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Tuesday, January 28, 2014

Accident claim -Section 166 of M.V. Act- clause (C) of Rule 2 of the Mizoram Motor Accident Claims Tribunal Rules, 1988, clause (11) of Section 2 of the Code of Civil Procedure, 1908,- Legal Representative - includes Catholic Society and also a brother of deceased as earlier decided - Locus standi of Catholic Society to claim compensation for the death of it's Brother in accident - No plea was taken regarding locu standi by company - Tribunal awarded compensation to the society - instead of appeal insurance company filed writ - high court set aside the order and judgement of Tribunal exparte holding that society has no locus standi - Review also rejected even after verifying the bye laws of society which describes the society is the legal heir of brother's assets - Apex court held that the society can maintain a claim petition and set aside the orders of high court = MONTFORD BROTHERS OF ST. GABRIEL & ANR. ... APPELLANTS VS. UNITED INDIA INSURANCE & ANR. ETC. ... RESPONDENTS= 2014 (January part ) judis.nic.in/supremecourt/filename=41182

 Accident claim -Section 166 of M.V. Act- clause (C) of  Rule  2  of the Mizoram Motor Accident Claims Tribunal Rules,  1988,  clause (11) of Section 2 of the Code of Civil Procedure, 1908,- Legal Representative -  includes Catholic Society and also a brother of deceased as earlier decided - Locus standi of Catholic Society to claim compensation for the death of it's Brother in accident - No plea was taken regarding locu standi by company - Tribunal awarded compensation to the society - instead of appeal insurance company filed writ - high court set aside the order and judgement of Tribunal exparte holding that society has no locus standi - Review also rejected even after verifying the bye laws of society which describes the society is the legal heir of brother's assets - Apex court held that the society can maintain a claim petition and  set aside the orders of high court =

whether the High Court was correct  in
law in holding that the appellants are not competent to  claim  compensation
under the Motor Vehicle Act for the accidental death of `Brother’  belonging
to the appellant-society. =
 Instead of preferring appeal against the order of  the  Tribunal,  the
respondent-Company preferred a  writ  petition  under  Article  226  of  the
Constitution of India before the Gauhati High  Court  and  by  the  impugned
order under appeal dated 20.08.2002,  the High Court allowed  the  aforesaid
writ petition (C) No.20 of 2002 ex-parte, and held the  judgment  and  order
of the learned Tribunal to be invalid and incompetent  being  in  favour  of
person/persons who according to the High court were not competent  to  claim
compensation under the Motor Vehicle Act =

   “Whatever the `Brother’ receives by way  of  salary,  subsidies,
          gifts, pension or from insurance or other such benefits belongs to
          the community as by right and goes into the common purse.”

4.    Appellant No.2 is Principal of St.  Paul’s  Higher  Secondary  School,
Aizawal, Mizoram and represents appellant no.1 as well.

5.    One `Brother’ of  the  Society,  namely,  Alex  Chandy  Thomas  was  a
Director-cum-Head master of St. Peter High School and he  died  in  a  motor
accident on 22.06.1992.  The accident was  between  a  Jeep  driven  by  the
deceased and a Maruti Gypsy  covered  by  insurance  policy  issued  by  the
respondent Insurance Company.  At the time of death the  deceased  was  aged
34 years and was drawing  monthly salary of Rs.4,190/-.  The claim  petition
bearing No.55 of 1992 was filed before M.A.C.T., Aizawal by  appellant  no.2 on being duly authorized by the appellant no.1-the society. 

“166.  Application  for  compensation:-
(1)   An   application   for
        compensation arising out of an accident of the nature specified  in
        sub- section (1) of section 165 may be made—


           (a) by the person who has sustained the injury; or


           (b) by the owner of the property; or


           (c) where death has resulted from the accident, by all or any of
           the legal representatives of the deceased; or


           (d) by any agent duly authorised by the person inured or all  or
           any of the legal representatives of the deceased,  as  the  case
           may be:


           Provided  that  where  all  the  legal  representatives  of  the
      deceased have not joined in any such application for compensation, the
      application shall be made on behalf of or for the benefit of  all  the
      legal representatives of the deceased and  the  legal  representatives
      who have not so joined, shall  be  impleaded  as  respondents  to  the
      application. “




9.    The Act does not  define  the  term  “legal  representative”  but  the
Tribunal has noted in its judgment and order that clause (C) of  Rule  2  of
the Mizoram Motor Accident Claims Tribunal Rules,  1988,  defines  the  term
`legal representative’ as having the same  meaning  as  assigned  to  it  in
clause (11) of Section 2 of the Code of Civil Procedure, 1908, which  is  as
follows:
           “Section 2(11)`Legal representative’ means a person who  in  law
      represents the estate of a deceased person and includes any person who
      intermeddles with the estate of the deceased and where a party sues or
      is sued in a representative character the person on  whom  the  estate
      devolves On the death of the party so suing or sued”.

10.   From the aforesaid provisions it is clear that in case of death  of  a
person  in  a  motor  vehicle  accident,  right  is  available  to  a  legal
representative of the deceased or the agent of the legal  representative  to
lodge a claim for compensation under the provisions of the Act.   
The  issue
as to who is a legal representative or its agent is basically  an  issue  of
fact and may be decided one way or the other dependent upon the facts  of  a
particular case. 
But as a legal proposition it is undeniable that  a  person
claming  to  be  a  legal  representative  has  the  locus  to  maintain  an
application for compensation under Section 166 of the Act,  either  directly
or through any agent, subject to result of a dispute  raised  by  the  other
side on this issue.


in the case  of  Gujarat  State  Road  Transport  Corporation,
Ahmedabad vs. Raman Bhai Prabhatbhai & Anr.[1].  
In that  case,  covered  by
the Motor Vehicles Act of 1939, the claimant was a  brother  of  a  deceased
killed in a motor vehicle accident.  The Court rejected  the  contention  of
the appellant that since the term  `legal  representative’  is  not  defined
under the Motor Vehicles Act, the  right  of  filing  the  claim  should  be
controlled by the provisions of Fatal Accident  Act.   It  was  specifically
held that Motor Vehicles Act creates new and enlarged right  for  filing  an
application for compensation and such right  cannot  be  hedged  in  by  the
limitations on an action under the Fatal Accidents  Act.   Paragraph  11  of
the report reflects the correct philosophy which  should  guide  the  courts
interpreting legal  provisions  of  beneficial  legislations  providing  for
compensation to those who had suffered loss.

