NEW INDIA ASSURANCE CO LTD Vs. PADAM SINGH

JUDGEMENT

(1.) THIS is an appeal of the insurance company from a judgment and award of compensation dated 4th May, 2007 passed by the concerned motor Accidents Claims Tribunal, Muzaffarnagar, u. P. for a sum of Rs. 1,52,000/- along with interest on account of death of a child aged about 8 years in a claim petition under section 166 of the Motor Vehicles Act, 1988 (hereinafter called as 'act' ). The application of the insurance company under Section 170 of the Act was allowed by the Tribunal saying that the vehicle owner did not contest the proceeding. Therefore, the order is reasoned order as per ratio of the judgment and order dated 1st August, 2007 in First Appeal from Order No. 2087 of 2007 (United india Insurance Co. Ltd. v. Krishna Kumar and Ors.) following the ratio of 2003 (7) SCC 212 : (AIR 2003 SC 3127), (United India Insurance Co. Ltd. v. Jyotsnaben Sudhirbhai patel and others ). According to the learned counsel appearing for the appellant, the quantum of compensation granted by the tribunal is in the higher side in view of the ratio of the judgment reported in 2007 (3)TAC 16 : (AIR 2007 SC 1912) (Kaushlya Devi v. Shri Karan Arora and others), whereunder the awarded compensation was Rs. 1,00,000/- along with interest for only child of the parents who expired at the age about 14 years, unlike the present one, where out of two children of the parents one has expired. Therefore, the awarded amount should be less than the awarded amount of the above referred case.

(2.) ACCORDING to us, the submission of the insurance company is too harsh in nature being forgetful that the Act itself is a social piece of legislation whereunder equitable principle will be applicable to test the factum of each and every case independently before granting any award of compensation. It is more so in a case of claim petition under section 166 of the Act, where the Tribunal has to arrive at a quantum of 'just' compensation. The expression 'just' denotes equitability, fairness and reasonableness, and non-arbitrariness. In (2004) 3 SCC 287 : (AIR 2004 SC 1531), (National Insurance co. Ltd. v. Swaran Singh and others) a three judges Bench of the Supreme Court has categorically held the following at the time

(3.) IT is established by now that the award cannot be made on the basis of mathematical precision but upon considering various aspects of the matter in the light of the Act being a piece of social welfare legislation. The Act is tilted towards the claimants with such objects and reasons. Therefore, when the Parliament made such Act and the supreme Court confirmed, there should not be any departure. The intention of the legislature is that one should take a pragmatic approach in granting an award of compensation.