Saturday 21 May 2016

Whether appellate court can grant enhanced compensation than claimed while deciding appeal?

The Apex Court in a latest judgment in a case titled
Sanobanu Nazirbhai Mirza & others versus Ahmedabad
Municipal Transport Service,  reported in  2013 AIR SCW
5800,  has specifically held that compensation can be enhanced
while deciding the appeal, even though prayer for enhancing the
compensation   is   not     made   by   way   of   appeal   or   cross
appeal/objections.  It is apt to reproduce para 9 of the judgment
herein:
“9. In view of the aforesaid decision of this
Court,   we   are   of   the   view   that   the   legal
representatives of the deceased are entitled
to the compensation as mentioned under the
various   heads   in   the   table   as   provided
above  in this judgment even though certain

claims were not preferred by them as we are
of   the   view   that   they   are   legally   and
legitimately   entitled   for   the   said   claims.
Accordingly   we   award   the   compensation,
more than what was claimed by them as it
is the statutory duty of the Tribunal and the
appellate   court   to   award   just   and
reasonable   compensation   to   the   legal
representatives of the deceased to mitigate
their hardship and agony as held by this
Court   in   a   catena   of   cases. 
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
      FAO No.         537 of 2008
    
Decided on:    18.12.2015
United India Insurance Company Ltd. …Appellant.
      Versus
Sh. Talaru Ram and others …Respondents.
Coram
The Hon’ble Mr. Justice Mansoor Ahmad Mir, Chief Justice.
Citation;2016(3) ALLMR(JOURNAL)30

Appellant­insurer   has   thrown   challenge   to   the
judgment and award, dated 26.06.2008, made   by   the Motor
Accident   Claims   Tribunal,   Kinnaur   at   Rampur   Bushahr,
H.P. (for  short "the Tribunal") in M.A.C. Petition No. 79 of 2004,

titled as Talaru Ram and another versus Sh. Vinod Kumar and
another, whereby compensation  to  the  tune of ` 2,54,000/­ with
interest @ 7½% per annum from the date of filing of the petition
till its realization came to be awarded in favour of the claimants
and the appellant­insurer was saddled with liability (for short
"the impugned award").
2. The   claimants   and   the   owner­insured   of   the
offending vehicle have not questioned the impugned award on
any count, thus, has attained finality so far it relates to them.
3. Appellant­insurer   has   questioned   the   impugned
award   on   various   grounds   taken   in   the   memo   of   appeal.
Precisely, the challenge to the impugned award is on the ground
that the claim petition was not maintainable for the reason that
deceased­Dharam   Pal,   son   of   the   claimants,   was   brutally
murdered.
4. A very important question of law has been raised in
the memo of appeal, which was also raised before the Tribunal.
5. In order to determine the issue, it is necessary to
give  brief resume of the case, the womb of which has given birth

to the appeal in hand:
6. Claimants filed a claim petition before the Tribunal
under Section 163A of the Motor Vehicles Act, 1988 (for short
"the MV Act") and claimed compensation to the tune of  ` ten
lacs, as per the break­ups given in the claim petition.
7. It   has   been   averred   in   the   claim   petition   that
deceased­Dharam Pal was running an auto electrician shop in
Village Kingal, was travelling in a newly purchased Maruti Van,
which, later on, was registered as HP­02­0190, was being driven
by Shri Santosh Kumar.   The driver as well as the deceasedDharam
Pal were murdered in between Oddi and Narkanda and
their   dead   bodies   were   thrown   in   Thachru   Nallah.     Further
averred   that   the   deceased   was   earning  ` 6,000/­   from   the
profession of auto electrician and also helping his parents in
agricultural vocation.
8. The claimants have stated in para 22 of the claim
petition that the accident was outcome of use of motor vehicle.
It is apt to reproduce para 22 of the claim petition herein:
"22. Cause of accident. : Sh. Dharam
Pal   deceased   was   travelling
as  passenger and illfated vehicle from

Kingal   to  Narkand  &  when  he  was
going   in   the   vehicle   was   murdered
arised out of the use of the said vehicle
alognwith the driver of the vehicle and
his dead bodies was thrown in Thacru
Nala in between Oddi and Narkanda.
The murdered must has some enmity
with the driver."
9. The   driver   of   the   offending   vehicle   was   also
murdered, that is why, he was not arrayed as party­respondent
in the array of respondents.
10. The insurer and the owner­insured of the offending
vehicle resisted the claim petition on the grounds taken in the
memo of objections.
11. Following issues came to be framed by the Tribunal
on 29.04.2005:
"1. Whether Sh. Dharam Pal had died on
account of use of motor vehicle No. HP­02­
0190? OPP
2. If issue No. 1 is proved to what amount
of compensation and from whom are the
petitioners entitled to? OPP
3.   Whether   this   Tribunal   has   no
jurisdiction to proceed with the trial of the
claim petition? OPR­2
4.   Whether   vehicle   No.   HP­02­0190   was
under the insurance cover of respondent
No. 2, if not with what effect? OPR­2

5. Relief."
12. The  claimants  examined  Shri  Sadanand  as  PW­1,
Shri Rajesh Bharti as PW­3 and claimant­Talaru Ram himself
appeared in the witness box as PW­2.  The respondents in the
claim petition have examined Shri Ashok Negi, Shri Shyam Lal,
Shri Tek Singh, Shri Sudhir Pandey and Shri Ganga Ram as
their witnesses.   Parties have also placed on record copies of
final report submitted under Section 173 of the Code of Criminal
Procedure   (for   short   "CrPC"),   FIR,   post­mortem   report,   birth
certificate and other documents including the documents of the
offending   vehicle,   i.e.   registration   certificate,   insurance   cover
note and the route permit.  All the documents stand exhibited.  
Issues No. 1 and 3:
13. After   scanning   the   evidence,   oral   as   well   as
documentary, the Tribunal held that the accident was outcome
of use of the vehicle.
14. Learned Senior Counsel appearing on behalf of the
appellant argued that the accident was not out of use of motor
vehicle,  but  was  a  crime  ­  a  brutal  murder.   Thus, the claim

