# MOTOR OWNERS INSURANCE CO. LTD v. JADAVJI KESHAVJI MODI & ORS - **Citation:** [1982] 1 S.C.R. 860 - **Court:** Supreme Court of India - **Decided:** 1981-09-29 - **Case number:** Civil Appeals Nos. 801-802 of 1978 - **Bench:** Y.V. Chandrachud, S. MUll.TAZA FAZAL ALI, D.A. Desai - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/motor-owners-insurance-co-ltd-v-jadavji-keshavji-modi-ors-8844 - **Pages:** 22 ## Headnote Motor Vehicles Act 1939, S. 95(2) as amended by Motor Vehicles (Amendment) Act 1956,.S. 14-Scope of. "in all"-crany one accident"-Meaning of, Section 95 of the Motor Vehicles Act, 1939 prescribes the requirements of an insurance policy and the limits of liability thereunder. By sub-section (1) of section 95, a policy of insurance must insure the person or classes of persons specified in the policy to the extent specified in sub-section (2) against any liabiJity which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle in a public place. Section 95(2) of the Act as it originally stood read thus : "95(2) : Subject to the proviso to sub·section (1) a policy of insurance shall cover any liability incurred in respect of any one accid~nt upto the following limits, namely :- (a) \vhcre the vehicle is a vehicle used or adapated to be used for th~ carriage of goods, a limit of twenty thousand rupees ...... ". This provision was substituted by a new clause by section 74 of the Motor Vehicles (Amendment) Act, 1956 with effect from February 16, 1957. The amended clause read : "9j(2) (a) :-Where the vehicle is a goods vehicle, a limit of twenty thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923, in respect of the death of, or bodily injury to, employees (other than the driver), not exceeding six in number, being carried in the vehicle". This provision underwent further amendment by the Motor Vehicles (Amendment) Act, 1969 which came into force on March 2, 1970. A colJision took place between a motor car and a goods truck in February ff 1966 as a result of which the driver of the car died instantaneously and the person travelling in the car sustained injuries. The truck was insured against third party risk with the appeliant·insurance company. t MOTOR OWNERS INSURANCE Y J.K. MODI 861 The heirs and legal representatives of the deceased filed an application before the Motor Accidents Claims Tribunal, under section llO·D of the Act~ claiming compensation in the sum of Rs. 30,000 for the death caused in the accident. The person who was injured filed a separate application asking for compensation of Rs. 10,000 for the injuries suffered by him. The Tribunal dismissed both the applications on the ground that respondent No. 3 could not be said to have been driving the truck rashly and negligently at the tirue of the accident. The claimants filed separate appeals in the High Court, which awarded a compensation of Rs. 19,125 to the heirs of the deceased and Rs. 10,000 to the injured person. In the appeals to this Court it was contended on behalf of the appellantinsurance company : (i) that under clause (a) of section 95(2) as it stood at the material time, the liability of the insurer under the statutory policy taken by the owner of the goods vehicle is limited to Rs. 20,000 in all and, therefore, the insurer cannot be asked to pay compensation in excess of that amount, and that the liability to pay the balance must be fixed on the owner of the goods vehicle who would be vicariously responsible for the negligence of his employee who was driving the goods vehicle, and (ii) that the Amendment Act of 1956 which came into force on February 16, 1957 introduced the words 'in all' in clause (a) and that these words were introduced to limit the overall liability of the insurer to twenty thousand rupees. Dismissing the appeals, HELD : 1. The High Court took a just, correct and realistic view of the A B c D matter by holding that, under the statutory policy the appellant-insurance comE pany is liable to pay the full amount of compensation to the heirs of the deceased and to the passenger travelling in the car, each amount being less than Rs. 20,000. [880 G-H] The purpose of law is to alleviate, not augment, the sufferings of the people. The award of compensation depends upon a variety of factors, including the exte ## Text _Characters 0–39,437 of 51,934. This is a partial read: ask again with offset=39437 for what follows._ A 860 B c D E F G MOTOR OWNERS INSURANCE CO. LTD. v. JADAVJI KESHAVJI MODI & ORS. September 29, 1981 [Y.V. CHANDRACHUD, C.J., S. MUll.TAZA FAZAL ALI AND D.A. DESAI, JJ.] Motor Vehicles Act 1939, S. 95(2) as amended by Motor Vehicles (Amendment) Act 1956,.S. 14-Scope of. "in all"-crany one accident"-Meaning of, Section 95 of the Motor Vehicles Act, 1939 prescribes the requirements of an insurance policy and the limits of liability thereunder. By sub-section (1) of section 95, a policy of insurance must insure the person or classes of persons specified in the policy to the extent specified in sub-section (2) against any liabiJity which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle in a public place. Section 95(2) of the Act as it originally stood read thus : "95(2) : Subject to the proviso to sub·section (1) a policy of insurance shall cover any liability incurred in respect of any one accid~nt upto the following limits, namely :- (a) \vhcre the vehicle is a vehicle used or adapated to be used for th~ carriage of goods, a limit of twenty thousand rupees ...... ". This provision was substituted by a new clause by section 74 of the Motor Vehicles (Amendment) Act, 1956 with effect from February 16, 1957. The amended clause read : "9j(2) (a) :-Where the vehicle is a goods vehicle, a limit of twenty thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923, in respect of the death of, or bodily injury to, employees (other than the driver), not exceeding six in number, being carried in the vehicle". This provision underwent further amendment by the Motor Vehicles (Amendment) Act, 1969 which came into force on March 2, 1970. A colJision took place between a motor car and a goods truck in February ff 1966 as a result of which the driver of the car died instantaneously and the person travelling in the car sustained injuries. The truck was insured against third party risk with the appeliant·insurance company. t MOTOR OWNERS INSURANCE Y J.K. MODI 861 The heirs and legal representatives of the deceased filed an application before the Motor Accidents Claims Tribunal, under section llO·D of the Act~ claiming compensation in the sum of Rs. 30,000 for the death caused in the accident. The person who was injured filed a separate application asking for compensation of Rs. 10,000 for the injuries suffered by him. The Tribunal dismissed both the applications on the ground that respondent No. 3 could not be said to have been driving the truck rashly and negligently at the tirue of the accident. The claimants filed separate appeals in the High Court, which awarded a compensation of Rs. 19,125 to the heirs of the deceased and Rs. 10,000 to the injured person. In the appeals to this Court it was contended on behalf of the appellantinsurance company : (i) that under clause (a) of section 95(2) as it stood at the material time, the liability of the insurer under the statutory policy taken by the owner of the goods vehicle is limited to Rs. 20,000 in all and, therefore, the insurer cannot be asked to pay compensation in excess of that amount, and that the liability to pay the balance must be fixed on the owner of the goods vehicle who would be vicariously responsible for the negligence of his employee who was driving the goods vehicle, and (ii) that the Amendment Act of 1956 which came into force on February 16, 1957 introduced the words 'in all' in clause (a) and that these words were introduced to limit the overall liability of the insurer to twenty thousand rupees. Dismissing the appeals, HELD : 1. The High Court took a just, correct and realistic view of the A B c D matter by holding that, under the statutory policy the appellant-insurance comE pany is liable to pay the full amount of compensation to the heirs of the deceased and to the passenger travelling in the car, each amount being less than Rs. 20,000. [880 G-H] The purpose of law is to alleviate, not augment, the sufferings of the people. The award of compensation depends upon a variety of factors, including the extent of monetary deprivation to which the heirs of the deceased are subjected. (870 G] 3. By common practice and the application of recognised rules of statu~ tory construction, harsh consequences following upon an interpretation are not considered as the goVerning factor in the construction of a statute, unless its language is equivocal and ambiguous. [871 E] 4. Clause (a) of section 95 (2) qualifies the extent of the insurer's liability by the use of the unambiguous expression 'in all' and since that expression was specially introduced by an amendment, it must be allowed its full play. The legislature must be presumed to have intended what it has plainly said. But, clause (a) does not stand alone and is not the only provision to be considered for determining the outside limit of the insurer's liability. In fact, clause (a) does not even form a complete sentence and makes no meaning by itself. Like the other clauses (b) to (d), clause (a) is governed by the opening words of F G H 862 SUPREME COURT REPORTS (1982] I S.C.R. A section 95 (2) to the effect that ''a policy of insurance shall cover any liability incurred in respect of any one accident upto the following limits", that is the limits laid down in clauses (a) to (d). [871 H-872 B) B c D E F G 5 (i) The expression, 'any