SUPREME COURT OF INDIA
SANJIV KHANNA, J.K. MAHESHWARI, JJ.
Meena Devi – Appellant
Versus
Nunu Chand Mahto @ Nemchand Mahto and Others – Respondents
Civil Appeal No. 7255 of 2022, Special Leave Petition (Civil) No. 5345 of 2019
Decided On : 13-10-2022
Motor Vehicles Act, 1988 – Sections 140, 166 read with Section 171 – Death of child in motor accident – Compensation of Rs.2,00,000/- awarded by Tribunal – Claim for just compensation – Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding amount so claimed – Tribunal/Court ought to award ‘just’ compensation which is reasonable in facts relying upon evidence produced on record – As per ocular statement of mother of deceased, deceased was a brilliant student and studying in a private school – Accepting notional earning Rs. 30,000/- including future prospect and applying multiplier of 15, loss of dependency comes to Rs. 4,50,000/- – Adding Rs. 50,000/- in conventional heads, total sum of compensation comes to Rs. 5,00,000/- – Total compensation of Rs. 5,00,000/- alongwith 7% interest awarded. (Paras 13, 14 and 15)
Facts of the case:
A child aged about 12 years on the date of accident i.e. 29.7.2003, while playing in front of his house, was dashed by the Commander Jeep bearing registration No. JH-11A 6894 and died on the way, while being taken to a hospital in Dhanbad. Claim Petition under Sections 140, 166 read with Section 171 of Motor Vehicles Act, 1988 seeking compensation to the tune of Rs. 2,00,000/- with interest was filed by the appellant, who is the mother of deceased child. Motor Accident Claims Tribunal, Giridih granted compensation to the tune of Rs. 1,50,000/- in lump sum. On assailing the inadequacy of such an award by filing Miscellaneous Appeal No. 16 of 2013, High Court of Jharkhand at Ranchi enhanced amount of compensation to Rs. 2,00,000/- equivalent to value of claim made in the Claim Petition. Adequacy of grant of such compensation has been questioned by filing the present appeal.
Findings of Court:
Amount of compensation, as awarded by High Court enhanced by Rs. 3,00,000/-, in addition. Total amount of compensation would be Rs. 5,00,000/-. The enhanced amount shall carry interest @ 7% p.a. from date of Claim Petition till realization. The due amount be paid by United India Insurance Company within a period of four weeks from today.
Result : Appeal allowed.
Key Points: - Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding the amount claimed – Tribunal/Court ought to award ‘just’ compensation which is reasonable in facts relying upon evidence produced on record (!) (!) . - Compensation for child death considered based on notional earnings, future prospects, age of child, and conventional heads, applying multiplier for loss of dependency (!) (!) . - The deceased child’s potential as a brilliant student was assessed, and notional earning of Rs. 30,000/- with multiplier of 15 led to loss of dependency of Rs. 4,50,000/-, plus Rs. 50,000/- under conventional heads, totaling Rs. 5,00,000/- with 7% interest (!) (!) . - Compensation awarded by MACT (Rs. 1,50,000/-) and enhanced by High Court (Rs. 2,00,000/-) were deemed inadequate; the total compensation was enhanced by additional Rs. 3,00,000/- to Rs. 5,00,000/- (!) (!) . - The enhanced amount carries interest @ 7% p.a. from the date of Claim Petition till realization, to be paid within four weeks (!) .
JUDGMENT :
J.K. MAHESHWARI, J.
1. Leave granted.
2. The facts relevant for disposal of the present case are that the child, namely; Bankee Bihari, aged about 12 years on the date of accident i.e. 29.7.2003, while playing in front of his house, was dashed by the Commander Jeep bearing Registration No. JH-11A 6894 and died on the way, while being taken to a hospital in Dhanbad. A Claim Petition under Sections 140, 166 read with Section 171 of Motor Vehicles Act, 1988 (for short “the M.V. Act”) seeking compensation to the tune of Rs. 2,00,000/- with interest was filed by the appellant, who is the mother of the deceased child.
