Motor Accident Claims - Just Compensation Exceeding The Claimed Amount Can Be Awarded: Supreme Court

The Supreme Court observed that Motor Accident Compensation exceeding the claimed amount can be awarded.

In the matter of compensation, the amount actually due and payable is to be awarded despite the claimants having sought for a lesser amount and the claim petition being valued at a lesser value, the bench comprising Justices observed.

In this case, the Motor Accident Claims Tribunal had awarded a sum of Rs.4,99,000/- with 6% interest. In appeal, the High Court enhanced the amount to Rs. 17,83,600/-. However, the High Court, taking into consideration that the valuation made in the Appeal was only for Rs. 6,50,000/-  awarded the said sum a enhanced compensation. 

The issue raised before the Apex Court was whether the High Court was justified in restricting the award of the enhanced amount to Rs. 6,50,000/-  though, the amount of compensation determined was Rs. 12,84,600/-?

"The law is well settled that in the matter of compensation, the amount actually due and payable is to be awarded despite the claimants having sought for a lesser amount and the claim petition being valued at a lesser value. Our view, is fortified by the decision of this Court in the Case of Ramla and Others Versus National Insurance Company Limited and Others 2019 2 SCC 192", the bench of Justices AS Bopanna and PS Narasimha observed while allowing the appeal.

The court held that the claimants are entitled to the enhanced compensation of Rs. 12,84,600/- with 6% interest.

In Ramla, the Supreme Court had observed thus: There is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 is to award "just compensation". The Motor Vehicles Act is a beneficial and welfare legislation. A " just compensation" is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time-barred. Further, there is no need for a new cause of action to claim an enhanced amount. The Courts are duty-bound to award just compensation.

Case details

Mona Baghel vs Sajjan Singh Yadav | 2022 LiveLaw (SC) 734 | SLP(C) No. 29207/2018 | 30 August 2022 | Justices AS Bopanna and PS Narasimha

Headnotes

Motor Vehicles Act, 1988 - Motor Accident Compensation - In the matter of compensation, the amount actually due and payable is to be awarded despite the claimants having sought for a lesser amount and the claim petition being valued at a lesser value - Referred to Ramla vs National Insurance Company Limited 2019 2 SCC 192.

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