one accident' is susceptible of two equally reasonable meanings or interpretations. If a collision occurs between a car and a truck resulting in injuries to five persons, it is as much plausible to say that five persons were injured in one accident as it is to say that each of the five persons met with an accident. A bystander looking at the occurrence objectively will be right in saying that the truck and the car met with an accident or that they were concerned in one accident. On the other hand, a person looking at the occurrence subjectively, like the one who was injured in the collision, will say that he met with an accident. And so will each of the five persons who were injured. From their point of view, which is the relevant point of view, "any one accident" means ''accident to any one''. la matters involving third party risks, it is subjective considerations which must prevail and the occurrence has to be looked at from the point of view of those who are immediately affected by it. [872 E·F] 5 (ii) A consideration of preponderating importance in a matter of this nature is not whether there was any one transaction which resulted in injuries to many but whether more than one person was injured, giving rise to more than one claim or cause of action, even if the injuries were caused in the course of one single transaction. If more than one person is injured during the course of the same transaction, each one of the persons meets with an accident. [873A-B] 6. The ambiguity in the language used by the legislature in the opening part of section 95 (2) and the doubt arising out of the co-relation of that language wilh the words 'in air which occur in clause (a) must be resolved by having regard to the underlying legislative purpose of the provisions, contained in Chapter VIII of the Act which deals with third party risks. That is a sensitive process which has to accommodate the claims of the society as reflected in that purpose. [873 CJ 7. In the area of legislative ambiguities courts have to fill gaps, clear doubts and mitigate hardships. There is no table of logarithms to guide or govern staiutory construction in this area, which leaves a sufficient and desirable discretion for the Judges to interpret_ laws in the light of their purpose, where the language used by the law.makers does not yield to one and one meaning only. It is, therefore, appropriate to hold that the word "accident" is used in the expression ·'any one accident" from the point of view of the various claimants, each of whom is entitled to make a separate claim for the accident suffered by him and not from the point of view of the insurer. [873 D, F~G] s. With the emergenci;: of the General Insurance C.:>rporation which has taken over general insurance business of all kinds, including motor vehicle insurance, it should be easy to give statutory recognition to the State's obligation to H compensate victims of road accidents, promptly, adequately and without con 4 test. [880 F] - > I MOTOR OWNERS INSURANCE v. J.K. MODI (Chandrachud, C.J.) 863 Cabell v. Markham, 148 F. 2d. 737, 739 [1945]; The South Staffordshire Tramways Co1npany Ltd. v. The Sickness and Accident Assurance Association Ltd., [1891] 1 Q.B.D. 402; Forney v. Dominion Insurance Co. Ltd., [1969] I Weekly Law Reports, 928; Manjusri Raha and Ors. v. B.L. Gupta and Ors. [1977] 2 S.C.R. 944, referred to. Northern India Transporters Insurance Co. Ltd. v. Smt. Amrawati, AIR 1966 Punjab 288, Jaya!akshmi and Ors. v. The Ruby General Insurance Company, Madras and Anr. AIR 1971 Madras 143; Sabita Pati and Ors. v. Rameshwar Singh and Anr. [1973] A. C. J. 319; Sheikhupura Transport Co, Ltd. v. Northern India Transport Co., [1971] Suppl, S.C.R. 20 distinguished. Sanjiva Shelly v. Anantha and Ors, 1976 A.,C. J. 261; M/s. Construction India and Ors. v. Mahindra Pal Singh _'Ahluwalia and Ors., 1975 A.CJ. 177, disapproved. CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 801-802 of 1978: From the judgment and order dated the 30th September, 1976 of the Gujarat High Court at Ahmedabad in F.A. No. 696 of 1971 and 1282 of 1969. So/i J. Sorabjee, 1.N. Shroff and /l,S. Parihar for the Appellant. S.K. Dholakia and R.C. Bhatia for Respondent Nos. 3-6. The Judgment of the Court was delivered by CHANDRACHUD, C.J. These appeals raise a question of some importance from the point of Insurance Companies which insure motor vehicles against third party risks and more so, from the point of view of the general public which, by reason of the increasing hazards of indisciplined and fast moving traffic, is driven in despair to lodge claims for injuries suffered in motor vehicle accidents. In case of air accidents, the injured and the dependents of the deceased receive, without contest, fairly large sums by way of compensation from the Air Corporations. We have still to awaken to