petition was not maintainable and the findings returned by the
Tribunal on issue No. 1 are not legally correct.
15. It   is   admitted   fact   that   the   driver   and   deceasedDharam
Pal were murdered in the vehicle.  The owner­insured
of   the   vehicle   has   specifically   averred   that   the   death   of   the
deceased and the driver was because of criminal assault.   FIR
No.   74/2004,   dated   26.08.2004,   was   lodged   at   Police   Station
Kumarsain.  Investigation was conducted and final police report
was presented against accused Rajinder  Singh Thakur, Vijay
Thakur   and   Surjit   Khachi   for   commission   of   offence   under
Sections 302 and 392 read with Section 34 of the Indian Penal
Code (for short "IPC").
16. The   perusal   of   final   report,   Ext.   PW­1/A,   too
discloses that the driver, deceased­Dharam Pal and the accused
persons   were   travelling   in   the   vehicle,   had   enmity   with   the
driver, killed him and also killed Dharam Pal in the vehicle.
The crime was committed with a fine lace like thread inside the
vehicle and the bodies were thrown in the nallah.  
17. The  police report and other evidence on the file have

remained   unrebutted.     Even,   learned   senior   counsel   for   the
appellant has not been able to show that the crime was not
committed in the vehicle.
18. The   question   is   ­   whether   the   death/murder   of
Dharam Pal is out of use of vehicle in the given circumstances of
the case?   The answer is in the affirmative for the following
reasons:
19. The legal representatives of the driver of the vehicle
have not made any claim.  The claim, which is being adjudicated
upon,   is   by   the   legal   representatives/heirs/dependents   of
deceased­Dharam Pal.  
20. As   discussed   hereinabove   and   as   recorded   by   the
Tribunal, the entire offence was committed inside the vehicle,
thus, out of 'use of motor vehicle'.   The claimants have filed
claim petition under Section 163A of the MV Act and not under
Section  166  of  the  MV  Act.     In  a  claim   petition  filed   under
Section 166 of the MV Act, the claimants have to plead and
prove   that   the   accident   was   outcome   of   rash   and   negligent
driving of the vehicle by its driver.  Sine qua non for maintaining


the   claim   petition   under   Section   166   of   the   MV   Act   is   the
rashness and negligence on the part of the driver of the vehicle,
but   in   a   claim   petition   under   Section   163A   of   the   MV   Act,
rashness and negligence is not a sine qua non and it is also not
even an ingredient in the said provision.  
21. It is worthwhile to reproduce Section 163A of the MV
Act herein:
"163A. Special provisions as to payment
of compensation on structured formula
basis.   ­  (1)   Notwithstanding   anything
contained in this Act or in any other law for
the time being in force or instrument having
the   force   of   law,   the   owner   of   the   motor
vehicle   or   the   authorised   insurer   shall   be
liable   to   pay   in   the   case   of   death   or
permanent   disablement   due   to   accident
arising   out   of   the   use   of   motor   vehicle,
compensation,   as   indicated   in   the   Second
Schedule, to the legal heirs or the victim, as
the case may be.
Explanation. ­ For the purposes of this subsection,
"permanent disability" shall have the
same   meaning   and   extent   as   in   the
Workmen's   Compensation   Act,   1923   (8   of
1923).
(2) In any claim for compensation under subsection
(1), the claimant shall not be required
to   plead   or   establish   that   the   death   or
permanent disablement in respect of which
the   claim   has   been   made   was   due   to
any  wrongful  act or neglect or default of the

owner of the vehicle or vehicles concerned or
of any other person.
(3) The Central Government may, keeping in
view the cost of living by notification in the
Official Gazette, from time to time amend the
Second Schedule."
22. While going through this provision of law, the words
used are 'use of motor vehicle'.  
23. The Court has to be cautious and has to draw a fine
distinction.  If the motive, criminal intention and conspiracy was
to kill Dharam Pal, perhaps the remedy was anywhere else.
24. The facts, the final report and other circumstances
do  disclose  that   the  prima   facie  motive  and   intention  of  the
accused persons were to kill the driver of the vehicle and not
Dharam Pal.  Thus, Dharam Pal became the victim because of
travelling in the vehicle and his death is outcome of 'use of motor
vehicle'.
25. The   Apex   Court   in   the   case   titled   as  Shivaji
Dayanu Patil and another versus Vatschala Uttam More,
reported   in  1991   ACJ   777,  has   interpreted   the   words   and
expression 'use of motor vehicle' and held that these have a wide 


connotation.     It   is   apt   to   reproduce   paras   31   to   36   of   the
judgment herein:
"31. The words "arising out of" have been
used   in   various   statutes   in   different
contexts   and   have   been   construed   by
Courts widely as well as narrowly, keeping
in view the context in which they have been
used in a particular legislation.
32. In Heyman v. Darwins Ltd., 1942 AC
356,   while   construing   the   arbitration
clause in a contract, Lord Porter expressed
the   view   that   as   compared   to   the   word
'under', the expression 'arising out of' has
a   wider   meaning.   In   Union   of   India   v.
E.B.   Aaby's   Rederi   A/S,   1975   AC   797,
Viscount   Dilhorne   and   Lord   Salmon
stated   that   they   could   not   discover   any
difference between the expression "arising
out   of"   and   "arising   under"   and   they
equated "arising out of" in the arbitration
clause   in   a   Charter   Party   with   "arising
under."
33. In Samick Lines Co. Ltd. v. Owners of
the Antonis P. Lemos, (1985) 2 WLR 468,
the   House   of   Lords   was   considering   the
question   whether   a   claim   for   damages
based   on   negligence   in   tort   could   be
regarded   as   a   claim   arising   out   of   an
agreement under section 20(2)(1)(h) of the
Supreme Court Act, 1981 and fell within
the   admiralty   jurisdiction   of   the   High
Court. The words "any claim arising out of
any agreement relating to the carriage of
goods in a ship or to the use of hire of a
ship" in section 20(2)(1)(h) were held to be
wide enough to cover claims, whether in
contract   or   tort   arising   out   of   any
agreement relating to the carriage of goods

