Case Background
The case arose out of a road accident that took place on 4.2.2003 at about 7:30 p.m. on G.T. Road, Barachatti, District Gaya.
The claimant, aged about 35 years and stated to be a toddy seller earning about Rs.3,000 per month, was standing with others by the side of the road when a truck came at high speed. The truck was allegedly driven rashly and negligently and hit the group, causing serious injuries.
Two persons died in the accident and 10 to 15 persons, including the present claimant, were injured. They were treated at M.M.C.H. Hospital, Gaya. An FIR was lodged against the truck driver under Sections 279, 337, 333, 304A of the Indian Penal Code, giving rise to Barachati P.S. Case No.14 of 2003.
The offending truck was insured with The New India Assurance Company Ltd., which later became opposite party no.1 in the claim proceedings. The owner of the truck was opposite party no.2.
The injured claimant filed a claim case before the Motor Vehicles Accident Claims Tribunal, Gaya under Section 166 of the Motor Vehicles Act. He sought compensation of Rs.1,00,000 on account of permanent disability and loss of earning capacity.
Opposite party no.1, the Insurance Company, appeared and filed written statement contesting the claim. Despite valid service of notice, the owner of the vehicle, opposite party no.2, did not appear before the Tribunal.
The 3rd Additional District Judge-cum-Motor Vehicles Accident Tribunal, Gaya, registered the matter as Claim Case No.41 of 2011 / 25 of 2007. After trial, by judgment dated 27.7.2013 and award dated 7.9.2013, the Tribunal granted compensation of Rs.98,327 to the claimant.
Not satisfied with the manner in which interest was granted, the claimant filed Miscellaneous Appeal No.58 of 2014 before the Patna High Court. There was a delay of 23 days in filing the appeal, for which he filed I.A. No.5244 of 2015 seeking condonation of delay.
What the Court Examined and Decided
The Patna High Court, through Hon’ble Mr. Justice S. Kumar, first considered the application for condonation of delay (I.A. No.5244 of 2015). After hearing, the Court held that the appellant had shown sufficient cause for not filing the appeal in time. The delay of 23 days in filing the miscellaneous appeal was condoned, and the interlocutory application was allowed.
Thereafter, the Court proceeded to hear the main appeal (M.A. No.58 of 2014). The appeal sought setting aside of the Tribunal’s judgment dated 27.7.2013 and award dated 7.9.2013 in so far as they related to the interest granted.
The High Court recounted the key findings of the Tribunal. The Tribunal had framed five issues. On the claimant’s side, three witnesses were examined. Documentary evidence was also produced, including the certified copy of the FIR, the permanent disability certificate, photocopy of the charge-sheet, insurance policy, and owner’s book of the truck.
No evidence was adduced by the opposite parties, including the Insurance Company and the owner.
On the basis of the evidence, the Tribunal held that the accident occurred due to rash and negligent driving by the driver of the offending truck. The claimant suffered injuries which resulted in permanent disability, and therefore he was entitled to compensation.
The Tribunal also recorded a finding that the offending truck was insured with opposite party no.1, The New India Assurance Company Ltd., on the date of the accident. Hence, the insurer was liable to indemnify.
With regard to the nature and extent of the injury, the Tribunal accepted that the claimant suffered permanent disability to the extent of 25% and that he was around 35 years old at the time of the accident.
However, the Tribunal found that there was no reliable oral or documentary proof of the claimant’s monthly income of Rs.3,000 as a toddy seller. In the absence of such proof, it turned to the Minimum Wages notification.
The Tribunal relied on Notification No.1235 dated 5.5.2003 issued by the Labour Resources Department, Government of Bihar under the Minimum Wages Act. As per this notification, the wages for an unskilled worker were Rs.62 per day.
Using this rate, the Tribunal calculated the monthly income as Rs.62 x 26 = Rs.1,612 and the annual income as Rs.1,612 x 12 = Rs.19,344. Applying a multiplier of 16 for a person aged 35 years, the Tribunal arrived at a figure of Rs.19,344 x 16 = Rs.3,09,504 as the total loss of income for 100% disability.
