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2022 Supreme(SC) 1812

SUPREME COURT OF INDIA
B.R. Gavai, Pamidighantam Sri Narasimha, JJ.
Clain Julie & Ors. – Appellants
Versus
The Oriental Insurance Co. Limited – Respondent
Civil Appeal Nos. 5072-5073 of 2022 (@ SLP (Civil) Nos. 7373-7374 of 2020)
Decided On : 03-08-2022

Advocates Appeared:
Ms. Bhabna Das, Advocate, Mr. Muthuchharan Sundresh, Advocate, Mr. N. Sai Kaushal, Advocate, for the Appellant; Ms. Amreeta Swarup, Advocate, for the Respondent.

The estimation of income for compensation and the finding of contributory negligence must be based on sound and cogent reasons, and the courts should not interfere unjustifiably with such findings.

Headnote:

Appeals - Compensation - Motor Accidents Claim Tribunal - Income Estimation - Contributory Negligence

Fact of the Case:

The appeals challenged the judgment reducing the compensation payable to the appellants by the High Court of Judicature at Madras. The deceased had died in an accident, and the appellants, as legal heirs, filed a petition before the Motor Accidents Claim Tribunal (MACT) for compensation. The MACT calculated the compensation based on the deceased's income, which was disputed by the Insurance Company. The High Court reduced the estimated income and held the appellants liable for contributory negligence.

Finding of the Court:

The Supreme Court found that the MACT had sound and cogent reasons for estimating the income and that the High Court was not justified in interfering with this finding. The Court also upheld the finding of contributory negligence by both the MACT and the High Court.

Issues: Dispute over estimated income for compensation and contributory negligence.

Ratio Decidendi: The MACT's estimation of income and the finding of contributory negligence were upheld by the Supreme Court, leading to the quashing of the High Court's judgment and confirming the MACT's order.

Final Decision: The appeals were allowed, the High Court's judgment was quashed and set aside, and the MACT's order was confirmed. The balance amount payable to the appellants was directed to be paid by the Respondent within three months.

ORDER

1. Leave granted.

2. These appeals challenge the judgment and order dated 19.08.2019 passed by the learned single Judge of the High Court of Judicature at Madras, thereby reducing the compensation payable to the appellants.

3. The deceased-Aruldoss had died in an accident, as such, the appellants who are the legal heirs of the deceased had filed a petition before the Motor Accidents Claim Tribunal, Chennai ('MACT') for compensation. The MACT calculated the compensation by determining the income of the deceased at Rs.15,000/- per month.

4. Being aggrieved thereby, The Oriental Insurance Company Limited ('the Insurance Company'), went in appeal. The learned single Judge of the High Court, though maintained the finding with regard to contributory negligence, held that the income of Rs.15,000/- per month determined by MACT was on the higher side and therefore, calculated the compensation by treating the income of the deceased @ Rs.10,000/- per month.

5. Ms. Bhabna Das, learned counsel appearing on behalf of the appellants submits that the High Court has grossly erred in interfering with the income estimated by the MACT. She further submits that both the MACT as well as the High Court have grossly erred in holding that 10% amount was liable to be deducted on account of contributory negligence.

6. Ms. Amreeta Swarup, learned counsel appearing for the Insurance Company on the contrary submits that the learned single Judge of the High Court was right in estimating the income of the deceased at Rs.10,000/- per month in as much as the deceased was working as a Mason. She further submits that no interference is called for with the judgment of the High Court.

7. We are of the considered view that the learned Judge of the MACT has given sound and cogent reasons while estimating the income at Rs.15,000/- per month. The High Court was not justified in interfering with the said finding of fact. In so far as the the contributory negligence is concerned, we see no error in the concurrent orders of the MACT and the High Court.

8. The appeals are allowed accordingly. The judgment and order dated 19.08.2019 passed by the High Court of Judicature at Madras is quashed and set aside and the order of the MACT dated 30.10.2018 is confirmed.

9. The balance amount payable to the appellants in accordance with the directions of the MACT shall be paid by the Respondent within a period of three months from today.

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

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