SUPREME COURT OF INDIA
VINEET SARAN, DINESH MAHESHWARI, JJ.
Geeta & Ors. – Appellants
Versus
The Manager, Bajaj Allianz Insurance Co. Ltd. & Anr. - Respondent(S)
Civil Appeal No(S).4491 of 2021 (Arising out of Special Leave Petition (C) No(s). 6178/2019)
Decided on : 29-07-2021
Compensation - Motor Vehicle Accident - High Court's Reduction of Compensation - Deceased's Income - Additional Income Consideration
Fact of the Case:
The appellants filed a claim petition for compensation after a motor vehicle accident resulted in the death of the husband of appellant no. 1. The Motor Accidents Claims Tribunal awarded compensation, which was reduced by the High Court based on the deceased's income assessment.
Finding of the Court:
The Supreme Court found that the High Court's reduction of the deceased's income was unjustified, considering the additional income he would be earning from owning a lorry with a goods carriage permit. The Court enhanced the compensation and adjusted the interest rate.
Issues: Reduction of compensation by the High Court based on the deceased's income assessment.
Ratio Decidendi: The Court considered the totality of the circumstances and the deceased's additional income from owning a lorry with a goods carriage permit, leading to the enhancement of compensation and adjustment of the interest rate.
Final Decision: The appeal was allowed, and the compensation was enhanced to Rs. 20 lakhs along with interest at 7.5% per annum, to be paid by the respondent within two months.
ORDER :
1. Leave granted.
2. This appeal by way of special leave petition has been filed by the appellants against the order of the High Court dated 17.01.2019.
3. The brief facts of this case are that in a motor vehicle accident, which took place on 24.11.2012, the husband of the appellant no. 1 died, leaving behind his widow (appellant no.1), three minor children (appellants no.2, 3 and 4) and parents (appellants no.5 & 6). The appellants filed a claim petition claiming compensation of Rs. 50 lakhs. The Motor Accidents Claims Tribunal, vide its award dated 09.01.2014, awarded compensation of Rs. 21,07,000/-along with 9% interest, which was challenged by the Insurance Company/respondent no. 1 in appeal. The High Court reduced the compensation from Rs. 21,07,000/-to Rs. 13,08,800/-to be payable to the appellants/claimants along with 9% interest per annum from the date of petition before the Tribunal till realization of the entire amount. While reducing the compensation, the High Court has considered lesser income of the deceased than what was assessed by the Tribunal. Challenging the said reduction of compensation, the appellants/claimants have filed this appeal.
4. We have heard Mr. Anuj Saini, learned counsel for the appellants/claimants and Ms. Suman Bagga, learned counsel for the contesting respondent No. 1. The service on respondent no. 2/owner of the vehicle is complete but none has appeared on his behalf.
5. Considering the facts and circumstances of this case, in our view, there was no justification for the High Court reducing the income of the deceased to Rs.5,500/-per month. The deceased was admittedly a driver of a school bus and he was also owning a lorry which had a goods carriage permit. In the aforesaid circumstances, merely considering the salary of the deceased as a driver and not the additional income which he would be earning, cannot be justified.
6. Considering the totality of the circumstances and after hearing the learned counsel for the parties, we find it just and proper to enhance the compensation to Rs. 20 lakhs along with interest @ 7.5% per annum (instead of 9%) from the date of the filing of the petition before the Motor Accidents Claims Tribunal till the date of realization of the entire amount. The compensation amount along with interest shall be paid to the appellants/claimants) by respondent No. 1 within a period of two months from today. In case, the amount is not paid within the aforesaid period, the appellants/claimants shall be entitled to interest @ 9% per annum as awarded by the High Court. It is made clear that the amount of compensation, if any, already paid in terms of the award of the Tribunal or the order of the High Court, shall be adjusted in the total amount of compensation.
7. The appeal is allowed to the extent indicated above.
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