“11. We feel that the view taken by the Gujarat High  Court  is  in
      consonance with the principles of justice, equity and good  conscience
      having regard to the conditions of the  Indian  society.  Every  legal
      representative who suffers on account of the death of a person due  to
      a motor vehicle accident should  have  a  remedy  for  realisation  of
      compensation and that is provided by Sections 110-A to  110-F  of  the
      Act. These provisions are in consonance with the principles of law  of
      torts that every injury must have  a  remedy.  It  is  for  the  Motor
      Vehicles  Accidents  Tribunal  to  determine  the  compensation  which
      appears to it to be just as provided in Section 110-B of the  Act  and
      to specify the person or persons to whom compensation shall  be  paid.
      The determination of the compensation payable and its apportionment as
      required by Section 110-B of the Act amongst the legal representatives
      for whose benefit an application may be filed under Section  110-A  of
      the Act have to be done in accordance with  well-known  principles  of
      law. We should remember that in an Indian family brothers, sisters and
      brothers’ children and some times foster children  live  together  and
      they are dependent upon the bread-winner of  the  family  and  if  the
      bread-winner is killed on account of a motor vehicle  accident,  there
      is no  justification  to  deny  them  compensation  relying  upon  the
      provisions of the Fatal Accidents Act, 1855 which as we  have  already
      held has been substantially modified by the  provisions  contained  in
      the Act in relation to cases arising out of motor vehicles  accidents.
      We express our approval of the decision in Megjibhai  Khimji  Vira  v.
      Chaturbhai Taljabhai, (AIR 1977 Guj.195) and hold that the brother  of
      a person who dies in a motor vehicle accident is entitled to  maintain
      a  petition  under  Section  110-A  of  the  Act  if  he  is  a  legal
      representative of the deceased.”

while considering the quantum of compensation for  the
claimants the Tribunal  adopted  a  very  cautious  approach  and  framed  a
question for itself as  to  what  should  be  the  criterion  for  assessing
compensation in such  case where the  deceased  was  a  Roman  Catholic  and
joined the church services after denouncing his family, and as  such  having
no actual dependants or earning?  
For  answering  this  issue  the  Tribunal
relied not only upon judgments of American and English Courts but also  upon
Indian judgments for coming to the conclusion that even  a  religious  order
or organization may suffer considerable loss due to  death  of  a  voluntary
worker. The Tribunal also went on to  decide  who  should  be  entitled  for
compensation as legal representative of the deceased and  for  that  purpose
it relied upon the Full Bench judgment of Patna High Court reported  in  AIR
1987 Pat. 239, which held that  the  term  `legal  representative’  is  wide
enough to include even “intermeddlers” with the estate of a  deceased.   The
Tribunal also referred to some Indian judgments in which it  was  held  that
successors to the trusteeship and trust property are  legal  representatives
within the meaning of Section 2(11) of the Code of Civil Procedure.

17.   In the light of the aforesaid discussions, we have no  hesitation  in
holding that the High Court erred in law in setting aside the  judgment  of
the learned Tribunal by ignoring the  fact  that  the  respondent-Insurance
Company had not pressed issue no.1 nor it had pleaded and led  evidence  in
respect to the said issue.  The Court explained that  the  appellants  were
the legal
representatives of the deceased.  Such an  issue  of  facts  could  not  be
decided by the High Court for the first time in a writ petition which could
only be entertained under Article  227  of  the  Constitution  for  limited
purpose.

18.   Accordingly, orders of the  High  Court  dated  August  20,  2002  and
December 10, 2003 are set aside and the judgment and order of  the  Tribunal
dated July 14, 1994,  is  restored.   The  dues  of  compensation  including
interest, as per judgment  of  the  Tribunal,  shall  be  deposited  by  the
respondent-Insurance Company with the Tribunal within eight weeks  from  the
date of this order.  The Tribunal shall permit  the  claimants  to  withdraw
the same in the light of its order.

2014 (January part ) judis.nic.in/supremecourt/filename=41182
   P SATHASIVAM, RANJAN GOGOI, SHIVA KIRTI SINGH

                                                        REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


            CIVIL APPEAL NOS. 3269-3270 OF 2007


  MONTFORD BROTHERS OF
 ST. GABRIEL & ANR.                       ... APPELLANTS

                       VS.

UNITED INDIA INSURANCE & ANR.     ETC.  ... RESPONDENTS




                               J U D G M E N T






SHIVA KIRTI SINGH,J.



      Heard learned counsel for the appellants and learned counsel for  the
respondent-Insurance Company.


2.    The facts relevant for deciding this appeal are  not  in  dispute  and
hence noted only in brief.
3.    The appellant No.1  is  a  charitable  society  registered  under  the
Societies Registration  Act,  1960.   It  runs  various  institutions  as  a
constituent unit of Catholic  Church.  It  is  running  various  orphanages,
industrial schools and other social service  activities  besides  number  of
educational schools/institutions.  Its members after joining  the  appellant
society renounce the world and are known as  “Brother”.  
Such  a  `Brother’
severs his all relations with  the  natural  family  and  is  bound  by  the
constitution of the society which includes Article 60 quoted in paragraph  3
of the order dated 10.12.2003 passed in Review Petition No.4 of 2002 and  in
annexure P.5 as such:
            “Whatever the `Brother’ receives by way  of  salary,  subsidies,
          gifts, pension or from insurance or other such benefits belongs to
          the community as by right and goes into the common purse.”

4.    Appellant No.2 is Principal of St.  Paul’s  Higher  Secondary  School,
Aizawal, Mizoram and represents appellant no.1 as well.

5.    One `Brother’ of  the  Society,  namely,  Alex  Chandy  Thomas  was  a
Director-cum-Head master of St. Peter High School and he  died  in  a  motor
accident on 22.06.1992.  The accident was  between  a  Jeep  driven  by  the
deceased and a Maruti Gypsy  covered  by  insurance  policy  issued  by  the
respondent Insurance Company.  At the time of death the  deceased  was  aged
34 years and was drawing  monthly salary of Rs.4,190/-.  The claim  petition
bearing No.55 of 1992 was filed before M.A.C.T., Aizawal by  appellant  no.2 on being duly authorized by the appellant no.1-the society.   The  owner  of
the Gypsy vehicle discussed in his written statement that vehicle  was  duly
insured and hence liability, if any, was upon the  Insurance  Company.   The
respondent-Insurance Company also filed  a  written  statement  and  thereby
raised various objections to the claim.
But as is clear  from  the  written
statement under Annexure P.2 it  never  raised  the  issue  that  since  the
deceased was a `Brother’ and therefore  without  any  family  or  heir,  the
appellant could not file claim petition for want of locus standi.
The  issue
no.1 regarding maintainability of claim petition  was  not  pressed  by  the
respondents.
The Tribunal awarded a compensation of Rs.2,52,000/- in  favour
of the claimant and against the opposite parties with  a  direction  to  the
insurer to deposit  Rs.2,27,000/-  with  the  Tribunal  as  Rs.25,000/-  had
already  been  deposited  as  interim  compensation.   The   Tribunal   also
permitted interest at the rate of 12%  per  annum,  but  from  the  date  of
judgment dated 14.07.1994 passed in MACT case Nos. 55 and 82 of 1992.

6.    Instead of preferring appeal against the order of  the  Tribunal,  the
respondent-Company preferred a  writ  petition  under  Article  226  of  the
Constitution of India before the Gauhati High  Court  and  by  the  impugned
order under appeal dated 20.08.2002,  the High Court allowed  the  aforesaid
writ petition (C) No.20 of 2002 ex-parte, and held the  judgment  and  order
of the learned Tribunal to be invalid and incompetent  being  in  favour  of
person/persons who according to the High court were not competent  to  claim
compensation under the Motor Vehicle Act.   This  was  the  only  ground  of
challenge to the judgment  and  Award  of  the  Tribunal.  The  High  Court,
however, did not disturb the Award of Rs.25,000/- already  made  as  interim
compensation. Review Petition preferred by the appellants was also  rejected
on 10.12.2003 but after noticing the relevant facts  relating  to  locus  of
the appellants.

