National Ins. Co. Vs. Smt. Satya Devi & Ors.

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — S.166(2) — Claim Petition — Jurisdiction — Claimant's Residence

Motor Vehicles Act, 1988 — Compensation — Income Assessment — Proof of Income — Oral Evidence

Motor Vehicles Act, 1988 — Compensation — Income Assessment — Notional Income — Second Schedule

Issues for determination

• Whether the Claims Tribunal at Jaipur had jurisdiction to entertain the claim petition?
• Whether the Tribunal rightly assessed the income of the deceased?
• Whether the compensation awarded for loss of dependency was correct?

Ratio decidendi

• A claim petition under Section 166(2) of the Motor Vehicles Act, 1988 can be preferred at the Claims Tribunal within whose local limits the claimant resides, providing an option to the claimant irrespective of where the accident occurred or the defendant resides.
• Oral evidence regarding the deceased's income, unsupported by reliable documentary evidence or corroboration, and contradicted by investigation, cannot be taken as gospel truth for assessing compensation under the Motor Vehicles Act.
• In the absence of reliable evidence proving the deceased's income, compensation for loss of dependency must be assessed on a notional income basis, such as that provided in the Second Schedule of the Motor Vehicles Act, 1988.

Important points

• Held, Claims Tribunal at Jaipur had jurisdiction to entertain the claim petition as the claimant resided there, exercising the option under Section 166(2) of the Motor Vehicles Act.
• Declared, oral evidence regarding the deceased's income, unsupported by reliable documentary evidence or corroboration, is insufficient for compensation assessment.
• Clarified, in the absence of reliable proof of income, compensation for loss of dependency must be assessed on a notional income basis, specifically from the Second Schedule of the Motor Vehicles Act, 1988.
• Set Aside, the Tribunal's compensation award of Rs. 10,59,625/- which was based on unproven income, finding it without legal basis.
• Allowed, the appeal, reducing the compensation for loss of dependency to Rs. 1,95,000/- based on the notional income provided in the Second Schedule of the Motor Vehicles Act.

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