Partly allowed

The Transport Manager, Thane Municipal Transport v. Reetadevi Sanjay Pandey and Ors.

Bombay HC11 Jan 2024FA/2119/2005

Case brief

AI extract

What is this about?

First Appeal against Motor Accident Claims Tribunal award dismissed; Compensation quantum enhanced to Rs.20,45,000/- applying 50% future prospects, 25% personal expenses deduction, multiplier 17, and enhanced funeral/consortium/estate allowances.

What did the court decide?

Appellant bound to pay Rs.20,45,000/- including no-fault liability and interest at 6% p.a.; Judgment and Award modified.

The Transport Manager, Thane Municipal… — Civil Procedure and Limitation | Bombay HC (2024)

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First Appeal No. 2119 of 2005.doc

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

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FIRST APPEAL NO. 2119 OF 2005

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THE TRANSPORT MANAGER)
Thane Municipal Transport, Administrative )
Building, Wagle Estate, Road No.27,)
Thane 400 004.)
(The registered owner of the TMT Bus No.)
H-4/G-691 as on 6.7.2002))…APPELLANT

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Vs.

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1.SMT. REETADEVI SANJAY PANDEY)
Aged 27 years, Residing at Shivmrut)
Bhavan, Kisan Nagar No.2, Wagle Estate)
Thane (W), Thane)
(Widow of the deceased))
)
2.MASTER HARSHID SANJAY PANDEY)
Aged 4 years, Residing as above )
Being minor through his mother and)
next friend i.e. Applicant no.1 above)
named (Son of the deceased))
)
3.SHRI. KAMALESH SHRIPATI PANDEY)
Aged 50 years, Residing as above)
(Father of the deceased))
)
4.SMT. GEETADEVI KAMALESH PANDEY)
Aged 47 years, Residing as above)
(Mother of the deceased))…RESPONDENTS

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WITH

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CROSS OBJECTION (ST.) NO. 2186 OF 2012

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IN

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FIRST APPEAL NO. 2119 OF 2005

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THE TRANSPORT MANAGER)
Thane Municipal Transport, Administrative )
Building, Wagle Estate, Road No.27,)
Thane 400 004.)…APPELLANT

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First Appeal No. 2119 of 2005.doc

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Vs.

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1.SMT. REETADEVI SANJAY PANDEY)
Aged 27 years )
2.MASTER HARSHID SANJAY PANDEY)
Aged 4 years
3.SHRI. KAMALESH SHRIPATI PANDEY)
Aged 50 years
4.SMT. GEETADEVI KAMALESH PANDEY)
Aged 47 years, All are residing at)
Shivmrut Bhavan, Kisan Nagar No.2.)
Wagle Estate, Thane (West))…RESPONDENTS
CORAM:ABHAY AHUJA, J.
RESERVED ON:19th AUGUST, 2023
PRONOUNCED ON: 11th JANUARY, 2024

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Mr.Ketan Dhavle i/by Mr.Mandar Limaye, Advocate for the Appellant.
Mr.T.J.Mendon a/w. Mr.T.R.Kale, Advocate for the Respondents.

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JUDGMENT:

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1.This Appeal has been filed under section 173 of the Motor Vehicles
Act, 1988 (the “M.V. Act”) challenging the judgment and award dated 25h
February, 2005 passed by the Motor Accident Claims Tribunal, Thane (the
“Tribunal”) in Motor Accident Claim Petition No.635 of 2002 allowing the
Claim Petition of the Respondents and directing the Appellant to pay a
compensation amount of Rs.12,61,944/- (inclusive of no fault liability) to
the Respondents along with interest @ 6% p.a. from the date of the
application. The Appeal was admitted by an order of this Court dated
December 6, 2005.

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First Appeal No. 2119 of 2005.doc

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2. The Respondents have also filed their Cross Objection in the said First Appeal in the year 2012.

