26 August 2013
Supreme Court
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KISHAN GOPAL Vs LALA .

Bench: G.S. SINGHVI,V. GOPALA GOWDA
Case number: C.A. No.-007137-007137 / 2013
Diary number: 19838 / 2011
Advocates: RAMESHWAR PRASAD GOYAL Vs M. M. KASHYAP


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           REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.7137 OF 2013

(Arising out of SLP(C) No.21139 of 2011)

KISHAN GOPAL & ANR.  … APPELLANTS Vs.

LALA & ORS.              … RESPONDENTS

J U D G M E N T

V.Gopala Gowda, J.

This  appeal  has  been  filed  by  the  appellants  

questioning the correctness of the judgment dated 15th  

March, 2011 passed in SBCMA No.1283 of 2000 by the  

High Court of Judicature at Rajasthan, Jaipur Bench,  

affirming the judgment and award dated 25.5.2000 of  

the Motor Accident Claims Tribunal, Tonk (for short

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'the Tribunal') in MAC case No.7/93, urging various  

relevant  facts  and  legal  contentions  in  support  of  

their claim made in this appeal.

2. Necessary relevant facts are stated hereunder to  appreciate the case of the appellants and also to find  

out  whether  the  appellants  are  entitled  for  the  

reliefs as prayed in this appeal.

The  appellants  are  the  parents  of  the  deceased  

Tikaram, who died in a road accident on 19.07.1992 on  

account of rash and negligent driving of the motor  

vehicle tractor bearing registration No. RJX 5532 by  

the driver, as he was traveling in the trolley which  

was  turned  upside  down  and  he  fell  down  from  the  

trolley and sustained grievous injuries and succumbed  

to the same.  The FIR was registered with the Police  

Station   Uniara,  Tonk  being  case  No.121/92.  After  

investigation  in  the  case,  charge-sheet  No.81/92  

(Ex.2)  was  filed  on  30.07.1992  against  the  first  

respondent, the driver of the offending vehicle and  

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its owner the respondent No.2. A site map (Ex.3) was  

drawn up,  post-mortem of the deceased was conducted  

and  post-mortem  Report  was  marked  as  Ex.7.  The  

claimants, being the appellants-parents, who have lost  

their son at the age of 10 years in the motor vehicle  

accident and the vehicle was insured with respondent  

No.3 - the Insurance Company, preferred claim petition  

under Section 140 read with Section 166 of the Motor  

Vehicles Act, 1988 (in short the 'M.V. Act') claiming  

compensation for Rs.15,63,000/- under the headings of  

loss of dependency, mental agony, loss of love and  

affection, expenses incurred for carrying dead body  

and performing last rites of the deceased son as per  

Hindu customs. Further, they have, inter alia, pleaded  

that the son would have earned a sum of Rs.2000/- p.m.  

after the age of 18 years and he would have lived upto  

70 years, therefore, multiplied by 52 for claiming the  

financial assistance that he could have rendered to  

the parents, the same is worked out to Rs.12,48,000/-.  

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3.  Notices were served upon respondent Nos.1 and 2,  the driver and the owner of the offending vehicle.  

Despite  service  of  notice  upon  them  they  did  not  

choose  to  appear  and  contest  the  proceedings  and  

therefore,  they  were  placed  ex-parte  in  the  claim  

proceedings before the Tribunal.  

4.  The  Insurance  Company  appeared  and  filed  its  statement of counter denying the various averments of  

the claim petition and pleaded that the deceased son  

of  the  appellants  was  not  studying  and  further  

disputed  that  there  was  possibility  of  earning  

Rs.2000/-  p.m.  by  the  deceased.   It  was  further  

pleaded that in the FIR, it is mentioned that deceased  

boy was going in the tractor-trolley, fell down from  

it on account of rash and negligent driving of the  

offending  vehicle  by  the  first  respondent,  the  

deceased  son  sustained  grievous  injuries  and  

succumbed to the same. It is further stated  that the  

driver of the offending vehicle had no right to carry  

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passenger in a tractor as it is exclusively required  

