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Gobald Motor Service Ltd. & Another vs R. M. K. Veluswami & Others on 14 April, 1961

In Gobald Motor Services Ltd. v. R.M.K. Veluswani 1958-65 ACJ 179 (SC), the court was concerned with an appeal which arose out of a suit for damages under the Fatal Accidents Act, 1855. It did not deal with the provisions of Section 110-B of the Motor Vehicles Act. Secondly, it did not have the occasion to consider the principles which came up for consideration and decision in cases relating to payments like life insurance, provident fund, gratuity, family pension, ex gratia payments etc., which is a subsequent development. In case the submissions of Mr. Khanna are accepted, the result would be that the dependants would receive payments to a substantial extent either under all or any of these categories, thus minimizing or completely benefiting the tortfeasor from the payment of compensation to the claimants. That is neither the object nor can such an interpretation be given to these statutory provisions and the principles fundamental for the payment of compensation to the dependants in motor accident cases. Therefore, in addition to the reasons specifically given for excluding these payments from the compensation awarded by the Tribunal, I prefer to accept the principles enunciated in large number of judicial decisions which exclude abovesaid payments from the compensation awardable by a Tribunal since there are many similarities between these payments and the payments under discussion in this case. Therefore, even if it is accepted that there has to be a balance between the injury caused and the pecuniary advantages received by the dependants, these payments by the very nature thereof or by judicial decisions which specifically exclude them or by statutory enactments and by the history of the legislation and the Scheme and the intention of the framers to exclude such like payments from the compensation to be awarded by the Tribunal in a case or cases before it under the Motor Vehicles Act, 1939, have to be excluded.
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