# NATIONAL INSURANCE COMPANY LTD v. CHAMUNDESWARI & ORS

- **Citation:** [2021] 8 S.C.R. 611
- **Court:** Supreme Court of India
- **Decided:** 2021-10-01
- **Case number:** Civil Appeal No. 6151 of 2021
- **Bench:** R. Subhash Reddy, Hrishikesh Roy
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/national-insurance-company-ltd-v-chamundeswari-ors-35245
- **Pages:** 7

## Headnote

Motor Vehicles Act, 1988: s.166 - Fatal accident - The victimdeceased aged 35 years was working as Manager in Private
Company - Claimants are wife and minor son - One the fateful
day, he was driving car - At that time, the offending vehicle (Eicher
van) was in front of the car of the deceased - It was case of claimants
that all of sudden, the driver of Eicher van turned towards right
without giving any signal or indicator which resulted in accident -
The victim died and other passengers in the car i.e first respondentwife, respondent-minor son and sister of first respondent suffered
injuries - Respondents claimed Rs. 3 crores - Tribunal allowed the
claim partly and awarded compensation of Rs. 10,40,500/- with a
finding that there was contributory negligence - High Court held
that the accident occurred only due to negligence of the driver of
Eicher van and taking annual income of deceased as Rs. 12.29,949/
- awarded total compensation of Rs. 1.85 crores - On insurance
company's appeal, held: Evidence of PW-1 as well as PW-3 was
that the Eicher van which was going in front of the car, took a
sudden right turn without giving any signal or indicator - The
evidence of PW-1 & PW-3 was categorical and in absence of any
rebuttal evidence by the driver of Eicher van, High Court rightly
held that the accident occurred only due to the negligence of the
driver of Eicher van - PW-1 herself travelled in the very car and
PW-3, who gave statement before the police, was examined as eyewitness - In view of such evidence on record, there was no reason
to give weightage to the contents of the FIR - The accident occurred
on 14.10.2013, the High Court correctly took into account the salary
of the deceased in Form-16 for the Financial Year 2012-2013 -
Though, it was the claim of the respondents-claimants that the
deceased was earning Rs.1,33,070/- per month, the same was not
accepted and the High Court itself assessed the income of the
deceased at Rs.12,29,949/- per annum - As the deceased was in
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[2021] 8 S.C.R.
permanent job and having regard to age of the deceased on the
date of the accident, the future prospects and the multiplier were
correctly applied by the High Court - Even the amount of
compensation on other conventional heads is awarded correctly by
the High Court.
Dismissing the appeal, the Court
HELD: 1. It is clear from the evidence on record of PW-1
as well as PW-3 that the Eicher van which was going in front of
the car, has taken a sudden right turn without giving any signal
or indicator. The evidence of PW-1 & PW-3 is categorical and in
absence of any rebuttal evidence by examining the driver of
Eicher van, the High Court has rightly held that the accident
occurred only due to the negligence of the driver of Eicher van.
PW-1 herself travelled in the very car and PW-3, who has given
statement before the police, was examined as eye-witness. In
view of such evidence on record, there is no reason to give
weightage to the contents of the First Information Report. If any
evidence before the Tribunal runs contrary to the contents in the
First Information Report, the evidence which is recorded before
the Tribunal has to be given weightage over the contents of the
First Information Report. [Para 8][615-E-H]
2. The accident occurred on 14.10.2013, the High Court
has correctly taken into account the salary disclosed by the
deceased in Form-16 for the Financial Year 2012-2013 and income
of the deceased is taken as Rs.12,29,949/- per annum for the
purpose of determination of loss of dependency. Though, it was
the claim of the respondents-claimants that the deceased was
earning Rs.1,33,070/- per month, the same was not accepted and
the High Court itself assessed the income of the deceased at
Rs.12,29,949/- per annum. As the deceased was in permanent
job and having regard to age of the deceased on the date of the
accident, the future prospects and the multiplier were correctly
applied by the High Court in c

## Text

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[2021] 8 S.C.R. 611
611
NATIONAL INSURANCE COMPANY LTD.
v.
CHAMUNDESWARI & ORS.
(Civil Appeal No. 6151 of 2021)
OCTOBER 01, 2021
[R. SUBHASH REDDY AND HRISHIKESH ROY, JJ.]
