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2019 Supreme(SC) 1417

SUPREME COURT OF INDIA
MOHAN M. SHANTANAGOUDAR, AJAY RASTOGI, JJ.
Renu Rani Shrivastava & Anr. – Appellants
Versus
New India Assurance Company Ltd. & Ors. - Respondents
Civil Appeal Nos.8246-8247 of 2019 (Arising out of Special Leave Petition No(s). 32542-32543 of 2017) WITH Civil Appeal No. 8248 of 2019 @ SLP(C) No. 33660 of 2017
Decided On : 23-10-2019

Advocates Appeared:
For the Petitioner: Mr. Anuj Bhandari, Adv., Mr. Amit Kumar Singh, AOR, Ms. K. Enatoli Sema, Adv., Mr. Gaurav Prakash, Adv.
For the Respondent: Mr. Amit Kumar Singh, AOR, Ms. K. Enatoli Sema, Adv., Mr. Gaurav Prakash, Adv.

IMPORTANT POINT
Grant of compensation by MACT or by Court in respect of accidental death of a person will not be affected by family arrangement of parties inasmuch as compensation as per law has to be awarded by Court in favour of dependants.

Headnote:

Motor Vehicles Act, 1988 – Sections 168 and 173 – Compensation – Deduction – Contributory negligence – Fatal accident – Compensation of Rs.1,37,25,000/- awarded by Motor Accidents Claims Tribunal – High Court in appeal, reduced compensation to Rs.1,03,50,000/- holding that driver of car that is deceased was responsible to the extent of 50% – Deceased was Senior Editor in Asian Age – Though, it is not considered as a permanent job, 40% of income of deceased needs to be added for computing compensation as future prospects – 25% of income as personal expenses is to be deducted while quantifying compensation – Grant of compensation by MACT or by Court in respect of accidental death of a person will not be affected by family arrangement of parties inasmuch as compensation as per law has to be awarded by Court in favour of dependants – Internal family matter of parties will not affect award of compensation – Appellants are entitled to compensation of Rs.2,06,75,000/- in toto – Appeals of claimants/appellants allowed and consequently appeal of Insurance Company dismissed. (Paras 5, 6 and 7)

Facts of the case:

Death in road accident. Compensation of Rs.1,37,25,000/- awarded by Motor Accidents Claims Tribunal. High Court in appeal, reduced compensation to Rs.1,03,50,000/- holding that driver of car that is deceased was responsible to the extent of 50%. The claimants/appellants are before this Court.

Findings of Court:

It is in between family members to make arrangement with regard to family affairs. Grant of compensation by MACT or by Court in respect of accidental death of a person will not be affected by the family arrangement of parties inasmuch as compensation as per law has to be awarded by Court in favour of dependants.

Result : Appeals Partly allowed.

ORDER :

1. Leave granted.

2. In the accident that occurred on 28.06.2008, Mr. Palash Kumar who was working as Senior Editor in Asian Age, Mumbai which is under Deccan Chronicle Holding Limited lost his life. He left behind his wife, daughter and parents. The Motor Accidents Claims Tribunal, Alwar (hereinafter called as ‘MACT’) awarded compensation of Rs.1,37,25,000/- taking income of the deceased at Rs.12 lakhs per year. The MACT deducted 25% of the income towards personal expenses and adopted the multiplier as15. It has held that the lorry which was involved in the accident was fully responsible and consequently, the respondent/Insurance Company herein is liable to reimburse the compensation. The High Court in appeal, reduced the compensation to Rs.1,03,50,000/- holding that the driver of the car that is the deceased Mr. Palash Kumar was responsible to the extent of 50%. The claimants/appellants are before this Court.

3. Learned counsel for the respondent/Insurance Company submitted that the High Court was justified in concluding that the accident was due to contributory negligence of both the drivers and, therefore, respondent/Insurance Company is liable to pay 50% of the compensation. He further submitted that the wife of the deceased has relinquished her share in favour of her in-laws and got certain properties in lieu thereof and, therefore, the wife of the deceased is not entitled to any compensation.

4. The High Court in its judgment has wrongly recorded that the breadth of the road was 9.5 feet. On the contrary, the breadth of the road was 9.5 steps, which means about 20 feet breadth. It is not in dispute that the deceased Mr. Palash Kumar was coming from Kishangarh side to Alwar side and the Lorry was coming from Alwar to Kishangarh and there was a collision between two vehicles. The car was coming in correct side. It is clear from the record that the lorry went towards wrong side (right hand side of the road) and collided with the car of the deceased at point “A” and dragged the car from point “A” to point “B” i.e. to the extreme side of the road. These facts would clearly reveal that the driver of the lorry was not only reckless but also negligent in driving the vehicle and collided at point “A” which was the wrong side of the lorry driver and dragged the car to point “B”. Looking into the entire discussion made by the High Court in its judgment, it is clear that the High Court has fallen into error by wrongly considering the breadth of the road.

5. Learned counsel for the appellant submits that the assessment of compensation by the MACT as well as by the High Court is improper inasmuch as the appellant is entitled to enhanced compensation. The future prospects of the deceased was not taken into consideration by the MACT as well as by the High Court.

6. In our considered opinion, learned counsel for the appellant is justified in arguing that the MACT as well as the High Court is not justified in awarding the future prospects in favour of the deceased. The deceased was the Senior Editor in Asian Age. Though, it is not considered as a permanent job, 40% of the income of the deceased needs to be added for computing the compensation as future prospects. It is also to be taken note that 25% of income as personal expenses is to be deducted while quantifying the compensation. The MACT as well as the High Court has awarded Rs. 2,75,000/- under conventional heads. Having regard to the totality of the facts and circumstances, the appellants are entitled to compensation of Rs.2,06,75,000/- in toto.

7. The argument of the learned counsel for the respondent/Insurance Company with regard to the relinquishment of her share in favour of the other claimants and consequently she is not entitled to compensation, cannot be accepted. It is in between the family members to make arrangement with regard to the family affairs. The grant of compensation by the MACT or by the Court in respect of accidental death of a person will not be affected by t


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