in a vessel and it was also held that for
such   an   agreement   to   come   within
paragraph (h), it was not necessary that
the claim in question be directly connected
with some agreement of the kinds referred
to in it. The words "arising out of" were
not construed to mean "arising under" as
in   Union   of   India   v.   E.B.   Aaby's   A/S,
1975   AC   797,   which   decision   was   held
inapplicable   to   the   "The   words"   injury
caused by or ar ising out construction of S.
20(2)(1)(h)  and  it  was observed  by  Lord
Brandon: 
"With   regard   to   the   first   point,   I
would readily accept that in certain
contexts   the   expression   'arising   out
of' may, on the ordinary and natural
meaning   of   the   words   use,   be   the
equivalent of the expression 'arising
under',   and   not   that   of   the   wider
expression   'connected   with'.   In   my
view,   however,   the   expression
'arising   out   of'   is,   on   the   ordinary
and   natural   meaning   of   the   words
used,   capable,   in   other   contexts,   of
being   the   equivalent   of   the   wider
expression 'connected with'. Whether
the expression 'arising out of' has the
narrower   or   the   wider   meaning   in
any particular case must depend on
the context in which it is used."
Keeping in view the context in which the
expression was used in the statute it was
construed to have the wider meaning viz.
'connected with'.
34. In the context of motor accidents the
expressions 'caused by' and 'arising out of'
are often used in statutes. Although both
these   expressions   imply   a   causal
relationship between the accident resulting

in injury and the use of the motor vehicle
but they differ in the degree of proximity of
such   relationship.   This   distinction   has
been lucidly brought out in the decision of
the   High   Court   of   Australia   in
Government Insurance Office of N.S.W. v.
R.J. Green & Lloyd Pty. Ltd., 1967 ACJ
329   (HC,   Australia),   wherein   Lord
Barwick, C.J., has stated : 
"Bearing   in   mind   the   general
purpose   of   the   Act   I   think   the
expression'   arising   out   of'   must   be
taken   to   require   a   less   proximate
relationship   of   the   injury   to   the
relevant   use   of   the   vehicle   than   is
required to satisfy the words caused
by'. It may be that an association of
the injury with the use of the vehicle
while it cannot be said that that use
was   causally   related   to   the   injury
may   yet   be   enough   to   satisfy   the
expression 'arise out of' as used in
the Act and in the policy."
35.   In   the   same   case,   Windeyer,   J.   has
observed as under : 
"The words 'injury by or arising out
of the use of the vehicle' postulate a
causal relationship  between the use
of the vehicle and the injury. 'Caused
by' connotes a 'direct' or 'Proximate'
relationship   of   cause   and   effect.
'Arising   out   of'   extends   this   to   a
result that is less immediate; but it
still carries a sense of consequence." 
36. This would show that as compared to
the expression 'caused by', the expression
'arising out of' has a wider connotation.
The   expression   'caused   by'   was   used   in
sections  95(1)(b)(i) and (ii) and 96(2)(b)(ii)

of   the   Act.   In   section   92­A,   Parliament,
however,   chose   to   use   the   expression
'arising out of' which indicates that for the
purpose of awarding compensation under
section   92­A,   the   causal   relationship
between the use of the motor vehicle and
the   accident   resulting   in   death   or
permanent disablement is not required to
be direct and proximate and it can be less
immediate.   This   would   imply   that
accident should be,connected with the use
of   the   motor   vehicle   but   the   said
connection   need   not   be   direct   and
immediate.   This   construction   of   the
expression   "arising   out   of   the   use   of   a
motor vehicle" in section 92­A enlarges the
field  of protection made available to the
victims   of   an   accident   and   is   in
consonance   with   the   beneficial   object
underlying the enactment."
26. While   going   through   the   judgment   (supra),   one
comes   to   an   inescapable   conclusion   how   the   accident   and
injury/death have relationship with use of motor vehicle.
27. The Apex Court in another case titled as Rita Devi
(Smt) and others versus New India Assurance Co. Ltd.
and another, reported in (2000) 5 Supreme Court Cases 113,
has discussed the scope of Section 163A of the MV Act and the
expression 'death due to accident arising out of the use of motor
vehicle' occurring in Section 163A of the MV Act.  It is profitable
to reproduce paras 9 to 18 of the judgment herein:

"9.   A   conjoint   reading   of   the   above   two
sub­sections   of   Sec.   163­A   shows   that   a
victim or his heirs are entitled  to claim
from   the   owner   /   insurance   company   a
compensation   for   death   or   permanent
disablement   suffered   due   to   accident
arising out of the use of the motor vehicle
(emphasis   supplied),   without   having   to
prove wrongful act or neglect or default of
anyone. Thus, it is clear, if it is established
by   the   claimants   that   the   death   or
disablement   was   caused   due   to   an
accident  arising  out of the use of motor
vehicle, then contention of the Insurance
Company which was accepted by the High
Court   is   that   the   death   of   the   deceased
(Dasarath Singh) was not caused by an
accident  arising  out of the use of motor
vehicle. Therefore, we will have to examine
the actual legal import of the words "death
due to accident arising out of the use of
motor vehicle".
10.   The   question,   therefore   is,   can   a
murder be an accident in any given case?
There is no doubt that "murder", as it is
understood, in the common parlance is a
felonious act where death is caused with
intent   and   the   perpetrators   of   that   act
normally have a motive against the victim
for   such   killing.   But   there   are   also
instances where murder can be by accident
on   a   given   set   of   facts.   The   difference
between   a   "murder"   which   is   not   an
accident   and   a   "murder"   which   is   an
accident, depends on the proximity of the
cause of such murder. In our opinion, if
the dominant intention of the act of felony
is to kill any particular person, then such
killing is not an accidental murder, but is
a murder simpliciter, while if the cause of
murder  or act of murder  was originally
not  intended  and the same was caused in