7.    From the facts noted above, it is evident that  there  is  no  dispute
between the parties with regard to the quantum  of  compensation  determined
by the Tribunal and the only issue is whether the High Court was correct  in
law in holding that the appellants are not competent to  claim  compensation
under the Motor Vehicle Act for the accidental death of `Brother’  belonging
to the appellant-society.
8.    The only issue noted above requires to look into Section  166  of  the
Motor Vehicles Act, 1988, (hereinafter referred  to  as  `The  Act’).   Sub-
section (1) of Section 166 is relevant for the purpose.  It provides thus:

        “166.  Application  for  compensation:-
(1)   An   application   for
        compensation arising out of an accident of the nature specified  in
        sub- section (1) of section 165 may be made—


           (a) by the person who has sustained the injury; or


           (b) by the owner of the property; or


           (c) where death has resulted from the accident, by all or any of
           the legal representatives of the deceased; or


           (d) by any agent duly authorised by the person inured or all  or
           any of the legal representatives of the deceased,  as  the  case
           may be:


           Provided  that  where  all  the  legal  representatives  of  the
      deceased have not joined in any such application for compensation, the
      application shall be made on behalf of or for the benefit of  all  the
      legal representatives of the deceased and  the  legal  representatives
      who have not so joined, shall  be  impleaded  as  respondents  to  the
      application. “




9.    The Act does not  define  the  term  “legal  representative”  but  the
Tribunal has noted in its judgment and order that clause (C) of  Rule  2  of
the Mizoram Motor Accident Claims Tribunal Rules,  1988,  defines  the  term
`legal representative’ as having the same  meaning  as  assigned  to  it  in
clause (11) of Section 2 of the Code of Civil Procedure, 1908, which  is  as
follows:
           “Section 2(11)`Legal representative’ means a person who  in  law
      represents the estate of a deceased person and includes any person who
      intermeddles with the estate of the deceased and where a party sues or
      is sued in a representative character the person on  whom  the  estate
      devolves On the death of the party so suing or sued”.

10.   From the aforesaid provisions it is clear that in case of death  of  a
person  in  a  motor  vehicle  accident,  right  is  available  to  a  legal
representative of the deceased or the agent of the legal  representative  to
lodge a claim for compensation under the provisions of the Act.  
The  issue
as to who is a legal representative or its agent is basically  an  issue  of
fact and may be decided one way or the other dependent upon the facts  of  a
particular case.
But as a legal proposition it is undeniable that  a  person
claming  to  be  a  legal  representative  has  the  locus  to  maintain  an
application for compensation under Section 166 of the Act,  either  directly
or through any agent, subject to result of a dispute  raised  by  the  other
side on this issue.

11.   Learned counsel for the Insurance Company tried to  persuade  us  that
since the term `legal representative’ has not been defined  under  the  Act,
the provision of Section 1-A of the Fatal Accidents  Act,  1855,  should  be
taken as guiding principle and the claim should be  confined  only  for  the
benefit of wife, husband, parent and child, if  any,  of  the  person  whose
death has been caused by the accident.  In this context, he  cited  judgment
of this Court in the case  of  Gujarat  State  Road  Transport  Corporation,
Ahmedabad vs. Raman Bhai Prabhatbhai & Anr.[1].  
In that  case,  covered  by
the Motor Vehicles Act of 1939, the claimant was a  brother  of  a  deceased
killed in a motor vehicle accident.  The Court rejected  the  contention  of
the appellant that since the term  `legal  representative’  is  not  defined
under the Motor Vehicles Act, the  right  of  filing  the  claim  should  be
controlled by the provisions of Fatal Accident  Act.   It  was  specifically
held that Motor Vehicles Act creates new and enlarged right  for  filing  an
application for compensation and such right  cannot  be  hedged  in  by  the
limitations on an action under the Fatal Accidents  Act.   Paragraph  11  of
the report reflects the correct philosophy which  should  guide  the  courts
interpreting legal  provisions  of  beneficial  legislations  providing  for
compensation to those who had suffered loss.

        “11. We feel that the view taken by the Gujarat High  Court  is  in
      consonance with the principles of justice, equity and good  conscience
      having regard to the conditions of the  Indian  society.  Every  legal
      representative who suffers on account of the death of a person due  to
      a motor vehicle accident should  have  a  remedy  for  realisation  of
      compensation and that is provided by Sections 110-A to  110-F  of  the
      Act. These provisions are in consonance with the principles of law  of
      torts that every injury must have  a  remedy.  It  is  for  the  Motor
      Vehicles  Accidents  Tribunal  to  determine  the  compensation  which
      appears to it to be just as provided in Section 110-B of the  Act  and
      to specify the person or persons to whom compensation shall  be  paid.
      The determination of the compensation payable and its apportionment as
      required by Section 110-B of the Act amongst the legal representatives
      for whose benefit an application may be filed under Section  110-A  of
      the Act have to be done in accordance with  well-known  principles  of
      law. We should remember that in an Indian family brothers, sisters and
      brothers’ children and some times foster children  live  together  and
      they are dependent upon the bread-winner of  the  family  and  if  the
      bread-winner is killed on account of a motor vehicle  accident,  there
      is no  justification  to  deny  them  compensation  relying  upon  the
      provisions of the Fatal Accidents Act, 1855 which as we  have  already
      held has been substantially modified by the  provisions  contained  in
      the Act in relation to cases arising out of motor vehicles  accidents.
      We express our approval of the decision in Megjibhai  Khimji  Vira  v.
      Chaturbhai Taljabhai, (AIR 1977 Guj.195) and hold that the brother  of
      a person who dies in a motor vehicle accident is entitled to  maintain
      a  petition  under  Section  110-A  of  the  Act  if  he  is  a  legal
      representative of the deceased.”






12.   From the aforesaid quoted extract it is evident that only if there is
a justification in consonance with principles of justice, equity  and  good
conscience,  a dependant of the deceased  may  be  denied  right  to  claim
compensation.  Hence, we find no merit in the submission advanced on behalf
of  the  respondent-Insurance  Company  that  the  claim  petition  is  not
maintainable because of the provisions of the Fatal Accidents Act.

13.   On behalf of  the  appellants  it  has  been  rightly  contended  that
proceeding before the Motor Vehicle Claims Tribunal is a summary  proceeding
and unless there is evidence in support of such pleading that  the  claimant
is not a legal representative and therefore the claim petition be  dismissed
as not maintainable, no such plea can be raised at a  subsequent  stage  and
that also through a writ petition.  The objection filed  on  behalf  of  the
Insurance Company, contained in  annexure  P.2,  does  not  raise  any  such
objection nor there is any evidence led on this issue.   As  noted  earlier,
the Tribunal did frame any issue  regarding  maintainability  of  the  claim
petition on law and fact as issue no.1 but  the  findings  recorded  by  the
Tribunal at page 41 of the paper book show that  this  issue  together  with
issue nos. 2 and 3 were not pressed by the  opposite  parties  during  trial
and were accordingly decided in favour of the claimants.

14.    In  the  aforesaid  circumstances,  the  order  under  appeal  dated
20.8.2002 allowing the writ petition suffers from apparent mistake  in  not
noticing the relevant issue decided by the Tribunal and also the fact  that
the Insurance Company, which was the writ petitioner, had not pressed  this
issue. It had neither raised pleadings nor led evidence  relevant  for  the
said issue.

