Can Draw Analogy From Motor Vehicles Act To Calculate Compensation To Victims Of Vadodara Boat Capsize Incident: Gujarat High Court

While hearing a plea concerning the January 18 Harni Lake boat capsize incident in Vadodara, the Gujarat High Court on Friday (November 29) said that the compensation to the victims and their kin can be computed by drawing analogy from the principles enshrined under the Motor Vehicles Act. 

During the hearing a division bench of Chief Justice Sunita Agarwal and Justice Pranav Trivedi noted the applicability of these principles to assess damages for the deceased and injured victims and also referred to the Supreme's Court's judgment in Sarla Verma & Ors. vs Delhi Transport Corp. & Anr on the issue. 

The High Court was hearing a suo motu Public Interest Litigation (PIL) pertaining to the incident, and where the victims had moved an application seeking compensation from the contractor firm M/s Kotia Projects, for their negligence in running the project, which led to the fatal accident.

Taking note of the Vadodara Collector's report on details of the victims and their kin, the court said that the assessment of compensation would focus solely on the contractor firm's liability for damages, adding that it is not concerned with the internal disputes within the firm. It further asked the Collector, Vadodara to nominate an officer of the rank of Deputy Collector, to calculate the compensation as per the principles under the Motor Vehicles Act after hearing the victims as well as the contractor firm. 

During the hearing Advocate General Kamal Trivedi appearing for the State submitted that the Court can take reference from the Morbi matter, where company was held liable and that kind of scheme may be thought of in this matter.

The bench then orally said, “These are young students only, the principles of payment of compensation under Motor Vehicle Act can be...analogy can be drawn from there and compensation can be determined by the Collector. Principles are there, according to death, according to age and all factors, compensation can be determined.”

The high court further orally observed that it can ask the Collector to nominate an officer who will determine compensation after giving opportunity of hearing to all individual like a parent of the deceased child and the contractor as in Motor Vehicle Act they are entitled to a hearing.

The court then orally said that it is proposing to draw an analogy from the principles of Motor Vehicle Act to decide the compensation.

The Counsel appearing for certain victims submitted that the affidavit filed by one of the victims has two prayers. He said that one pertains to just and fair compensation in consonance with the law laid down in Sarla Verma & Ors vs The Delhi Transport Corp. & Anr.; the second aspect pertains to exemplary damages. He said that he is seeking exemplary damages as an "extraordinary relief". 

The court however orally said that it cannot exercise its powers for exemplary damages and that the counsel has to avail this legal remedy before the concerned court.

It said that exemplary damages would be sought from a private person which would require determination of fault, comparison and evidence would have to be led, which the High Court would not be able to.

Meanwhile the victim's counsel submitted that he would like to place certain judgements before the court on the aspect of infringement of fundamental right under Article 21 of the Constitution. 

To this the high court orally said, “Who violated your fundamental right? You went on an excursion, correct? Now, the parents who are before us they permitted their children to go on an excursion, correct? They went on an excursion in a scheme, in a like policy of the school. They were not alone; they went with their teachers. There was some mistake in the assessment on the part of the teacher and this incident happened, correct? We are so far as the…this contractor is concerned, we are only, we have impleaded him only because of the fault lies on the part of the contractor in running the project. So, he is liable to pay damages for the fault which we can compute. We can ask the collector to compute damages for the fault of the contractor because of whom this incident had occurred. As by drawing analogy from the Motor Accident claim act, that, what would be the life of the child, there are parameters given there. So far as exemplary damage part is concerned for that the court would be required to (hear) both sides. See, hearing is not for one side. Hearing is always for both sides. So, evidence is to be collected, hearing is to be given and that is not possible in this PIL or in 226 (Petition under Article 226 of the Constitution of India). We can leave it open for you to approach any court of law.”

The Counsel then submitted that he has taken up this issue and prayed before the Supreme Court and requested to refer to judgements to decide the issue of exemplary damages.

