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SUPREME COURT OF INDIA
KRISHNA MURARI, S. RAVINDRA BHAT, JJ.
Rajwati @ Rajjo & Ors. - Appellants
Versus
United India Insurance Company Ltd. & Ors. - Respondents
Civil Appeal No. 8179 of 2022 [Arising out of Special Leave Petition (C) No. 30754 of 2019]
With
Seema & Ors. - Appellants
Versus
United India Insurance Company Ltd. & Ors. - Respondents
Civil Appeal No. 8180 of 2022 [Arising out of Special Leave Petition (C) No. 30755 of 2019]
Decided On : 09-12-2022
(A) Motor Vehicles Act, 1988 – Section 166 – Motor accident claim proceeding – In a case relating to motor accident claims, claimants are not required to prove the case as it is required to be done in a criminal trial – Motor Vehicles Act, 1988 is a beneficial piece of legislation and as such, while dealing with compensation cases, once actual occurrence of accident has been established, Tribunal’s role would be to award just and fair compensation – Strict rules of evidence as applicable in a criminal trial, are not applicable in motor accident compensation cases. (Paras 18 and 19)
(B) Motor Vehicles Act, 1988 – Sections 168 and 173 – Death in motor accident – Compensation of Rs.19,64,218.75/- awarded by Tribunal, subsequently reduced to Rs.8,16,670/- by High Court in appeal – Salary certificate and pay slip are conclusive proof of income of deceased and were also corroborated by statements of deceased’s wife (Appellant) and his co-workers – As such, High Court was not justified in assessing income of deceased at Rs.4,836/- per month on the basis of minimum wages fixed by State at relevant time – View of Tribunal in ascertaining the same as 41 years on the basis of driving license of deceased was correct – Considering his age, at 30% of his annual income, assessed as future prospects of deceased – Deceased was married and had 5 dependants – Applying multiplier of 15 (as deceased was aged between 36 to 40 years), loss of dependency would be assessed at, Rs.1,51,537.5/- x 15 = Rs.22,73,062.5/- – 1/4th of total income deducted towards personal expenses – Amount of compensation enhanced to Rs. 24,89,062.5/-, alongwith 9% interest. (Paras 20, 21, 22, 25, 30, 32 and 33)
Facts of the case:
Both these appeals arise out of the same accident. High Court allowed the appeal of Respondent No.1 herein and modified the award passed by Tribunal, and reduced compensation awarded to the Claimants/Appellants.
Findings of Court:
Grant of Rs.40,000/- towards loss of consortium is increased to Rs.44,000/- to each Appellant, amounting to a total of Rs.1,76,000/-. Along with this, Rs.15,000/- each for the heads of ‘funeral expenses’ and ‘loss of estate’ is also increased to Rs.20,000/- each.
Result : Appeals allowed.
Certainly. Here are the key points derived from the provided legal document:
The rules of evidence applicable in criminal trials are not strictly applicable in motor accident compensation cases. The primary focus is on establishing the occurrence of the accident, and the tribunal’s role is to award just and fair compensation based on the facts presented (!) (!) .
In cases involving death in a motor accident, salary certificates and pay slips are considered conclusive proof of the deceased’s income. These documents, when corroborated by statements from the deceased’s family and co-workers, form a reliable basis for income assessment (!) (!) .
The assessment of the deceased’s income should not be based solely on minimum wages if documentary evidence such as salary certificates and pay slips are available and credible. The tribunal’s finding of actual income, supported by documentary proof and witness testimony, should be upheld (!) (!) .
The age of the deceased, as determined by relevant documents such as driving licenses, is a factual finding that should be affirmed unless there is compelling evidence to the contrary (!) (!) .
The calculation of future prospects should be based on the law governing dependency and income, with the percentage of future prospects adjusted according to the age and earning capacity of the deceased. The applicable multiplier is determined by the age at the time of death, and the deduction for personal expenses is generally 25% to 1/4th of the total income (!) (!) (!) .
Compensation for loss of dependency is calculated by multiplying the annual income (including future prospects) after deducting personal expenses by the appropriate multiplier, based on the age of the deceased (!) (!) (!) .
The amount awarded for non-pecuniary heads such as loss of consortium, funeral expenses, and loss of estate should be fair and proportionate, with courts having the discretion to increase or decrease these amounts based on the facts of the case (!) (!) (!) .
The rate of interest on awarded compensation should be determined based on the period from the filing of the claim till realization, with the applicable rate generally being around 7% to 9% per annum, depending on the case specifics (!) (!) .