15.   On coming to know about the High Court judgment the  appellants  filed
a review petition in which they gave all the relevant  facts  including  the
constitution of the society appellant no.1 in support of their claim that  a
`Brother’ of the Society renounced his relations  with  the  natural  family
and all his earnings and belongings including insurance claims  belonged  to
the society. These facts could not have been ignored by the High  Court  but
even after noticing such facts the review petition was rejected.

16.   A perusal of the judgment and order of  the  Tribunal  discloses  that
although issue no.1 was not pressed and  hence  decided  in  favour  of  the
claimants/appellants, while considering the quantum of compensation for  the
claimants the Tribunal  adopted  a  very  cautious  approach  and  framed  a
question for itself as  to  what  should  be  the  criterion  for  assessing
compensation in such  case where the  deceased  was  a  Roman  Catholic  and
joined the church services after denouncing his family, and as  such  having
no actual dependants or earning?
For  answering  this  issue  the  Tribunal
relied not only upon judgments of American and English Courts but also  upon
Indian judgments for coming to the conclusion that even  a  religious  order
or organization may suffer considerable loss due to  death  of  a  voluntary
worker. The Tribunal also went on to  decide  who  should  be  entitled  for
compensation as legal representative of the deceased and  for  that  purpose
it relied upon the Full Bench judgment of Patna High Court reported  in  AIR
1987 Pat. 239, which held that  the  term  `legal  representative’  is  wide
enough to include even “intermeddlers” with the estate of a  deceased.   The
Tribunal also referred to some Indian judgments in which it  was  held  that
successors to the trusteeship and trust property are  legal  representatives
within the meaning of Section 2(11) of the Code of Civil Procedure.

17.   In the light of the aforesaid discussions, we have no  hesitation  in
holding that the High Court erred in law in setting aside the  judgment  of
the learned Tribunal by ignoring the  fact  that  the  respondent-Insurance
Company had not pressed issue no.1 nor it had pleaded and led  evidence  in
respect to the said issue.  The Court explained that  the  appellants  were
the legal
representatives of the deceased.  Such an  issue  of  facts  could  not  be
decided by the High Court for the first time in a writ petition which could
only be entertained under Article  227  of  the  Constitution  for  limited
purpose.

18.   Accordingly, orders of the  High  Court  dated  August  20,  2002  and
December 10, 2003 are set aside and the judgment and order of  the  Tribunal
dated July 14, 1994,  is  restored.   The  dues  of  compensation  including
interest, as per judgment  of  the  Tribunal,  shall  be  deposited  by  the
respondent-Insurance Company with the Tribunal within eight weeks  from  the
date of this order.  The Tribunal shall permit  the  claimants  to  withdraw
the same in the light of its order.



19.   The appeals are allowed to the extent indicated above. No costs.

                                  ……………………………………………C.J.I.
                                    (P. SATHASIVAM)






                                    …………………………………………………J.           (RANJAN
                                    GOGOI)






                                    …………………………………………………J.            (SHIVA
                                    KIRTI SINGH)
New Delhi,
January 28,2014.
-----------------------
[1]     AIR 1987 SC 1690

-----------------------
13


Accident claim - M.V. ACT - Goods vehicle - accident - Gumasthe died - Gumasthe also covered with in the clause "engaged in operation" - Expression in policy “Add: for LL to persons employed in connection with the operation and/or loading unloading of motor vehicle IMT 17”. - Tribunal rightly awarded compensation - High court misread it and interpreted narrowly only to loading and unloading of motor vehicle - Gumasthe comes under the persons employed in connection with operation - Apex court set aside the orders of high court and restored the orders of Tribunal = HANUMANAGOUDA ... APPELLANT VS. UNITED INDIA INSURANCE CO. LTD. & ORS. ETC. ... RESPONDENTS = 2014 ( January part ) judis.nic.in/supremecourt/filename=41181

Accident claim - M.V. ACT - Goods vehicle - accident - Gumasthe died -  Gumasthe also covered with in the clause "engaged in operation" - Expression in policy “Add: for LL to persons employed in  connection  with  the operation and/or loading unloading of motor vehicle IMT 17”. - Tribunal rightly awarded compensation - High court misread it and interpreted narrowly only to  loading and unloading of motor vehicle - Gumasthe comes under the persons employed in connection with operation - Apex court set aside the orders of high court and restored the orders of Tribunal = 

The  Tribunal
allowed their claim in MCV No. 616  of  1999  and  held  them  entitled  for
compensation of Rs.2,55,000/- from the owner-cum-driver of  the  lorry,  the
appellant and also from  respondent-Insurance  Company  as  they  were  held
responsible jointly and severally.  The claim was allowed with  6%  interest
from the date of claim petition till its realization  with  costs  fixed  at
Rs.200/-.
3.    In appeals preferred by the Insurance Company, the High Court by  the
order under Appeal dated 17.10.2005 interfered with the Award made  against
the Insurer in respect of death of Hanumanth and held that  the  Award  was
bad in law because the deceased was  in  a  clerical  cadre  working  as  a Gumasthe accompanying the goods in transit for the purpose of delivery  and as such he could not be covered by the clause under which premium was  paid for covering the risk of  the  persons  employed  in  connection  with  the operation of loading and unloading of the goods.  Against this order passed
in MFA No.2451 of 2002,  the  appellant/owner  of  the  goods  vehicle  has
preferred this appeal.=
 whether the clause  IMT  17
for which premium was paid to the insurer in respect of the concerned lorry
will cover the deceased Hamumanth or not.
For deciding the above issue, one is simply  required  to  go  through
the relevant clause  IMT  17  of  the  policy,  whose  copy  has  been  made
available to us.  The clause reads thus:
                 “Add: for LL to persons employed in  connection  with  the
           operation and/or loading unloading of motor vehicle IMT 17”.

6.    The High Court has  clearly  fallen  in  error  in  holding  that  the
insurer is not liable in respect  of  death  of  Hanumanth.   The  clause  -
“persons employed in connection with the  operation”  is  clearly  over  and
above  the  coverage  provided  by  the  policy  to  “persons  employed   in
connection with  loading/unloading  of  motor  vehicle”.  As  Gumasthe,  the
deceased was accompanying the goods in transit for the purpose  of  delivery
of goods. This has been accepted by the High Court.  Obviously, as  Gumasthe
the deceased would  be  covered  by  the  expression  “persons  employed  in
connection with operation of motor vehicle” The operation of  the  aforesaid
clause has wrongly been restricted and limited only to persons  employed  in
connection with loading/unloading of the motor vehicle.
In view of the aforesaid error committed by the High Court, the  order
under appeal is set aside and the order of the Tribunal is restored.   As  a
result, the respondent-Insurance Company will be bound by the Award made  by
the Tribunal for paying compensation to  the  claimants  for  the  death  of
Hanumath as per orders of the Tribunal. The dues of compensation along  with
due interest should be deposited by the respondent Insurance Company  within
eight weeks with the Tribunal which will permit the  claimants  to  withdraw
the amount as per order of the Tribunal.
8.    The appeal is allowed to the aforesaid extent.  No costs.

2014 ( January part ) judis.nic.in/supremecourt/filename=41181
P SATHASIVAM, RANJAN GOGOI, SHIVA KIRTI SINGH
                                                         

 REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


              CIVIL APPEAL NO. 5901 OF 2008


  HANUMANAGOUDA                      ... APPELLANT

                       VS.

