1998 (9) TMI 681 - SC - Indian Laws

Summary

Issues Involved:
1. Maintainability of the appeal.
2. Deduction of life insurance money from compensation under the Motor Vehicles Act, 1939.
3. Interpretation of "pecuniary advantage" and its applicability under the Motor Vehicles Act, 1939.

Summary:

1. Maintainability of the Appeal:
The respondents raised a preliminary objection regarding the maintainability of the appeal, arguing that it was dismissed as not pressed in the High Court. The Supreme Court found no merit in this objection, clarifying that the High Court dismissed the appeal because the issue was already covered by a previous decision, allowing the appellants to challenge the point before the Supreme Court.

2. Deduction of Life Insurance Money:
The core issue was whether the life insurance money received by the claimants should be deducted from the compensation payable under the Motor Vehicles Act, 1939. The trial court had deducted the life insurance amount based on the Bombay High Court's decision in Jaikumar Chhaganlal Patni and Others vs. Many Jerome D'souza and others (AIR 1978 Bombay 239). The Supreme Court examined divergent views from various High Courts and English courts on this matter.

3. Interpretation of "Pecuniary Advantage":
The Supreme Court scrutinized the interpretation of "pecuniary advantage" under the Motor Vehicles Act, 1939, contrasting it with the Fatal Accidents Act, 1855. The Court noted that the language of Section 110-B of the Motor Vehicles Act, 1939, which uses the term "just" compensation, provides a wider discretion to the Tribunal compared to the Fatal Accidents Act, 1855.

The Court referred to English case law, including Bradurn vs. Great Western Rail Co. and Parry vs. Cleaver, which held that insurance money should not benefit the tortfeasor. The Court emphasized that the compensation under the Motor Vehicles Act is for accidental death or injury, not any other form of death. Therefore, any pecuniary advantage not directly related to the accidental death should not be deducted from the compensation.

The Court concluded that the life insurance money, being a result of a contract between the deceased and the insurance company, is not a pecuniary advantage received by reason of the accidental death and should not be deducted from the compensation payable under the Motor Vehicles Act.

Conclusion:
The Supreme Court set aside the impugned judgment of the High Court and restored the Tribunal's judgment, holding that the amount received by the claimants from the life insurance policy of the deceased is not deductible from the compensation computed under the Motor Vehicles Act, 1939. The appeal was allowed with costs on parties.