the need to evolve a reasonably comparable method for compensating those who receive injuries or die in road or train accidents. The victims of road accidents or their dependents are driven to wage a long and unequal battle against the Insurance Companies, which deny their liability on every conceivable ground and indulge in an ingenious variety of factual disputations from 'who was driving the vehicle' to 'whose negligence was the sine qua non of the accident'. The delay in the final disposal of motor accident compensation cases, as in all A B c D E F G H B D E F G H 864 SUPREME COURT REPORTS [1982] 1 S.C.R. other classes of litigation, takes the sting out of the laws of compensation because, an infant child who seeks compensation as a dependent of his deceased father has often to await the attainment of majority in order to see the colour of the money. Add to that the monstrous inflation and the consequent fall in the value of the rupee: Compensation demanded say, ten years ago, is less than quarter of its value when it is received today. We do hope that the Government will apply itself seriously and urgently to this problem and find a satisfactory method of ameliorating the woes of victims of road accidents. We have just talked of delay and ~it is just as well that we begin by saying that the accident out of which these proceedings arise happened on February I, 1966. A collision took place between a motor car, No. GJY 4973, and a goods truck, No. GTA 4123, at about 8.30 P.M. on Naroda Road, Ahmedabad, as a result of which Ajit Sinh, who was driving the car died instantaneously and Jadavji Keshavji Modi, who was travelling in the car, sustained injuries. The truck was insured against third party risk with t)1e appellant, the Motor Owners Iasurance Co. Ltd. The appellant had then an office in Ahemdabad but it ultimately merged with the New India Assurance Co. Ltd., Bombay. Respondents 1 (a) to 1 (g), who are the heirs and legal representatives of the deceased Ajit Sinh, filed an application before the Motor Accidents Claims Tribunal, Ahmedabad, under section 110-D of the Motor Vehicles Act, 4 of 1939, seeking compensation in the sum of Rs. 30,000 for his death. Jadavji Modi filed a separate application asking for compensation of Rs. 10,000 for the injuries suffered by him. The Tribunal dismissed both the applications by a tcommon judgment dated June 2C, 1968 on the ground that respondent No. 3 could not be said to have been driving the truck rashly and negligently at the time of the accident. Jadavji Modi and respondents 1 (a) to 1 (g) filed separate appeals in the Gujarat High Court from the Judgment oft he Tribunal, being First Appeals Nos. 1202 of 1969 and 696 of 1971 respectively. These appeals were disposed of by the High Court by a common judgment dated September 30, 1976. The hearing proceeded, both before the Tribunal and the High Court, on the basis that the truck was used for carrying goods. The High Court allowed the appeals, awarding a compensation of Rs. 19, 125 to . I MOTOR OWNERS INSURANCE V, J.K. MODI (Chandrachud, C.J.) 865 respondents 1 (a) to 1 (g) with 6% interest from the date of application until realisation of the amount and a compensation of Rs. I 0,000 with similar interest to Jadvaji Modi. These appeals by special leave are directed against the judgment of the High Court. This Court by its order dated April 18, 1978 granted special leave to the appellant to appeal from the judgment of the High Court, limited to the question relating to the construction of section 95 (2) of the Motor Vehicles Act, 1939, ("the Ac('). Chapter VIII of the Act bears the title "Insurance of motor vehicles against third party risks". Section 93 defines certain terms while section 94 (I) provides for the necessity to insure a vehicle against third party risks. By that section, no person can use a motor vehicle in a public place, except as a passenger, unless there is in force in relation to the use of the vehicle a policy of insurance complying with the requirements of the chapter. Section 95 prescribes the requirements of the insurance policy and the "limits of liability" thereunder. Broadly, by sub-section (I) of section 95, a policy of insurance must insure the person or classes of persons specified in the policy to the extent specified in sub-section (2) against any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle in a public place. The proviso to sub-section (1) consists of three clauses by which, speaking generally, a policy is not required to cover (i) liability in respect of the death of or injuries to an employee arising out of and in the course of his employment; (ii) liability in respect of the death of or bodily injury to persons carried in the vehicle except where the vehicle is used for carrying passengers for hire or reward; and (iii) any contractual