Thursday, 28 April 2016

When private place shall be treated as public place for purpose of grant of compensation under motor vehicle Act?


   As far as the provisions under the Motor Vehicles Act, 1988

are concerned, we are of the view that the statute is framed with the

anxiety and the purpose to compensate the victims of accidents which

may occur in different circumstances.           According to us, while

considering the meaning of the term public place, a literal interpretation



will lead to anomalous results and will defeat the purpose.             A

purposive interpretation thus will have to be adopted. It is a matter of

common knowledge that in view of the increased spheres of activities

in daily life of people, the necessity to hire goods vehicles either to

transport household articles or the articles for use, merchandise, sand,

cement etc. as well as agricultural crops arise of and on. The purpose

of a goods vehicle will be to transport various items of goods. If the

words "public place" are interpreted in such a manner that the place

where accident occurred should be one where the place itself is

dedicated for the use of the public, it will go against the purpose of the

provision. The definition clause under Section 2(34) does not go to

that extent. In our view the decision of the Division Bench in United

India Insurance Company Ltd. v. Lakshmi (1997(1) KLT 449),

which was relied upon in United India Insurance Co. Ltd. v. Pierce

Leslie India Ltd. And others (2000(1) KLT 792) clearly went to the

extent of holding that a place will be a public place though it is a

private property when it is shown that the public are in the habit of


resorting to it and no one is prevented therefrom so resorting to it.

      28.   The idea given by the dictum laid down therein will

promote the object of the statute and if we adopt a narrow

interpretation it will defeat the intent and purport of the statute also.

According to us the Division Bench in United India Insurance Co.

Ltd. v. Pierce Leslie India Ltd. And others (2000(1) KLT 792 has

expressed in clear terms that the private premises or houses also could

be termed as a public place, where it is shown that public are in the

habit of resorting to it. It could not be taken that the travel of goods

vehicles can only be through the national highways or PWD roads or

such other public roads. Herein also, going by the evidence the vehicle

was actually heavily loaded with bundles of paddy crops . Evidently

after it was loaded from the paddy fields it was being taken through

public way which was situated nearby going by the mahazar, for

unloading in the courtyard, made ready for stocking it. The vehicle had

access to the place as held in Rajan's case ( supra) which is sufficient.
IN THE HIGH COURT OF KERALA AT ERNAKULAM

                              PRESENT:

         THE HONOURABLE MR.JUSTICE T.R.RAMACHANDRAN NAIR
                                 &
          THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH

       FRIDAY, THE 12TH DAY OF JUNE 2015.

                     MACA.No. 1400 of 2008 ( )
                   

            PARUKUTTY, W/O. LATE SASIDHARAN NAIR,
       
                      Vs
           K.P.JOSEPH, S/O. PAILAN,
       KATTILAPPEDIKA HOUSE, MATTATHUR.

        Citation;2016(2)ALLMR(JOURNAL)90


     Both these appeals are from the award in O.P.(MV) No.653/2002

of the Motor Accidents Claims Tribunal, Irinjalakkuda.                  In

M.A.C.A.No.1400/2008, the claimants are the appellants and in the

other appeal, the owner and driver of the offending vehicle are the

appellants.

     2.    At the outset, the learned counsel for the appellants

submitted that the view taken by the Tribunal that the Insurance

Company is not liable to satisfy the award is not correct. The learned

counsel relied upon various judgments of this Court explaining the

meaning of the term "public place" under Section 147(1)(b)(i) of the

Act. According to the learned counsel for the appellants, the Tribunal's

view goes against the said legal position rendered by this court in

various judgments.


      3.    The learned counsel for the Insurance Company submitted

that going by the facts of the case, the view taken by the Tribunal

cannot be said to be faulty.

      4.    Before going to the legal issues raised, we will refer to the

necessary facts to analyse the contentions.