Motor Vehicles Act, 1988: s.166 - Fatal accident - The victimdeceased aged 35 years was working as Manager in Private
Company - Claimants are wife and minor son - One the fateful
day, he was driving car - At that time, the offending vehicle (Eicher
van) was in front of the car of the deceased - It was case of claimants
that all of sudden, the driver of Eicher van turned towards right
without giving any signal or indicator which resulted in accident -
The victim died and other passengers in the car i.e first respondentwife, respondent-minor son and sister of first respondent suffered
injuries - Respondents claimed Rs. 3 crores - Tribunal allowed the
claim partly and awarded compensation of Rs. 10,40,500/- with a
finding that there was contributory negligence - High Court held
that the accident occurred only due to negligence of the driver of
Eicher van and taking annual income of deceased as Rs. 12.29,949/
- awarded total compensation of Rs. 1.85 crores - On insurance
company's appeal, held: Evidence of PW-1 as well as PW-3 was
that the Eicher van which was going in front of the car, took a
sudden right turn without giving any signal or indicator - The
evidence of PW-1 & PW-3 was categorical and in absence of any
rebuttal evidence by the driver of Eicher van, High Court rightly
held that the accident occurred only due to the negligence of the
driver of Eicher van - PW-1 herself travelled in the very car and
PW-3, who gave statement before the police, was examined as eyewitness - In view of such evidence on record, there was no reason
to give weightage to the contents of the FIR - The accident occurred
on 14.10.2013, the High Court correctly took into account the salary
of the deceased in Form-16 for the Financial Year 2012-2013 -
Though, it was the claim of the respondents-claimants that the
deceased was earning Rs.1,33,070/- per month, the same was not
accepted and the High Court itself assessed the income of the
deceased at Rs.12,29,949/- per annum - As the deceased was in
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[2021] 8 S.C.R.
permanent job and having regard to age of the deceased on the
date of the accident, the future prospects and the multiplier were
correctly applied by the High Court - Even the amount of
compensation on other conventional heads is awarded correctly by
the High Court.
Dismissing the appeal, the Court
HELD: 1. It is clear from the evidence on record of PW-1
as well as PW-3 that the Eicher van which was going in front of
the car, has taken a sudden right turn without giving any signal
or indicator. The evidence of PW-1 & PW-3 is categorical and in
absence of any rebuttal evidence by examining the driver of
Eicher van, the High Court has rightly held that the accident
occurred only due to the negligence of the driver of Eicher van.
PW-1 herself travelled in the very car and PW-3, who has given
statement before the police, was examined as eye-witness. In
view of such evidence on record, there is no reason to give
weightage to the contents of the First Information Report. If any
evidence before the Tribunal runs contrary to the contents in the
First Information Report, the evidence which is recorded before
the Tribunal has to be given weightage over the contents of the
First Information Report. [Para 8][615-E-H]
2. The accident occurred on 14.10.2013, the High Court
has correctly taken into account the salary disclosed by the
deceased in Form-16 for the Financial Year 2012-2013 and income
of the deceased is taken as Rs.12,29,949/- per annum for the
purpose of determination of loss of dependency. Though, it was
the claim of the respondents-claimants that the deceased was
earning Rs.1,33,070/- per month, the same was not accepted and
the High Court itself assessed the income of the deceased at
Rs.12,29,949/- per annum. As the deceased was in permanent
job and having regard to age of the deceased on the date of the
accident, the future prospects and the multiplier were correctly
applied by the High Court in conformity with the judgment of this
Court in the Case of Sarla Verma (Smt) and Others v. Delhi
Transport Corporation and Another and also in the case of National
Insurance Company Limited v. Pranay Sethi and Others. Even the
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amount of compensation on other conventional heads is awarded
correctly by the High Court. [Para 9][616-D-G]
Sarla Verma (Smt) and Others v. Delhi Transport
Corporation and Another 2009 (6) SCC 121: [2009] 5
SCR 1098; National Insurance Company Limited v.
Pranay Sethi and Others 2017 (16) SCC 680:[2017]
13 SCR 100 - relied on.
Oriental Insurance Company Limited v. Premlata Shukla
and Others 2007 (13) SCC 476 : [2007] 6 SCR 780;
Nishan Singh and Others v. Oriental Insurance
Company Limited 2018 (6) SCC 765: [2018] 6 SCR 795
- held inapplicable.
