Case: Smt. Rajendra Kumari &amp; Another Vs. Smt.Shanta Trivedi &amp; Others

2. In the night between December 3 and 4,1966, Hari Singh, since deceased, the husband of appellant 1 and the father of appellant 2, hired an Ambassador car belonging to the Rajasthan Manila Parishad for going to his native village at Kangeti in Madhya Pradesh from Udaipur in Rajasthan. When the car had gone 21 miles from Udaipur, it collided with a truck coming from the opposite direction. It skidded and hit against a tree. As a result of the accident, Hari Singh died on the spot and one Shankar Lal who was also travelling in the same car and happened to be the friend of Hari Singh received some injuries3. At the time of his death, Hari Singh was only 25. He left behind him his wife, appellant 1 who was only 18 and appellant 2, his daughter, then only a child4. The appellants filed a petition before the Motor Accident Claims Tribunal, Udaipur, claiming a sum of Rs.l lakh as compensation5. The Tribunal came to the finding that the accident which resulted in the death of Hari Singh was due to the rash and negligent driving of the car. The Tribunal disposed of the issue as to the claim of the appellants for compensation of Rs 1 lakh as follows:Claimants of Case No.3 of 1967 have claimed compensation of Rs 1 lakh which appears to be excessive. In my opinion an amount of Rs.10,000 would be adequate. The issue is decided accordingly6. The Tribunal has not given any reason why the claim of the appellants for compensation of Rs.1 lakh could not be accepted. At this stage, it may be stated that the case of the Insurance Company which was opposite party 3 before the Tribunal was that its liability was only up to a sum of Rs.4,000. Issue No.7 that was framed by the Tribunal relating to the liability of the Insurance Company is extracted below:7. Whether the liability of opposite party 3 cannot exceed Rs.4,000 in each case7. The finding of the Tribunal on issue No.7 is as follows:The learned counsel for the claimants conceded that the liability of the Insurance Company could not exceed Rs.4,000 in each case. Issue is accordingly decided in favour of the opposite party 38. Upon the said findings, the Tribunal made an award for Rs.10,000 in favour of the appellants against the opposite parties including the Rajasthan Manila Parishad and the driver of the truck assessing the liability of the Insurance Company to the extent of Rs.4,000 only9. Being aggrieved by the award of the Tribunal, the appellants preferred an appeal to the Rajasthan High Court challenging only the adequacy of the amount of compensation as awarded by the Tribunal. A cross-objection was also filed by the Rajasthan Mahila Parishad, the owner of the car. The High Court, as stated already, affirmed the award and dismissed the appeal and the cross-objection. Hence this appeal by special leave.

Court's reasoning:
11. We are unable to understand the reasons given by the High Court in finding that the amount of compensation as awarded by the Tribunal was quite adequate. The High Court has not disbelieved the evidence of appellant 1 that her husband had an income of Rs.1,000 a month. It is true that Hari Singh was a student at the time of his death, but he was also looking after the business of his father and earning a sum of Rs.1,000 a month. There is no reason to disbelieve the evidence of appellant 1 about the income of Hari Singh12. Even at the modest computation, the contribution of Hari Singh towards his family could not less than Rs.500 per month, that is, Rs.6,000 per year. Taking the normal span of life to be 60 years, Hari Singh would have lived for another 35 years. It is apparent that the appellants have been deprived of more than a lakh or rupees and, accordingly, their claim for Rs 1 lakh on account of compensation was quite reasonable. Both the Tribunal and the High Court were not justified in assessing the amount of compensation payable to the appellants at Rs.10,000 onlyIt has been already noticed that the appellants conceded before the Tribunal that the liability of the Insurance Company did not exceed the sum of Rs.4,000. Indeed, as the law stood at the material time, the maximum liability of the Insurance Company in such a case was only to the tune of Rs.4,000. In the appeal before the High Court, the appellants did not challenge the finding of the Tribunal that the statutory liability of the Insurance Company was Rs.4,000 only as conceded to by the appellants. For the first time in this Court, it is submitted that respondent 4 is liable for the entire amount of compensation. It is urged by Mr.Lodha appearing for the appellants that it was incumbent upon respondent 4 to file before the Tribunal the policy of insurance in order to show that apart from the statutory liability up to Rs.4,000, respondent 4 had no further liability under the policy in excess of the statutory liability. In support of the contention, much reliance has ben placed by the learned counsel on a decision of this Court in National Insurance Company Ltd. v. Jugal Kishore National Insurance Company Ltd. v. Jugal Kishore (1988)1 S.C.C. 626: 1988 S.C.C. (Crl) 222: 1988 A.C J. 270: A.I.R. 1988 S.C. 719. In that case, it has been observed that where the Insurance Company concerned wishesto take a defence in a claim petition that its liability is not in excess of the statutory liability, it should file a copy of the insurance policy along with its defence. This decision in our opinion, is not applicable to the facts of the instant case. It has been already noticed that before the Tribunal the appellants had categorically admitted that the liability of the Insurance Company extended to Rs.4,000 only. In the circumstances, we do not think that it was incumbent upon the Insurance Company to file the policy. The contention made on behalf of the appellants is, accordingly, rejected14. In the result, we direct that the appellants are entitled to a sum of Rs.l lakh (Rupees one lakh only) on account of compensation. Out of the said sum, the Insurance Company respondent 4, is liable to pay Rs.4,000 only and respondents 1,2 and 3 including the Rajasthan Manila Parishad are jointly and severally liable to pay to the appellants the remaining amount. The respondents shall deposit the decretal amount to the extent of their respective liabilities in the Motor Accident Claims Tribunal, Udaipur, within two months from date; in default, the decretal amount or so much thereof as will remain outstanding will bear interest at 12 per cent per annum till realisation.