to  be  used  for  the  agricultural  operation  and  

therefore,  there  is  contravention  of  the  terms  and  

conditions of the insurance policy issued in favour of  

the  owner  of  the  offending  vehicle.  It  is  further  

stated by the Insurance Company that the trolley was  

not registered and the driver of the offending vehicle  

did not have the valid licence and hence,  it is not  

liable  to  pay  compensation  as  claimed  by  the  

appellants. On the basis of the pleadings, five issues  

were framed by the Tribunal for its determination.

5.On  behalf  of  the  appellants,  Kishan   Gopal  the  father of the deceased was examined as AW-1.  He has  

deposed  in  his  evidence  narrating  the  manner  in  

which  the  accident  took  place  and  marked  the  

documents produced by him viz.  FIR, charge-sheet,  

Site Map, Notice under Section 174, Insurance cover  

note,  Mechanical  Inspection,  post-mortem  Report,  

Notice  under  Section  133  and  the  Registration  

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Certificate as Exhs. 1 to 9 respectively. AW-2, who  

was cultivating in the adjoining field situated near  

the place of accident was examined on behalf of the  

appellants and he has spoken about the incident and  

deposed  that  the  deceased  boy  was  going  in  the  

tractor-trolley and the first respondent-driver was  

driving the tractor and the trolley turned down and  

he fell down as the driver drove the tractor with  

high  speed  negligently   and  he  had  sustained  

grievous injuries and succumbed to the same. The  

respondent Insurance Company  have not adduced the  

rebuttal evidence in support of its pleaded case in  

its counter statement. In the counter statement of  

the Insurance Company, it is pleaded that the claim  

petition filed by the appellants  is a fabricated  

one in collusion with the driver and the owner of  

the offending vehicle.  It is not forthcoming from  

the judgment of Tribunal that the Insurance Company  

has filed the application under Section 170(b) of  

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the M.V. Act seeking permission from the Tribunal in  

the proceedings to avail the defence available for  

the insured of the offending vehicle to contest the  

proceedings on merits. As could be seen from the  

record,  the  lawyer  of  the  Insurance  Company  has  

cross-examined the appellants' witnesses before the  

Tribunal.

6. The  Tribunal,  on  appreciation  of  pleadings  and  legal evidence on record, has answered the issue  

No.1, after adverting to the averments of the claim  

petition and evidence on record, and held that the  

appellants  have  not  succeeded  in  proving  that  

Tikaram died because of falling from the tractor-

trolley which was driven rashly and negligently by  

the driver.  Issue No.2 was also answered  holding  

that  the  appellants  are  not  entitled  for  the  

compensation as claimed by them for the reason that  

the finding recorded on the issue No.1 is in the  

negative.

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7.  Aggrieved  by  the  judgment  and  award  of  the  Tribunal, the appellants filed an appeal  before the  

High Court questioning the correctness of the findings  

recorded on the contentious issue Nos.1 & 2 contending  

that rejection of the claim petition by it is not only  

erroneous in fact but also suffers from error in law.  

Therefore,  they  have  approached  the  High  Court  by  

filing  an  appeal  for  grant  of  just  and  reasonable  

compensation to them setting aside the judgment and  

award of the Tribunal.

8.  The  learned  Judge  of  the  High  Court  has  not  exercised his appellate jurisdiction by reappreciating  

the  pleadings  and  evidence  on  record  and  he  had  

mechanically concurred with the findings and reasons  

recorded by the Tribunal on the contentious issues in  

its judgment and dismissed the appeal by passing a  

cryptic  order  without  adverting  to  the  pleadings,  

legal evidence and legal contentions urged on behalf  

of the parties.

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9.  The  appellants  are  aggrieved  by  the  impugned  judgment and award passed by the High Court  and they  

have filed this appeal urging various tenable grounds.