Case Law Reference
[2007] 6 SCR 780
held inapplicable
para 6
[2018] 6 SCR 795
held inapplicable
para 6
[2009] 5 SCR 1098
relied on
para 9
[2017] 13 SCR 100
relied on
para 9
CIVIL APPELLATE JURISDICTION: Civil Appeal No.6151 of
2021
From the Judgment and Order dated 03.08.2018 of the High Court
of Judicature at Madras, in CMA No.1204 of 2018.
K. K. Bhat, Ranjan Kumar Pandey, Advs. for the Appellant.
V. Balaji, Rakesh K. Sharma, Shantha Raman, Selvi George,
Garvesh Kabra, Advs. for the Respondents.
The Judgment of the Court was delivered by
R. SUBHASH REDDY, J.
1. Leave granted.
2. This appeal is filed by National Insurance Company Ltd. (3rd
Respondent before the High Court), aggrieved by the judgment and order
dated 03.08.2018, passed by the High Court of Judicature at Madras in
CMA No.1204 of 2018. By the aforesaid order, the High Court has
partly allowed the Civil Miscellaneous Appeal filed by the Respondent
Nos. 1 and 2, by enhancing compensation to Rs.1,85,08,832/-.
NATIONAL INSURANCE COMPANY LTD. v. CHAMUNDESWARI
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3. The 1st Respondent is wife and the 2nd Respondent is minor son
of the deceased Mr. Subhash Babu, who died in a road accident on
14.10.2013. The deceased Mr. Subhash Babu, aged about 35 years was
working as Manager HR in a Private Limited Company. On the date of
accident, he was driving Maruti car bearing No.DL-2C-P-5414 on NH47 - main road from Perumanallur to Erode. At that time, the Eicher van
bearing Registration No.TN-33-AZ-5868 was proceeding in front of the
car driven by the deceased. It is the case of the respondents-claimants
that all of a sudden, the driver of Eicher van has turned towards right
side without giving any signal or indicator. In the said accident, driver of
the Maruti car, Mr. Subhash Babu, died and other passengers in the car
i.e. 1st Respondent-wife, 2nd Respondent-minor son and sister of the 1st
Respondent, suffered injuries.
4. In the Claim Petition, filed by the Respondent Nos. 1 and 2
before the Motor Accident Claims Tribunal / Additional District Court,
Tiruppur, respondents claimed compensation of Rs.3 crores. The
respondents pleaded negligence on the part of the driver of Eicher van
as he has taken right turn without giving any signal or indicator, as such,
accident occurred only due to negligence of driver of Eicher van. The
appellant and others have appeared before the Claims Tribunal and
opposed the claim. The Claims Tribunal vide order dated 11.12.2017
passed in M.C.O.P. No.842 of 2014 has allowed the claim partly and
awarded compensation of Rs.10,40,500/- with a finding that there was a
contributory negligence on the part of drivers of both the vehicles in
ratio of 75% and 25% on the part of the deceased and the driver of
Eicher van respectively. On appeal, the High Court by recording a finding
that accident occurred only due to the negligence of the driver of the
Eicher van and the annual income of the deceased was Rs.12,29,949/-,
has awarded a total compensation of Rs.1,85,08,832/-, including the
compensation on conventional heads. Aggrieved by the judgment and
order of the High Court, the Insurance Company filed this Appeal before
this Court.
5. We have heard Mr. K. K. Bhat, learned counsel appearing for
the Appellant-Insurance Company and Mr. V. Balaji, learned counsel
appearing for the Respondents-Claimants.
6. The submission of the learned counsel for the appellant is
twofold. Firstly, it is submitted that though the Tribunal has correctly
apportioned the negligence on the part of the deceased and the driver of
Eicher van, the same was overturned by the High Court, contrary to the
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evidence on record. Mainly it is contended that in the First Information
Report, it was categorically mentioned that accident occurred only due
to negligence by the deceased. In spite of the same, such important
documentary evidence is ignored by the High Court. The learned counsel
in support of his arguments placed reliance on the judgments of this
Court in the case of Oriental Insurance Company Limited v. Premlata
Shukla and Others1 and in the case of Nishan Singh and Others v.
Oriental Insurance Company Limited2. It is, further, submitted by the
learned counsel that the compensation awarded by the High Court is
exorbitant in absence of any acceptable evidence on record to show
income of the deceased, as pleaded in the Claim Petition.
