Case: RANI Vs. NATIONAL INSURANCE COMPANY LTD

also for further enhancement of compensation amount. Similarly, Anand, the injured pillion rider, has also filed a separate appeal challenging the decision of the High Court in restricting the liability to pay compensation amount to that of the owner of the offending vehicle but also on the quantum of compensation amount. In both the appeals, it is alternatively urged that the compensation amount payable to the respective claimants should be first paid by the Insurance Company with liberty to recover the same from the owner of the offending vehicle, respondent No.2 herein. 9. The respondent No.1 Insurance Company, on the other hand, submits that by virtue of statutory provisions, it cannot be made liable to pay the compensation amount as the offending vehicle did not have a valid permit for being operated in the State of Karnataka. It is also contended that no direction be issued against the Insurance Company to pay and recover as it may be difficult for the Insurance Company to trace the owner of the offending vehicle. For, the owner of the offending lorry has not chosen to appear even before this Court. 10. We have heard Mr. Anand Sanjay M. Nuli, learned counsel appearing for the appellants and Mr. Parmanand Gaur, learned counsel for the respondents. 11. Taking the appeal filed by the legal representatives of the deceased (Satish) first, as mentioned earlier, they did not file any appeal challenging the award passed by the Tribunal determining the compensation amount payable to them at Rs.4,53,000/- (Four Lakh Fifty Three Thousand only) with interest at the rate of 6% per annum from the date of petition till the date of deposit. It is respondent No.1 Insurance Company who had challenged the award in favour of the claimants and in those appeals, the claimants (including appellants in Civil Appeal No.9078 of 2017) filed cross objections which, however, came to be dismissed for non- removal of office objections. Nevertheless, the High Court enhanced the compensation amount payable to them by invoking power under Order 41 Rule 33 of the Civil Procedure Code (C.P.C.). The Insurance Company has not challenged the said view taken by the High Court as it has already succeeded in getting a finding from the High Court that the liability to pay compensation amount was restricted to that of the owner of the offending vehicle, namely respondent No.2 herein. 12. Assuming that the legal representatives of the deceased (Satish) (appellant in Civil Appeal No.9078 of 2017) could ask for enhancement of the compensation amount in the present appeal whilst challenging the finding of the High Court to absolve the Insurance Company of its liability to pay the compensation amount, the question is whether the appellants are justified in claiming further enhanced compensation amount. 13. The Tribunal has found that no evidence regarding the income of the deceased (Satish) was produced by the claimants. That finding has not been over turned by the High Court. The High Court, however, relied upon the driving licence of the deceased and training certificate of the deceased issued by Bajaj Auto Limited and on that basis, determined the notional income of Satish (Deceased) at the time of accident at Rs.10,000/- per month. Neither the driving licence nor the certificate could per se be made the basis to assume or infer that the deceased (Satish) was gainfully employed at the relevant time and moreso was earning income of Rs.10,000/- per month. In other words, the reason assigned by the High Court for enhancing the notional income of the deceased (Satish) from Rs. 3000/- to Rs.10,000/- per month is irrational and tenuous. No tangible logic has been assigned to discard the just finding recorded by the Tribunal in the backdrop of lack of evidence regarding the monthly income of the deceased (Satish). 14. We are of the view that the High Court has already granted more than just compensation amount to the legal representatives of the deceased (Satish). In that, even if the claim of the appellants regarding future prospects, additional medical expenses and additional interest amount was to be accepted, on the basis of the notional income of Rs.5000/- (Rupees five thousand) per month, the question of awarding additional or further compensation amount to the appellants in M.F.A. No.5874 of 2011 does not arise. The appeal, however, would succeed to the limited extent that the amount of compensation determined by the High Court shall be first paid by the respondent No.1 Insurance Company with liberty to recover the same from the owner of the offending vehicle (respondent No.2 herein). We are inclined to allow the appeal to this limited extent, keeping in mind the exposition in Singh Ram Vs. Nirmala and Ors. (2018) 3 SCC 800 and Pappu and Ors. Vs. Vinod Kumar Lamba and Anr. (2018) 3 SCC 208 15. Reverting to the appeal preferred by respondent No.1 Insurance Company against Anand (M.F.A. No.5876 of 2011), as noted in paragraph Nos.11 and 12 of the impugned judgment reproduced above, the High Court 1 (2018) 3 SCC 800 2 (2018) 3 SCC 208 disposed of the said appeal by absolving the insurer from the liability to pay compensation amount. As noticed earlier, the appellant (Anand) did not file any appeal against the award passed by the Tribunal for enhancement of compensation amount and the cross objection filed by him in the appeal filed by the Insurance Company came to be dismissed for non- prosecution. Even in respect of this appeal, the Tribunal had found that he failed to produce any evidence regarding his monthly income and the permanent disability suffered by him had been determined as not exceeding 10% to the whole body and compensation had been awarded to him on that basis. Resultantly, we intend to dispose of this appeal on the same basis by directing the respondent No.1 Insurance Company to pay the compensation amount awarded to the claimant (Anand) in the first place, with liberty to recover the same from the owner of the offending vehicle (respondent No.2).

