Summary
In fatal-accident and injury claims involving a lorry operating outside its permitted State, the Supreme Court required the insurer first to pay the existing compensation awards and then recover from the owner. Further enhancement was refused. Although the High Court’s assumed income in the fatal claim lacked evidentiary support, its Rs.16 lakh award remained undisturbed; the injured claimant’s Tribunal award also stood.
Issues
- Whether the insurer should pay the third-party awards with recovery rights against the owner.
- Whether either claimant was entitled to further enhanced compensation.
Held
- The deceased’s driving licence and training certificate did not by themselves establish gainful employment or monthly income of Rs.10,000. The High Court’s reasoning for that notional income was tenuous. Nevertheless, the compensation already granted exceeded what the further claims would justify even on a Rs.5,000 income basis, so no additional amount was warranted. (¶¶ 11, 12, 13, 14)
- The injured claimant had not proved his monthly income, and the Tribunal assessed permanent disability at no more than ten per cent of the whole body. His cross-objection had been dismissed; no further enhancement was granted. (¶¶ 5, 7, 15)
- Following Singh Ram and Pappu, the insurer was directed to satisfy both awards first, with liberty to recover from the vehicle owner. The High Court’s allocation of payment solely to the owner was modified to this extent. (¶¶ 14, 15, 16, 17)
Result
Appeals partly allowed. Insurer to pay the Rs.16 lakh fatal-claim award and Rs.1,72,700 injury award with awarded interest, then recover from the owner. The injury award’s future medical expenses remained without interest. No further enhancement; no costs.