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2007 Supreme(SC) 1113

Supreme Court Of India
LAL DEI - Appellant
Versus
HIMACHAL ROAD TRANSPORT - Respondent
Decided On : 08/27/2007

The family pension should not be deducted while calculating the compensation awarded to the claimants.

Headnote:

Family Pension - Motor Accidents Claims Tribunal - The court held that the family pension cannot be deducted while calculating the compensation awarded to the claimants, citing the case of Helen C. Rebello v. Maharashtra SRTCI.

Fact of the Case:

The wife and children of the deceased filed a claim petition for his death in a bus accident. The Motor Accidents Claims Tribunal awarded compensation, deducting the family pension amount from the dependency of the claimants. The High Court upheld the award and dismissed the cross-objection.

Finding of the Court:

The court found that the family pension amount should not have been deducted while calculating the dependency of the claimants, citing the case of Helen C. Rebello v. Maharashtra SRTCI. The appeal was allowed, and the order of deduction of the family pension was set aside, entitling the appellants to a higher amount of compensation.

Issues: Calculation of compensation and deduction of family pension amount.

Ratio Decidendi: The family pension is earned by an employee for the benefit of his family and should not be deducted while calculating the compensation awarded to the claimants.

Final Decision: The appeal was allowed, and the order of deduction of the family pension was set aside, entitling the appellants to a higher amount of compensation.

ORDER

1. We have heard counsel for the parties.

2. Leave granted.

3. The wife and children of the deceased Narain Singh filed the claim petition before the Motor Accidents Claims Tribunal for his death in a bus accident. The Motor Accidents Claims Tribunal was pleased to allow the petition of the petitioners and awarded Rs 7,96,280 with interest at the rate of 9% per annum from the date of filing of the petition to the claimants. While awarding the compensation, the Motor Accidents Claims Tribunal has taken into consideration the family pension given to the family while calculating the amount of compensation. The Motor Accidents Claims Tribunal has deducted the family pension amount from the dependency of the claimants. Both the parties have preferred an appeal and the cross-objection in the High Court. The award made by the Motor Accidents Claims Tribunal with interest was upheld by the High Court and cross-objection was dismissed. Against the said order of the High Court, the present special leave petition was filed.

4. It is contended by the learned counsel for the appellant that while calculating the dependency, the Motor Accidents Claims Tribunal as well as the High Court committed an error in deducting the family pension amount. We find that the submission made by the counsel for the appellant is correct. The Motor Accidents Claims Tribunal as well as the High Court could not have deducted the amount of family pension given to the family while calculating the dependency of the claimants. In Helen C. Rebello v. Maharashtra SRTCI this Court has specifically dealt with this question and said that the family pension is earned by an employee for the benefit of his family in the form of his contribution in the service in terms of the service conditions receivable by the heirs after his death. The heirs receive family pension even otherwise than the accidental death. There is no co-relation between the two and therefore, the family pension amount paid to the family cannot be deducted while calculating the compensation awarded to the claimants. In view of this, the appeal is allowed. The order of deduction of the family pension is set aside. Accordingly, the appellants would be entitled for an amount of Rs 10,27,000 as compensation with interest at the rate of 9% from the date of the filing of the petition.

5. With the aforesaid modification, this appeal is allowed.

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