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3.The brief facts are that on 6th July, 2002 at around 4:25 p.m., Shri
Sanjay Kamlesh Pandey, aged 29 years, being the husband of Respondent
No.1, the father of Respondent No.2 and the son of Respondents No. 3 and
4, was riding his motorcylce towards Ghodbunder. At that time, the
offending bus, owned by the Appellant came from Mira Road direction
and dashed against Shri Pandey who died immediately after his admission
to the hospital. The police prosecuted the driver of the bus.

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4.The deceased aged 29 years at the time of the accident, was a
graduate and was getting a salary of Rs.8000/- per month and certain
bonus etc. from time to time. The Respondents filed a claim petition
seeking compensation of Rs.20,00,000/-. The Appellant opposed the
claim, first raising a technical objection of non-joinder of the driver of the
offending bus and the insurance company of the deceased's motorcycle.
The Appellant also submitted that the deceased was rash and negligent at
the time of the accident and it was due to his negligence that the accident
took place and not due to the negligence of the driver of the bus.

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First Appeal No. 2119 of 2005.doc

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5.On the issue of whether the deceased died due to the vehicular

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accident and due to whose negligence the accident took place, the
Respondents relied upon the examination of an eye witness who was
present in the bus when it met with the accident. This eye witness stated
that the bus at the time was going at a fast speed. He said that this bus
went on the right side of the road and then collided with an electric pole.
The eye witness got down from the bus and saw that the bus had already
hit a motorcycle which was lying on the road although in his cross
examination, the eyewitness admitted that he did not see the act of the
bus hitting the motorcycle. But he said that due to sudden braking the bus
skidded and went towards the right side of the road. The Tribunal held
that this cross examination at the most established that the offending bus
first hit the motorcycle and then hit the electric pole on the right side. On
the issue whether the bus driver was negligent, the Tribunal noted that the
eye witness had said that the bus was going at a fast speed and it was then
that the accident took place. The Tribunal, noting that the bus driver did
not come forward to depose and give details as to how the accident took
place, held that there was no other alternative but to hold that the
Respondent claimants have proved that the bus driver was negligent and
caused the accident.

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First Appeal No. 2119 of 2005.doc

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6. On the technical objection raised by the Appellant of non-joinder of

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parties as the driver of the offending bus and the insurance company of
the deceased's motorcycle were not made parties to the claim by the
Respondents, the Tribunal held that admittedly the driver was driving the
vehicle belonging to the Appellant as part of his duty and it was obvious
that the Appellant was vicariously liable for the fault committed by their
employee and so the driver was never a necessary party but he could have
been a witness for the Appellant's case. The Tribunal further held that the
insurance company of the motorcycle of the deceased was also not a
necessary party because it is the choice of the Respondent claimants as to
against whom they should proceed for seeking compensation and
particularly in this case the Respondent claimants had no reason to
proceed against the insurance company of the motorcycle because
according to them the deceased motorcylcist was not negligent.

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7.On the issue of amount of compensation payable to the
Respondents, the Tribunal noted that the deceased was about 29 years old
and an employee of a private company and was getting a salary of
Rs.8000/- and usual perks including the motorcycle he was driving at the
time of the accident. The Tribunal held that considering the age and

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First Appeal No. 2119 of 2005.doc

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nature of work the deceased was doing, it was clear that judicial notice
could be taken of the fact that he would have made progress in his work
and earned more salary in the future. The Tribunal therefore held that the
amount of salary should be increased by 20% for calculating loss of
income which would come to Rs.9600/- and from this amount 33% should
be deducted taking into account personal expenses of the deceased and
therefore the amount of Rs.6432/- should be taken into account and this
amount should be multiplied by multiplicand of 16 in view of his age at
the time of his death. The Tribunal therefore held that the amount of
compensation for loss of income came to Rs.12,34,944/-. In addition to
this amount, the Tribunal held that the Respondent claimants were
entitled to funeral expenses of Rs.2000/-, an amount of Rs.15,000/-
towards loss of consortium payable only to Respondent No.1 his wife, and
loss of estate of Rs.10,000/-. The Tribunal held that the total
compensation payable comes to Rs.12,61,944/- and awarded interest of
6% from the date of application till the amount was deposited in the
court.