furtherance of any other felonious act, then
such murder is an accidental murder.
11.   In   Challis   v.   London   and   South
Western   Rly.   Co.,   (1905)   2   KB   154,   the
Court   of   Appeal   held   where   an   engine
driver   while   driving   a   train   under   a
bridge   was   killed   by   a   stone   wilfully
dropped on the train by a boy from the
bridge, that his injuries were caused by an
accident.   In   the   said   case,   the   Court
rejecting   an   argument   that   the   said
incident cannot be treated as an accident
held : 
"The   accident   which   befell   the
deceased was, as it appears to me, one
which   was   incidental   to   his
employment   as   an   engine   driver,   in
other   words,   it   arose   out   of   his
employment.   The   argument   for   the
respondents   really   involves   the
reading into the Act of a proviso to the
effect   that   an   accident   shall   not   be
deemed to be within the Act, if it arose
from the mischievous act of a person
not in the service of the employer. I see
no   reason   to   suppose   that   the
legislature   intended   so   to   limit   the
operation of the Act. The result is the
same   to   the   engine   driver,   from
whatever cause the accident happened;
and it does not appear to me to be any
answer   to   the   claim   for
indemnification under the Act to say
that the accident was caused by some
person who acted mischievously.
12. In the case of Nisbet v. Rayne & Burn,
(1910) 2 KB 689, where a cashier, while
travelling in a railway to a colliery with a
large  sum of money for the payment of his

employers'   workmen,   was   robbed   and
murdered. The Court of Appeal held : 
That the murder was an accident from
the   standpoint   of   the   person   who
suffered from it and that it arose out of
an employment which  involved more
than   the   ordinary   risk,   and
consequently,   that   the   widow   was
entitled   to   compensation   under   the
Workmen's   Compensation   Act,   1906.
In   this   case,   the   Court   followed   its
earlier judgment in the case of Challis
(supra). In the case of Nisbet (supra)
the   Court   also   observed   that   it   is
contended   by   the   employer   that   this
was   not   an   accident   within   the
meaning of the Act, because it was an
intentional felonious act which caused
the death, and that the word accident
negatives the idea of intention. In my
opinion, this contention ought not to
prevail,   I   think   it   was   an   accident
from the point of view of Nisbet, and
that it makes ­ no difference whether
the pistol shot was deliberately fired at
Nisbet or whether it was intended for
somebody else and not for Nisbet."
13. The judgment of the Court of Appeal in
Nisbet   case  (supra)  was   followed   by  the
majority judgment by the House of Lords
in   the   case   of   Board   of   Management   of
Trim Joint District School v. Kelly, 1914
AC 667.
14. Applying the principles laid down in
the above cases to the facts of the case in
hand, we find that the deceased, a driver
of   the   auto­rickshaw,   was   dutybound   to
have accepted the demand of fare­paying
passengers to transport them to the place
of  their  destination.  During the course of

this duty, if the passengers had decided to
commit   an   act   of   felony   of   stealing   the
auto­rickshaw   and   in   the   course   of
achieving  the   said   object   of  stealing  the
auto­rickshaw, they had to eliminate the
driver of the auto­rickshaw then it cannot
but be said that the death so caused to the
driver   of   the   auto­rickshaw   was   an
accidental   murder.   The   stealing   of   the
auto­rickshaw was the object of the felony
and the murder that was caused  in the
said process of stealing the auto­rickshaw
is only incidental to the act of stealing of
the auto­rickshaw. Therefore, it has to be
said that on the facts and circumstances of
this   case   the   death   of   the   deceased
(Dasarath Singh) was caused accidentally
in the process of committing theft of the
auto­rickshaw.
15. Learned Counsel for the respondents
contended before us that since the Motor
Vehicles   Act   has   not   defined   the   word
"death" and the legal interpretations relied
upon   by   us   are   with   reference   to   the
definition   of   the   word   "death"   in   the
Workmen's   Compensation   Act   the   same
will  not be applicable while  interpreting
the word death in the Motor Vehicles Act,
because according to her, the objects of the
two   Acts  are   entirely   different.  She  also
contends that on the facts of this case no
proximity could be presumed between the
murder of the driver and the stealing of
the auto­rickshaw. We are unable to accept
this contention advanced on behalf of the
respondents. We do not see how the object
of the two Acts, namely, the Motor Vehicles
Act and the Workmen's Compensation Act
are in any way different. In our opinion,
the relevant object of both the Acts is to
provide   compensation   to   the   victims   of
accidents.  The  only difference between the

two   enactments   is   that   so   far   as   the
Workmen's   Compensation   Act   is
concerned,  it   is  confined  to   workmen  as
defined   under   that   Act   while   the   relief
provided under  Chapter  X to  XII of the
Motor Vehicles Act is available to all the
victims   of   accidents   involving   a   motor
vehicle. In this conclusion of ours, we are
supported   by   Sec.   167   of   the   Motor
Vehicles Act as per which provision, it is
open to the claimants either to proceed to
claim compensation under the Workmen's
Compensation   Act   or   under   the   Motor
Vehicles Act. A perusal of the objects of the
two   enactments   clearly   establishes   that
both   the   enactments   are   beneficial
enactments   operating   in   the   same   field,
hence   the   judicially   accepted
interpretation   of   the   word   death   in   the
Workmen's   Compensation   Act   is,   in   our
opinion, applicable to the interpretation of
the word death in the Motor Vehicles Act
also.
16. In the case of Shivaji Dayanu Patil v.
Vatschala Uttam More, (1991) 3 SCC 530
this   Court   while   pronouncing   on   the
interpretation of Section 92­A of the Motor
Vehicles Act, 1939 held as follows : (SCC
p. 532, para 12)
"... Section 92­A was in the nature of a
beneficial   legislation   enacted   with   a
view   to   confer   the   benefit   of
expeditious   payment   of   a   limited
amount by way of compensation to the
victims of an accident arising out of
the use of a motor vehicle on the basis
of no­fault liability. In the matter of
interpretation   of   a   beneficial
legislation the approach of the Courts
is   to   adopt   a   construction
which advances the beneficent purpose

