Calcutta High Court Awards ₹1 Crore as Just Compensation in MACT Case, Relies on Income Tax Return Over Salary Income

Background and Facts of the Case

The Calcutta High Court recently adjudicated two cross-appeals arising from a fatal road accident case, ultimately modifying the compensation awarded by the Trial Court and fixing ₹1 crore as just and reasonable compensation. The matter involved the Judgment and Award dated 30 August 2023 passed by the Learned Judge, Bench XIII, City Civil Court, Calcutta in MAC No. 430 of 2018.

The underlying incident occurred on 09 May 2018 at approximately 8:30 hours, when a dumper bearing registration number WB-67B-3333 allegedly collided with a Maruti Swift Dzire bearing registration number WB-38X-7873 near Junbedia More on Bankura Bypass Road. Dr. Abhijit De, who was a passenger in the Maruti Swift Dzire, sustained fatal injuries and was declared dead upon arrival at Bankura Sammilani Medical College and Hospital. Another occupant of the vehicle, Dr. Amitava Roy, sustained injuries and was hospitalised.

The claimants — the widow and other dependants of the deceased — alleged that the accident was caused entirely due to the rash and negligent driving of the dumper. Notices were served upon the vehicle owners and their respective insurers, namely United India Insurance Co. Ltd. and New India Assurance Co. Ltd. While both insurers filed written statements contesting the claims, the vehicle owners, though filing written statements, chose not to actively contest the proceedings.


Trial Court's Award

The Learned Trial Court allowed the claim against both insurers and apportioned liability equally between them. The compensation was awarded as follows:

  • Soma De (widow of the deceased): ₹29,92,795/-
  • Debarchan De and Chhaya De (other claimants): ₹29,52,795/- each

Each insurer was directed to contribute ₹14,96,397/- to the widow and ₹14,76,397/- each to the remaining claimants. A default interest clause at 4% per annum was included in the event of non-payment within two months.

Aggrieved by this award — from two opposite directions — both the claimants and New India Assurance Company Ltd. filed separate appeals before the Calcutta High Court.


FMA-120 of 2024 — New India Assurance Company's Challenge

Issue of Composite Negligence

New India Assurance Company Ltd. challenged the Trial Court's finding of composite negligence, arguing that the sole cause of the accident was the rash and negligent driving of the dumper (WB-67B-3333) and that the Maruti Swift Dzire bore no responsibility. The insurer drew attention to the testimony of P.W.2 — an eye-witness and occupant of the vehicle — who deposed that the dumper came from the opposite direction and struck the Maruti Swift Dzire while it was proceeding normally along the extreme left of the road.

The High Court, however, considered the following factors:

  • The police complaint filed by the claimants specifically named both drivers as being negligent.
  • The charge-sheet submitted by the investigating authority recorded the involvement of both drivers.
  • The Investigating Officer was not examined to rebut or displace the findings contained in the police report.

Relying on this material, the Court held that there was no infirmity in the Trial Court's finding of composite negligence. The Court observed that when a police investigation conducted in accordance with law results in a charge-sheet attributing liability to both drivers, such a report cannot be brushed aside without examining the Investigating Officer.

Issue of Gratuitous Passenger