3. Motor Accident Claims Tribunal, Giridih (for short “M.A.C.T.”) granted compensation to the tune of Rs. 1,50,000/- in lump sum. On assailing the inadequacy of such an award by filing Miscellaneous Appeal No. 16 of 2013, the High Court of Jharkhand at Ranchi enhanced the amount of compensation to Rs. 2,00,000/- equivalent to the value of the claim made in the Claim Petition.
4. The adequacy of grant of such compensation has been questioned by filing the present appeal, inter-alia, contending that the High Court erred in assessing the amount in the heads of “pecuniary” and “non-pecuniary” loss. MACT and the High Court have not granted any amount under the head “loss of prospective happiness” and other conventional heads and the amount as granted under the head of loss of dependency is inadequate. Therefore, the compensation may be enhanced. Placing reliance on the judgment of this Court in R.K. Malik and Another vs. Kiran Pal and Others, (2009) 14 SCC 1, it is urged that the High Court committed error in assessing the less quantum for notional income of the deceased without adding ‘future prospect’ while computing the compensation. Reliance has further been placed on the judgment of this Court in the case of Kishan Gopal and Another vs. Lala and Others, (2014) 1 SCC 244 wherein the compensation has been calculated treating Rs. 30,000/- as notional income including future prospects in place of Rs. 15,000/- as specified in the IInd Schedule of the M.V. Act and applying the multiplier as specified in the judgment of Sarla Verma and Others vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121. It is further contended that in case of death, just and reasonable amount of compensation ought to be awarded along with interest as permissible. It is urged that the valuation of the claim is immaterial to grant just and reasonable compensation, however the High Court committed error restricting the compensation equal to valuation of Claim Petition.
5. Mr. Anup Kumar and Ms. Anuradha Mutatkar, Advocates have filed vakalatnama on behalf of respondent Nos. 1 and 2 respectively. No one appeared on behalf of respondent Nos. 3 and 4, though notice was served on them.
6. Per contra, learned counsel appearing on behalf of the respondent Nos. 1 and 2 urged that the compensation as awarded by the MACT and High Court is just and proper, however supporting the findings, as recorded by the two Courts, contended that the appeal deserves to be dismissed.
7. Having heard learned counsel for the parties and on perusal of the findings, the liability of the Insurance Company is not in dispute and only the quantum is questioned by the claimant. Therefore, on the point of liability of respondent No. 4-Insurance Company, we approve the finding of the High Court.
8. Reverting to computation of compensation in the facts of this case, a child died in a road accident at the age of 12 years while playing in front of his house. He was studying in 5th class in Nehru Academy, Giridih Road, Jamtara, Dumri, however it is required to be seen how the computation of compensation may be made. As per the ocular statement given by her mother, it is clear that the deceased child was a brilliant student of Class 5 and if he had not met with the accident, he would have definitely become an officer in future. In the said factual matrix, the compensation is requi
Nagappa vs. Gurdayal Singh and others
R.K. Malik and another vs. Kiran Pal and others (2009)14 SCC 1 – Relied [Para 4]
Kishan Gopal and another vs. Lala and others (2014) 1 SCC 244 – Applied [Para 4]
Sarla Verma & Others vs. Delhi Transport Corporation and Another (2009) 6 SCC 121 – Relied [Para 4]
Lata Wadhwa and others vs. State of Bihar and others (2001) 8 SCC 197 – Relied [Para 9]
M.S. Grewal & another vs. Deep Chand Sood & others (2001) 8 SCC 151 – Relied [Para 9]
Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding amount so claimed – Tribunal/Court ought to award ‘just’ compensation.
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Post deletion of the Second Schedule, compensation for child victims of accidents must be based on Minimum Wages and include future prospects and proper deductions for personal expenses.
The main legal point established in the judgment is the application of legal principles under the Motor Vehicles Act 1988, particularly Section 163A, to determine compensation for the death of a chil....
If compensation is assessed based on notional income prevailed in year 1992, relating to death of a 17-year-old boy, who died in year 2013, without factoring in erosion in value of rupee and conseque....
The court established that compensation for deceased minors must reflect notional income and apply appropriate multipliers for just compensation.
Fatal accident – It is appropriate to take notional income of child victim at Rs.25,000/- per annum, taking into account inflation, devaluation of rupee and cost of living.
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