underlying   the   enactment   in
preference   to   a   construction   which
tends to defeat that purpose."
17.   In   that   case,   in   regard   to   the
contention   of   proximity   between   the
accident and the explosion that took place,
this Court held : (SCC pp. 549­50, para
36)
"36. This would show that as compared to
the expression 'caused by', the expression
'arising out of' has a wider connotation.
The   expression   'caused   by'   was   used   in
Sections. 95(1)(b)(i) and (ii) and 96(2)(b)
(ii) of the Act. In Section 92­A, Parliament,
however,   chose   to   use   the   expression
'arising out of' which indicates that for the
purpose of awarding compensation under
Section   92­A,   the   causal   relationship
between the use of the motor vehicle and
the   accident   resulting   in   death   or
permanent disablement is not required to
be direct and proximate and it can be less
immediate.   This   would   imply   that
accident should be connected with the use
of   the   motor   vehicle   but   the   said
connection   need   not   be   direct   and
immediate.   This   construction   of   the
expression arising out of the use of a motor
vehicle in Section 92­A enlarges the field of
protection made available to the victims of
an accident and is in consonance with the
beneficial   object   underlying   the
enactment."
18. In the instant case, as we have noticed
the facts, we have no hesitation in coming
to the conclusion that the murder of the
deceased (Dasarath Singh) was due to an
accident  arising  out of the use of motor
vehicle. Therefore, the trial Court rightly
came  to  the conclusion that the claimants

were entitled for compensation as claimed
by them and the High Court was wrong in
coming to the conclusion that the death of
Dasarath   Singh   was   not   caused   by   an
accident   involving   the   use   of   motor
vehicle."
28. In this judgment, the Apex Court has also discussed
the   intention,   motive   and   other   aspects   in   order   to   make   a
distinction and to arrive at a  prima facie  finding whether the
accident falls within the expression  'use of motor vehicle'.  The
case in hand is squarely covered by para 10 of the judgment
(supra).         
29. In   the   case   titled   as  Union   of   India   versus
Bhagwati   Prasad   (D)   and   others,  reported   in  AIR   2002
Supreme   Court   1301,  the   Apex   Court   has   discussed   the
concept of joint tortfeasor and maintainability of claim petition,
jurisdiction of the Claims Tribunal and the expression 'accident
arising out of use of motor vehicle'.  Though, the judgment is not
directly applicable to the facts of the case, but the principle is
applicable   for   the   reason   that   the   expression   'use   of   motor
vehicle' stands thrashed out.   It is apt to reproduce relevant
portion of para 3 of the judgment herein:

"3. .......... In our considered opinion, the
jurisdiction   of  the   Tribunal   to   entertain
application for claim of compensation in
respect of an accident arising out of the
use of a motor vehicle depends essentially
on the fact whether there had been any use
of   motor   vehicle   and   once   that   is
established,   the   Tribunals   jurisdiction
cannot be held to be ousted on a finding
being arrived at a later point of time that
it   is   the   negligence   of   the   other   joint
tortfeasor   and   not   the   negligence   of   the
motor   vehicle   in   question.   We,   are
therefore,  of  the   considered   opinion  that
the conclusion of the Court in the case of
Union of India v. United India Insurance
Co. ltd., 1997 (8) SCC 683 to the effect ­ 
"It   is   ultimately   found   that   mere   is   no
negligence on the part of the driver of the
vehicle or there is no defect in the vehicle
but  the   accident   is  only   due  to  the   sole
negligence   of   the   other   parties/agencies,
then on that finding, the claim would go
out of Sec. 110(1) of the Act because the
case would men become one of exclusive
negligence of the Railways. Again, if the
accident had arisen only on account of the
negligence   of   persons   other   than   the
driver/   owner   of   the   motor   vehicle,   the
claim  would  not  be  maintainable   before
the Tribunal" is not correct in law and to
that extent the aforesaid decision must be
held to have not been correctly decided."
30. The   Apex   Court   in   another   case   titled   as
Malikarjuna G. Hiremath versus Oriental Insurance Co.
Ltd. & Anr., reported in II (2009) ACC 738 (SC), has discussed
the scope of Section 3 of the Workmen's Compensation Act,  1923

and the expression 'accident arising out of and in the course of
employment'.  The Apex Court has also discussed the entire law
dealing with the principles for grant of compensation, which are
applicable in this case also.  It is apt to reproduce paras 10 to 19
of the judgment herein:
"10. The expression "accident" means an
untoward mishap which is not expected or
designed.   "Injury"   means   physiological
injury. In Fenton v. Thorley & Co. Ltd.
(1903) AC 448, it was observed that the
expression   "accident"   is   used   in   the
popular and ordinary sense of the word as
denoting   an   unlooked   for   mishap   or   an
untoward event which is not expected or
designed.   The   above   view   of   Lord
Macnaghten was qualified by the speech of
Lord Haldane A.C. in Trim Joint District,
School   Board   of   Management   v.   Kelly
(1914) A.C. 676 as follows: 
"I think that the context shows that
in   using   the   word   "designed"   Lord
Macnaghten   was   referring   to
designed by the sufferer."
11. The above position was highlighted by
this   Court   in   Jyothi   Ademma   v.   Plant
Engineer, Nellore and Anr., V (2006) SLT
457=III(2006)   ACC   356   (SC)=III(2006)
CLT 178(SC)=2006(5) SCC 513.
12. This Court in ESI Corpn. v. Francis
De Costa, 1996 (6) SCC 1 referred to, with
approval,   the   decision   of   Lord   Wright
in  Dover  Navigation  Co.  Ltd. v. Isabella