 As per the Office Report dated 13th December, 2012,  

Notice was issued to all the respondents. M/s M.M.  

Kashyap  and  Aftab  Ali  Khan,  Advocates  have  filed  

vakalatnama  and  memo  of  appearance  on  behalf  of  

respondent Nos. 1 and 3 respectively and also filed  

counter  affidavits  on  their  behalf.  Acknowledgement  

card duly signed by respondent No.2 has been received  

back in proof of the service of notice upon him but no  

one  has entered appearance and filed vakalatnama or  

memo of appearance on his behalf, therefore, it is  

reported  that  the  service  of  notice  on  him  is  

complete.

10.  This  appeal  was  listed  before  this  Court  on  14.12.2012, when the Court was pleased to pass the  

following order:-

“Send  for  the  record  of  award  dated  25.05.2000  passed  by  Motor  Accident  Claims  

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Tribunal,  Tonk,  Rajasthan  in  MACT  Case  No.7/1993.  

The  Registry  is  directed  to  send  requisition to the Presiding Officer of the  Tribunal.  It is expected that the Presiding  Officer  will  remit  the  record  of  the  case  without any delay.

Put up after the receipt of the record.”  

11.  This appeal was listed before the Court on 12th  

August,  2013.  On  behalf  of  the  appellants  we  have  

heard Mr.Praveen Kumar Jain, Advocate.  None appeared  

on behalf of the respondents and this Court granted  

leave.  Though respondent Nos.1 & 3 have filed their  

counter affidavits reiterating the averments made in  

the counter statement  filed by the Insurance Company  

before the Tribunal extracting certain portion from  

the  FIR  and  Statements  of  Evidence  of  AW-1  –  the  

father of the deceased and AW-2 - the brother of the  

deceased  and  placed  strong  reliance  upon  the  

definition of 'trailer' as defined under Section 2(46)  

of the M.V. Act, and  that the trolley of the tractor  

is not registered with the registering Authority. The  

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tractor with trolley can be used only for agricultural  

purposes but not for carrying passengers which would  

be in contravention of the provisions of the M.V. Act  

and terms and conditions of the policy issued covering  

the Motor Vehicle Tracter. Therefore, it is stated by  

the Insurance Company that by allowing the deceased  

boy  to  travel  in  the  trolley  of  the  tractor,  the  

driver  has  violated  the  terms  &  conditions  of  the  

insurance  policy  and  law  and  it  has  also  placed  

reliance upon the decision of this Court in National  Insurance Co.Ltd. v. Baljit Kaur1, in support of its  defence  wherein  this  Court  has  held  that  the  

passengers, who travel in the goods carriage and die  

in  the  accident  are  not  entitled  to  get  any  

compensation  from  the  Insurance  Company  under  the  

policy.

12. Respondent  No.1  has  filed  counter  affidavit,  stating  the  following  averments,  the  relevant  

paragraphs are extracted  hereunder for our perusal:- 1(2004) 2 SCC 1

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“2...That  there  is  contradiction  in  statement of Kishan Gopal AW1 and Babu AW2  as Babu stated that Tikaram deceased fell  down due to rash and negligent driving of  tractor  by  Lala  the  Deponent  herewith.  Whereas  Kishan  Gopal  stated  that  Tikaram  fell down due to rash and negligent driving  of tractor by which tractor got turned. 3. That deceased Tikaram was not studying  in School and there is no possibility of  earning Rs.2000/- per month.

4.  That  as  passenger  cannot  travel  in  tractor  and  death  was  caused  sitting  in  trolly  which  is  not  allowed.   The  petitioner  cannot  claim  any  compensation  for the negligence of Tikaram sitting in  trolly.   Tractor  can  only  be  used  for  agricultural purposes. 5.  That driver had no valid licence.  6. That  learned  Tribunal  in  its  award  rightly  gave  finding  that  there  is  contradiction in statement of Kishan Gopal  AW1  and Babu  AW2 as  Kishan Gopal  stated  that his son died as his son was hit by  Lala  driving  the  tractor  fast  and  negligently.  Whereas Babu stated that Lala  was  driving tractor rashly and negligently  because  of  which  the  tractor  got  turned  down and in the accident Tikaram died.  As  per the contradictions the case was  not  proved  by  the  petitioner  before  the  Tribunal. Further, there are contradictions  in the statement of witnesses and FIR.

