Motor Accident Tribunal Can Grant Compensation To Deceased's Cohabitant Who Lived Like Spouse: MP High Court

The Madhya Pradesh High Court has held that the Motor Accident Claims Tribunal may award compensation to a cohabitant who lived with the deceased like a spouse, provided that the claimant can establish a long-term stable relationship, financial dependency and that the relationship had the character of marriage, even if not formalized.

In doing so, the court set aside an order of the Motor Accident Claims Tribunal that granted compensation to the father of the deceased and dismissed the appellant's claim.

The appellant, who was the widowed sister-in-law of the deceased, claimed compensation on the ground that she and her daughter were financially dependent on him. She contended that after the death of her husband, the deceased accepted her as a partner according to local customs and that they lived openly as husband and wife. The village Sarpanch had also issued a certificate in this regard.

The Tribunal, however, did not recognise the status of the appellant as a legal heir and granted compensation of Rs 2,38,500/ to the father of the deceased. Aggrieved, the appellant approached the High Court.

The appellant argued that her marital status was immaterial for the purpose of awarding compensation under the Motor Vehicles Act, 1988 and that the tribunal erred by not recognizing her financial dependency and de facto relationship with the deceased.

The Insurance Company opposed the appeal, asserting that the appellant, not being the legally wedded wife of the deceased, was not entitled to compensation.

The main issue for consideration was -"Whether a woman who is not legally-wedded wife of deceased and her daughter who is not born with the deceased, are entitled for compensation under the Motor Accident Claims or not ?"

The court noted that a claim for compensation arising out of an accident resulting in death, under the Motor Vehicles Act, 1988, can be filed by legal representatives of the deceased and any agent duly authorized by legal representatives.

Based on settled principles of law, the court expanded that the definition of 'Legal representative' covered heirs or any person representing the estate of the deceased, including those who can prove financial dependency on the deceased.

Relying on the case of N. Jayasree v Cholamandalam MS General Insurance Co Ltd, the court reiterated that the Act permits a broader range of individuals to claim compensation, focusing on the concept of 'legal representative' and 'dependency' rather than merely 'legal heirship'.

Thus, the bench of Justice Himanshu Joshi observed;

"In view of the above, this Court is of the view that the Tribunal can award compensation to a cohabitant of deceased who lived like a spouse. The principle of substantive justice, recognizes the partner's dependency on the deceased. However, the cohabitant must prove that he/she was in a stable, long-term relationship with the deceased, financially dependent upon him and the relationship had the character of marriage, even if not formalized".

In view of the above, the court allowed the appeal and remanded the matter back to the tribunal for reconsideration of the appellant's claim, along with that of the deceased's father, to pass a fresh award of compensation within 3 months.

Case Title: Smt Saroj v Rajendra Prasad Patel [MA-3464-2012]

For Appellant: Advocate Pradeep Patel

For Insurance Company: Advocate Uma Shankar Tiwari

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