liability. That takes us to the provisions contained in section 95 (2) of the Act, the interpretation of which is the sole question for our consideration in this appeal. The Motor Vehicles Act, 1939, save for Chapter VIII relating to the insurance of motor vehicles against third party risks, has been in force since July I, 1939, in what were known as Part A and Part C States and since April I, 1951 in Part B States. Chapter VIII came into force on July I, 1946. Section 95 (2) of the Act originally read thus : "95 (2) -Subject to the proviso to sub-section (1), a A 8 c D E F G H A B c D E F G H 866 SUPREME COURT REPORTS (1982] l cs.C.R policy of insurance shall incurred in respect of any following limits, namely :- cover any liability one accident upto the (a) where the vehicle is a vehicle used or adapted to be used for the carriage of goods, a limit of twenty thousand rupees; (b) where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, in respect of persons other than passengers carried for hire or reward, a limit of twenty thonsand rupees; and in respect of passengers a limit of twenty thousand rupees in all, and four thousand rupees in respect of an individual passenger, if the vehicle is registered to carry not more than six passengers excluding the driver or two thousand rupees in respect of an individual passenger, if the vehicle 'is registered to carry more than six passengers excluding the driver; (c) where the vehicle is a vehicle of any other class, the amount of the liability incurred." (emphasis supplied) Clause (a) of sub-section (2) was substituted by a new clause by section 74 of the Motor Vehicles (Amendment) Act, JOO of 1956, with effect from February 16, 1957. The amended clause (a), which was in force on February J, 1966 when the mcident leading to these proceedings occurred, reads thus : "95 (2) (a) -Where the vehicle is a goods vehicle, a limit of twenty thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923, in respect of the death of, or bodily injury to, employees (other than the driver), not • MOTOR OWNERS INSUR~NCE v. J.K. MODI (Cha11drachud, C.J.) 867 exceeding six in number, being carried in the A vehicle.'' (emphasis supplied) Clauses (b) and (c) of section 95 (2) remained as they were in 1939 8 and were not touched by the 1956 Amendment. Section 95 (2) underwent a further amendment by the Motor Vehicles (Amendment) Act, 56 of 1969, which came into force on March 2, 1970. As a result of that amendment, the section reads thus : ''95 (2) -Subject to the proviso to sub-section (l), a policy of insurance shall cover any liability incurred in respect of any one accident upto the following limits, namely :- (a) where the vehicle is a goods vehicle, a limit of fifty thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923, in respect of the death of, or bodily injury to employees (other than the driver), not exceeding six in number, being carried in the vehicle; (b) where foe vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment- (i) in respect of persons other than passengers carried for hire or reward, a limit of c D E F fifty thousand rupees in all; G (ii) in respect of passengers : ( ll a limit of fifty thousand rupees in all where the vehicle is registered to carry more than thirty passengers; H A B c D E F G H 868 SUPREME COURT REPORTS [1982) 1 s.c.R. (2) a limit of seventy-five thousand rupees in all where the vehicle is registered to carry more than thirty but not more than sixty passengers; (3) a limit of one lakh rupees in all _ where the vehicle is registered to carry more than sixty passengers; and (4) subject to the limits aforesaid ten thonsand rupees for each individual passenger in any other case; (c) save as provided in clause (d), where the vehicle is a vehicle of any other class, the amount of liability incurred; (d) irrespective of the class of the vehicle, a limit of rupees two thousand in all in respect of damage to any property of a third party." (emphasis supplied) We are concerned only with clause (a) of section 95 (2) and that too, as it existed on February l, 1966 when the collision between the car and the truck took place. We have extracted the other clauses of section 95 (2) in order to trace the legislative history of the section and to see whether the language used by the legislature in other parts of the same section affords a comparative clue to the interpretation of the provision contained in clause (a). Clause (a) as originally enacted in 1939, provide:! that the insurance policy must cover the liability in respect of third party risks upto the limit of twenty thousand rupees, where the vehicle is used or adapted to be used for the carriage of goods. By the amendment introduced by the Amendment Act 100 of 1956, the words "in all" were added after the words "twenty thousand rupees". Clause (a) thus amended read