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8. Being aggrieved and dissatisfied by the Impugned Judgment and

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Award partly allowing the Claim Petition of the Respondents awarding a

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First Appeal No. 2119 of 2005.doc

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compensation amount of Rs.12,61,944/- (along with no fault liability) to
the Respondents as against a claim of Rs.20,00,000/-, the Appellant,
Thane Municipal Transport, has preferred this Appeal on the grounds : (i)
that the Tribunal erred in holding that the Respondents had proved that
the deceased died due to the accident caused by the rash and negligent
driving of the driver of the offending bus, (ii) that the Tribunal ought to
have considered that the eye witness admitted that he had not seen the act
of the bus hitting the motorcycle, (iii) that without the evidence of the bus
driver, the Tribunal came to the conclusion that the bus driver was
negligent and had caused the accident, (iv) that the bus driver was not
negligent at all and did not drive the bus rashly and thus the liability could
not be imposed on the Appellant, (v) that the Tribunal erred in holding
that the deceased was not negligent, (iv) that the petition was bad for
non-joinder of necessary parties including the driver of the offending bus
and the insurance company of the motorcycle of the deceased, (vii) that
the compensation has been wrongly calculated and the multiplier has also
been wrongly applied and as such the Respondents are not entitled to the
compensation awarded by the Tribunal.

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First Appeal No. 2119 of 2005.doc

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9.Mr. Ketan Dhavle, learned Counsel for the Appellant relying inter
alia on the decision of the Hon'ble Supreme Court in the case of
Macchindranath Kernath Kasar v. D.S. Mylarappa and Others1 and the
decision of this Court in the case of New India Assurance Company Ltd.
Aurangabad v. Suman Bhaskar Pawar and Others2emphatically submitted
that the Tribunal could not have held negligence on the part of the driver
in his absence. Mr. Dhavle submitted that the Tribunal ought to have
noted that it was mandatory on its part to issue notice to the driver under
Rule 260(1) of the Maharashtra Motor Vehicles Rules, 1989 and despite
the provisions being mandatory in nature, the Tribunal did not issue
notice to the driver of the offending bus and also erred in holding that he
is not a necessary party to the petition. Mr. Dhavle therefore submitted
that the Appeal deserves to be allowed and the Judgment and award of
the Tribunal ought to be set aside.

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10.On the other hand, the Respondents have filed Cross Objection in
this Appeal challenging the quantum of compensation awarded by the
Tribunal on the grounds (i) that the Tribunal has granted very low
compensation to the Respondents without considering the future

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1 (2008) 13 SCC 198.

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2 2010(2) Mh.L.J. 177.

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First Appeal No. 2119 of 2005.doc

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prospects, promotion and increase in wages, (ii) that the Tribunal ought to
have considered the gross salary as income of the deceased while
computing compensation, (iii) that 50% of the income be added while
calculating compensation as per the judgment of the Hon'ble Supreme
Court in the case of Sarla Verma v. Delhi Transport Corporation3, (iv) that
the Tribunal erred in adopting the low multiplier and the same ought to be
17 considering the age of the deceased, (v) that the Tribunal ought to
have deducted 1/4th and not 33% from the income towards personal
expenses considering the number of dependents on the income of the
deceased, (vi) that the rate of interest is low and ought to be enhanced
and (vii) that the Respondents are entitled to make a claim for just and
reasonable compensation.

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11.Mr.T.J. Mendon, learned Counsel for the Respondents, submitted
that pursuant to Section 168 of the M.V. Act, it is mandated that the
compensation must be just, reasonable and proper to the claimants and
has tendered across the Bar a table containing a computation of
enhancement of claim containing the following computation as per Sarla
Verma v. Delhi Transport Corporation (supra) and National Insurance

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3 2009 ACJ 1298 (Supreme Court).