UNITED INDIA INSURANCE
CO. LTD. & ORS. ETC.               ... RESPONDENTS




                               J U D G M E N T






SHIVA KIRTI SINGH, J.


      Heard learned counsel for the appellant and learned  counsel  for  the
respondent-Insurance Company.

2.    Due to accident involving a goods vehicle, a lorry, two persons  died
and others  received  injuries.  
All  the  thirteen  claim  petitions  were
decided  by  a  common  judgment  dated  21.01.2002  by  the  Motor  Vehicle
Accidents  Claim  Tribunal  (hereinafter  referred  to  as  `The  Tribunal’)
presided by the Principal  District  Judge  at  Raichur  (Karnataka).  
This
appeal relates only to claim filed by dependents and  legal  representatives
of deceased Hanumanth which included his  widow  Smt.  Mariyamma  and  three
minor children, who are respondents 2 to 4 in  this  appeal.  
The  Tribunal
allowed their claim in MCV No. 616  of  1999  and  held  them  entitled  for
compensation of Rs.2,55,000/- from the owner-cum-driver of  the  lorry,  the
appellant and also from  respondent-Insurance  Company  as  they  were  held
responsible jointly and severally.  The claim was allowed with  6%  interest
from the date of claim petition till its realization  with  costs  fixed  at
Rs.200/-.
3.    In appeals preferred by the Insurance Company, the High Court by  the
order under Appeal dated 17.10.2005 interfered with the Award made  against
the Insurer in respect of death of Hanumanth and held that  the  Award  was
bad in law because the deceased was  in  a  clerical  cadre  working  as  a Gumasthe accompanying the goods in transit for the purpose of delivery  and as such he could not be covered by the clause under which premium was  paid for covering the risk of  the  persons  employed  in  connection  with  the operation of loading and unloading of the goods.  Against this order passed
in MFA No.2451 of 2002,  the  appellant/owner  of  the  goods  vehicle  has
preferred this appeal.
4.    The only issue requiring determination is whether the clause  IMT  17
for which premium was paid to the insurer in respect of the concerned lorry
will cover the deceased Hamumanth or not.
5.    For deciding the above issue, one is simply  required  to  go  through
the relevant clause  IMT  17  of  the  policy,  whose  copy  has  been  made
available to us.  The clause reads thus:
                 “Add: for LL to persons employed in  connection  with  the
           operation and/or loading unloading of motor vehicle IMT 17”.

6.    The High Court has  clearly  fallen  in  error  in  holding  that  the
insurer is not liable in respect  of  death  of  Hanumanth.   The  clause  -
“persons employed in connection with the  operation”  is  clearly  over  and
above  the  coverage  provided  by  the  policy  to  “persons  employed   in
connection with  loading/unloading  of  motor  vehicle”.  As  Gumasthe,  the
deceased was accompanying the goods in transit for the purpose  of  delivery
of goods. This has been accepted by the High Court.  Obviously, as  Gumasthe
the deceased would  be  covered  by  the  expression  “persons  employed  in
connection with operation of motor vehicle” The operation of  the  aforesaid
clause has wrongly been restricted and limited only to persons  employed  in
connection with loading/unloading of the motor vehicle.
7.    In view of the aforesaid error committed by the High Court, the  order
under appeal is set aside and the order of the Tribunal is restored.   As  a
result, the respondent-Insurance Company will be bound by the Award made  by
the Tribunal for paying compensation to  the  claimants  for  the  death  of
Hanumath as per orders of the Tribunal. The dues of compensation along  with
due interest should be deposited by the respondent Insurance Company  within
eight weeks with the Tribunal which will permit the  claimants  to  withdraw
the amount as per order of the Tribunal.
8.    The appeal is allowed to the aforesaid extent.  No costs.

                                  ……………………………………………C.J.I.
                                    (P. SATHASIVAM)






                                    ……………………………………………………J.
                                    (RANJAN GOGOI)






                                    ……………………………………………………J.
                                    (SHIVA KIRTI SINGH)
New Delhi,
January 28, 2014.


Accident claim - M.V. Act - Over taking a bus at red light area after green light on by a motor cyclist invites danger - motor cyclist was at wrong but not bus driver -FIR Registered against Bus driver - Accident while over taking the bus at red light area where passage was narrow - a motor cyclist died- Tribunal awarded compensation - High court reversed as there is no negligence on the part of the Bus Driver - Negligence lies on Motor Cyclist - mere registration of F.I.R. not a bar to come to different conclusion = LACHOO RAM & ORS. ... APPELLANT VS. HIMACHAL ROAD TRANSPORT CORPN. ... RESPONDENTS 2014 ( January part ) judis.nic.in/supremecourt/filename=41180

Accident claim - M.V. Act - Over taking a bus at red light area after green light on by a motor cyclist invites danger - motor cyclist was at wrong but not bus driver -FIR Registered against Bus driver - Accident while over taking the bus at red light area where passage was narrow - a motor cyclist died- Tribunal awarded compensation - High court reversed as there is no negligence on the part of the Bus Driver - Negligence lies on Motor Cyclist - mere registration of F.I.R. not a bar to come to different conclusion =

The High Court reversed  the  findings  given  by
the Motor Accident Claims Tribunal (II) at Shimla  in  MACT  No.  68-S/2  of
1995 and has set aside the Award dated  30.11.1998  whereby  the  appellants
were  allowed  compensation   of   Rs.2,74,000/-   including   the   interim
compensation, if already awarded to them along with interest at the rate  of
12% p.a. from the date of the claim petition. =

the High Court failed to keep in  view  the
apparent incorrectness of the defence plea which was of total denial of  the
case of the claimants that the bus of the respondent was involved in  the  accident
with the motor cycle of the deceased and the  deceased  died  due  to  such
accident.  The judgment of the High Court is further in  criticism  on  the
ground that the Court has not given due weightage to the fact that the  bus
and its driver were detained almost immediately after  the  occurrence  and
FIR was also registered against the driver. =
there is no  direct
evidence to show that the bus was involved in the accident and even if  that
is presumed, the evidence and the circumstances show that negligence was  on
the part of the deceased in trying to overtake the  bus  on  a  very  narrow
road in the town of Shimla immediately after  the  bus  has  started  moving
when the traffic signal turned green.

the defence of bus  - One, that the  bus
was not involved in the accident and second, that the accident did not  take
place  due  to  rash  and  negligent  driving  of  respondent   no.2.    The
registration of the FIR against the driver soon after the accident  was  not
denied and only a plea was taken  that  the  criminal  case  was  registered
falsely and in fact the deceased was never hit by the bus.  Further  defence
was taken that the deceased was an untrained  driver  and  he  himself  fell
down from the motor cycle and died due to his own fault. -

  “However, even if it is held that there was some  collision  the
        negligence is that of the motor cyclist himself since he could  not
        and should not have tried to overtake the bus  on  the  red  light.
        The road at the red light is extremely narrow and from  a  standing
        position to  suddenly  try  to  overtake  the  bus  is  asking  for
        trouble.”


9.    Although the High Court has given a tentative view,  as  noted  above,
for the reasons that there were some witnesses present  near  the  place  of
occurrence and they have claimed that the accident  was  between  the  motor
cycle and the bus and FIR was filed soon after the  occurrence  against  the
driver, we have no hesitation in  accepting  the  submission  that  on  this
issue the High Court should have  accepted  the  finding  of  the  Tribunal,
specially in view of its own observation noted above.

