Himachal Pradesh High Court Enhances Compensation in Motor Accident Case

Court Upholds Dependents' Right to Compensation Despite Undertaking by Deceased; Interest Rate Adjusted

In a significant ruling, the Himachal Pradesh High Court has enhanced the compensation awarded to the dependents of Halku Ram, who tragically died in a motor vehicle accident. The judgment, delivered by Justice Vivek Singh Thakur, modifies the previous award by the Motor Accident Claims Tribunal (MACT) and underscores the statutory rights of dependents to claim compensation under the Motor Vehicles Act, 1988.

The case arose from an accident on February 2, 2007, involving a tanker vehicle driven by Lalit Kumar, an employee of the Union of India. Halku Ram, who was traveling in the vehicle, succumbed to his injuries on February 6, 2007. Initially, the MACT awarded a compensation of Rs. 13,77,000 with an interest rate of 9% per annum. However, the High Court has reassessed this compensation, increasing it to Rs. 14,86,000 while adjusting the interest rate to 7.5% per annum.

The appellants, Union of India and others, contested the claim citing an affidavit by Halku Ram, wherein he purportedly relinquished any compensation claims for himself and his family. Justice Thakur invalidated this undertaking, affirming that dependents maintain a statutory right to compensation. He emphasized that a deceased individual cannot waive the rights of dependents under the MV Act, which upholds the right to claim compensation regardless of such undertakings.

Moreover, Justice Thakur reevaluated the compensation calculation, accounting for future income prospects and adjusting deductions for personal expenses as per the Supreme Court precedents. The compensation was apportioned among Halku Ram's wife (50%), mother (10%), and minor children (20% each). 

This judgment reiterates the courts' commitment to ensuring "just compensation" and highlights the impropriety of mechanical defect claims without substantiated evidence. The High Court's decision comes as a reminder that statutory provisions under the Motor Vehicles Act are designed to protect the rights of dependents in cases of fatal accidents, ensuring they receive adequate compensation despite technical defenses.

Bottom Line:

Motor Vehicle Accident compensation - Enhancement of compensation awarded by Motor Accident Claims Tribunal justified when the awarded compensation is found to be on the lower side - Interest rate adjusted to 7.5% per annum from previously awarded 9%.

Statutory provision(s): Motor Vehicles Act, 1988 Sections 166, 173; Indian Penal Code Sections 279, 337, 304A; Code of Civil Procedure, 1908 Order 41 Rules 22 and 33

Union of India v. Kiran Bala, (Himachal Pradesh) : Law Finder Doc Id # 2801277