38.6c New Delhi, India, Saturday, June 22, 2024

MV Act: Court Can Grant Compensation Of Any Amount In Excess To What Has Been Claimed: SC [Read Order]

By LawStreet News Network      25 November, 2019 11:11 AM      0 Comments

The Supreme Court on November 13, 2019, in the case of Jabbar v. The Maharashtra State Road Transport Corporation, has observed that the court under the Motor Vehicles Act, 1988, can grant compensation of any amount in excess to that which has been claimed.

A Division Bench comprising of Justices Ashok Bhushan and M.R. Shah was hearing an appeal filed against the judgment and order passed by the High Court wherein it had enhanced the compensation granted to the appellant from Rs.1.50 lac to Rs.2.50 lac.

The appellant was a fruit seller whose right hand was amputated after the accident. In the claim petition, he has claimed that he is entitled for compensation of Rs.9,05,000/- from the respondents. However, due to financial crisis, he was unable to pay court fees on the said amount and thus restricted his claim to the tune of Rs.3,00,000/-. The Tribunal accepted the case setup by the appellant and allowed the claim to Rs.1.50 lacs. 

On appeal, the High Court enhanced the compensation granted to the appellant from Rs.1.50 lac to Rs.2.50 lac. Being unsatisfied with the amount of compensation, the appellant moved the Supreme Court. 

The learned counsel for the appellant submitted before the Supreme Court that the High Court having noticed that the appellant was carrying business of fruits on a hand-cart, the amputation of right hand has made the business of the appellant non-functional. In this view, the amount of Rs.2.5 lacs awarded by the High Court is neither fair nor a just compensation.

Learned counsel for the respondent, on the other hand, submitted that the appellant having confined his claim to Rs.3 lacs before the High Court cannot be allowed to contend that he is entitled for any higher compensation.

After hearing both the parties, the court took into consideration the injury caused to the appellant which resulted into permanent disability substantially affecting his business and opined that the award of Rs.2.5 Lakhs cannot be held to be a just and reasonable compensation.

This Court in large number of cases has laid down that it is permissible to grant compensation of any amount in excess to that one which has been claimed. This Court in exercise of jurisdiction under Article 142 of the Constitution has awarded just and reasonable compensation,” the court said. 

It referred to a judgment in Ramla v. National Insurance Company Limited [(2019) 2 SCC 192] wherein the apex court had observed that “There is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 is to award "just compensation". The Motor Vehicles Act is beneficial and welfare legislation. A "just compensation" is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time barred. Further, there is no need for a new cause of action to claim an enhanced amount. The Courts are duty bound to award just compensation."

Placing reliance on the above judgment and also noting that in the claim petition the appellant had expressly stated that if it is entitled to get more than Rs.3 Lakhs, the claimant is ready to deposit deficient court fee, the court allowed the appeal and granted an amount of Rs.5 lacs as compensation to the appellant.

[Read Order]

Share this article:

User Avatar

Leave a feedback about this

Trending Judiciary
Gravity of offence not relevant when considering bail for juvenile [Read Order]

Allahabad High Court grants bail to a juvenile in a serious criminal case, ruling that the gravity of the offence is not a relevant factor in bail decisions.

22 June, 2024 11:18 AM
Trending Executive
New Anti-Cheating Law enacted: Analysis

In-depth analysis of India’s new Anti-Cheating Law, the Public Examinations (Prevention of Unfair Means) Act, 2024, aimed at curbing exam malpractices.

22 June, 2024 11:38 AM


Trending Crime, Police And Law
Women, including housewife, approach NCW against controversial IPS officer Gyaneshwar Singh

Two women approach NCW against controversial IPS officer Gyaneshwar Singh, citing harassment for tweets based on news reports about his involvement in high-profile cases.

17 June, 2024 03:10 PM
Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [June 10 - June 15]

Get the latest updates from the Supreme Court of India and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

17 June, 2024 03:29 PM
Trending Business
Man sues Apple for £5 million, blaming company for divorce after wife discovers ‘deleted messages’ with sex workers

A UK man sues Apple for £5M, claiming their unclear policy on deleted messages led to his divorce after his wife found texts to sex workers on another device.

17 June, 2024 04:26 PM
Trending Crime, Police And Law
Ex-Karnataka CM Yediyurappa appears before CID for POCSO case probe, with protection of 'no arrest'

Ex-Karnataka CM Yediyurappa appears before CID for POCSO case probe, denies allegations, granted ‘no arrest’ protection. Next hearing: June 28.

17 June, 2024 04:46 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email