      The claimants are the widow and children of one Sasidharan Nair

who died in a motor accident at Vasupuram on 21.01.2002.          He was

working as Grade II Operator in the Electrical wing of the Minor

Irrigation Department under the Government. It was alleged in the

petition that while he was standing near a well at the side of the public

way near the property of one Narayanankutty, a tempo van bearing

Reg.No.KL-8/F 6318 driven by the second respondent before the

Tribunal, which was heavily loaded with bundles of harvested paddy

crops in the platform came along the public way and the load hit on the

body of late Sasidharan as a result of which he fell in the nearby well.

Later he succumbed to the fatal injuries sustained in the said fall.

      5.    Before the Tribunal, the second claimant was examined as

MACA Nos.1400 & 1918 of 2008
                                     3

PW1 and Exts.A1 to A9 were marked. Ext.B1 is the document marked

on the side of the respondents, which is the copy of the Insurance

policy.

      6.    Much argument was raised based on the contents of the

police records as well as the evidence of PW1 as it is pointed out by the

learned counsel for the Insurance Company that the spot of accident

cannot be reckoned as a public place. Ext.A2 is the mahazer prepared

by the police. The spot of accident is shown as the north eastern corner

of the court yard of a residential compound wherein one

Narayanankutty, S/o Subadrama is residing with his family. The well

is located in the said corner. It is noted in the scene mahazer that there

are four electrical lines drawn at a height of 3 m. 20 cm. and about one

metre north of the well. The police have also recorded that throughout

the entire court yard, the harvested crops have been stored. On the

north of it at a distance of 15 metre there is a residential house of one

Kallyanikutty Amma and the paramba and about 50 metres north east

the residential compound and paramba of one Narayanan Namboodiri


and on the east is the residential compound of the complainant.

Significantly it is also noticed that just on the western side of the

compound there is a Panchayath road located north south and there are

residential buildings on the north of it.

      7.    In the police charge, which is marked as Ext.A3, the driver

was arrayed as an accused and the offence alleged is under Section 304

A IPC. It is stated that the accident occurred when the driver took the

vehicle backwards to the residential court yard of Narayanankutty. At

that point of time, the heavy load of harvested crop hit against the body

of Sasidharan and caused him to fall down in the well and he sustained

serious injuries to the spinal cord. He died in the hospital on 25.1.2002

at 5 p.m. In the postmortem report, the opinion as to cause of death is

shown as the injury sustained to cervical vertebrae involving spinal

cord.

      8.    We will have to assess the various aspects in the light of the

above documents as well as the evidence of PW1.

      9.    We will now come to the deposition of PW1. He is the son


of late Sasidharan Nair and in the chief examination, he has deposed

that the accident spot is near the court yard of the residential compound

of Narayanankutty. The well is situated near the public way adjacent to

the court yard itself. He fell down after he was hit by the harvested

crop loaded in the vehicle. It is also deposed that the public way was

being used by farmers and other members of the public in the locality

for taking tractor etc. In the cross examination he has stated that the

vehicle had to be taken through the public road and only since the

harvested crop was projecting outside the platform, it happened to hit

the deceased. According to him, the accident spot noted in Ext.A2 is

the part of the paramba used by the public as a public way. He has

also stated that residents are using the said place as a public way as

permitted by the owner Smt.Subhadramma. According to him, it was

being used as a public way.

      10.   The learned counsel for the appellants therefore submitted

that what is important to be noticed is that the vehicle was used in a

place where people had access.      There was no restricted entry to that


place and therefore the vehicle being a goods vehicle and as it was used

to reach that place for unloading the harvested crop, by no stretch of

imagination it can be said that it is a totally private place.

      11.   In this context, we will refer to the definition of the term

'public place' under Section 2(34) which reads as follows :

              " public place" meas a road, street, way or other

        place, whether a thoroughfare or not, to which the

        public have a right of access, and includes any place or

        stand at which passengers are picked up or set down by

        a stage carriage."

      12.   It will include a road, street, way or other place, whether a

thoroughfare or not. In the light of the said definition also, we will

have to examine the question.

