thereunder is required to be made without requirement of any proof of negligence of the driver/owner of the vehicle involved in the accident”. Thus, the Court decided both the appeals are to be dismissed and the award passed by the trial court was justified.[Maniram v. Jenudeen, 2019 SCC OnLine Raj 2809, decided on 09-09-2019]

Join the discussion

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.