7. On the other hand, Mr. V. Balaji, learned counsel for the
respondents submitted that the accident occurred only due to the sheer
negligence on the part of the driver of Eicher van. It is submitted that the
deceased was driving Maruti car and ahead of them the Eicher van was
proceeding and the driver of the said van turned towards right side without
any signal or indicator and the said lapse resulted in the accident. It is,
further, submitted that the deceased was working as Manager HR in a
Private Limited Company and was earning a sum of Rs.1,33,070/- per
month, in spite of the same, the High Court has taken income of the
deceased at Rs.12,29,949/- per annum and awarded the compensation.
It is submitted that in view of the oral and the documentary evidence on
record, a just compensation is awarded by the High Court and there are
no grounds to interfere with the same.
8. It is clear from the evidence on record of PW-1 as well as
PW-3 that the Eicher van which was going in front of the car, has taken
a sudden right turn without giving any signal or indicator. The evidence
of PW-1 & PW-3 is categorical and in absence of any rebuttal evidence
by examining the driver of Eicher van, the High Court has rightly held
that the accident occurred only due to the negligence of the driver of
Eicher van. It is to be noted that PW-1 herself travelled in the very car
and PW-3, who has given statement before the police, was examined
as eye-witness. In view of such evidence on record, there is no reason
to give weightage to the contents of the First Information Report. If any
evidence before the Tribunal runs contrary to the contents in the First
Information Report, the evidence which is recorded before the Tribunal
has to be given weightage over the contents of the First Information
1 2007 (13) SCC 476
2 2018 (6) SCC 765
NATIONAL INSURANCE COMPANY LTD. v. CHAMUNDESWARI
[R. SUBHASH REDDY, J. ]
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Report. In the judgment, relied on by the appellant's counsel in the case
of Oriental Insurance Company Limited v. Premlata Shukla and
Others1
, this Court has held that proof of rashness and negligence on the
part of the driver of the vehicle, is therefore, sine qua non for maintaining
an application under Section 166 of the Act. In the said judgment, it is
held that the factum of an accident could also be proved from the First
Information Report. In the judgment in the case of Nishan Singh and
Others v. Oriental Insurance Company Limited2, this Court has held,
on facts, that the car of the appellant therein, which crashed into truck
which was proceeding in front of the same, was driven negligently by
not maintaining sufficient distance as contemplated under Road
Regulations, framed under Motor Vehicles Act, 1988. Whether driver of
the vehicle was negligent or not, there cannot be any straitjacket formula.
Each case is judged having regard to facts of the case and evidence on
record. Having regard to evidence in the present case on hand, we are
of the view that both the judgments relied on by the learned counsel for
the appellant, would not render any assistance in support of his case.
9. Even with regard to quantum of compensation, it is clear from
the judgment of the High Court that the accident occurred on 14.10.2013,
the High Court has correctly taken into account the salary disclosed by
the deceased in Form-16 for the Financial Year 2012-2013 and income
of the deceased is taken as Rs.12,29,949/- per annum for the purpose of
determination of loss of dependency. Though, it was the claim of the
respondents-claimants that the deceased was earning Rs.1,33,070/- per
month, the same was not accepted and the High Court itself assessed
the income of the deceased at Rs.12,29,949/- per annum. As the deceased
was in permanent job and having regard to age of the deceased on the
date of the accident, the future prospects and the multiplier were correctly
applied by the High Court, which is in conformity with the judgment of
this Court in the Case of Sarla Verma (Smt) and Others v. Delhi
Transport Corporation and Another3 and also in the case of National
Insurance Company Limited v. Pranay Sethi and Others4. Even the
amount of compensation on other conventional heads is awarded correctly
by the High Court. For the aforesaid reasons, we do not find any merit in
this Civil Appeal and the same is accordingly dismissed with no order as
to costs.
3 2009 (6) SCC 121
4 2017 (16) SCC 680
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10. While issuing notice, this Court vide order dated 18.02.2019
granted stay of enforcement of the impugned judgment, subject to
condition of depositing the lumpsum compensation of Rs.25 Lakhs before
the Tribunal with a direction to deposit the same in an interest earning
Fixed Deposit in a Nationalised bank. The said amount shall be paid to
the respondents-claimants with accrued interest. The balance amount
payable by the appellant-Insurance Company shall be paid within a period
of two months from today.
Devika Gujral
Appeal dismissed.
NATIONAL INSURANCE COMPANY LTD. v. CHAMUNDESWARI
[R. SUBHASH REDDY, J.]