MV Act: Compensation Can Be Granted In Excess Of Amount Claimed, Reiterates SC [Read Order]

The Supreme Court has reiterated that it is permissible to grant motor accident compensation of any amount in excess to that one which has been claimed.

In this case, the claimant had claimed that he is entitled for compensation of Rs.9,05,000/-. But since he was suffering from financial crisis and was unable to pay court fees on the said amount and therefore restricted his claim to the tune of Rs.3,00,000/-. The Tribunal allowed the claim and granted compensation of Rs.1.50 Lakhs. The High Court enhanced the compensation to Rs.2.50 Lakhs.

Before the Apex Court (in Jabbar vs. Maharashtra SRTC), it was contended on behalf of the claimant the mere fact that he confined his claim to Rs.3 Lakhs cannot be a factor not to grant the fair and reasonable compensation for injuries suffered by him.

Taking notice of the fact that the claimant was fruit seller on a hand-cart and that his right hand was amputated, injury has caused him permanent disability substantially affecting his business, the bench of Justice Ashok Bhushan and Justice MR Shah opined that the award of Rs.2.5 Lakhs cannot be held to be a just and reasonable compensation.

Referring to an earlier judgment in Ramla v. National Insurance Company Limited [(2019) 2 SCC 192], the bench observed:

This Court in large number of cases has laid down that it is permissible to grant compensation of any amount in excess to that one which has been claimed. This Court in exercise of jurisdiction under Article 142 of the Constitution has awarded just and reasonable compensation.

The bench also noted that, in the claim petition, he had expressly stated that if it is entitled to get more than Rs.3 Lakhs, the claimant is ready to deposit deficient court fee. This clearly means that neither the Tribunal nor the High Court was precluded from awarding higher than Rs.3 Lakhs, it added while enhancing the compensation to 5 Lakhs. 

In Ramla, it was 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 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."

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