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7.  That  the  Insurance  Company  did  not  appear  to  prove  the  fact  that  Lala  was  not having valid licence to drive tractor.

8.  That Insurance Company has to prove   that driver has not got valid licence.  The  finding to this effect given by learned   Tribunal is right.

9. That petitioner is not entitled for any  compensation.

10. That the above special leave petition       may kindly be dismissed.”

13. The ground urged by the appellants in this  appeal is that the High Court has erred in concurring  

with the  finding of fact recorded by the Tribunal in  

its judgment on the contentious issue Nos.1 & 2. It is  

erroneous for the reason that the same is contrary to  

substantive  evidence  on  record  in  favour  of  the  

appellants and no rebuttal evidence is adduced by the  

Insurance Company in the case to accept its defence  

pleas and record the finding  on the contentious issue  

Nos.1 and 2 in its favour. Further, it is urged that  

both the Tribunal and the High Court have not taken  

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into consideration the relevant indisputed fact that  

the  criminal  case  is  registered  against  respondent  

No.1-the driver and respondent no.2-the owner of the  

vehicle and the charge-sheet is filed against them.  

Both  AW-1  and  AW-2  adduced  evidence  before  the  

Tribunal  stating  that  the  deceased  son  of  the  

appellants  was  traveling  in  the  trolley  of  the  

tractor, it was turned down on account of rash and  

negligent  driving  of  the  offending  vehicle  by  

respondent No.1 and he fell down from the trolley and  

the tractor tyre ran over the body and he sustained  

grievous injuries and succumbed to the same. Further,  

it is urged that in the absence of evidence of either  

the driver or the owner of the tractor and also in the  

absence  of  rebuttal  evidence  on  behalf  of  the  

Insurance  Company  in  support  of  its  pleadings,  the  

finding of fact recorded by the Tribunal stating that  

the accident did not take place on account of rash and  

negligent  driving  of  the  offending  vehicle  by  the  

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driver is erroneous, as it has failed to consider the  

evidence on record in a proper perspective in favour  

of  the  appellants.  The  finding  recorded  by  the  

Tribunal without appreciating the entire evidence of  

AW-1 and AW-2 on record, by picking  bits and piece of  

certain sentences from evidence of the witnesses and  

FIR  Exh.1  and  answered  the  contentious  issue  No.1  

against  the  appellants  which  approach  of  it  is  

erroneous, which finding is erroneously affirmed by  

the High Court, mechanically without re-appreciating  

the evidence and assigning valid and cogent reasons in  

support  of  its  conclusion  in  concurring  with  the  

Tribunal. Further, it is contended that the Tribunal  

has since answered the contentious issue No.1 holding  

that  the  death  of  Tikaram  is  not  due  to  rash  and  

negligent driving of the tractor by its driver is not  

proved,  it  has  answered  the  contentious  issue  No.2  

stating that the question of awarding compensation as  

claimed  by  the  appellants  does  not  arise  and  

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consequently,  it  has  rejected  the  claim  petition,  

which decision of it is not only erroneouos, but, also  

suffers from error in law.  Therefore, the learned  

counsel for the appellants has requested this Court to  

award just and reasonable compensation in favour of  

the appellants by allowing this appeal.

14. On  behalf  of  respondent  Nos.1  and  3  counter  affidavits have been filed but none appeared at the  

time of hearing. After hearing the learned counsel for  

the appellants, this appeal was reserved for judgment.  

