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2025 DIGILAW 1850 (JHR)

Manager (Legal) M/s The New India Assurance Company Limited v. Bandana Devi, W/o Late Vakil Sah

2025-09-10

GAUTAM KUMAR CHOUDHARY

body2025
JUDGMENT : Gautam Kumar Choudhary, J. Heard, learned counsel for the parties. 1. I.A. No.5463 of 2023 (in M.A. No.163 of 2023) with I.A. No.5464 of 2023 (in M.A. No.164 of 2023). Heard, learned counsel for the appellants on the aforesaid I.As. for condonation of delay of 134 days in preferring both the aforesaid Misc. Appeals. Learned counsel for the claimants/ Respondents has not raised any serious objection. Considering the grounds taken, the prayer made in both the Interlocutory applications is allowed and delay of 134 days in preferring both the aforesaid Misc. Appeals is allowed. Both the I.As. stand disposed of. M. A. No.119 of 2023 with M.A. No.163 of 2023 with M.A. No.164 of 2023 with M.A. No.165 of 2023. 2. M.A. No.119 of 2023 has been preferred against the judgment/ Award dated 30.09.2022 passed by learned Principal District Judge-cum- Presiding Officer, M.A.C.T., Dhanbad, in Motor Accident Claims Case No.59 of 2021. M.A. No.163 of 2023 has been preferred against the impugned judgment/ Award dated 30.09.2022 passed by learned Principal District Judge-cum-Presiding Officer, M.A.C.T., Dhanbad in Motor Accident Claims Case No.66 of 2021. M.A. No.164 of 2023 has been preferred against the impugned judgment/ Award dated 30.09.2022 passed by learned Principal District Judge-cum-Presiding Officer, M.A.C.T., Dhanbad in Motor Accident Claims Case No.65 of 2021. M.A. No.165 of 2023 has been preferred against the impugned judgment/ Award dated 30.09.2022 passed by learned Principal District Judge-cum-Presiding Officer, M.A.C.T., Dhanbad in M. A. C. Case No.67 of 2021. 3. All the aforesaid four Misc. Appeals arise out of separate claim cases and the impugned award of compensation passed under Section 166 M.V. Act, with respect to a common accident that took place on 05.07.2019 at about 3:00 p.m. involving a Tempo bearing Registration No.BR 10PA/ 1543 and a Bus bearing Registration No.JH-04M /9327 resulting into death of four persons who were travelling in the vehicle i.e. Tempo. 4. The claimants preferred separate claim case(s) and separate Award has been passed. Aggrieved by the same, all the aforesaid four Misc. Appeals have been preferred by the appellants- Insurance Company. 5. Since common questions of fact and law are involved, they are heard together and are being disposed of by the common order/ judgment. 6. The facts are not in dispute. 7. Aggrieved by the same, all the aforesaid four Misc. Appeals have been preferred by the appellants- Insurance Company. 5. Since common questions of fact and law are involved, they are heard together and are being disposed of by the common order/ judgment. 6. The facts are not in dispute. 7. Learned counsel for the appellants- M/s The New India Assurance Company Limited submits that the main ground of challenge to the impugned Award is regarding the breach of the terms of the insurance policy, as the licence of the driver of the offending vehicle [which has been adduced into evidence and marked as Ext.A on behalf of the Insurance Company] was not valid at the time of accident and the same was renewed after the accident i.e. on 12.07.2019, whereas the accident took place on 05.07.2019. 8. It is submitted that the Driving licence had expired on 18.08.2018 whereas it was renewed on 12.07.2019 i.e. after a period of one year. 9. Learned counsel for the appellants [in M.A. Nos.164 of 2023 and 165 of 2023] submits that the deceased (s) was bachelor at the time of accident, so deduction on personal living expense should be @50%, whereas the learned Tribunal has taken it to be 1/3 rd , as such, the same needs modification. 10. It is argued by learned counsel for the Respondent/ owner of the vehicle that the law is settled that where there is a Driving Licence at the relevant time of accident, and the driver failed to renew the same, this will not constitute a breach of the insurance policy in terms of Section 149 of the M. V. Act. It has been held by the Apex Court in the case of Beli Ram Vs. Rajinder Kumar & Anr., reported in (2022) 15 SCC 572 wherein it has been held that despite the fact that during interregnum period when the accident took place at that time the licence had expired and the same could not be renewed within the prescribed period then it will not constitute a breach of the insurance policy. 11. So far the non-renewal licence is concerned, the settled position of law is that the owner cannot be held liable for it and will not constitute a breach of term of insurance policy. 11. So far the non-renewal licence is concerned, the settled position of law is that the owner cannot be held liable for it and will not constitute a breach of term of insurance policy. Learned Tribunal has passed a reasoned order on the basis of the judgment rendered by the Apex Court in the case of United India Insurance Company Ltd. vs. Lehru & Ors., (2003) 3 SCC 338 . 12. Accordingly, plea of the terms and conditions of the policy in all these cases is not sustainable and accordingly the challenge to the impugned judgment and award in all these appeals on this ground fails. 13. M. A. No.119 of 2023 and M.A. No.163 of 2023 being devoid of merit stand dismissed. Pending I.A(s), if any, also stands disposed of. 14. So far M. A. No.164 of 2023 and M.A. No.165 of 2023 are concerned, there is merit in the submission that in both these cases, the deceased was a bachelor and, therefore, the dependency will be computed on deducting @ 50% as the personal living expense of the deceased. 15. Under the circumstance in both M.A. No.164 of 2023 and M.A No. 165 of 2023, the final compensation will be as under :- Annual income of the deceased taking Rs. Rs.15,000/- as monthly income + 40% as Future prospect Rs.15,000/- + Rs.15,000/- X 40% as Future prospect] i.e. 6,000/- = Rs.21,000/- Annual Dependency after deducting as ½ [being Bachelor] Rs.21,000/- Minus Rs.10,500/- = Rs.10,500/- Multiplier taking 18 years as the age of the deceased to be 12 years at the time of the accident 18 Rs.10,500/-X 18 =Rs.1,89,000/- Loss of Estate, Funeral Expenses and Loss of Consortium Rs.77,000/- Rs.77,000/- Total Rs.2,66,000/- 16. The appellant(s)- Insurance Company is liable to pay a sum of Rs. 2,66,000/- with interest at the rate of 7.5% per annum from the date of filing of the claim application till its realization to the claimant(s), in each Motor Accident Claim Case Nos. 65 and 67 of 2021. The payment shall be made within a month from the date of this order by the Insurance Company to the learned Tribunal and thereafter the Tribunal will disburse the same as per the terms fixed by it to the claimants within two weeks. 17. It goes without saying that the amount already paid shall be deducted in final compensation amount. 18. 17. It goes without saying that the amount already paid shall be deducted in final compensation amount. 18. M.A. No.164 of 2023 and M.A. No.165 of 2023 are partly allowed, Pending I.A(s), if any, also stands disposed of. 19. The statutory amount deposited at the time of preferring all the four Misc. Appeals shall be remitted to the learned Tribunal at the earliest so as to disburse/ adjust to the claimants.