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SUPREME COURT OF INDIA
Surya Kant, Aniruddha Bose, JJ.
Mukesh Babu Bhardwaj & Anr. – Appellants
Versus
Shriram General Insurance Co. Limited & Anr. – Respondents
Civil Appeal No. 6863 of 2022 (@Petition For Special Leave to Appeal (C) No. 20743 of 2019)
Decided On : 22-09-2022
Compensation - Motor Vehicles Act, 1988 - Section 166 - Monthly income assessment
Fact of the Case:
The appellants, parents of the deceased, filed a Claim Petition under the Motor Vehicles Act, 1988 after their son died in a road accident. The Motor Accident Claims Tribunal awarded compensation, which was reduced by the High Court based on a lower assessment of the deceased's monthly income.
Finding of the Court:
The court found that the High Court had unjustifiably reduced the monthly income of the deceased, resulting in a lower compensation amount. The court allowed the appeal, set aside the High Court's decision, and restored the Tribunal's award of compensation.
Issues: Assessment of the deceased's monthly income and the resulting compensation amount.
Ratio Decidendi: The court emphasized that the appellants had provided positive evidence to establish the deceased's monthly income, which was believed by the Tribunal. The High Court's decision to reduce the monthly income without sufficient reason was deemed unjustified.
Final Decision: The appeal was allowed, the High Court's decision was set aside, and the Tribunal's award of compensation was restored. The balance amount of compensation along with interest was ordered to be paid to the appellants within two months.
ORDER
1. Leave granted
2. The appellants are parents of Divyanshu Bhardwaj, who died in a road accident with a truck owned by Respondent No.2 which hit the bike the deceased was riding on. The deceased was 2nd year B.Tech. student at the time of his unfortunate accidental death.
3. The appellants filed a Claim Petition under the Motor Vehicles Act, 1988 and the Motor Accident Claims Tribunal, Hathras, U.P. awarded compensation of Rs.11,74,500/- along with 7% interest.
4. Respondent No.1 - Insurance Company challenged the aforesaid award in an appeal before the High Court and vide impugned Order, the High Court has reduced the compensation to Rs.10,74,500/-. While doing so, the High Court has assessed the income of the deceased at the time of his death as Rs.6000/- per month. On the other hand, the Tribunal had concluded the monthly income of the deceased to Rs.10,000/-
5. We have heard learned counsel appearing for the parties and gone through the record.
6. It has been categorically recorded by the Tribunal that the 'opposite party had not placed any documentary or oral evidence in support of their version'.
7. It is undeniable that the appellants have led positive evidence to establish the monthly income of the deceased, which was on due analysis, was believed by the Tribunal.
8. That being so, there was no reason for the High Court to reduce the monthly income of the deceased from Rs.10,000/- to Rs.6000/- per month and resultantly reduced the overall compensation amount.
9. For the reasons aforesaid, the appeal is allowed in part; the impugned Judgment and Order dated 27-3-2019 passed by the High Court of Judicature at Allahabad is set aside and that of the Motor Accident Claims Tribunal dated 9-1-2015 is restored.
10. The balance amount of the compensation along with interest at the rate of 7% p.a. be paid to the appellants within a period of two months from today.
The court emphasized the importance of providing positive evidence to support claims, and the unjustifiability of reducing compensation amounts without sufficient reason.
The assessment of compensation under the Motor Vehicles Act should consider the deceased's income, and it cannot be assessed less than the minimum wages payable by the State of Punjab.
The court recalibrated compensation for a road accident victim's heirs based on reasonable income estimation, deviating from the original Tribunal assessment.
The main legal point established in the judgment is the proper assessment of compensation under Section 166 of the Motor Vehicles Act, 1988 based on the income of the deceased and relevant legal prec....
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