MANJUSRI RAHA & ORS ETC versus B. L. GUPTA & ORS. ETC.

Citation: [1977] 2 S.C.R. 944 · Decided: 09-02-1977 · Supreme Court of India · Bench: V.R. KRISHNA IYER · Disposal: Disposed off
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Judgment (excerpt)

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944 
MANJUSRI RAHA & ORS ETC. 
v. 
B. L. GUl'TA & ORS. ETC. 
February 9, 1977 
[V. R. KRISHNA IYER AND S. MURTAZA ALI, JJ.] 
Motor Vehicles Act 1939-Sec. 95(2)(d)--Sec. l IOA:..__Principles to deter-
mine compensation payable for death in a bus accident-Increments and pen-
sionary benefits, whether to be taken into account. 
Satindra Nath Raha and Uma Shankar Shastri were travelling by a bus 
owned by Gupta of M. P. Speedways Company. They were travelling from 
Bhind to Gwalior. On the' high way, a bus owned by Bhuta came from the 
opposite direction. On account of negligence of drivers of both the buses. there 
was a head-on collision of the two buses, as a consequence of which Raha and 
Shastri sustained fatal injuries to which they succumbed on the same day in 
the hospital. Widow of Rahal claimed a compensation of Rs. 3,00,000/- under 
s. llOA of the Motor Vehicles Act and Mrs. Shastri claimed a 
sum 
of 
Rs. 1,20,000 /- as compensation. 
The Claims Tribunal decreed the claim of 
Mrs. Raha to the extent of Rs. 60,000/- and of Mrs. Shastri to the extent of 
Rs. 40,000/-. The compensation awarded to Mrs. Raha is on the basis of the 
salary _which Mr. Raha would have earned upto the age of 55 
y~ars after 
dednctmg half the salary. The quantum awarded by the Tribunal was upheld 
by the High Conrt. 
Gupta and Mrs. Raha field the present appeals in this 
Court. 
Gupta contended that the compensatim1 
awarded -was 
very excessive 
and Mrs. Raha contended that the compensation granted was 
grossly inade-
quate and should be enhanced. 
Allowing the appeal filed by Mrs. Raha and dismissing the appeal filed by 
Gupta, 
HELD : l. The contention of Gupta that he should not be made liable to 
pay the compensation since no negligence was alleged against the driver Ram 
Swa.rup negatived. Although the plaint is loosely_ drafted but it clearly contains 
the relief of compensation against Gupta and Ram Swamp, the driver. 
Plead-
ings• have to be interpreted not with formalistic 
rigour but with latitude or 
awareness of low legal literacy of poor people. The Claims Tribunal a·nd the 
High Court overlooked two important and vital considerations. 
Firstly the in-
crements which Mr. Raha would have earned while reaching the maximum of 
his grade long before his retirement and secondly the pensionary benefits which 
he would have obtained had he retired. It wonld be reasonable to expect that 
if the deceased had not died due to the accident he would have lived at least 
upto the age of 65 years. The Court, therefore, enhanced the compensation of 
Rs. 60,000/- to Rs. 1.00,000/-. [948 F, G, 949 A-B, 950 A-BJ 
2. It is unfortunate that section: 95(2) (d) of the Motor Vehicles Act res-
tricts the liability of the Insurance Companies to Rs. 2,000/- only in case of a 
third party. The court suggested that the Legislature should increase the li:1hi-
lity of the Jnsnrance company. The court observed that it was anamolous that 
if a passenger dies in a pl:>ne accident he gets the compensation of Rs. l lac 
and a person who dies in the road accident should get only Rs. 2,000/-. 
[946 D-E] 
3. Expressing its concern for the need for creating no fa\Jlt liability by a 
suitable legisl:>tion, the Conrt observed : 
The time is ripe for serious consideration of creating no-fault liability. 
Having regard to the directive princioles of State policy, the 1JOVerty of the 
ordinary run of victims of automobile accidents, the compulsory nature .of 
insurance of motor vehicles, the nationalisation of general insurance comparnes 
and the expanding trend towards nationalisation of bus transport, the law of 
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MANJUSHRI RAHA v. B. L. GUPTA (Fazal Ali, J.) 
945 
torts based on no-fault needs reforms. Where the social need of the hour re-
11.uires that precious human lives lost in motor accidents leaving a trial of 
.economic disaster in the shape of their unprovided for families caU for special 
attention of the law makers to meet this ·social need by providing for hea·vY 
and adequate compensation particularly through Insurance Companies. 
Our 
country can ill-afford the loss of a precious life when we are building a pro-
gressive society and· if a-ny person engaged in industry, office, business or any 
other occupation dies, a void is created which is bound to result in a serious 
set back to the industry or occupation concerned. Apart from that the death 
of a worker creates a serious economic problem for the
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