      13.   Heavy reliance is placed by the learned counsel for the

appellants on the following decisions of this Court in United India

Insurance Co. Ltd. v. Pierce Leslie India Ltd. and others (2000(1)

KLT 792), Alias v. Paul (2003 (2) KLT992), United India Insurance

Co. Ltd. v. Asha Rani ( 2001(2) KLT SN Case No.85) and Rajan v.


John ( 2009(1) KLT 573) .          In all these decisions, the question

considered is with respect to the meaning of the term 'public place'.

      14.   In United India Insurance Co. Ltd. v. Pierce Leslie India

Ltd. and others (2000(1) KLT 792), a Division Bench of this court

considered Section 95(1)(b)(i) of the Motor Vehicles Act, 1939. There a

lorry bearing registration number K.E.D.477 owned by the second

respondent was allowed to be taken inside the factory and to unload

coffee. While so unloading it hit against one of the buildings of the

factory and thus damage was caused. After referring to the definition of

'public place' under Section 2(24) and after considering the dictum laid

down in United India Insurance Company Ltd. v. Lakshmi (1997

(1) KLT 449), it has been held as follows in paragraph 4 thus :

             The main argument advanced by the counsel is that

      the accident took place in a private place and therefore the

      above provision would not apply. A Division Bench of

      this Court where one of us (Mohammed, J.) was a party

      had occasion to deal with an identical question in United

      India Insurance Company Ltd. v. Lakshmi (1997 (1) KLT

      449). After quoting the observation of Barry, J. in R. v.


      Kane & Ors., (1965) 1 All.E.R. 705) the Division Bench

      said:


      "In substance, a place is a 'public place' though it is

      private property when it is shown that the public are in

      the habit of resorting to it and no one is prevented

      therefrom so resorting to it".

      As far as the present case is concerned, what we could

      gather is that the contract between the owner of the lorry

      and the owner of the factory was to deliver the goods at

      the factory premises.     When the lorry with the goods

      reached the gate of the factory it was allowed to go inside

      and off load the goods at the premises of the factory.

      When such permission is granted then the transport of

      goods inside the premises of the factory cannot be treated

      to be a transport in a private place.

      15.   It is to be noticed that in United India            Insurance

Company Ltd. v. Lakshmi (1997(1) KLT 449), their Lordships had

referred to the judgment in R.v.Kane & Ors.[ ( 1965) 1 All.E.R. 705]

and held that even if it is a private property, a place will be a public

place when it is shown that the public are in the habit of resorting to it

and no one is prevented therefrom so resorting to it.


      16.    In Alias v. Paul (2003 (2) KLT992), the accident occurred

in a workshop which was considered as a public place. In paragraph 5,

after referring to the dictum laid down in United India Insurance Co.

Ltd. v. Lakshmi ( 1997(1) KLT 449) and United India Insurance

Co. Ltd. v. Pierce Leslie India Ltd. And others (2000(1) KLT 792),

it has been held as follows :

              " It is clear that reading of the Section as a whole

       would show that third party risks are covered if there is

       an access to the public in the place where the accident

       occurred. Here we hold that workshop also is a public

       place within the meaning of S.2(24) of the Act as public

       have access to that place and insurance company cannot

       escape from liability on the ground that accident

       happened in a private place."

      17.    The next decision is by a learned Single Judge of the

Punjab High Court in United India Insurance Co. Ltd. v. Asha Rani

( 2001(2) KLT SN Case No.85) There, the learned Judge has held as

follows :

              "    Not   only    the  weight   of   the  judicial


       pronouncements is in favour of the finding that where the

       public enter with permission would become a public place

       for the purposes of the Motor Vehicles Act, but this

       necessarily is the only conclusion. It has already been

       referred to above that once the public has access to a

       place with permission and they have entered the place,

       necessarily it would for the purpose of the said provision

       be a public place. There is no other conclusion that can

       be so arrived at because otherwise the Legislature would

       have not used the word " access" and instead would have

       used the word " private place" which has been so

       excluded.

