MRS. HELEN C. REBELLO AND ORS. versus MAHARASHTRA STATE ROAD TRANSPORT CORPORATION AND ANR.

Citation: [1998] SUPP. 1 S.C.R. 684 · Decided: 18-09-1998 · Supreme Court of India · Bench: K. VENKATASWAMI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
B 
MRS. HELEN C. REBELLO AND ORS. 
v. 
MAHARASHTRA STATE ROAD TRANSPORT 
CORPORATION AND ANR. 
SEPTEMBER 18, 1998 
[K. VENKATASWAMI AND A.P. MISRA, JJ.] 
Motor Vehicles Act, 1939 : 
C 
Sections 110-B, 95 proviso, 92-A and 92B---Compensation for death in 
motor accidents-Computation of-Life insurance amount received by the 
legal heirs-Common law p1inciple of adjusting the pecuniwy advantages 
coming from whatever source by reason of death-Held, has to be i11te1preted 
in such cases as refe11ing to pecwzimy advantages coming on account of 
accidental death and not other fo11ns of death-Thus, provident fund, family 
D pension, cash balance, shares, fixed deposits etc. ·cannot be tenned as 
"pecuniary advantages" for the pwposes of Motor Vehicles Act-Distinction 
between the language of Fatal Accidents Act, 1885 on the one ha11d and 
Section 110-B and Section 168(1) of the Motor Vehicles Act, 1988 011 the 
other hand-Fatal Accidents Act, 1885, Section I-A-Motor Vehicles Act, 
1988, Sections 168( 1), 140 and 141. 
E 
F 
G 
Compensation "which appears to be just"-Meaning a11d scope 
of~Held, scope of computing compensation under Section 110-B is wider 
than under Fatal Accidellts Act, 1885 and English Fatal Accidellts Act, 1846. 
Words and phrases : 
"Pecuniwy advantdges''-Meani11g of-In the c6nto.t of Motor Vehicles 
Act, 1939. 
"Just''- Meaning of-In the context of Motor Vehicles Act, 1939 and 
Fatal Accidents Act, 1885. 
Interpretation of Statutes-Beneficial Statutes--Inte1pretation of-Inter-
pretation which subse1ves the object of legislation i.e. benefit to the subject 
under such statutes should be accepted. 
Practice and Procedure-Appeal before the Supreme Court-Appeal 
H filed before the High Co wt was not pressed as it was covered by an earlier 
684 
MRS. HELEN AND ORS. v. MAHARASHTRASRTC AND ANR. 
685 
decision of the same High Cowt 011 that point-Objection raised before this 
Cowt that High Cowt dismissed the appeal being not pressed-Held, such 
appeals are 111ai11tai11able--Co11stitution of Indilr-Alticle 136. 
Husband of appellant No. 1 (father of appellants Nos. 2 to 6) was 
travelling in a bus belonging to State Transport when it met with an 
accident by a bus belonging to another State Transport (respondent No. 
A 
B 
2), due to negligent driving, resulting in his death. In an action for 
compensation/damages brought by the appellants, the legal heirs of 
deceased, Trial court allowed it. However, the Trial court deducted the 
amount of life insurance received by the appellants in view of a Division 
Bench judgment of the Bombay High Court. High Court rejected the cross. C 
appeals. Hence this appeal. 
It was contended by the appellants that the life insurance amount 
received by them was not deductible from the compensation computed 
under the Motor Vehicles Act. 
D 
HELD : 1.1. So far as the general principle of estimating damages 
under the common law is concerned, the pecuniary loss can be ascertained 
only by balancing on· one hand, the loss to the claimant of the future 
pecuniary benefits that would have accrued to him but for the death with 
the "pecuniary advantage" which from whatever source comes to him by E 
reason of the death. In other words; it is the balancing of loss and gain of 
the claimant occasioned by the death. But this has to change its colour to 
the extent a statute intends to do. The compensation payable under the 
Motor Vehicles Act, 1939 is on account of the pecuniary loss to the 
claimant by accidental injury or death and not other forms of death. 
F 
Therefore, the application of the general principle under the common law 
G 
of loss and gain for the computation of compensation under this Act must 
correlate to this type of injury or death, viz. accidental death. If the 
"pecuniary advantage" resulting from death means pecuniary advantage 
under all forms of death then it will include all the assets movable, 
immovable, shares, bank accounts, cash and every amount receivable 
under any contract. This would obliterate all possible conferment of 
economic security to the claimant by the deceased and the intention of the 
legislature. Thus, under the present Act, whatever pecuniary advantage is 
received by the claimant, from whatever source, would only mean that 
which comes to the claimant on account of other forms of deaths. It would H 
686 
SUPREME COURT REPORTS [1998] SUPP. 1 S.C.R. 
A not include that which the claimant receives on account of other forms of 
death, whic
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