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2017 DIGILAW 801 (KER)

Rajan S/o. Late Raman v. Biju S/o. Kunjappan

2017-05-25

A.HARIPRASAD, C.K.ABDUL REHIM, SHIRCY V.

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ORDER : Hariprasad, J. Apparent conflict between two decisions, rendered by co-equal Benches, in respect of the award of compensation under Section 163A of the Motor Vehicles Act, 1988 (in short, "the Act"), is the cause of these references. In Joseph v. Giji Varghese ( 2009 (4) KLT 199 ) a Division Bench of this Court took a view that in a case, where the claimants are not dependents, no amount can be awarded taking note of the multiplier based on age of the deceased or on age of the claimant as provided under structured formula in Second Schedule under Section 163A of the Act. Another Division Bench in Kadeeja v. Kerala State Road Transport Corporation (2013 (4) KLT 683) expressed a view that dependency is not relevant in a claim for compensation under Section 163A of the Act and the Tribunal need not go into the question as to selection of the multiplier. 2. We heard Sri. T.N. Manoj and Sri. A.R. George, learned counsel appearing for the contesting parties. 3. Section 163A of the Act falls under Chapter XI dealing with insurance of motor vehicles against third party risks. The provision reads as follows: "163A. Special provisions as to payment of compensation on structured formula basis.- (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. Explanation.- For the purposes of this sub-section, "permanent disability" shall have the same meaning and extent as in the Workmen's Compensation Act, 1923 (8 of 1923). (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person. (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person. (3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule." Mere look at the Second Schedule to the Act will show that it prescribes quantum of compensation for third party fatal accidents/injury claims. On a perusal of the Schedule, it could be seen that the amounts have been quantified depending on age of the victim, multiplier and annual income ranging between Rs.3,000/- to Rs.40,000/-. This Schedule is inserted by Act 54 of 1994 with effect from 14.11.1994. 4. As per the Section, the persons entitled to claim compensation on the basis of structured formula provided under Section 163A of the Act are the legal heirs or the victim, as the case may. 5. Section 166 of the Act deals with the applications for compensation arising out of accidents of the nature specified in Section 165(1) of the Act. Application for compensation under Section 166 of the Act can be made by the following persons: "(a) by the person who has sustained the injury; or (b) by the owner of the property; or (c) where death has resulted from the accident, by all or any of the legal representatives of the deceased; or (d) by any agent duly authorised by the person injured or all or any of the legal representatives of the deceased, as the case may be:" This provision is an extension of tortious liability and compensation can be claimed only on proof of any wrongful act or neglect or default of the owner of the vehicle or of any other person. The expression 'any other person' certainly includes the driver. This element is not required in a claim under Section 163A of the Act. The expression 'any other person' certainly includes the driver. This element is not required in a claim under Section 163A of the Act. This Section provides that the legal heirs or the victim, as the case may be, can claim compensation; whereas Section 166 of the Act clearly show that apart from the injured person, owner of the property which sustained damage in the accident or where death has resulted from the accident, by all or any of the legal representatives of the deceased or the agent duly authorised by the injured person or all or any of the legal representative of the deceased can claim compensation. It is therefore clear that the persons eligible for making a claim under Section 163A and Section 166 of the Act belong to different categories. 6. Supreme Court in Deepal Girishbhai Soni v. United India Insurance Co. Ltd. 2004 (2) KLT 395) and Oriental Insurance Co. Ltd. v. Dhanbai Kanji Gandhiv AIR 2011 SC 1138 ) has held that remedy for payment of compensation both under Section 163A and Section 166 of the Act being final and independent of each other as statutorily provided, a claimant cannot pursue his remedies thereunder simultaneously. The claimant must opt/elect to go either for a proceeding under Section 163A or under Section 166 of the Act, but not under both. It is therefore clear that the provisions are mutually exclusive. It is all the more clear from the nature of liability cast on the owner of the motor vehicle or the authorised insurer by virtue of the phraseology employed in Section 163A of the Act. 7. A Division Bench of this Court in National Insurance Co. Ltd. v. Chacko (2011 (3) KLT 693) has correctly held that in a claim under Section 163A of the Act, negligence is absolutely irrelevant. It was further held in the above decision that the extent of dependency is also irrelevant to ascertain the quantum of compensation. 8. 7. A Division Bench of this Court in National Insurance Co. Ltd. v. Chacko (2011 (3) KLT 693) has correctly held that in a claim under Section 163A of the Act, negligence is absolutely irrelevant. It was further held in the above decision that the extent of dependency is also irrelevant to ascertain the quantum of compensation. 8. Apex Court in Sarla Verma v. Delhi Transport Corporation 2010 (2) KLT 802), after referring to the decisions in General Manager, Kerala State Road Transport Corporation v. Susamma Thomas ( (1994) 2 SCC 176 ), U.P. State Road Transport Corporation v. Trilok Chandra (1996(2) R.R.R. 718 : (1996) 4 SCC 362 ) and other relevant decisions, considered the manner in which compensation has to be calculated based on multiplier method and formulated multiplier to be used in claims under Section 163A of the Act. This decision was considered and approved by a three Judge Bench of the Supreme Court in Reshma Kumari and others v. Madan Mohan and another (2013) 9 SCC 65 ). It was found that if the multiplier as indicated in column (4) of the table mentioned in paragraph 40 of the judgment in Sarla Verma's case read with paragraph 42 of that judgment is followed, wide variations in the selection of multiplier in claims for compensation in fatal accident cases could be avoided. 9. In the light of the plain wording employed in Sections 163A and 166 of the Act as well as the principles emerged out of binding precedents, we are of the view that in a claim under Section 163A of the Act, apart from the victim, the legal heirs of the victim are also entitled to compensation in contradistinction to the legal representatives empowered under Section 166 of the Act. Therefore, we are of the considered view that the observation in Joseph v. Giji Varghese ( 2009 (4) KLT 199 ) that in a case where the claimants are not dependents, no amount can be awarded taking note of the multiplier as provided under structured formula in the Second Schedule under Section 163A of the Act is not a correct proposition of law. Of course, the selection of multiplier must be on the guiding principles laid down in Sarla Verma and Reshma Kumari, mentioned above. Of course, the selection of multiplier must be on the guiding principles laid down in Sarla Verma and Reshma Kumari, mentioned above. The view taken by the Division Bench in Kadeeja v. Kerala State Road Transport Corporation (2013 (4) KLT 683) lays down the correct principle under Section 163A of the Act. In a claim under the said provision, dependency has no relevancy because the persons eligible to file an application for compensation for death are the legal heirs and not the legal representatives. In the result, we affirm the view taken in Kadeeja's case. References answered accordingly. The matters shall be placed before appropriate Bench for disposal.