On  the  basis  of  the  factual  and  rival  legal  

contentions  urged  on  behalf  of  the  appellants,  the  

following points are framed for consideration of this  

Court:-

I) Whether the findings of fact recorded on  

issue  Nos.1  &  2  framed  by  the  Tribunal,  

which finding is affirmed by the High Court  

in  the  impugned  judgment  is  vitiated  on  

account of erroneous reasoning?

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II) Whether the appellants are entitled for  

compensation, if so to what amount?

III) What award?

15. The first point is required to be answered in  favour of the appellants by assigning the following  

reasons:-

The deceased son of the appellants died in an  

accident, while he was traveling in a trolley of the  

tractor bearing No.RJX-5532 on 19.07.1992, the trolley  

turned down on account of rash and negligent driving  

of the tractor by the driver-respondent No.1. In this  

regard,  the  FIR  was  registered  being  FIR  No.121/92  

with the Uniara Police Station, Tonk.  On the basis of  

the  said  FIR,  the  investigation  was  made  by  the  

Investigation  Officer  and  charge-sheet  No.81/92  was  

filed on 30.07.1992 against the driver and the owner  

of the offending vehicle for the offences punishable  

under Sections 279 and 304-A IPC read with certain  

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provisions of the M.V.Act.   The FIR and the charge-

sheet  were  produced  in  the  evidence  of  the  first  

appellant-the father of the deceased, who was examined  

as AW-1. He has also produced and marked the site map  

(Ex.3),  action  taken  under  Section  174  (Ex.4),  

Insurance cover note Ex.5, Mechanical inspection Ex.6  

and  post-mortem  report  Ex.7  as  exhibits  in  the  

evidence to substantiate the case of the appellants to  

show that accident took place on account of rash and  

negligent driving of driver of the tractor.  AW-2 -  

Babu  s/o  Kishan  Gopal,  r/o  Bhat-Ka  Nada,  Tehsil  

Uniara,  Dist.  Tonk,  who  is  an  agriculturist  by  

occupation, is examined on behalf of the appellants,  

who has deposed before the Tribunal and he has stated  

that the deceased Tikaram was traveling in the trolley  

of  the  tractor,  which  was  driven  by  the  first  

respondent in a high speed, rashly and negligently on  

account of which the vehicle got turned down and the  

tyre of tractor ran over Tikaram on account of which,  

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he sustained grievous injuries and  succumbed to the  

same. The following evidence is  elicited from AW-2 in  

his cross-examination by the lawyer of the Insurance  

Company to the following effect;  

“that at the time of accident he was carrying  

paddy and he was one field away from the place  

of accident and he reached there by running.  

Before him, several other persons also reached  

the site of the accident and he was examined by  

the  Investigating  Officer  and  the  same  is  

accepted as true after understanding the same”.  

AW-1, the father of the deceased boy has also  

spoken about the manner in which accident took place  

and  his  son  Tikaram  died  and  had  produced  the  

documentary evidence referred to supra in justification  

of  the  case  pleaded  by  the  appellants.   In  his  

evidence, he has stated that Tikaram was sitting in the  

trolley of the tractor and the tractor was driven by  

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its driver rashly and negligently  on account of which  

the trolley turned down and his son sustained grievous  

injuries and died.  The suggestion put to AW-1 in his  

cross-examination  by  the  lawyer  of  the  Insurance  

Company to the following effect  

“this is correct that when accident  

took place I was at home.  It is the incident of  

5 p.m. when my son had gone to graze cattle.  My  

son  was  made  to  sit  in  the  trolley  by  the  

tractor wala.”  

The lawyer of the Insurance Company has not challenged  

the evidence of AW-2 that the deceased was traveling in  

the trolley of the tractor and accident took place on  

account of rash and negligent driving of the driver.  

Therefore,  the  fact  of  accident  that  took  place  on  

19.07.1992 at 5.00 p.m. is not challenged by the lawyer  

of the Insurance Company at all.  Apart from the said  

fact, no rebuttal evidence adduced by the Insurance  

Company before the Tribunal in the claim proceedings.  