     18.   Significantly, it has been held that once the public has

access to a place with permission and they have entered the place

necessarily it would, for the purposes of Section 2(24) of the Motor

VehiclesAct, be a public place.

     19.   The question came before another Division Bench again for

consideration in Rajan v. John ( 2009(1) KLT 573). There the facts

of the case show that on the date of the accident a load of marble was

being unloaded in the house premises of a person who purchased and


transported marble to his house in the same truck. While unloading it,

the driver of the offending vehicle took it in the reverse gear which lead

to a marble piece falling on the left leg of the appellant causing serious

injuries. It was the contention of the Insurance Company that the

accident occurred in a private premises namely the compound of a

house and therefore it cannot be treated as one that has occurred in a

public place. After referring to the dictum laid down in United India

Insurance Co. Ltd. v. Pierce Leslie India Ltd. And others (2000(1)

KLT 792 and Alias v. Paul (2003 (2) KLT 992), the Division Bench

has taken the following view :

               From the above we are of the view that public

         place does not have a restricted meaning in as much as

         it is not to be taken as a place where public have

         uncontrolled access at all times. "Public place" for the

         purpose of the Act has to be understood with reference

         to the places to which a vehicle has access. It is

         specifically mentioned in the definition that any place

         of stand at which passengers are picked up or set down

         by a stage carriage is a public place. While this applies

         to vehicles carrying passengers, the definition does not


      deal with places of access to goods vehicles. We are of

      the view that wherever goods vehicles are allowed

      entry, the workers engaged in loading, unloading and

      the crew also have access. In this case the person

      involved is a headload worker and obviously he has a

      right of access to the place for his work, though he is

      not a crew member or a regular employee of the

      vehicle. While this is a case of truck allowed inside the

      house compound where construction was carrying on,

      for the purpose of unloading of goods, several godowns

      provide access to goods vehicles and headload workers

      so that loading and unloading from vehicles are done in

      the godowns. Obviously construction sites, godowns

      etc. are not places where public have uncontrolled right

      of access. However, access is provided to employees,

      crew members of goods vehicles, loading-unloading

      workers etc. for the purpose of carrying out their work

      involving use of the vehicle. Unless places like this

      where restricted entry is permitted to specified class of

      people for the purpose of handling goods in the form of

      loading and unloading of goods are treated as public

      places, the very purpose of insurance coverage under

      S.147 of the Act will be defeated. It is clear from S.147

      that liability under the policy is not restricted for



         accident taking place on public roads. On the other

         hand, instead of using public road, the coverage under

         the policy is for accidents taking place in public place

         which in our view, has a wide meaning covering private

         places of the kind referred above where restricted

         access is provided to limited class of public which can

         be even for specific purposes. We, therefore, hold that

         the private premises of a house where goods vehicle is

         allowed entry, is a public place for the purpose of S.2

         (34) of the Motor Vehicles Act which leads to liability

         for the Insurance Company subject to satisfying other

         conditions of the policy.



       20.  Significantly, their Lordships held that the private premises

of a house where goods vehicle is allowed entry, is a public place for

the purpose of Section 2(34) of the Motor Vehicles Act which leads to

liability for the Insurance Company subject to satisfying other

conditions of the policy.

       21.  We will now examine the dictum laid down in the various

decisions referred by the learned counsel for the Insurance Company.

       22.  The first of the decisions relied upon is Taxi Drivers'


Union v. Kerala State Road Transport Corporation & Others

( 1982 KLT 468). There the question considered was whether the road

connecting National Highway and Cochin Aerodrome building and

park area is a pubic place. Going by the facts of the said case, it can be

seen that permission was given for transporting vehicles to that area.

Ultimately the view taken is that since public have no right of access as

a matter of right, but have access only by way of permission, the link

road and parking are not 'public places' as defined in the Act.

