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2022 Supreme(SC) 1787

SUPREME COURT OF INDIA
A.S. Bopanna, Pamidighantam Sri Narasimha, JJ.
Smt. Archana & Ors. – Appellants
Versus
Kalyan Singh & Ors. – Respondents
Civil Appeal No. 6608 of 2022 (Arising Out of SLP(Civil) No. 32811 of 2018)
Decided On : 14-09-2022

Advocates Appeared:
Mr. NK Mody, Sr. Advocate, Mr. Prabuddha Singh Gour, Advocate, Ms. Ishita M Puranik, Advocate, M/s. Sukhamrit Singh, Advocate, Mr. R N Pareek, Advocate, Mr. Praveen Swarup, Advocate, for the Appellant; Ms. Meenakshi Midha, Advocate, Ms. Pritika Juneja, Advocate, Ms. Versha Singh, Advocate, Mr. Chander Shekhar Ashri, Advocate, for the Respondent.

The main legal point established in the judgment is the calculation of compensation for loss of dependency, including the consideration of actual income, future prospects, and personal expenses.

Headnote:

Compensation - Motor Accidents Claims Tribunal - 25% future prospects, personal expenses, loss of dependency - 25% future prospects, personal expenses, loss of dependency - 25% future prospects, personal expenses, loss of dependency - 25% future prospects, personal expenses, loss of dependency

Fact of the Case:

The appeal was filed assailing the judgment of the High Court of Madhya Pradesh which enhanced the compensation awarded by the Motor Accidents Claims Tribunal (MACT) for the loss of dependency due to a fatal accident.

Finding of the Court:

The court found that the deceased was earning Rs. 8,000 per month from a 'Kirana Shop' and was an income tax assessee. The court reckoned the income at Rs. 8,000 per month, considered 25% future prospects, and calculated the loss of dependency accordingly. The court allowed the appeal and awarded a sum of Rs. 13,46,652 with interest at 6% per annum.

Issues: The main issue was the calculation of compensation for the loss of dependency, including the consideration of future prospects and personal expenses.

Ratio Decidendi: The court considered the actual income of the deceased, future prospects at 25%, personal expenses, and loss of dependency calculation based on the income and multiplier. The court also emphasized the importance of considering the deceased's actual income and future prospects in determining the compensation.

Final Decision: The appeal was allowed, and the appellant was awarded a sum of Rs. 13,46,652 with interest at 6% per annum.

ORDER

1. Leave granted.

2. The Appellants are before this Court assailing the Judgment dated 15.02.2018 passed by the High Court of Madhya Pradesh in M.A. No. 535 of 2015. Through the said Judgment, the High Court while, taking into consideration the claim for enhancement of compensation as against the amount awarded by the Motor Accidents Claims Tribunal (for short 'MACT'), by the award dated 09.12.2014, enhanced the amount to Rs. 8,98,596/- (Rupees Eight Lakhs Ninety Eight Thousand Five Humdred Ninety Six). The amount towards the loss of the dependency was awarded at Rs. 6,72,000/- (Rupees Six Lakhs Seventy Two Thousand) by the High Court. In that light, the claimants, contending to be aggrieved are before this Court in this appeal.

3. Heard the learned counsel for the parties and perused the appeal papers.

4. In so far as the accident having occurred on 01.02.2012 and the husband of the first claimant having expired due to the injuries suffered in the accident, is not in dispute.

5. It was contended on behalf of the claimants that the deceased was running a 'Kirana Shop' and was earning Rs. 8,000/- (Rupees Eight Thousand Only) per month.

6. The MACT at the first instance had reckoned the income at Rs. 5,000/- (Rupees Five Thousand Only) while the High Court had taken it at Rs.7,000/- (Rupees Seven Thousand Only) per month.

7. The contention on behalf of the appellant is that not only the High Court had not taken into consideration the actual income but the future prospect was also not awarded.

8. In that regard, when in the instant facts of the case, it was established that the deceased was running a 'Kirana Shop' and he was also an income tax assessee, there was no reason to discard the claim that the deceased was earning Rs. 8,000/- (Rupees Eight Thousand Only) per month.

9. In that view, we are of the opinion that the income is to be reckoned at Rs. 8,000/- (Rupees Eight Thousand Only) per month. On the said amount, the deceased would be entitled to the future prospects at 25% and as such the monthly income is reckoned at Rs. 10,000/- (Rupees Ten Thousand Only), one-third of the said amount is considered as his personal expenses and the remaining amount is taken for the purpose of considering the loss of the dependency. The amount of loss of dependency per month works out to Rs. 6,667 (Rupees Six Thousand Six Hundred and Sixty Seven Only), which is to be multiplied with the multiplier of 14' and for the annual loss of dependency.

10. If the said calculation is made, it will amount to Rs. 11,20,056/- (Rupees Eleven Lakhs Twenty Thousand Fifty Six Only).

11. In so far as the compensation awarded by the High Court on the other heads, we see no reason to interfere.

12. Therefore, the appellant, in all would be entitled to the sum of Rs. 13,46,652/- (Rupees Thirteen Lakhs Forty Six Thousand Six Hundred Fifty Two Only). The enhanced portion of the amount with interest at 6% per annum from the date of the claim petition shall be deposited by the Insurance Company within a period of six weeks from the date of the receipt of a copy of this Order before the MACT. On deposit, the said amount shall be disbursed to the first appellant.

13. The appeal is allowed in the aforestated terms.

14. Pending application(s), if any, shall stand disposed of.

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