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It has also not obtained permission from the Tribunal  

under Section 170(b) of the M.V. Act to contest the  

case on the defence of the insured as the driver and  

the insured both remained ex-parte in the proceedings  

before the Tribunal and therefore, it could not have  

contested the case on merits as held by this Court in  

the case of National Insurance Company vs. Nicolletta  

Rohtagi reported in 2002(7) SCC 456.  It is also not  

clear in the counter statement filed by the Insurance  

Company before the Tribunal that the claim petition was  

filed by the appellants on account of collusion between  

them and respondent Nos.1 and 2, the driver and the  

owner of the vehicle respectively.  

16. In view of the aforesaid facts, the Tribunal  should  have  considered  both  oral  and  documentary  

evidence referred to supra and appreciated the same in  

the proper perspective and recorded the finding on the  

contentious issue No. 1 & 2 in the affirmative. But it  

has recorded the finding in the negative on the above  

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issues by adverting to certain statements of evidence  

of AW-1 and referring to certain alleged discrepancies  

in the FIR without appreciating entire evidence of AW-

1 and AW-2 on record properly and also not assigned  

valid reasons in not accepting their testimony.  The  

Tribunal  should  have  taken  into  consideration  the  

pleadings of the parties and legal evidence on record  

in its entirety and  held that the accident took place  

on 19.07.1992, due to which Tikaram sustained grievous  

injuries and succumbed to the same and the case was  

registered by the Uniara Police Station under Sections  

279 and 304-A, IPC read with Sections 133 and 181 of  

the M.V. Act against the first and second respondents.  

The registration of FIR and filing of the charge-sheet  

against  respondent  Nos.1  &  2  are  not  in  dispute,  

therefore, the Tribunal should have no option but to  

accept the entire evidence on record and recorded the  

finding on the contentious issue Nos.1 and 2 in favour  

of the appellants. Further, it should have held that  

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the deceased son died in the tractor accident, driven  

by first respondent rashly and negligently, but it has  

answered the above contentious issue Nos. 1 & 2 in the  

negative and therefore, we have to set aside the said  

erroneous  findings  as  the  Tribunal  has  failed  to  

appreciate  the  entire  evidence  both  oral  and  

documentary properly to answer the issue Nos.1 & 2 in  

the affirmative.  From the perusal of the evidence  

elicited in the cross-examination of AW-1 – the father  

and AW-2 who reached the spot immediately after the  

accident, he had seen the accident and narrated that  

the deceased boy had sustained grievous injuries in  

the accident and succumbed to the same.  The evidence  

on record proved that the deceased sustained grievous  

injuries in the accident on account of which he died.  

The Insurance Company by cross-examining the witness  

No. AW-2 has categorically admitted the accident, as  

its counsel had put the suggestion to him the relevant  

portion of which is extracted above, which portion of  

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C.A @.S.L.P.(C)No.21139 of 2011                -

evidence clearly go to show that in the accident the  

deceased  died,  but  the  Tribunal  has  failed  to  

appreciate  the  evidence  of  AW-2  and  also  the  

documentary  evidence  referred  to  supra,  while  

recording the finding of fact on the contentious issue  

No.1. The counter affidavit of respondent No.1 filed  

in these proceedings cannot be relied upon by this  

Court at this stage as he did not choose to appear  

before the Tribunal, though he had filed statement of  

counter  and  neither  he  nor  the  Insurance  Company  

adduced rebuttal evidence by obtaining permission from  

the Tribunal under Section 170(b) of M.V. Act to avail  

the defence of the insured respondent No.2, as the  

Insurance  Company  has  limited  defence  as  provided  

under Section 149(2) of the M.V. Act.  But on the  

other  hand,  by  reading  the  averments  from  the  

paragraphs extracted from the affidavit of respondent  

No.1,  the  driver  would  support  the  case  of  the  

appellants.