      23.   In fact the Division Bench in Alias v. Paul ( 2003(2) KLT

992) in paragraph 4 has distinguished the said decision in the light of

the fact that permission was required for transport vehicles to use that

area. Herein such a condition being not there, according to us, the

decision in Taxi Drivers' Union v. Kerala State Road Transport

Corporation & Others ( 1982 KLT 468) cannot help to advance the

arguments of the learned counsel for the Insurance Company.

      24.   The next decision is Mangalamma and others v. Express

Newspapers Ltd. and another ( AIR 1982 Madras 223). There the


accident occurred in Express Newspapers estate and the Division

Bench was of the view that it had occurred totally in a private place and

therefore the Insurance Company was not liable. In paragraph 9, the

said view has been taken. Their Lordships laid emphasis to the word

' right of access'. On the special facts and circumstances of the case, it

was held that Express estate has a compound wall all around and a gate

at the entrance of the premises and there was a watchman at the inner

gate and another watchman at the outer gate. The evidence of the

driver of the bus was also considered by the Division Bench, who has

deposed that the accident occurred inside the compound of the Indian

Express estate. Finally it was concluded that the Indian Express estate

is a private place.

      25.    The next decision is by a learned Single Judge of the

Madras High Court in Rajammal v. Associated Transport Company

and another ( 1969(11) MLJ 620). The meaning of the term 'public

place' under the Motor Vehicles Act 1939 was considered. It was held

that in the light of the definition under Section 2(24), the criterion is


whether the public have a right of access to the place and it will not be

a public place merely, if as a matter of fact, the public have access. On

the evidence it was found that the public have no right to enter the

premises where the accident occurred.

     26.    In the light of the principles stated in the decisions relied

upon by the learned counsel for the appellants, we find it unable to

agree with the view taken by the last of the two decisions relied upon

by the learned counsel for the Insurance Company                  namely

Mangalamma and others v. Express Newspapers Ltd. and another

( AIR 1982 Madras 223) and Rajammal v. Associated Transport

Company and another ( 1969(1) MLJ 620). Those decisions turned

on the factual position available.

     27.    As far as the provisions under the Motor Vehicles Act, 1988

are concerned, we are of the view that the statute is framed with the

anxiety and the purpose to compensate the victims of accidents which

may occur in different circumstances.           According to us, while

considering the meaning of the term public place, a literal interpretation



will lead to anomalous results and will defeat the purpose.             A

purposive interpretation thus will have to be adopted. It is a matter of

common knowledge that in view of the increased spheres of activities

in daily life of people, the necessity to hire goods vehicles either to

transport household articles or the articles for use, merchandise, sand,

cement etc. as well as agricultural crops arise of and on. The purpose

of a goods vehicle will be to transport various items of goods. If the

words "public place" are interpreted in such a manner that the place

where accident occurred should be one where the place itself is

dedicated for the use of the public, it will go against the purpose of the

provision. The definition clause under Section 2(34) does not go to

that extent. In our view the decision of the Division Bench in United

India Insurance Company Ltd. v. Lakshmi (1997(1) KLT 449),

which was relied upon in United India Insurance Co. Ltd. v. Pierce

Leslie India Ltd. And others (2000(1) KLT 792) clearly went to the

extent of holding that a place will be a public place though it is a

private property when it is shown that the public are in the habit of


resorting to it and no one is prevented therefrom so resorting to it.

      28.   The idea given by the dictum laid down therein will

promote the object of the statute and if we adopt a narrow

interpretation it will defeat the intent and purport of the statute also.

According to us the Division Bench in United India Insurance Co.

Ltd. v. Pierce Leslie India Ltd. And others (2000(1) KLT 792 has

expressed in clear terms that the private premises or houses also could

be termed as a public place, where it is shown that public are in the

habit of resorting to it. It could not be taken that the travel of goods

vehicles can only be through the national highways or PWD roads or

such other public roads. Herein also, going by the evidence the vehicle

was actually heavily loaded with bundles of paddy crops . Evidently

after it was loaded from the paddy fields it was being taken through

public way which was situated nearby going by the mahazar, for

unloading in the courtyard, made ready for stocking it. The vehicle had

access to the place as held in Rajan's case ( supra) which is sufficient.

