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2022 Supreme(SC) 1835
SUPREME COURT OF INDIA
S. Abdul Nazeer, V. Ramasubramanian, JJ.
Biswanath Jena & Anr. – Appellants
Versus
M/s Oriental Insurance Company Limited & Anr. – Respondents
Civil Appeal No(s). 7014 of 2022 (Arising Out of SLP(C) No(s). 14683 of 2020)
Decided On : 22-09-2022
Mr. Chitta Ranjan Mishra, Advocate, Ms. Shalu Sharma, Advocate, for the Appellant; Mr. Pankaj Seth, Advocate, Ms. Manjeet Chawla, Advocate, for the Respondent.
The court upheld the principle of just and fair compensation for motor accident claims, emphasizing the need for justification in any reduction of the awarded amount.
Headnote:
Compensation - Motor Accident Claims - Third Motor Accident Claims Tribunal - Rs.34,36,465 - Rs.25,00,000 - Order 1. Leave granted. 2. The appellants herein filed a claim petition against the respondents before the Third Motor Accident Claims Tribunal, Balasore, seeking compensation for the death of one Barendra Nath Jena caused by a motor vehicle accident occurred on 08.10.2017. 3. There is no dispute as to the occurrence of the accident and the liability of the first respondent-Insurance company to pay the compensation. 4. The deceased was a Peon in Pipaleswar Girls High School, Jhadpipal and at the time of his death his monthly salary was Rs.25,404/-. The deceased was aged about 50 years at the time of his death. Taking into consideration his salary at Rs.25,404/-and after deduction of Rs.2500/- towards contribution of his professional tax, the Tribunal determined his annual salary at Rs.3,02,348/-. 1/3rd of his income was deducted towards his personal and living expenses. Multiplier of 13 was applied and the loss of dependency was determined at Rs. 26,20,358/-. The Tribunal further added 30% of his income towards loss of future prospects. The court below has also added Rs.30,000/- under other heads. Thus, a total sum of Rs.34,36,465/- was awarded towards compensation with interest @ Rs.7.5 p.a. from the date of the claim petition till its deposit. 4. However, the High Court has reduced the compensation amount to Rs.25,00,000/- without assigning any reason. 5. Having heard learned counsel for the parties, we are of the view that the Tribunal was right in awarding compensation of Rs.34,36,465/-. There is absolutely no justification for reduction of the compensation amount to Rs.25,00,000/- by the High Court. 6. Therefore, the order dated 06.03.2020 of the High Court, impugned herein, is set aside and the judgment dated 18.04.2019 of the Third Motor Accident Claims Tribunal, Balasore, in MAC Case No.490/2017, is restored. 7. The first respondent-Insurance Company (second respondent before the Tribunal) is directed to deposit the aforesaid amount in terms of the aforesaid order of the Tribunal before the Tribunal, if not deposited, so far. 8. The appeal is allowed accordingly. Parties are directed to bear their respective costs.
Fact of the Case:
The appellants filed a claim petition seeking compensation for the death of Barendra Nath Jena caused by a motor vehicle accident. The Third Motor Accident Claims Tribunal awarded compensation of Rs.34,36,465, but the High Court reduced it to Rs.25,00,000 without reason.
Finding of the Court:
The Tribunal's decision to award compensation of Rs.34,36,465 was upheld, and the High Court's reduction to Rs.25,00,000 was set aside.
Issues: Dispute over the compensation amount awarded by the Third Motor Accident Claims Tribunal and subsequently reduced by the High Court.
Ratio Decidendi: The court found no justification for the reduction of the compensation amount by the High Court and restored the Tribunal's judgment.
Final Decision: The order of the High Court was set aside, and the judgment of the Third Motor Accident Claims Tribunal was restored. The Insurance Company was directed to deposit the awarded amount as per the Tribunal's order.
ORDER
1. Leave granted.
2. The appellants herein filed a claim petition against the respondents before the Third Motor Accident Claims Tribunal, Balasore, seeking compensation for the death of one Barendra Nath Jena caused by a motor vehicle accident occurred on 08.10.2017.
3. There is no dispute as to the occurrence of the accident and the liability of the first respondent-Insurance company to pay the compensation.
4. The deceased was a Peon in Pipaleswar Girls High School, Jhadpipal and at the time of his death his monthly salary was Rs.25,404/-. The deceased was aged about 50 years at the time of his death. Taking into consideration his salary at Rs.25,404/-and after deduction of Rs.2500/- towards contribution of his professional tax, the Tribunal determined his annual salary at Rs.3,02,348/-. 1/3rd of his income was deducted towards his personal and living expenses. Multiplier of 13 was applied and the loss of dependency was determined at Rs. 26,20,358/-. The Tribunal further added 30% of his income towards loss of future prospects. The court below has also added Rs.30,000/- under other heads. Thus, a total sum of Rs.34,36,465/- was awarded towards compensation with interest @ Rs.7.5 p.a. from the date of the claim petition till its deposit.
4. However, the High Court has reduced the compensation amount to Rs.25,00,000/- without assigning any reason.
5. Having heard learned counsel for the parties, we are of the view that the Tribunal was right in awarding compensation of Rs.34,36,465/-. There is absolutely no justification for reduction of the compensation amount to Rs.25,00,000/- by the High Court.
6. Therefore, the order dated 06.03.2020 of the High Court, impugned herein, is set aside and the judgment dated 18.04.2019 of the Third Motor Accident Claims Tribunal, Balasore, in MAC Case No.490/2017, is restored.
7. The first respondent-Insurance Company (second respondent before the Tribunal) is directed to deposit the aforesaid amount in terms of the aforesaid order of the Tribunal before the Tribunal, if not deposited, so far.
8. The appeal is allowed accordingly. Parties are directed to bear their respective costs.