But simply the involvement of the bus in the accident cannot make  the
respondent liable to pay compensation unless it can be held on the basis  of
materials on record that the accident was caused by rash and  negligent  act
of the driver-respondent no.2.  

we  find  the  reasons
given by the High Court to be much more cogent and acceptable in  coming  to
the conclusion noted above.  Since the bus was standing  at  the  red  light
and on being asked, soon after starting from the traffic signal  it  stopped
within 100 to 150 yards, it has rightly been reasoned  that  the  bus  could
not have started on a high speed. 
The road at the place of the accident  was
admittedly very narrow  and  PW.2,  who  has  been  found  reliable  by  the
Tribunal as well as by the High Court and was present on the spot,  has  not
claimed that the bus driver  had  given  a  signal  to  the  deceased  motor
cyclist to overtake him. 
This witness could  not  see  the  actual  accident
because at that time the motorcyclist, in an effort to overtake the bus  had
gone on its right side and was not visible and therefore he could only  hear
the sound of crash.  
It is not the  case  of  any  witnesses  that  the  bus
driver took any sudden  turn  while  proceeding  forward  from  the  traffic
signal or that he swerved the bus to the right side.
11.   In the facts of the case it  is  not  found  possible  to  accept  the
contention on behalf of the appellants/claimants that the  accident  was  on
account of rash or negligent driving by the driver-the respondent no.2.   In
that view of the matter it is not found possible to give any relief  to  the
appellants.
12.   The appeal is dismissed but without any costs.

2014 ( January part ) judis.nic.in/supremecourt/filename=41180


                                                         NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

              CIVIL APPEAL NO. 2570 OF 2008


 LACHOO RAM & ORS.                         ... APPELLANT

                       VS.

HIMACHAL ROAD TRANSPORT CORPN.     ... RESPONDENTS




                               J U D G M E N T






SHIVA KIRTI SINGH, J.


      Heard learned counsel for the appellants and learned counsel  for  the
respondent-Himachal Road Transport Corporation.
2.    The appellants are claimants.  They are aggrieved by the judgment  and
order under appeal whereby the High Court reversed  the  findings  given  by
the Motor Accident Claims Tribunal (II) at Shimla  in  MACT  No.  68-S/2  of
1995 and has set aside the Award dated  30.11.1998  whereby  the  appellants
were  allowed  compensation   of   Rs.2,74,000/-   including   the   interim
compensation, if already awarded to them along with interest at the rate  of
12% p.a. from the date of the claim petition.
3.    According to the learned  counsel  for  the  appellants  learned  High
Court was not justified in substituting its own findings in place  of  those
of the Tribunal by disbelieving  statement  of  PW.2  Shobha  Ram  and  PW.6
Hemant Kumar. The main criticism of  the  High  Court  judgment  is  on  the
ground that the case should have been decided on the basis of  preponderance
of probabilities as  was  done  by  the  Tribunal  whereas  High  Court  has
required a much higher degree of proof as if it was dealing with a  criminal
trial.  The order under appeal has also been criticized on the  ground  that
reasonings are perverse and that the High Court failed to keep in  view  the
apparent incorrectness of the defence plea which was of total denial of  the
case of the claimants that the bus of the respondent was involved in  the  accident
with the motor cycle of the deceased and the  deceased  died  due  to  such
accident.  The judgment of the High Court is further in  criticism  on  the
ground that the Court has not given due weightage to the fact that the  bus
and its driver were detained almost immediately after  the  occurrence  and
FIR was also registered against the driver.
4.    On the other hand, learned counsel for the respondent-Corporation  has
taken a counter stand that as a First Appellate Court  the  High  Court  was
bound to enter into  evidence,  evaluate  it  carefully  and  give  its  own
findings with reasons for the same.  According to him the reasons are  sound
for the view taken by the High Court which has held that there is no  direct
evidence to show that the bus was involved in the accident and even if  that
is presumed, the evidence and the circumstances show that negligence was  on
the part of the deceased in trying to overtake the  bus  on  a  very  narrow
road in the town of Shimla immediately after  the  bus  has  started  moving
when the traffic signal turned green.
5.    We have carefully gone through the materials on record and the appeal
including counter affidavit as well  as  statement  of  case  of  both  the
parties.
6.    According to the case of the appellants/claimants the  deceased  Dalip
Singh lost his life immediately after the accident as a result of  rash  and
negligent driving of a bus belonging to the  Corporation  driven  by  Lachoo
Ram respondent no.2 on 12.07.1995.  It is also their case that the  accident
occurred near traffic lights on the narrow  Cart  Road  at  the  point  near
Gurudwara Singh Sabha and State Bus Terminal, Shimla, which is  hardly  100-
150 yards from the Gurudwara.  Both, the deceased on a motor cycle  and  the
bus had stopped at the traffic light.  When  the  light  turned  green,  the
vehicles started.  The respondent no.2 allegedly moved the bus very fast  in
a rash and negligent manner and struck against the motorcycle by  its  side.
The deceased fell down and was fatally wounded leading to immediate death.
7.    The case of the respondent is that there  was  no  accident  involving
the bus of the Corporation and in the facts of the case there  could  be  no
question of rash and negligent driving attributed to respondent  no.2.   The
claim for compensation was resisted on both the grounds – One, that the  bus
was not involved in the accident and second, that the accident did not  take
place  due  to  rash  and  negligent  driving  of  respondent   no.2.    The
registration of the FIR against the driver soon after the accident  was  not
denied and only a plea was taken  that  the  criminal  case  was  registered
falsely and in fact the deceased was never hit by the bus.  Further  defence
was taken that the deceased was an untrained  driver  and  he  himself  fell
down from the motor cycle and died due to his own fault.
8.    The evidence and the materials as discussed by the  Tribunal  and  the
High Court lead to the conclusion that if the principle of preponderance  of
probabilities is applied, the Tribunal was right in giving  a  finding  that
the motor cycle of the deceased and the bus were involved in  the  accident.
Even the High Court has not totally overruled that possibility as  is  clear
from the observation in the second paragraph of its judgment on page  10  of
the paper book in the following words:
           “However, even if it is held that there was some  collision  the
        negligence is that of the motor cyclist himself since he could  not
        and should not have tried to overtake the bus  on  the  red  light.
        The road at the red light is extremely narrow and from  a  standing
        position to  suddenly  try  to  overtake  the  bus  is  asking  for
        trouble.”