to say that where the vehicle is a goods vehicle, the policy of insurance shall cover the liability in regard to third party risks upto the limit of twenty thousand rupees in all. Whereas clause (a) in its original form spoke of a vehicle "used or adapted to be used for the carriage of goods", under the \ , ... I MOTOR OWNERS INSURANCE v. J.K. MODI (Chandrachud, C.J.) 869 amendment of 1956, the clause was made applicable to cases where the vehicle "is a goods vehicle". The other amendment introduced by the Act of 1956 was that the overall limit of twenty thousand rupees was expressed to include the liability arising under the Workmen's Compensation Act, 1923 to the extent mentioned in the amendment. The amendment introduced by the Amendment Act 56 of 1969 enhanced the liability under clause (a) from twenty thousand rupees to fifty thousand rupees in all. Clause (b) of section 95 applies to vehicles in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment. Under that clause as it stood originally in 1939, the liability was restricted to twenty thousand rupees in respect of persons other than passengers carried for hire or reward; and to twenty thousand rupees in all in respect of passengers. The Amendment Act of 1956 did not make any change in clause (b). But, the Amendment Act of 1969 enhanced the liability to the limit of fifty thousand rupees in all in respect of persons other than passengers carried for hire or reward. In respect of passengers, the liability was enhanced from twenty thousand rupees to fifty thousand rupees in all, seventy-five thousand rupees in all one lakh rupees in all, depending upon the registered capacity of the vehicle to carry passengers. It may be recalled that the High Court awarded compensation in the sum of Rs. 19,125 to respondents I (a) to I (g) who are the heirs and legal representatives of Ajit Sinh who was driving the car, and Rs. 10,000 to Jadavji Modi who was travelling in the car. The total amount of compensation awarded to the claimants thns comes to Rs. 29,125 that is to say, it is in excess of Rs. 20,000. The contention of Shri Sorabjee who appears on behalf of the appellant insnrance·company is, that under clause (a) as it stood at the material time, the liability of the insurer under the statutory policy taken by the owner of the goods vehicle is limited to twenty thousand rupees in all and. therefore, the insurer cannot be asked to pay compensation in excess of that amount. The liability to pay the balance, viz. Rs. 9,125 must according to the learned counsel, be fastened on the owner of the goods vehicle who would be vicariously responsible for the negligence of his employee who was driving the goods vehicle. In support of this submission counsel relies strongly on the circumstance that the Amendment Act of 1956 which came into force on February 16, 1957, introduced the words A B c D E F G H A B c D E F G H 870 SUPREMH COURT REPORTS [1982] 1 S.C.R. "in all" in clause (a). It is urged that these words were introduced advisedly and deliberately in order to limit the overall liability of the insurer to twenty thousand rupees under the statutory policy. These words of limitation cannot be ignored by asking the appellant to pay compensation in excess of twenty thousand rupees. Counsel also seeks to derive support to his submission from the use of the words "in all" in clauses (b) and (d) of section 95 (2) as amended by Amendment Act 56 of I 969 which came into force on March 2, 1970. Having given our anxious consideration to these contentions of Shri Sorabjee, which are not without plausibility, we have come to the conclusion that the construction canvassed by the learned counsel will lead to great injustice and absurdity and must, therefore, be eschewed since, especially, the words of section 95 (2) cannot, in the context in which they occur, be regarded as plain and unambiguous. We will first demonstrate the harsh and strange consequences which will flow out of the construction pressed upon us and we will then show why we consider that the material words of the section are of doubtful import. If, for example, two or three persons die in a collision between a car and a goods vehicle and two or three others are injured as a result of the negligence of the driver of the goods vehicle, the heirs of the deceased and the injured persons will together be entitled to twenty thousand rupees in all, no matter how serious the injuries and bow grave the hardship to the heirs ensuing up0n the loss of lives of those who perished in the collision. But there is a more flagrant injustice which one shall have to countenance if one were to accept the argument advanced on behalf of the appellant and it is this If two persons of unequal economic status die in the kind of collision mentioned above, the heirs of the affluent victim will virtually