      29.   It is the vehement argument of the learned counsel for the


Insurance Company that the well was situated near the court yard and

therefore by no stretch of imagination, it could be termed as a public

place. Herein we rely upon the evidence of PW1 to whom suggestions

were made in the cross examination. He had explained the way in

which the vehicle was taken and also about the location of the well and

other factors. According to the learned counsel for the Insurance

company since the deceased was standing near the well, which is

located in a compound, the company will not be liable. What is

important is the situation under which the vehicle was used and it

cannot be disputed that the accident occurred because of the use of the

vehicle in that place and as the vehicle had access to the place.

Evidently, nobody is prevented from resorting to that place. If that be

so, according to us, the contention raised by the learned counsel for the

Insurance Company cannot be accepted.

      30.   The Tribunal was of the view that the compound being a

residential compound of the party concerned, it will not be a public

place. According to us, the above view runs counter to the dictum laid


down in the various decisions of this Court which we have referred

above. Therefore we reverse the same and hold that the accident had

occurred in a public place and therefore the Insurance Company will be

liable.

      31.   The next aspect is regarding the compensation assessed by

the Tribunal. As regards the method adopted by the Tribunal, the

learned counsel for the appellants submitted that the deceased had a

permanent job under the Government Irrigation Department. He was

aged 51 at the time of the accident. The Tribunal for the purpose of

calculating the compensation assessed the monthly salary as ` 6626/-

as reflected in Ext.A8. After deducting 1/3 for the personal expenses of

the deceased, the balance amount was reckoned.           The multiplier

adopted is 13. Going by the judgment of the Apex Court in Sarla

Varma v. Delhi Transport Corporation ( 2010 (2 ) KLT 802 (SC),

the multiplier will be only 11 since the deceased was aged 51 and

retirement age during that period was 55. He had four years of

remaining service.   The Tribunal actually calculated the period of


balance service as six years which may not be the correct one. The

Tribunal reckoned the salary upto that period and for the remaining

period monthly pension is reckoned as Rs.1500/-. The learned counsel

submits that the same is not the correct method. We are also of the

view that going by the pension scheme for Government employees,

50% of salary can be assessed as the monthly pension. Therefore, the

total compensation towards loss of dependency will have to be

calculated accordingly. The calculation is the following :

            ` 6626 x 12 x 4 x 2/3   - ` 2,12,032/-

            ` 3313 x 12 x 7 x 2/3   - ` 1,85,528/-

                        Total        -` 3,97,560/-

      32.  As regards the amount awarded under other heads are

concerned, the amount awarded towards loss of consortium, funeral

expenses, loss of love and affection and loss of estate require proper

enhancement. He was in the hospital for a period of four days and

therefore we award a sum of Rs.15,000/- towards pain and suffering.

We also award Rs.1,00,000/- towards loss of consortium and


Rs.1,00,000/- for loss of love and affection and towards loss of estate,

we award Rs.50,000/-.

     33.   Accordingly, the total compensation is refixed as follows :




            Head of claim           Amount Awarded in rupees
     Loss of dependency                       397560
     Pain and suffering                        15000
     Loss of love and affection               100000
     Loss of consortium                       100000
     Funeral expenses                          25000
     Loss of estate                            50000
     Medical expenses                          14700
     Total                                    702260/-
                                      (Rupees seven lakhs two
                                    thousand two hundred sixty
                                               only)




       34. The enhanced compensation will carry interest @ 9% per

annum. We hold that the liability to meet the award is on the Insurance

Company and there will be a direction to the Insurance Company to

deposit the amount with interest within a period of three months and



the amount will be shared in the ratio as provided by the Tribunal.

      Accordingly, both the appeals are allowed and the parties will

suffer their costs in the appeals.




                             T.R.RAMACHANDRAN NAIR, JUDGE




                                   K.P.JYOTHINDRANATH,JUDGE








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