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17. In our considered view, the Tribunal has ignored  certain relevant facts and evidence on record while  

considering the case of the appellants. The High Court  

though it has got power to re-appreciate the pleadings  

and evidence on record, has declined to do so and  

mechanically  endorsed  the  findings  of  fact  on  

contentious issue Nos.1 & 2 after referring to certain  

stray sentences from the evidence of  AW-1 and the FIR  

and  it  has  erroneously  held  that  there  is  a  

contradiction between the FIR, the claim petition and  

the evidence of the appellants. It has concurred with  

the finding of fact recorded on the contentious issues  

and accepted dismissal of the petition. The concurrent  

findings  of  fact  are  erroneous  and  invalid  and  

therefore, the same call for our interference in this  

appeal. The approach of the High Court to the claim of  

the appellants is very casual as it did not advert to  

the oral and documentary evidence placed on record on  

behalf of the appellants, particularly, in the absence  

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C.A @.S.L.P.(C)No.21139 of 2011                -

of rebuttal evidence adduced by the Insurance Company,  

hence the same is liable to set aside and accordingly  

we set aside the same.   

18. Point Nos.2 and 3 are answered together in favour  of the appellants for the following reasons:-

The  Tribunal  having  answered  the  contentious  

issue No.1, against the appellants in its judgment the  

same is concurred with by the High Court by assigning  

erroneous reasons and it has affirmed dismissal of the  

claim  petition  of  the  appellants  holding  that  the  

accident did not take place on account of the rash and  

negligent  driving  of  the  offending  vehicle  by  the  

first respondent and therefore the contentious issue  

Nos.1 and 2 are answered in the negative against the  

appellants  and  it  has  not  awarded  compensation  in  

favour of the appellants.  

Since we have set aside the findings and reasons  

recorded by both the Tribunal and the High Court on  

the  contentious  issue  Nos.1  &  2  by  recording  our  

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reasons in the preceding paragraphs of this judgment  

and  we  have  answered  the  point  in  favour  of  the  

appellants  and  also  examined  the  claim  of  the  

appellants to award just and reasonable compensation  

in favour of the appellants as they have lost their  

affectionate 10 year old son.  For this purpose, it  

would be necessary for us to refer to Second Schedule  

under Section 163-A of the M.V. Act, at clause No.6  

which refers to notional income for compensation to  

those persons who had no income prior to accident. The  

relevant portion of clause No.6 states as under:  

“6. Notional income for compensation to those  who had no income prior to accident:

  ..............  (a) Non-earning persons – Rs.15,000/- p.a.”

   The aforesaid clause of the Second Schedule to  

Section 163-A of the M.V. Act, is considered by this  

Court in the case of  Lata Wadhwa & Ors. v. State of  

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Bihar & Ors.2, while examining the tortuous liability  of  the  tort-feasor  has  examined  the  criteria  for  

awarding  compensation  for  death  of  children  in  

accident between age group of 10 to 15 years and held  

in  the  above  case  that  the  compensation  shall  be  

awarded taking the contribution of the children to the  

family at Rs.12,000/- p.a. and multiplier 11 has been  

applied taking the age of the father and then under  

the conventional heads the compensation of Rs.25,000/-  

was awarded.  Thus, a total sum of Rs.1,57,000/- was  

awarded in that case. After noting the submission made  

on  behalf  of  TISCO  in  the  said  case  that  the  

compensation determined for the children of all age  

groups  could  be  double  as  in  its  view  the  

determination  made  was  grossly  inadequate  and  the  

observation was further made that loss of children is  

irrecoupable and no amount of money could compensate  

the parents.  Having regard to the environment from  

which  the  children  referred  to  in  that  case  were  2 (2001) 8 SCC 197

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C.A @.S.L.P.(C)No.21139 of 2011                -