Craig, 1940 AC 190, wherein it was held:
(All ER p. 563 ) 
"Nothing could be simpler than the
words   `arising   out   of   and   in   the
course of the employment . It is clear
that there are two conditions to be
fulfilled. What arises `in the course
of   the   employment   is   to   be
distinguished from what arises `out
of   the   employment   .   The   former
words relate to time conditioned by
reference   to   the   man   s   service,   the
latter to causality. Not every accident
which   occurs  to   a man  during   the
time when he is on his employment­­
that is, directly or indirectly engaged
on what he is employed to do ­ gives
a   claim   to   compensation,   unless   it
also   arises   out   of   the   employment.
Hence   the   section   imports   a
distinction which it does not define.
The   language   is   simple   and
unqualified."
13. We are not oblivious that an accident
may cause an internal injury as was held
in   Fenton   (Pauper)   v.   J.  Thorley   &   Co.
Ltd., 1903 AC 443 by the Court of Appeal: 
"I come, therefore, to the conclusion
that the expression `accident is used
in the popular and ordinary sense of
the word as denoting an unlooked­for
mishap or an untoward event which
is not expected or designed."
Lord Lindley opined:
"The word `accident is not a technical
legal   term   with   a   clearly   defined
meaning.   Speaking   generally,   but
with  reference  to  legal liabilities, an

accident means any unintended and
unexpected   occurrence   which
produces hurt or loss. But it is often
used to denote any unintended and
unexpected loss or hurt apart from its
cause; and if the cause is not known
the loss or hurt itself would certainly
be   called   an   accident.   The   word
`accident is also often used to denote
both   the   cause   and   the   effect,   no
attempt being made to discriminate
between them. The great majority of
what   are   called   accidents   are
occasioned   by   carelessness;   but   for
legal purposes it is often important to
distinguish   careless   from   other
unintended and unexpected events."
14. There are a large number of English
and   American   decisions,   some   of   which
have been taken note of in ESI Corpn.'s
case   (supra)   in   regard   to   essential
ingredients for such finding and the tests
attracting the provisions of Section   3   of
the Act. The principles are: 
(1)   There   must   be   a   causal   connection
between the injury and the accident
and the accident and the work done
in the course of employment.
(2)   The   onus   is   upon   the   applicant   to
show that it was the work and the
resulting strain which contributed to
or aggravated the injury.
(3)   If   the   evidence   brought   on   records
establishes   a   greater   probability
which   satisfies   a   reasonable   man
that   the   work   contributed   to   the
causing   of   the   personal   injury,   it
would  be enough for the workman to

succeed, but the same would depend
upon the fact of each case.
15. An accident may lead to death but that
an   accident   had   taken   place   must   be
proved. Only because a death has taken
place   in   course   of   employment   will   not
amount to accident. In other words, death
must   arise   out   of   accident.   There   is   no
presumption   that   an   accident   had
occurred.
16. In a case of this nature to prove that
accident   has   taken   place,   factors   which
would have to be established, inter alia,
are: 
(1) stress and strain arising during the
course of employment,
(2) nature of employment,
(3) injury aggravated due to stress and
strain.
17.   In   G.M.,   B.E.S.T.   Undertaking   v.
Agnes, 1964 (3) SCR 930 referring to the
decision of the Court of Appeal in Jenkins
v. Elder Dempster Lines Ltd., 1953 (2) All
ER 1133, this Court opined therein that a
wider test, namely, that there should be a
nexus  between   accident  and   employment
was   laid   down.   It   also   followed   the
decision of this Court in Saurashtra Salt
Mfg. Co. v. Bai Valu Raja, AIR 1958 SC
881.
18.   In   Mackinnon   Mackenzie   &   Co.   (P)
Ltd.   v.   Ibrahim   Mohd.   Issak,   1969   (2)
SCC 607, this Court held: 
"5. To come within the Act the injury
by   accident   must   arise   both   out   of
and   in   the   course   of   employment.
The   words   `in   the  course  of    the

employment  mean `in the course of
the   work   which   the   workman   is
employed   to   do   and   which   is
incidental to it . The words `arising
out of employment are understood to
mean that `during the course of the
employment, injury has resulted from
some risk incidental to the duties of
the service, which, unless engaged in
the  duty  owing to the master, it is
reasonable   to   believe   the   workman
would not otherwise have suffered .
In   other   words   there   must   be   a
causal   relationship   between   the
accident   and   the   employment.   The
expression   `arising   out   of
employment is again not confined to
the mere nature of the employment.
The   expression   applies   to
employment as such­­to its nature, its
conditions,   its   obligations   and   its
incidents. If by reason of any of those
factors   the   workman   is   brought
within the zone of special danger the
injury would be one which arises `out
of employment . To put it differently
if   the   accident   had   occurred   on
account of a risk which is an incident
of   the   employment,   the   claim   for
compensation must succeed, unless of
course   the   workman   has   exposed
himself to an added peril by his own
imprudent act."
19.   The   above   position   was   again
highlighted  in   Shakuntala  Chandrakant
Shreshti   v.   Prabhakar   Maruti   Garvali
and Anr., VIII (2006) SLT 654=IV (2006)
ACC 769 (SC)=2007 (11) SCC 668."

31. The   Apex   Court   in   the   case   titled   as Surinder
Kumar Arora & another versus Dr. Manoj Bisla & others,
reported in 2012 AIR SCW 2241, held that rash and negligent
driving   of   the   driver   is  sine   qua   non  for   maintaining   claim
petition   under   Section   166   of   the   MV   Act,  which   is   not   the
essential ingredient for maintaining claim petition under Section
163A of the MV Act.  It is apt to reproduce paras 9 and 10 of the
judgment herein:
“9.Admittedly, the petition filed by the
claimants was under Section 166 of
the Act and not under Section 163­A
of   the   Act.   This   is   not   in   dispute.
Therefore,   it   was   the   entire
responsibility   of   the   parents   of   the
deceased   to   have   established   that
respondent No.1 drew the vehicle in a
rash   and   negligent   manner   which
resulted in the fatal accident. Maybe,
in order to help respondent No.1, the
claimants had not taken up that plea
before the Tribunal. Therefore, High
Court was justified in sustaining the
judgment   and   order   passed   by   the
Tribunal. We make it clear that if for
any reason, the claimants had filed
the   petition   under   Section   163­A   of
the Act, then the dicta of this Court in
the case of Kaushnuma Begum (Smt.)
& Ors. (AIR 2001 SC 485 : 2001 AIR
SCW 85) (supra) would have come to
the assistance of the claimants.