The tribunal’s role is to conduct a summary inquiry, and strict adherence to criminal trial standards of proof is not necessary. The preponderance of probabilities is sufficient to establish facts for compensation purposes (!) (!) (!) .
Overall, the courts emphasize that the legislation is beneficial and aims to provide just and fair compensation, with the tribunal’s findings on facts such as income and age being given considerable deference unless shown to be incorrect (!) (!) (!) (!) .
Would you like a more detailed elaboration on any specific aspect?
JUDGMENT :
Krishna Murari, J.
These two appeals are directed against the final orders dated 29.04.2019 passed by the High Court of Judicature for Rajasthan, Jaipur Bench (hereinafter referred to as ‘High Court’) in two Miscellaneous Appeals (being S.B. Misc. Appeal No. 441/2019 and S.B. Misc. Appeal No. 561/2019) filed by Respondent No. 1 herein, seeking to set aside the judgment and award dated 26.10.2018 passed by the Motor Accident Claim Tribunal/Additional District and Sessions Judge, Kaman, District Bharatpur (hereinafter referred to as ‘Learned Tribunal’) in Misc. Civil (M.A.C.) No. 18/2016 (13/2014) and Misc. Civil (M.A.C.) No. 14/2014. Both these appeals arise out of the same accident. Hence, they have been clubbed together and are being decided by this common judgment.
2. In both the matters, the High Court allowed the appeal of Respondent No.1 herein and modified the award passed by the Learned Tribunal, and reduced the compensation awarded to the Claimants/Appellants.
CIVIL APPEAL No. 8179 OF 2022
3. The Appellants are the heirs and dependents of Ghasita Ram (hereinafter referred to as ‘deceased’), who died on 29.10.2013 as a result of a motor accident. The deceased was working as a driver in PNC Infratech Ltd. On 29.10.2013, at around about 8:00 PM, the deceased (along with his co-worker Kanti Lal) was riding a motorcycle while returning home from work, when he was hit from behind by a truck being driven by Respondent No. 3 in a rash and negligent manner. The deceased and his co-worker were severely injured and died on the spot. The deceased has left behind five dependents who are the Appellants before this Court.
4. The Appellants filed a claim petition [being Misc. Civil (M.A.C.) No. 18/2016 (13/2014)] under Section 166 of the Motor Vehicles Act, 1988 before the Learned Tribunal, seeking compensation amounting to Rs.91,46,000/- along with interest. Vide Judgment and Award dated 26.10.2018, the Learned Tribunal awarded a compensation of Rs.19,64,218.75/- along with interest @ 7% per annum from the date of filing of the claim petition till the realization of the decretal amount.
5. The Learned Tribunal held that the deceased died as a result of the injuries suffered in the accident caused due to rash and negligent driving of Respondent No. 3 herein. The deceased’s age at the time of the accident was 41 years, and the same was ascertained by the Learned Tribunal on the basis of his driving license (Exhibit-A1) which recorded his date of birth as 25.08.1972. Exhibit-19 (Salary Certificate) and Exhibit-20 (Pay Slip) were produced. On the basis of pay slip, the Learned Tribunal assessed the income of the deceased at Rs.11,225/- per month. To this, 25% was added towards future prospects bringing his monthly income to Rs.14,031.25/-. The Learned Tribunal added a multiplier of 15, thereby calculating the compensation to be Rs.25,25,635/- (Rs.14,031.25 x 12 x 15). After deducting 1/4th of the total income towards personal expenses (amounting to Rs.6,31,406.25/-), the Learned Tribunal arrived at a compensation of Rs.18,94,218.75/-. Further, the Learned Tribunal awarded Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate, and Rs.15,000/- towards funeral expenses.
6. Thus, the compensation awarded by the Learned Tribunal to the Appellants under various heads was as under :
| Sl. No. | HEAD | AMOUNT PAYABLE |
| 1. | Loss of dependency | Rs.18,94,218.75/- |
| 2. | Loss of consortium | Rs.40,000/- |
| 3. | Loss of estate | Rs.15,000/- |
| 4. | Funeral expenses | Rs.15,000/- |
| TOTAL | Rs.19,64,218.75/- | |
The Learned Tribunal calculated the rate of interest at 7% per annum from the date of filing of the claim petition till the realisation of the decretal amount. The Respondents were held jointly or severally liable to pay the said amount.
7. Being aggrie
(1) Strict rules of evidence as applicable in a criminal trial, are not applicable in motor accident compensation cases.(2) Death in motor accident – Salary certificate and pay slip are conclusive pr....
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The main legal point established in the judgment is the application of principles of fairness, reasonableness, and equitability in determining just and proper compensation in motor vehicle accident c....
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