brought up, their parents being reasonably well-placed  

officials  of  TISCO,  it  was  directed  that  the  

compensation amount for the children between the age  

group of 5 to 10 years should be three times. In other  

words, it should be Rs.1.5 lakhs to which under the  

conventional  heads  a  sum  of  Rs.50,000/-  should  be  

added and thus total amount in each case would be Rs.2  

lakhs. Further, in the case referred to supra it has  

observed that in so far as the children of age group  

between 10 to 15 years are concerned, they are all  

students of Class VI to Class X and are children of  

employees  of  TISCO  and  one  of  the  children  was  

employed in the Company in the said case having regard  

to the fact the contribution of the deceased child was  

taken Rs.12,000/- p.a. appears to be on the lower side  

and  held that the  contribution of such children  

should be Rs.24,000/- p.a.  In our considered view,  

the  aforesaid  legal  principle  laid  down  in  Lata  Wadhwa's  case  with  all  fours  is  applicable  to  the  

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C.A @.S.L.P.(C)No.21139 of 2011                -

facts and circumstances of the case in hand having  

regard to the fact that the deceased was 10 years'  

old,  who  was  assisting  the  appellants  in  their  

agricultural occupation which is an undisputed fact.  

We have also considered the fact that the rupee value  

has come down drastically from the year 1994, when the  

notional income of the non-earning member prior to the  

date of accident was fixed at Rs.15,000/-. Further,  

the  deceased  boy,  had  he  been  alive   would  have  

certainly contributed substantially to the family of  

the  appellants  by  working  hard.  In  view  of  the  

aforesaid reasons, it would be just and reasonable for  

us  to  take  his  notional  income  at  Rs.30,000/-  and  

further taking the young age of the parents, namely  

the mother who was about 36 years old, at the time of  

accident, by applying the legal principles laid down  

in  the  case  of  Sarla  Verma  v.  Delhi  Transport  Corporation3, the multiplier of 15 can be applied to  the multiplicand. Thus, 30,000 x 15 = 4,50,000 and  

3 (2009) 6 SCC 121

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50,000/- under conventional heads towards loss of love  

and affection, funeral expenses, last rites as held in  

Kerala SRTC v. Susamma Thomas4, which is referred to  in  Lata Wadhwa's case and the said amount under the  conventional heads is awarded even in relation to the  

death of children between 10 to 15 years old.  In this  

case  also  we  award  Rs.50,000/-  under  conventional  

heads. In our view, for the aforesaid reasons the said  

amount would be fair, just and reasonable compensation  

to be awarded in favour of the appellants.  The said  

amount will carry interest at the rate of 9% p.a. by  

applying the law laid down in the case of  Municipal  Council of Delhi v. Association of Victims of Uphaar  Tragedy5, for the reason that the Insurance Company  has been contesting the claim of the appellants from  

1992-2013 without settling their legitimate claim for  

nearly about 21 years, if the Insurance Company had  

awarded and paid just and reasonable compensation to  

4 (1994) 2 SCC 176 5 (2011) 14 SCC 481

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C.A @.S.L.P.(C)No.21139 of 2011                -

the  appellants  the  same  could  have  been  either  

invested or kept in the fixed deposit, then the amount  

could have earned five times more than what is awarded  

today in this appeal.  Therefore, awarding 9% interest  

on  the  compensation  awarded  in  favour  of  the  

appellants is legally justified.

 

19.  Accordingly, we pass the following order:

I)  The  appeal  is  allowed  and  the  impugned  

judgments and awards of both the Tribunal and  

High Court are set aside.  

II) The awarded amount of Rs.5,00,000/- with  

interest at the rate of 9% per annum should be  

paid to the appellants from the date of filing  

of the application till the date of payment.

III)  We direct the Insurance Company to issue  

the  demand  draft  drawn  on  any  Nationalized  

Bank by apportioning the compensation amount  

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equally with proportionate interest and send  

it to the appellants within six weeks from the  

date of receipt of a copy of this judgment.

                                             ….........................................J.      [G.S. SINGHVI]

                                                     

      ...................J

[V. GOPALA GOWDA]

New Delhi,  August 26, 2013.  

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