10. In our view the issue that we have
raised   for   our   consideration   is
squarely   covered   by   the   decision   of
this   Court   in   the   case   of   Oriental
Insurance   Co.   Ltd.   (AIR   2007   SC
1609 : 2007 AIR SCW 2362) (supra).
In the said decision the Court stated: 
"....Therefore,   the   victim   of   an
accident or his dependents have
an option either to proceed under
Section 166 of the Act or under
Section 163­A of the Act.   Once
they   approach   the   Tribunal
under Section 166 of the Act, they
have   necessarily   to   take   upon
themselves   the   burden   of
establishing the negligence of the
driver   or   owner   of   the   vehicle
concerned.     But  if they  proceed
under Section 163­A of the Act,
the   compensation   will   be
awarded   in   terms   of   the
Schedule   without   calling   upon
the victim or his dependants to
establish   any   negligence   or
default on the part of the owner
of the vehicle or the driver of the
vehicle.”
32. Learned Senior Counsel for the appellant tried to
make the foundation of his case by pressing into service the
judgment made by the Apex Court in the case titled as  Lachoo
Ram   and   others   versus   Himachal   Road   Transport
Corporation,  reported  in  (2014)  13  Supreme Court Cases

254.     The very foundation is without any basis, as discussed
hereinabove.  
33. The Apex Court has examined the scope of Sections
163A and 166 of the MV Act in the case titled as  Oriental
Insurance Company Limited versus Premlata Shukla &
others,  reported in  2007 AIR SCW 3591, and  Bimla Devi &
Ors.   versus   Himachal   Road   Transport   Corpn.   &   Ors.,
reported in 2009 AIR SCW 4298, and made a fine distinction.
34. The principle laid down by the Apex Court in the
said judgments is of no help to the appellant for the reason that
the claim petition in hand was filed before the Tribunal in terms
of Section 163A of the MV Act, whereas the petitions filed in the
cases   relied   upon   by   the   learned   Senior   Counsel   for   the
appellant were filed under Section 166 of the MV Act and the
question involved was as to whether the petition under Section
166   of   the   MV   Act   was   maintainable   without   proving   the
rashness and negligence, which is not the case here.
35. Having said so, the arguments of the learned Senior
Counsel for the appellant are misconceived.  Accordingly, 

findings returned by the Tribunal on issues No. 1 and 3 are
upheld.
36. Before I deal with issue No. 2, I deem it proper to
determine issue No. 4.
Issue No. 4:
37. Learned Senior Counsel for the appellant has not
questioned the liability and has not even disputed the factum of
insurance.   However, the Tribunal has rightly discussed issue
No. 4 and  the findings returned on the said issue are to be
upheld.   Accordingly, the findings returned by the Tribunal on
issue No. 4 are upheld.
Issue No. 2:
38. The   claimants   have   pleaded   and   proved   that
deceased­Dharam Pal was 22 years of age at the time of the
accident and the claimants were 38 and 36 years of age at the
time of filing of the claim petition.
39. It is beaten law of land that multiplier is the best
method to assess the compensation.   The Tribunal has applied
multiplier  of  '15', which is just  and  appropriate  in  view of the

Second Schedule appended with the MV Act read with the ratio
laid down by the Apex Court in the case titled as Sarla Verma
(Smt.)   and   others   versus   Delhi   Transport   Corporation
and another,  reported in  AIR 2009 SC 3104  and upheld by
a  larger  Bench  of  the Apex Court in the case titled as Reshma
Kumari   &   others   versus   Madan   Mohan   and   another,
reported in 2013 AIR SCW 3120.
40. The   claimants   have   specifically   pleaded   that   the
deceased was earning ` 6,000/­ per month and have also proved
the same.  Thus, by guess work, it can be safely held that the
income of the deceased was not less than  ` 5,000/­ per month
from all vocations. 
41. In view of the law laid down by the Apex Court in
Sarla Verma's case (supra) and upheld by a  larger  Bench  of
the Apex Court in   Reshma Kumari's case (supra), 50% was
to be deducted towards the personal expenses as the deceased
was bachelor.  
42. Viewed   thus,   the   claimants­parents   have   lost
source  of  income/dependency to the tune of ` 2,500/­ per month.

Accordingly, the claimants are held entitled to compensation to
the tune of ` 2,500/­ x 12 x 15 = ` 4,50,000/­ under the head 'loss
of income/dependency'.   The appellants­claimants are also held
entitled to compensation to the tune of ` 10,000/­ under the head
'loss of love and affection',  ` 10,000/­ under the head 'loss of
estate' and ` 10,000/­ under the head 'funeral expenses'.
43. The   moot   question   is   ­   whether   the   Tribunal   or
Appellate Court is/are within its/their jurisdiction to enhance
the compensation without the prayer being made for the same?  
44. The   poor   claimants   have   not   questioned   the
adequacy of compensation, have been dragged to the lis right
from 29.10.2004 and are still waiting for the day to receive the
compensation.  More than eleven years have elapsed, they have
suffered and are still suffering. 
45. It would be profitable to reproduce Section 168 (1) of
the MV Act herein:
"168. Award of the Claims Tribunal. ­
On  receipt    of      an      application       for
compensation made under section 166 , the
Claims Tribunal shall, after giving notice
of the application to the insurer and after
giving the parties (including the insurer)
an  opportunity  of  being  heard,  hold  an 

inquiry into the claim or, as the case may
be, each of the claims and, subject to the
provisions   of   section   162   may   make   an
award   determining   the   amount   of
compensation   which   appears   to   it   to   be
just and specifying the person or persons to
whom compensation shall be paid and in
making   the   award   the   Claims   Tribunal
shall  specify  the amount which  shall  be
paid by the insurer or owner or driver of
the vehicle involved in the accident or by
all or any of them, as the case may be:
......................"
46. The   mandate   of   Section   168   (1)   (supra)   is   to
'determine   the  amount   of   compensation   which   appears   to  be
just'.  
47. Keeping   in   view   the   object   of   granting   of
compensation   and   the   legislature's   wisdom   read   with   the
amendment made in the MV Act in the year 1994, it is for the
Tribunal or the Appellate Court to assess the just compensation
and is within its powers to grant the compensation more than
what is claimed and can enhance the same.
48.  This   Court   in   a   case   titled   as  United India
Insurance   Company   Ltd.   versus   Smt.   Kulwant   Kaur,
reported  in  Latest HLJ 2014 (HP) 174, held that the Tribunal