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First Appeal No. 2119 of 2005.doc

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Company Limited v Pranay Sethi and Ors.4: Income per month to be taken

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as Rs.8000/- per month, future prospects to be taken at 50% of the
monthly income and not 20% as held by the Tribunal, personal expenses
of 1/4th to be deducted, therefore dependency to be Rs.9000/- per month,
multiplier to be applied to be 17 and not 16 as applied by the Tribunal,
total calculation of dependency to be Rs.18,36,000/- (Rs.9000 x 12 x 17),
loss of estate to be enhanced from Rs.10,000/- to Rs.16,500/-, to add loss
of consortium of Rs.44,000/- per claimant and not Rs.15,000/- payable
only to Respondent No.1 as determined by the Tribunal, to enhance
funeral expenses from Rs.2000/- to Rs.16,500/- and to enhance the rate of
interest from 6% p.a. to 9 % p.a.

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12.I have heard Mr. Dhavle, learned Counsel for the Appellant and Mr.
Mendon, learned Counsel for the Respondents and with their able
assistance I have also perused the papers and proceedings in the matter
and considered the submissions.

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4 2017 (16) SCC 680.

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First Appeal No. 2119 of 2005.doc

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13.On the first issue before this Court whether the deceased died due
to the vehicular accident and due to whose negligence the accident took
place, the Tribunal has in its judgment relied on the deposition of an eye
witness who was present in the offending bus when it met with the
accident. This eye witness has stated that at the time of the accident, the
bus was going at a fast speed and it went on the right side of the road and
then collided with an electric pole. The eye witness then got down from
the bus and saw that the bus had already hit a motorcycle which was lying
on the road. Although in his cross examination the eyewitness has
admitted that he did not see the act of the bus hitting the motorcycle and
that due to sudden braking, the bus skidded and went towards the right
side of the road, it can, in the absence of any contrary evidence, be
reasonably concluded that the motorcycle was hit by the offending bus
and then hit the electric pole causing the accident. The preponderance of
probabilities in view of the eye witness account clearly indicates that the
accident was caused due to the negligence of the bus driver of the
Appellant resulting in the death of the motorcyclist. No fault can
therefore be found with the finding of the Tribunal.

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First Appeal No. 2119 of 2005.doc

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14.I also agree with the Tribunal that the driver of the offending
vehicle was not a necessary party as the driver was driving the vehicle
belonging to the Appellant as part of his duty and the Appellant was
vicariously liable and the submission of the learned Counsel for the
Appellant that the Tribunal could not have held negligence on the part of
the driver in his absence cannot be countenanced, more so, as it was the
Appellant’s duty to examine the driver, which it has failed to do and now it
cannot turn around and say that since the driver has not been examined
the Appellant cannot be held liable for negligence.

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15.Moreover, a claimant cannot be made to suffer the consequences of
non-impleadment as the claimant is under no obligation to implead any
party as the opponent to the claim petition. This Court has also held that
even where the ground of non-joinder or no notice to the driver is raised
in the written statement, the owner or the insurer cannot be permitted to
take advantage thereof if the said ground was not effectively pursued.

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16.The non-joinder of the insurance company of the motorcycle of the
deceased is also not relevant to the proceedings as there is no case of
negligence made out or established against the deceased. Therefore the

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First Appeal No. 2119 of 2005.doc

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Tribunal's finding that the bus driver was negligent and caused the

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accident is correct in the facts and circumstances of the present case.

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17.On the issue of the quantum of compensation, the Appellant has
submitted that the Tribunal has wrongly calculated the income for loss of
compensation and wrongly awarded Rs.12,61,944/- (inclusive of no fault
liability) and that it has totally miscalculated the compensation in respect
of loss of income to the deceased and that the Respondents are not
entitled to the compensation as awarded. Except these bald claims it has
not been specifically pointed out as to how the compensation for loss of
income is wrong or how the miscalculation has been done. There is no
contra evidence with respect to the finding of the Tribunal that the
deceased was an employee of a private company getting a salary of
Rs.8000/- per month plus usual perks including the motorcycle he was
driving at the time of the accident. No contrary evidence has been brought
before this Court.

