New India Assurance Co. Vs. Smt. Vidu @ Vidhya

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Section 168 — Compensation — Assessment of Future Loss of Income — Contractual Employment — Qualified Deceased

Motor Vehicles Act, 1988 — Section 170 — Application for Permission to Contest — Rejection — Appearance of Owner/Driver

Ratio decidendi

• The assessment of future loss of income by the Claims Tribunal for a young, qualified individual (28 years old, Diploma in Mechanical Engineering) who died in an accident, cannot be termed illegal, even if the employment was on a contractual basis, as it is reasonable to assume potential for further employment and increased salary in the future.
• An application filed under Section 170 of the Motor Vehicles Act, 1988, is not wrongly rejected by the Tribunal if the owner and driver of the vehicle appeared, filed a reply, and contested the claim, and the award was not passed in their absence.

Important points

• Held, the Tribunal's assessment of Rs.60,000/- per annum for future loss of income for a 28-year-old Diploma holder, even on contractual employment, was not illegal given potential for future earnings.
• Clarified, rejection of application under Section 170 of Motor Vehicles Act was proper as vehicle owner/driver appeared and contested the claim.

Keywords