as well as the Appellate Court is/are within the jurisdiction to
enhance the compensation and grant more than what is claimed.
49. The same principle has been laid down by the Apex
Court   in   the   cases   titled   as  Nagappa   versus   Gurudayal
Singh and others, reported in AIR 2003 Supreme Court 674;
State of Haryana and another versus  Jasbir  Kaur  and
others,   reported  in   AIR  2003 Supreme Court 3696;  The
Divisional Controller, K.S.R.T.C. versus Mahadeva Shetty
and another,  reported in  AIR 2003 Supreme Court 4172;
A.P.S.R.T.C.   &   another   versus   M.   Ramadevi   &   others,
reported in 2008 AIR SCW 1213; and Ningamma & another
versus  United India Insurance Co. Ltd., reported in   2009
AIR SCW 4916.  
50. It is apt to reproduce para 10 of the judgment in
Nagappa's case (supra) herein:
“10. Thereafter, Section 168 empowers the
Claims   Tribunal   to   “make   an   award
determining   the   amount   of   compensation
which appears to it to be just”.   Therefore,
only   requirement   for   determining   the
compensation is that it must be 'just'.  There
is no other limitation or restriction on its
power for awarding just compensation.”

51. It would also be profitable to reproduce para 25 of
the judgment  in Ningamma's case (supra) herein:
“25. Undoubtedly, Section 166 of the MVA
deals with “Just Compensation” and even
if in the pleadings no specific claim was
made under section 166 of the MVA, in
our considered opinion a party should not
be   deprived   from   getting   “Just
Compensation”   in   case   the   claimant   is
able   to   make   out   a   case   under   any
provision   of   law.     Needless   to   say,   the
MVA is beneficial and welfare legislation.
In   fact,   the   Court   is   duty   bound   and
entitled   to   award   “Just   Compensation”
irrespective of the fact whether any plea in
that behalf was raised by the claimant or
not.     However,   whether   or   not   the
claimants   would   be   governed   with   the
terms   and   conditions   of   the   insurance
policy and whether or not the provisions
of   Section   147   of   the   MVA   would
be     applicable in the present case and
also whether or not there was rash and
negligent   driving   on   the   part   of   the
deceased, are essentially a matter of fact
which was required to be considered and
answered at least by the High Court.”
52. The   Apex   Court   in   the   case   titled   as  Oriental
Insurance Co. Ltd. versus Mohd. Nasir & Anr., reported in
2009 AIR SCW 3717, also laid down the same principle while
discussing, in para 27 of the judgment, the ratio laid down in the
judgments rendered in the cases titled as Nagappa v. Gurudayal

Singh & Ors, (2003)  2  SCC  274;  Devki Nandan Bangur and
Ors. versus State of Haryana and Ors. 1995 ACJ 1288; Syed
Basheer   Ahmed   &   Ors.   versus   Mohd.   Jameel  &   Anr.,  (2009)
2  SCC  225;  National  Insurance  Co. Ltd. versus Laxmi Narain
Dhut, (2007) 3 SCC 700; Punjab State Electricity Board Ltd.
versus Zora Singh and Others (2005) 6 SCC 776; A.P. SRTC
versus STAT and State of Haryana & Ors. versus Shakuntla
Devi, 2008 (13) SCALE 621.
53. The Apex Court in a latest judgment in a case titled
Sanobanu Nazirbhai Mirza & others versus Ahmedabad
Municipal Transport Service,  reported in  2013 AIR SCW
5800,  has specifically held that compensation can be enhanced
while deciding the appeal, even though prayer for enhancing the
compensation   is   not     made   by   way   of   appeal   or   cross
appeal/objections.  It is apt to reproduce para 9 of the judgment
herein:
“9. In view of the aforesaid decision of this
Court,   we   are   of   the   view   that   the   legal
representatives of the deceased are entitled
to the compensation as mentioned under the
various   heads   in   the   table   as   provided
above  in this judgment even though certain

claims were not preferred by them as we are
of   the   view   that   they   are   legally   and
legitimately   entitled   for   the   said   claims.
Accordingly   we   award   the   compensation,
more than what was claimed by them as it
is the statutory duty of the Tribunal and the
appellate   court   to   award   just   and
reasonable   compensation   to   the   legal
representatives of the deceased to mitigate
their hardship and agony as held by this
Court   in   a   catena   of   cases.     Therefore,
this Court has awarded just and reasonable
compensation in favour of the appellants as
they   filed   application   claiming
compensation under Section 166 of the M.V.
Act.  Keeping in view the aforesaid relevant
facts and legal evidence on record and in
the absence of rebuttal evidence adduced by
the   respondent,   we   determine   just   and
reasonable   compensation   by   awarding   a
total sum of Rs. 16,96,000/­ with interest @
7.5%   from   the   date   of   filing   the   claim
petition till the date payment is made to the
appellants.”
54. Having   said   so,   the   Tribunal/Appellate   Court   is
within its powers to award the just compensation.  Applying the
ratio, I deem it proper to enhance the compensation.
55. Having   glance   of   the   above   discussions,   the
claimants are held entitled to total compensation to the tune of
` 4,50,000/­ + ` 10,000/­ + ` 10,000/­ + ` 10,000/­ = ` 4,80,000/­
with interest as awarded by the Tribunal.

56. The   appellant­insurer   is   directed   to   deposit   the
enhanced   awarded   amount   before   the   Registry   within   eight
weeks.   The awarded amount already deposited be released in
favour of the claimants strictly as per the terms and conditions
contained   in   the   impugned   award   after   proper   identification.
After deposition of the enhanced awarded amount, the same be
also released in favour of the claimants through payee's account
cheque or by transferring to their respective accounts.
57. In   view   of   the   above,  the   impugned   award   is
modified and the appeal is disposed of, as indicated hereinabove.
58. Send  down   the   record   after   placing   copy   of   the
judgment on Tribunal's file.
    (Mansoor Ahmad Mir)
            Chief Justice  
                          
December 18, 2015

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