IMACHAL ROAD TRANSPORT Vs. ARVIND SINGH MANN

JUDGEMENT

(1.) A common question of law, which arises for determination in these Letters Patent Appeals, is as to whether the payment made by the State Government under the Scheme known as 'Himachal Pradesh Scheme for the payment of ex gratia grant to a passenger' (hereinafter referred to as 'the Scheme'), previously known as 'Himachal Pradesh Passenger Insurance Scheme' framed by the State of Himachal Pradesh under Section 3 A of the Himachal Pradesh Passengers and Goods Taxation Act, 1955 (Act No. 15 of 1955) (hereinafter referred to as 'the Passengers and Goods Taxation Act') and the amount paid by the appellant, namely, the Himachal Road Transport Corporation, by way of interim relief immediately after an accident is liable to be deducted from out of the amount of compensation awarded by the Tribunal to the claimants under the provisions of the Motor Vehicles Act, 1939 (as replaced by Motor Vehicles Act, 1988) (hereinafter to be called as 'the Act').

(2.) THE State legislature enacted Passengers and Goods Taxation Act, 1955, with a view to provide for levying of tax on passengers and goods carried by road in certain motor vehicles. Section 3 A was added to the principal Act by the Himachal Pradesh Passengers and Goods Taxation (Amendment) Act, 1977 (Act No. 1 of 1978) which came into force on and with effect from February 3, 1978 and provides for levying of surcharge on the tax payable by every passenger carried by a stage/ contract carriage for the purpose of insurance of passengers under the Scheme which was required to be prepared and notified by the State Government. Section 3 A of the Act reads as under:

(3.) BESIDES the aforementioned Scheme, which was framed by the State Government, the Board of Management of the appellant Corporation separately took a decision for grant of interim reliefs to the victims of accident immediately after any accident. In case of death, the amount of interim relief payable to the heirs was initially Rs. 1,000/ and now it is Rs. 3,000/ , whereas in case of injury such amount payable to an injured was Rs. 200/ which is now Rs. 500/ . According to the appellant, these payments of interim relief and of the amount under the provisions of the Scheme should be taken into consideration and deducted from out of the amount of compensation payable to a claimant under the provisions of the Act.