monopolise the compensation by getting a lion's share in it, thereby adding insult to the injury caused to the heirs of the indigent victim. The purpose of law is to alleviate, not augment, the sufferings of the people. It is well-known that the award of compensation depends upon a variety of factors, including the extent of monetary deprivation to which the heirs of the deceased are subjected. Appl)ing that criterion as one of the many variable criteria which are applied for fixing compensation in motor accident cases, the heirs of the affluent victim may have been awarded, say, a compensation of Rs. 90,000. The heirs of the other victim who may have been just managing to keep his body and soul together will probably have received by that standard a compensation of, say, f .. - I - 't. • MOTOR OWNERS INSURANCE v, J.K. MODI (Chandrachud, C.J.) 871 ten thousand rupees. The compensation awarded to these two groups of heirs shall have to be reduced rateably in the proportion. of 9 : 1. in order to ensure it does not exceed rupees twenty thousand "in all". The result of this will be that the insurance company will be liable to pay a sum of Rs. 18,000 to the heirs of the affluent person and Rs. 2,000 to the heirs of the other person. The icy hand of death may have fallen in one stroke on two victims of disparate economic status but then, the arithmetic of the appellant's argument V>ill perpetuate the gross inequality between the two even after their death. We must avoid a construction which will produce such an unfair result, if we can do so without doing violence to the language of the section. The owner of the truck will undoubtedly be liable to pay the balance but common experience shows that the woes of the injured and of the heirs of those who perish in automobile accidents begin after they embark upon the adventure. of execution proceedings. There are proverbial difficulties in proving ownership of goods vehicles, particularly if they are subject to a hire.purchase agreement and truck owners are quite known for the ease with which they. proclaim their insolvency. It is therefore no consolation that the left-over liability will fall on the insured. Both by common practice and the apr lication of recognised rules of statutory construction, harsh consequences following upon an interpretation are not considered as the governing factor in the construction of a statute, unless its language is equivocal or ambiguous. If the language is plain and capable of one interpretation only, we will not be justified in reading into the words of the Act a meaning which does not follow naturally from the language used by legislature. It therefore becomes necessary to consider whether the language used by the legislature in section 95 (2} of the Act admits of any doubt or difficulty or is capable of one interpretation only. If the words used by the legislature in clause (a) of srction 95 (2) were the sole factor for determining the outside limit of the insurer's liability, it may have been possible to accept the submission that the total liability of the insurer arising out of the incident or occurrence in question cannot exceed Rs. 20,000. Clause (a) qualifies the extent of the insurer's liability by the use of the unambiguous expression "in all" and since that expression was specially introduced hy an amendment, it must be allowed its full play The legislature must be presumed to have intended what it has plainly said. But, clause (a) does not stand alone and is not A B c D E F G H A B c D E F G H 872 SUPREME COURT REPORTS - (1982] J S.C.R. the only provision to be considered for determining the outside limit of the insurer's liability. In fact, clause (a) does not even form a complete sentence and makes no meaning by itself. Like the other clauses (b) to (d), clause (a) is governed by the opening words of section 95 (2) to the effect that "a policy of insurance shall cover any liability incurred in respect of any one accident upto the following limits'', that is to say, the limits laid down in clauses (a) to (d). We have supplied emphasis in order to focus attention on the true question which emerges for consideration : What is the meaning of the expression "any one accident"? If that expression were plain and unambiguous, and its meaning clear and definite, effect would be required to be given to it regardless of what we think of its wisdom or policy. But as we will presently show, 1·the expression "any one accidenr· does not disclose one meaning conclusively according to the laws of language. It, clearly, is capable of more than one meaning, introducing thereby an ambiguity which has to be resolved by resorting to the well-settled principles of statutory construction. The expression "any one accident'· is susceptible of two equally reasonable meanings or interpretations. If a collision occurs