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]11. Taking the appeal filed by the legal representatives of the deceased (Satish) first, as mentioned earlier, they did not file any appeal challenging the award passed by the Tribunal determining the compensation amount payable to them at Rs.4,53,000/(Four Lakh Fifty Three Thousand only) with interest at the rate of 6% per annum from the date of petition till the date of deposit. It is respondent No.1 Insurance Company who had challenged the award in favour of the claimants and in those appeals, the claimants (including appellants in Civil Appeal No.9078 of 2017) filed cross objections which, however, came to be dismissed for nonremoval of office objections. Nevertheless, the High Court enhanced the compensation amount payable to them by invoking power under Order 41 Rule 33 of the Civil Procedure Code (C.P.C.). The Insurance Company has not challenged the said view taken by the High Court as it has already succeeded in getting a finding from the High Court that the liability to pay compensation amount was restricted to that of the owner of the offending vehicle, namely respondent No.2 herein12. Assuming that the legal representatives of the deceased (Satish) (appellant in Civil Appeal No.9078 of 2017) could ask for enhancement of the compensation amount in the present appeal whilst challenging the finding of the High Court to absolve the Insurance Company of its liability to pay the compensation amount, the question is whether the appellants are justified in claiming further enhanced compensation amount13. The Tribunal has found that no evidence regarding the income of the deceased (Satish) was produced by the claimants. That finding has not been over turned by the High Court. The High Court, however, relied upon the driving licence of the deceased and training certificate of the deceased issued by Bajaj Auto Limited and on that basis, determined the notional income of Satish (Deceased) at the time of accident at Rs.10,000/per month. Neither the driving licence nor the certificate could per se be made the basis to assume or infer that the deceased (Satish) was gainfully employed at the relevant time and moreso was earning income of Rs.10,000/per month. In other words, the reason assigned by the High Court for enhancing the notional income of the deceased (Satish) from Rs. 3000/per month is irrational and tenuous. No tangible logic has been assigned to discard the just finding recorded by the Tribunal in the backdrop of lack of evidence regarding the monthly income of the deceased (Satish)14. We are of the view that the High Court has already granted more than just compensation amount to the legal representatives of the deceased (Satish). In that, even if the claim of the appellants regarding future prospects, additional medical expenses and additional interest amount was to be accepted, on the basis of the notional income of Rs.5000/(Rupees five thousand) per month, the question of awarding additional or further compensation amount to the appellants in M.F.A. No.5874 of 2011 does not arise. The appeal, however, would succeed to the limited extent that the amount of compensation determined by the High Court shall be first paid by the respondent No.1 Insurance Company with liberty to recover the same from the owner of the offending vehicle (respondent No.2 herein). We are inclined to allow the appeal to this limited extent, keeping in mind the exposition in Singh Ram Vs. Nirmala and Ors.15. Reverting to the appeal preferred by respondent No.1 Insurance Company against Anand (M.F.A. No.5876 of 2011), as noted in paragraph Nos.11 and 12 of the impugned judgment reproduced above, the High Court 1 (2018) 3 SCC 800 2 (2018) 3 SCC 208 disposed of the said appeal by absolving the insurer from the liability to pay compensation amount. As noticed earlier, the appellant (Anand) did not file any appeal against the award passed by the Tribunal for enhancement of compensation amount and the cross objection filed by him in the appeal filed by the Insurance Company came to be dismissed for nonprosecution. Even in respect of this appeal, the Tribunal had found that he failed to produce any evidence regarding his monthly income and the permanent disability suffered by him had been determined as not exceeding 10% to the whole body and compensation had been awarded to him on that basis. Resultantly, we intend to dispose of this appeal on the same basis by directing the respondent No.1 Insurance Company to pay the compensation amount awarded to the claimant (Anand) in the first place, with liberty to recover the same from the owner of the offending vehicle (respondent No.2).