Since the claimant’s permanent disability was assessed at 35%, the Tribunal treated the just compensation for loss of earning capacity as 35% of Rs.3,09,504, which came to Rs.1,08,326.
The Tribunal then added Rs.15,000 towards pain and suffering and medical expenses. This brought the total compensation to Rs.1,23,327.
The claimant had already received Rs.25,000 as interim compensation. Therefore, the remaining amount payable was fixed at Rs.98,327.
The crucial part, which became the subject of the appeal, related to interest. The Tribunal had granted interest at 6% per annum, but only from the date of the award, not from the date on which the claim application was filed in the Tribunal.
Before the High Court, the grievance of the appellant was that the interest should run from the date of filing of the claim application, as is generally done in motor accident compensation matters, and not merely from the date of the award.
The Patna High Court noted that in a compensation matter arising out of the same accident, in M.A. No.56 of 2014, the Court had earlier decided the question of interest. By order dated 13.7.2017 in that appeal, the Court had granted interest at 6% per annum from the date of the claim application itself.
Relying on its own earlier order in M.A. No.56 of 2014, and keeping in view the fact that both cases arose from the same accident, the Court held that the present appellant was also entitled to the same benefit.
Accordingly, the Patna High Court modified the award of the Tribunal only to the limited extent of the starting date of interest. It directed that the claimant-appellant shall be entitled to interest at the rate of 6% per annum from the date of filing of the claim application before the Tribunal, till the date of payment.
The rest of the award, including the calculation of compensation of Rs.1,23,327, the adjustment of interim compensation of Rs.25,000, and the net payable compensation of Rs.98,327, was left undisturbed.
The High Court partly allowed the appeal and issued a clear direction regarding payment. It ordered that interest at 6% per annum be granted from the date of presentation of the application till its payment. The Insurance Company was directed to deposit the differential amount (i.e., the additional interest now payable due to the change in the starting date) within 60 days from the date of receipt or production of the High Court’s order.
Finally, the Court ordered that the lower court records be sent back immediately to the concerned Tribunal.
Why This Judgment Matters
This judgment is important for accident victims who approach the Motor Vehicles Accident Claims Tribunal seeking compensation.
The Patna High Court has made it clear that when compensation is awarded, interest should normally be calculated from the date of filing of the claim application, not from the date of the award.
For injured persons and families of deceased victims, this can make a real difference, especially when cases take many years to be decided. Interest from the date of the application helps to partly compensate for the long wait.
The decision also shows that even if a person has been awarded compensation, they can approach the higher court to correct mistakes about interest or other parts of the award.
At the same time, the case shows that the Tribunal and Court will rely on official minimum wage notifications when the victim’s income is not proved by documents or clear oral evidence.
Legal Issues and Answers
Issue: From which date should interest on the awarded compensation be calculated — from the date of the Tribunal’s award, or from the date of filing of the claim application?
Answer: The Patna High Court held that interest at 6% per annum should run from the date of filing of the claim application before the Tribunal until the date of payment, and modified the award accordingly.
Issue: Whether the delay of 23 days in filing the miscellaneous appeal should be condoned.
Answer: Yes. The Court found sufficient cause for the delay and condoned it, allowing the appeal to be heard on merits.
Cases Cited by the Court
- The Court referred to its own earlier order dated 13.7.2017 in M.A. No.56 of 2014, arising out of the same accident, where interest was granted at 6% from the date of application.
Case Details
Case Number: Miscellaneous Appeal No.58 of 2014
Case Title: Ramchandra Chaudhary v. The New India Assurance Company Ltd. and another
Citation: 2019 (2) PLJR 1205
Coram: Hon’ble Mr. Justice S. Kumar
Date of Judgment: 02.05.2019
Advocates: Mr. Nand Kishore Prasad Sinha for the appellant; Mr. Mukteshwar Pd. Singh for the respondents
Nature of the Case: Miscellaneous appeal against award of Motor Vehicles Accident Claims Tribunal (MV Act Section 166 claim case)
Link to Judgment:https://patnahighcourt.gov.in/viewjudgment/MiM1OCMyMDE0IzEjTg==-UTrA6RuTTs4=
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