between a car and a truck resulting in injuries to five persons, it is as much plausible to say that five persons were injured in one accident as it is to say that each of the five persons met with au accident. A by-stander looking at the occurrence objectively will be right in saying that the truck and the car met with an accident or that they were concerned in one accident. On the other hand, a person looking at the occurrence subjectively, like the one who is injured in the collision, will say that he met with an accident. And so will each of the five persons who were injured. From their point of view, which is the relevant point of view, "any one accident" means "accident to any one". In matters involving third party risks, it is subjective considerations which must prevail and the occurrence has to be looked at from the point of view of those who are immediately affected by it. If the matter is looked at from an objective point of view, the insurer's liability will be limited to Rs. 20,000 in respect of injuries caused to all the five persons considered en bloc as a single entity, since they were injured as a result of one single collision. On the other hand, if the matter is looked at subjectively as it ought to be, the insurer's liability will extend to a sum of Rs. 20,000 in respect of the injuries suffered by. each one of the five persons, since each met with an accident, though during - I > ( , MOTOR OWNERS INSURANCE v. J.K. MODI (Chandruchud, C.J.) 873 the course of the same transaction. A consideration of preponderating importance in a matter of this nature is not whether there was any one transaction which resulted in injuries to many but whether more than one person was injured, giving rise to more than one claim or cause of action, even if the injuries were caused in the course of one single transaction. If more than one person is injured during the course of the same transaction, each one of the persons has met with an accident. We are, therefore, of the opinion that the ambiguity in the language used by the legislature in the opening part of section 95 (2) and the doubt arising out of the co-relation of that language with the words "in all" which occur in clause (a}, must be resolved by having regard to the underlying legislative purpose of the provisions contained in chapter VIII of the Act which deals with third party risks. That is a sensitive process which has to accommodate the claims of the society as reflected in that pnrpose. Indeed, it is in this area of legislative ambiguities, unfortunately not receding, that courts have to fill gaps, clear doubts and mitigate hardships. In the words of Judge Learned Hand : "It is one of surest indexes of a mature and developed jurisprudence ...... to remember that statutes always have some purpose or object to accomplish whose sympathetic and imaginative discovery is the . surest guide to their meaning". (1) There is no table of logarithms to guide or govern statutory construction in this area, which leaves a sufficient and desirable discretion for the Judges to interpret laws in the light of their purpose, where the language used by the law-makers does not yield to one and one meaning only. Considering the matter that way, we are of the opinion that it is appropriate to hold that the word "accident" is used in the expression "any one accident" from the point of view of the various claimants, each of whom is entitled to make a separate claim for the accident suffered by him and not from the point of view of the insurer. In The South Staffordshire Tramways Company Ltd. v. The Sickness and Accident Assurance Association Ltd., (2) the plaintiffs, a (I) Cabell v. Markham, 148 F. 2d 737, 739 (1945). (2) [1891] 1 QBD 402. A B c D F G H A B c D E F G H 874 SUPREME COURT REPORTS [ 1982) 1 S.C.R. tramcar company, effected with the defendants an insurance against claims for personal irjury in respect of accidents caused by vehicles upto the amount of£ 250 "in respect of any one accident". One of the vehicles specified in the insurance policy was overturned, causing injuries to about forty persons, as a result of which the plaintiffs became liable to pay to those persons compensation to the extent of£ 833. The question before the Court was whether the injuries caused to each of the said forty persons constituted a separate accident within the meaning of the policy. The Court of Appeal answered that question in the affirmative. Lord Esher, M .R., observed in his judgment that the claims made by the plaintiffs were in respect of personal injuries, and each person injured claimed for injuries in respect of an accident to his person by the vehicle. "If several persons were injured", said the Master of Rolls, "upon the true construction of the policy, there were several accidents". Bowen, L.J. took the same view of the matter by