The Court then orally said, “Mr Counsel the Apex Court has said go back to the High Court and ask. Apex Court has not said that the High Court has to give you everything. So, we as a High Court are asking you, please assist us, how can we compute exemplary damage, please tell us the parameters. How? We cannot draw analogy from any judgement for that, that becomes a factual issue…Mr. Counsel question of fact is not about the incident, its about the computation of exemplary damages. The word exemplary means that there is no laid down rule or procedure or parameter. So, it is beyond any procedure, parameter laid down in any statutory provision or any policy which has the legislative backing. So, that means, the court has to apply its mind in the facts of the case by giving opportunity to both sides to lead evidence as to whether exemplary damage is to be awarded or not. So, for this we are not competent”.

As the counsel referred to disputed question of facts even in the Morbi Bridge case, the high court orally said, "That it was a completely different matter. There the bridge was in fact like a…renovated by faulty design, by a faulty contractor engaged through a faulty person and then contractor is made liable because he opened the bridge against the provision of law, against the instruction of the authority, misrepresenting, misguiding everyone. That is why we held him liable. Here also we are not leaving the contractor but then in every case, everything cannot be done. We have like, we are drawing these kinds of orders looking to the facts of the case. Here also, we are not saying that you are not...entitled for any damages, here also we are saying that there is… there (Morbi Bridge Collapse Case) we have given damages to those… all those which like…whatever relief we have given in those matters are to all those who are living persons, who are deprived of, who are injured physically, mentally and who are deprived of their livelihood, children who are deprived of their parents, family; so, that analogy cannot be drawn here. Here all are young children who have died in an accident. Why we are saying so, accident may be by a motor vehicle or accident has occurred in a boat, motor boat or in a paddle boat or a simple boat; but then it is possible for the court to draw an analogy that principles of damages. Motor Vehicle Act also proceeds on the principle of damages, tort. Otherwise for tort you have to go to a Civil Court, for any tortuous damages, you have to go to a Civil Court”.

The Court also orally said that the liability for exemplary damages would come only when tortuous liability is established.The Counsel then submitted that he is not pressing upon the liability under torts. 

After hearing the matter for some time the high court while dictating its order said, "Having heard learned counsel for the parties and perused the record on the application filed on behalf of the victims to indemnify with the damages costs as the result of the act of the contractor in running the project which has resulted in an unfortunate incident boat capsize at Harni Lake, Vadodara on 18.01.2024, by order dated 9.8.2024, we have issued notice to contractor M/s Kotia Projects – respondent No 4. Mr PV Khamboja, learned advocate on behalf of respondent no 4, though it is sought to be submitted that there is a dispute between the partners of the firm M/s Kotia Projects, but we clarify that we are not concerned with the issue". 

It noted that pursuant to its October 18 order the Vadodara Collector had completed an inquiry for providing the details of the victims–namely kin of the deceased and the injured victims. It noted that along with an affidavit a chart showing the details of the family members of the deceased victim and details of income of deceased teachers as also the injured victim and their present situation has also been filed. 

The court thereafter in its order said, “Taking note of the details therein, we are of the considered opinion that, the compensation for the death and injury caused due to the accident can be computed by drawing analogy for determination of the compensation under the Motor Vehicles Act, 1988, keeping in light of the principles stated by the Apex Court in the case of Sarla Verma & Ors. vs Delhi Transport Corp. & Anr. To facilitate the process, the Collector is required to nominate an officer to make the computations. The legal aid and the process be provided to the victims on an application to be made by them before the DLSA (District Legal Services Authority), Vadodara, who shall provide an advocate to assist the officer.”

The Court further observed in its order that the contractor firm M/s Kotia Projects or their representatives are free to engage its legal representative to place its case before the concerned officer.

The Court said that the officer nominated by the Collector shall be at the level of the Deputy Collector.

"The computation shall be made after giving due opportunity of hearing to both sides by applying the principles of computation of compensation in cases of death and injury as per the Motor Vehicles Act, 1988. The order of computation shall be passed as expeditiously as possible preferably within the period of 8 weeks and shall be filed along with the affidavit of the officer concerned," the court said. 

Case Tile:  RE-MANAGEMENT OF THE WATER BODIES SUCH AS RESERVOIRS/PONDS/RIVERS/LAKES IN THE STATE OF GUJARAT, & ANR. Versus STATE OF GUJARAT THROUGH THE SECRETARY HOME DEPARTMENT & ORS.

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