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18.The Hon’ble Supreme Court in the case of National Insurance
Company Limited v Pranay Sethi and Ors. (supra)has clearly laid down
the law with respect to future prospects and held that while determining

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First Appeal No. 2119 of 2005.doc

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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, and therefore in the
present case, considering the age of the deceased and that the deceased was
working in a private company and would have made progress in his work
and earned more salary in the future, an addition of 50% should be made
towards future prospects as opposed to 20% as granted by the Tribunal. Also,
as per the decision of the Hon'ble Supreme Court in the case of Sarla Verma
v. Delhi Transport Corporation and others (supra), the deduction towards
personal and living expenses should be 1/4th . Also, considering the above
decision, the multiplier as per the age of the deceased should be 17 and not
16. It is to be remembered that under Section 168 of the M.V.Act the
claimants are entitled to just and reasonable compensation. Therefore,
considering that Rs.8000/- was the income of the deceased per month, the
total dependency compensation would be Rs.18,36,000/-. Further, as
mandated by the Hon'ble Supreme Court in the case of National Insurance
Company Limited v Pranay Sethi and Ors.(supra), loss of estate, loss of
consortium and funeral expenses should be Rs. 15,000/-, Rs. 40,000/- and
Rs. 15,000/- respectively and the aforesaid amounts should be enhanced at
the rate of 10% in every three years. Therefore loss of estate to be
Rs.16,500/-, loss of consortium to be Rs.44,000/- per dependent (and not

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First Appeal No. 2119 of 2005.doc

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Rs.15,000/- payable only to Respondent No.1 but to the Respondents

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No.2, 3 and 4 as well) as per the principles laid down in the
aforementioned decisions as well as the decision in Magma General
Insurance Co. Ltd. Vs. Nanu Ram @ Chuhru Ram & Others5 and funeral

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expenses to be Rs.16,500/- and not Rs.2000/- as held by the Tribunal.

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19.Therefore, in the light of the principles settled in the above quoted
decision of the Hon'ble Supreme Court, this Court is of the view that the
Respondents are entitled to compensation as per the following
computation:

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Sr. No.	Particulars	Amount
1.	Per month salary	Rs.8000/-
2.	Add future prospects 50%	Rs.4000/-
3.	Less 25% personal expenses of deceased	Rs.3000/-
4.	Total ( 1+2-3) per month	Rs.9000/-
5.	Multiplier	17
6.	Total dependency calculation (9000 x 12 x 17)	Rs.18,36,000/-
7.	Loss of consortium Rs.44,000/- for 4 claimants	Rs.1,76,000/-

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5 2018 ACJ 2782 (SC)

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First Appeal No. 2119 of 2005.doc

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8.	Funeral expenses	Rs.16,500/-
9.	Loss of estate	Rs.16,500/-
10.	Total Compensation (6+7+8+9)	Rs.20,45,000/-

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20.Ergo, the Appellants are entitled to a total compensation of
Rs.20,45,000/- inclusive of amount of compensation under 'no-fault'
liability along with interest thereon at the rate of 6% per annum to be
paid by the Appellant from the date of filing of the petition till realization,
to be distributed amongst the Respondents in the manner and proportion
as mentioned in the judgment and award dated 25th February, 2005 of the
Motor Accident Claims Tribunal, Thane in Motor Accident Claim Petition
No.635 of 2002 less the amount already withdrawn, if any.

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21. The Appeal is hereby dismissed and the cross objection is allowed as above. The judgment and award dated 25^th February, 2005 of the Motor Accident Claims Tribunal, Thane in Motor Accident Claim Petition No.635 of 2002 be modified to the above extent.

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22.No order as to costs.

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(ABHAY AHUJA, J.)

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ARTI VILAS KHATATE Digitally signed by ARTI VILASKHATATE Date: 2024.01.30 13:58:49 +0530

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The Transport Manager, Thane Municipal Transport v. Reetadevi Sanjay Pandey and Ors.

Case brief

What is this about?

What did the court decide?

The Transport Manager, Thane Municipal Transport v. Reetadevi Sanjay Pandey and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

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