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2018 DIGILAW 544 (SC)

Puttappa v. Rama Naik

2018-04-02

A.M.KHANWILKAR, D.Y.CHANDRACHUD, DIPAK MISRA

body2018
ORDER 1. Heard Mr. Raghupathy, learned counsel appearing for the appellants and Mr. S.L. Gupta, learned counsel appearing for respondent no. 2-insurer. 2. On a perusal of the award dated 01.06.2011 passed by the Motor Accident Claims Tribunal-7 (for short, ‘the tribunal’), Bangalore and the judgment and order dated 11.12.2015 passed by the High Court, we do not find any error in fixing the liability on the owner and the driver. 3. However, we are of the considered opinion, the High Court should have directed to invoke the principle of ‘pay and recover’ conferring the right on the insurer to realise the amount from the owner and the driver. 4. At this juncture, Mr. Raghupathy submitted, the amount granted by the tribunal is erroneous inasmuch as the multiplier of 11 has been applied and compensation towards the head ‘future prospects’ has not been granted. 5. Be it stated, the tribunal had awarded an amount of Rs. 2,45,000/- (Rupees two lac forty five thousand) which was enhanced by the High Court to a sum of Rs. 3,09,000/- (Rupees three lac nine thousand). 6. It is submitted by Mr. Gupta, learned counsel appearing for respondent no. 2-insurer that as the principle of ‘pay and recover’ has been invoked in this case by this Court, this Court may fix a lump sum amount. The said position is acceded to by Mr. Raghupathy, learned counsel appearing for the appellant-claimants. 7. In view of the aforesaid, we think it appropriate, the cause of justice should be best subserved if the amount, as awarded by the tribunal and as enhanced by the High Court, is further enhanced to a lump sum amount of Rs. 5,00,000/- (Rupees five lac only). The enhanced amount shall be deposited by the respondent no. 2-insurer with the tribunal within twelve weeks hence failing which it shall carry interest @ 9% p.a. from the date of presentation of the application before the tribunal. 8. We reiterate that the respondent no. 2-insurer shall be at liberty to realise the amount in accordance with law from the owner and driver of the offending vehicle. 9. The appeal is disposed of in the above terms. There shall be no order as to costs.