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No Restriction In Awarding Compensation Exceeding The Amounts Claimed By Claimants

In Ramla vs National Insurance Company Limited, while enhancing the amount claimed by the family of the deceased and proceeding to order a compensation higher than the amount claimed, the Supreme Court referring to the judgments in (a) Nagappa v. Gurudayal Singh & (b) Magma General Insurance v. Nanu Ram (c) Ibrahim v. Raju, held that there is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 is to award “just compensation”. The Motor Vehicles Act is a beneficial and welfare legislation. A “just compensation” is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time­ barred. Further, there is no need for a new cause of action to claim an enhanced amount. The Courts are duty bound to award just compensation.

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