9.    Although the High Court has given a tentative view,  as  noted  above,
for the reasons that there were some witnesses present  near  the  place  of
occurrence and they have claimed that the accident  was  between  the  motor
cycle and the bus and FIR was filed soon after the  occurrence  against  the
driver, we have no hesitation in  accepting  the  submission  that  on  this
issue the High Court should have  accepted  the  finding  of  the  Tribunal,
specially in view of its own observation noted above.
10.   But simply the involvement of the bus in the accident cannot make  the
respondent liable to pay compensation unless it can be held on the basis  of
materials on record that the accident was caused by rash and  negligent  act
of the driver-respondent no.2.
On this  issue,  on  comparing  the  reasons
given by the Tribunal while discussing the issue no.1  and  those  given  by
the High Court on pages 10 and 11 of the paper book,  we  find  the  reasons
given by the High Court to be much more cogent and acceptable in  coming  to
the conclusion noted above.  Since the bus was standing  at  the  red  light
and on being asked, soon after starting from the traffic signal  it  stopped
within 100 to 150 yards, it has rightly been reasoned  that  the  bus  could
not have started on a high speed. 
The road at the place of the accident  was
admittedly very narrow  and  PW.2,  who  has  been  found  reliable  by  the
Tribunal as well as by the High Court and was present on the spot,  has  not
claimed that the bus driver  had  given  a  signal  to  the  deceased  motor
cyclist to overtake him. 
This witness could  not  see  the  actual  accident
because at that time the motorcyclist, in an effort to overtake the bus  had
gone on its right side and was not visible and therefore he could only  hear
the sound of crash.  
It is not the  case  of  any  witnesses  that  the  bus
driver took any sudden  turn  while  proceeding  forward  from  the  traffic
signal or that he swerved the bus to the right side.
11.   In the facts of the case it  is  not  found  possible  to  accept  the
contention on behalf of the appellants/claimants that the  accident  was  on
account of rash or negligent driving by the driver-the respondent no.2.   In
that view of the matter it is not found possible to give any relief  to  the
appellants.
12.   The appeal is dismissed but without any costs.

                                  ……………………………………………C.J.I.
                                    (P. SATHASIVAM)




                                    ……………………………………………………J.
                                    (RANJAN GOGOI)




                                    ……………………………………………………J.
                                    (SHIVA KIRTI SINGH)
New Delhi,
January 28, 2014.

Sec.326 I.P.C - conviction - non- compoundable - Constitutional courts may convert the section to the compoundable offence and may grant permission to compound the same - high court too confirmed but modified to pay one lakh and sentence of 18 months instead of 3 years - Matter settled out of court amicably- injured was also impleaded as one of the party and moved for compound of offence before Apex court under Art.142 of Constitution - Apex court converted the offence from sec.326 to sec.325 of I.P.C and permitted to compound the same as decided earlier by Apex court = Dasan … Appellant Versus State of Kerala & Anr. … Respondents = 2014 ( January part )judis.nic.in/supremecourt/filename=41179

  Sec.326 I.P.C - conviction - non- compoundable - Constitutional courts may convert the section to the compoundable offence and may grant permission to compound the same - high court too confirmed but modified to pay one lakh and sentence of 18 months instead of 3 years - Matter settled out of court amicably- injured was also impleaded as one of the party and moved for compound of offence before Apex court  under Art.142 of Constitution - Apex court converted the offence from sec.326 to sec.325 of I.P.C and permitted to compound the same as decided earlier by Apex court = 
 whether
in this case, permission to compound the offence should be  granted  because
PW-2 Uddesh to whom the hurt is caused has made  a  request  to  this  Court
that offence be compounded. =
 After  the  impugned   judgment,   the
appellant and PW-2 Uddesh have settled  the  case  out  of  court  amicably.
Since the offence under Section 326 of the Penal Code is not a  compoundable
offence, the appellant has preferred this appeal urging that in view of  the
settlement, this Court should in exercise of its powers  under  Article  142
of the Constitution of India compound the offence.

9.    In Ram Shanker & Ors.  v.  State of U.P.,[2] 
 the complainant  and  the
accused had settled the criminal  case  and  an  application  was  made  for
compounding the offence.  The  accused  were  convicted  for  offence  under
Section 307 of the Penal Code.  This Court converted the conviction  of  the
appellant from one under Section 307  of  the  Penal  Code  to  that  of  an
offence  under  Section  325  read  with  Section  34  of  the  Penal  Code.
Permission to compound the offence was granted and  the  appellants  therein
were acquitted.

   Having converted the appellant’s conviction  into  one  under  Section
325 of the Penal Code, we are inclined to follow the course adopted by  this
Court in Ram Shanker and grant permission  to  compound  the  offence.   The
offence was  committed  on  24/8/1996.   Eighteen  long  years  have  passed
thereafter.  The appellant and PW-2 Uddesh who suffered the grievous  injury
have compromised  the  case.   They  wish  to  accord  a  quietus  to  their
disputes.  We, therefore, grant permission to  compound  the  offence  under
Section 325 of the Penal Code to the  appellant  and  PW-2  Uddesh,  who  is
added as respondent 2 herein.  The offence under Section 325  of  the  Penal
Code is compounded.  The impugned judgment  is  set  aside.   The  appellant
Dasan is acquitted.  He is on bail.  His bail  bond  stands  cancelled.  The
appeal is disposed of.

2014 ( January part )judis.nic.in/supremecourt/filename=41179
RANJANA PRAKASH DESAI, MADAN B. LOKUR

                                                      NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

                       CRIMINAL APPEAL NO. 242 OF 2014
       (Arising out of Special Leave Petition (Crl.) No.8387 of 2013)

Dasan                                   …    Appellant

                                   Versus

State of Kerala  & Anr.                      …     Respondents

                               J U D G M E N T

(SMT.) RANJANA PRAKASH DESAI, J.

1.    Leave granted.

2.    In this appeal, judgment and  order  dated  17/1/2012  passed  by  the
Kerala High Court confirming the appellant’s conviction  under  Section  326
of the Penal Code is under  challenge.   We  have  granted  application  for
impleadment of Uddesh who was examined as PW-2 as he had  suffered  grievous
injury at the hands of the  appellant.   He  is,  therefore,  party  to  the
present appeal.

3.    The appellant is original Accused 1.  He was tried  along  with  seven
others by  the  Judicial  Magistrate,  First  Class,  Thrissur  in  Criminal
Complaint No.23 of 1997 for offences punishable  under  Sections  143,  147,
148, 323, 324, 326 read  with  Section  149  of  the  Penal  Code.   Learned
Magistrate convicted the appellant for offence punishable under Section  326
of the Penal Code for having caused grievous hurt by dangerous weapon to PW-
2 Uddesh and sentenced  him  to  undergo  rigorous  imprisonment  for  three
years.  The appellant was also ordered to pay  Rs.25,000/-  as  compensation
to PW-2 Uddesh. In default of payment of compensation, the appellant was  to
undergo simple imprisonment for six months.   The  appellant  was,  however,
acquitted of all other charges.  The other accused  were  acquitted  of  all
the charges leveled against them.  The appellant carried an  appeal  to  the
IIIrd Additional Sessions Judge, Thrissur.   The  Sessions  Court  dismissed
the  appeal.   Being  aggrieved,  the  appellant  filed  Criminal   Revision
Petition No.1931 of 2004 before the High Court of Kerala.  By  the  impugned
judgment, the High Court while confirming the conviction  of  the  appellant
under Section 326 of the  Penal  Code,  reduced  the  sentence  to  eighteen
months  rigorous  imprisonment.   However,  the  High  Court  increased  the
compensation awarded to PW-2 Uddesh by the trial court from  Rs.25,000/-  to
Rs.1 lakh.  In default,  the  appellant  was  ordered  to  undergo  rigorous
imprisonment  for  fifteen  months.   After  the  impugned   judgment,   the
appellant and PW-2 Uddesh have settled  the  case  out  of  court  amicably.
Since the offence under Section 326 of the Penal Code is not a  compoundable
offence, the appellant has preferred this appeal urging that in view of  the
settlement, this Court should in exercise of its powers  under  Article  142
of the Constitution of India compound the offence.

4.    We have heard learned counsel for the parties.  We  have  perused  the
written submissions filed by the appellant.  There is no dispute  about  the
fact that  the  appellant  and  PW-2  Uddesh  have  amicably  settled  their
dispute.  Their respective counsel have confirmed  this  fact.   Application
is filed by the appellant praying that the offence may be compounded.   PW-2
Uddesh has filed his affidavit confirming that he  and  the  appellant  have
amicably settled the case out of court  and  he  has  no  objection  to  the
compounding of the case.

5.    Offence punishable under Section  326  of  the  Penal  Code   is  non-
compoundable.  There is no dispute about  this.   Learned  counsel  for  the
appellant contended that, in fact, the appellant cannot be  convicted  under
Section 326 of the Penal Code because there is no consistent  evidence  that
the appellant used any dangerous weapon.  The evidence on  record  indicates
that he used a stick.  Therefore,  the  appellant  could  be  punished  only
under Section 325 of the Penal Code for voluntarily  causing  grievous  hurt
which is compoundable by the person to whom the  hurt  is  caused  with  the
permission of the court.  Counsel submitted that in the  circumstances,  the
conviction of  the  appellant  under  Section  326  of  the  Penal  Code  be
converted into one under Section 325 of the Penal Code and  the  offence  be
compounded.

6.    Section 320 of the Criminal Procedure Code (“the  Code”)  pertains  to
offences punishable under the Penal Code only.   It  states  which  offences
can be compounded, by whom they can be compounded and which offences can  be
compounded only with the permission of the concerned court.  Sub-sections  3
to 8 thereof further clarify how Section 320 of  the  Code  operates.   Sub-
section 9 thereof states that no  offence  shall  be  compounded  except  as
provided by this section.  The  legislative  intent  is,  therefore,  clear.
Compounding has to be done strictly in accordance with Section  320  of  the
Code.  No deviation from this provision is permissible.

7.    In Gian  Singh   v.   State  of  Punjab  &  Anr.,[1]  this  Court  was
considering the scope of Section 482 and Section  320  of  the  Code.   This
Court clarified that in compounding of offences, power of criminal court  is
circumscribed by the provisions contained in Section 320  of  the  Code  and
the court is guided solely and squarely thereby.  This Court  described  the
scope of Section 320 of the Code as under:

      “51. Section 320 of the Code articulates public policy with regard  to
      the compounding of offences. It  catalogues  the  offences  punishable
      under IPC which may be compounded by the parties without permission of
      the court and the composition of certain offences with the  permission
      of the court. The offences punishable under the special  statutes  are
      not covered by Section 320. When  an  offence  is  compoundable  under
      Section 320, abatement of such offence or an attempt  to  commit  such
      offence or where the accused is liable under Section 34 or 149 IPC can
      also be compounded in the same manner. A person who is under 18  years
      of age or is an idiot or  a  lunatic  is  not  competent  to  contract
      compounding of offence but the same can be done on his behalf with the
      permission of the  court.  If  a  person  is  otherwise  competent  to
      compound an offence  is  dead,  his  legal  representatives  may  also
      compound the offence with the  permission  of  the  court.  Where  the
      accused has been committed for trial or he has been convicted and  the
      appeal is pending, composition can only be done with the leave of  the
      court to which he has been committed or with the leave of  the  appeal
      court, as the case may be. The Revisional Court is also  competent  to
      allow any person to compound any offence who is competent to compound.
      The consequence of the composition of an offence is acquittal  of  the
      accused. Sub-section (9) of Section 320 mandates that no offence shall
      be compounded except as provided by this section. Obviously,  in  view
      thereof the composition of an offence has to be in accord with Section
      320 and in no other manner.”

8.    It follows from the above discussion that since offence under  Section
326 of the Penal  Code  is  non-compoundable,  permission  to  compound  it,
cannot be granted.  We, however, find some substance in  the  submission  of
the appellant’s counsel that on the basis of the evidence  adduced  in  this
case, it cannot be said with certainty that the appellant used an  iron  rod
to hit PW-2 Uddesh.  Though at the trial,  the  witnesses  stated  that  the
appellant used an iron rod to assault PW-2 Uddesh, admittedly the  iron  rod
is not recovered and what is recovered is MO1, a wooden  stick.   We  notice
from the judgment of the Sessions Court that the  case  of  the  prosecution
was that the appellant struck a blow on PW-2  Uddesh  with  a  wooden  stick
causing injury to his left  eye.   This  story  appears  to  have  been  not
accepted by the courts below because the witnesses  improved  the  story  in
the Court that an iron rod was used.   It has also come on record that  PW-2
Uddesh filed a civil suit against the  appellant  for  compensation  and  in
that suit, he alleged that the appellant beat him with a wooden stick.   The
Sessions Court has referred to this suit and particularly  the  plaint  [Ex-
D1] which contains the statement that PW-2 was beaten with  a  wooden  stick
by the appellant.  In our opinion, in the circumstances, it cannot  be  said
with certainty that the appellant used an iron rod to  beat  the  appellant.
In such a situation,  we  are  inclined  to  accept  the  version  which  is
favourable to the appellant.  In the  circumstances,  in  our  opinion,  the
appellant’s conviction under Section 326 of  the  Penal  Code  needs  to  be
converted into one under Section 325 of the  Penal  Code.   We  accordingly,
convert the conviction of the appellant from one under Section  326  of  the
Penal Code to one under Section  325  of  the  Penal  Code.   Offence  under
Section 325 of the Penal Code is compoundable by  the  person  to  whom  the
hurt is caused with the permission of the court.  The  question  is
whether
in this case, permission to compound the offence should be  granted  because
PW-2 Uddesh to whom the hurt is caused has made  a  request  to  this  Court
that offence be compounded.

9.    In Ram Shanker & Ors.  v.  State of U.P.,[2] 
the complainant  and  the
accused had settled the criminal  case  and  an  application  was  made  for
compounding the offence.  The  accused  were  convicted  for  offence  under
Section 307 of the Penal Code.  This Court converted the conviction  of  the
appellant from one under Section 307  of  the  Penal  Code  to  that  of  an
offence  under  Section  325  read  with  Section  34  of  the  Penal  Code.
Permission to compound the offence was granted and  the  appellants  therein
were acquitted.

10.   Having converted the appellant’s conviction  into  one  under  Section
325 of the Penal Code, we are inclined to follow the course adopted by  this
Court in Ram Shanker and grant permission  to  compound  the  offence.   The
offence was  committed  on  24/8/1996.   Eighteen  long  years  have  passed
thereafter.  The appellant and PW-2 Uddesh who suffered the grievous  injury
have compromised  the  case.   They  wish  to  accord  a  quietus  to  their
disputes.  We, therefore, grant permission to  compound  the  offence  under
Section 325 of the Penal Code to the  appellant  and  PW-2  Uddesh,  who  is
added as respondent 2 herein.  The offence under Section 325  of  the  Penal
Code is compounded.  The impugned judgment  is  set  aside.   The  appellant
Dasan is acquitted.  He is on bail.  His bail  bond  stands  cancelled.  The
appeal is disposed of.
                               .…………………………..J.
                           (Ranjana Prakash Desai)




                               .…………………………..J.
                              (Madan B. Lokur)
New Delhi;
January 27, 2014.
-----------------------
[1]    (2012) 10 SCC 303
[2]    (1982) 3 SCC 388(1)

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8