SUPREME COURT OF INDIA
C.T. RAVIKUMAR, SANJAY KAROL, JJ.
New India Assurance Co. Ltd. – Appellant
Versus
Sonigra Juhi Uttamchand – Respondent
Civil Appeal No. 24 of 2025 [SLP (C) No. 30491 of 2018], Civil Appeal No. of 2025 [SLP (C) No. 10773 of 2019], Civil Appeal No. of 2025 [SLP (C) No. 33052 of 2018], Civil Appeal No. of 2025 [SLP (C) No. 10759 of 2019], Civil Appeal No. of 2025 [SLP (C) No. 12272 of 2019]
Decided On : 02-01-2025
(A) Motor Vehicles Act, 1988 – Sections 168 and 173 – Death of parents and brother in motor accident – Quantum of compensation – While calculating quantum of compensation for death, deduction is bound to be effected towards personal and living expenses – Parents of appellant were not salaried persons and claim was that they were self- employed – In the matter of assessment of compensation, hypothetical considerations would be involved, but such assessments should be objective – Accident had occurred in year 2007 and father of appellant, who claimed to had been running a jewellery shop, was aged only 48 years at the time of accident – In case of mother of appellant, she was aged only 38 years at the time of accident and she was also not a mere housewife and claimed to had been running a jewellery shop – Monthly income could be fixed taking into account tax returns only if details of payment of tax are appropriately brought into evidence so as to enable Tribunal/Court to calculate income in accordance with law – If matter is pending, then, irrespective of stage, enunciation of a principle of law cannot be ignored – High Court ought to have deducted one-third of income while calculating compensation by way of enhancement. (Paras 7, 8, 9 and 10)
(B) Motor Vehicles Act, 1988 – Sections 168 and 173 – Death of parents and brother in motor accident – Computation of compensation – In case of self-employed persons also, fixation of monthly income, taking factor of future prospects cannot be denied – In case of self- employed persons below age group of 40 years, 40% of income assessed for fixation is grantable taking into account towards future prospects and in case of persons within age group of 40 to 50 years addition of 25% is grantable on that count – Appellant was aged only 14 years when she lost her parents as also her younger brother – She got paternal grandfather – But then, plight and fate on account of such solitude was considered by Tribunal and High Court – She will have to experience the same for long – After taking into account all parameters, just compensation was assessed and granted by High Court as per impugned common judgment by way of enhancement, which cannot be said to be excessive or exorbitant. (Para 12)
Facts of the case:
In present appeals, two from Insurer and three from Claimant who is legal heir of deceased persons, insurer claims for reduction of quantum of compensation and claimant seeks enhancement of quantum of compensation granted by Motor Vehicles Accident Tribunal, raising various grounds. High Court enhanced compensation for death of father of appellant from Rs. 14,78,000/- to Rs. 30,58,000/- and for death of her mother, High Court enhanced compensation from Rs. 13,33,936/- to Rs. 16,34,000/-. For death of brother, appellant was granted enhanced compensation from Rs. 2,45,000/- to Rs. 5,00,000/-. Appellant claims enhancement of compensation in all the three cases.
Findings of Court:
In interest of justice, enhanced compensation granted by High Court as per impugned judgment has to be maintained. Resultantly, all appeals must fail and accordingly they are dismissed.
Result : Appeals dismissed.
The legal document pertains to a Supreme Court judgment involving multiple appeals related to motor vehicle accident compensation. The case involves a claimant, who is the legal heir of deceased persons (parents and brother), seeking higher compensation for their deaths caused by a vehicle accident. The insurer and the claimant both filed appeals, with the insurer aiming to reduce the awarded compensation and the claimant seeking an increase. The Court examined the evidence regarding the deceased's income, the appropriate deduction for personal expenses, and the calculation of future prospects, especially for self-employed persons. The Court emphasized that compensation should be based on objective assessment, considering all relevant factors, including the deceased's age, income, and dependents. Ultimately, the Court upheld the higher compensation awarded by the High Court, dismissing the insurer's appeals and affirming that the amount granted was just and reasonable. The judgment underscores the importance of fair and objective assessment in determining just compensation in motor vehicle accident cases.
JUDGMENT :
C.T. RAVIKUMAR, J.
1. Leave granted.
2. In these quintuplet appeals, two from the Insurer and three from the Claimant who is the legal heir of the deceased persons, the insurer claims for reduction of quantum of compensation and the claimant seeks enhancement of quantum of compensation granted by the Motor Vehicles Accident Tribunal, raising various grounds. In this judgment, the claimant is referred to as ‘the appellant’ and the insurance company which preferred two appeals is referred to as ‘the respondent’ for convenience.
3. The unfortunate incident in which the appellant lost her parents and the younger brother occurred on 20.06.2007. The offending vehicle bearing No. TN-21-X-3879/Tata van insured with the respondent driven by its driver in a rash and negligent manner dashed against the stationary auto bearing No. TN-07-Y-0657 in which the deceased persons were travelling. Seeking compensation for the death of the father, mother and the brother, the appellant filed MCOP No. 5238/2011, MCOP No. 5239/2011 and MCOP No. 5252/2011, respectively. On appreciating the evidence on record, both oral and documentary, the Tribunal found the driver of the Tata van to be negligent and ultimately saddled the respondent with the liability to indemnify the owner of the said offending vehicle. Hence, in view of the concurrent findings in that regard, we proceed to consider only on the question whether enhancement of compensation is to be made at the instance of the appellant or reduction of compensation is to be done at the instance of the respondent-insurer.
4. The Tribunal granted an amount of Rs. 14,78,000/- as compensation for the death of the father of the appellant. For the death of her mother and brother, the Tribunal granted Rs. 13,33,936/- and Rs. 2,45,000/- respectively. Aggrieved by and dissatisfied with the quantum of compensation thus awarded, the appellant preferred appeals. After taking into account the rival contentions, the High Court enhanced the compensation for the death of the father of the appellant from Rs. 14,78,000/- to Rs. 30,58,000/- and for the death of her mother, the High Court enhanced the compensation from Rs. 13,33,936/- to Rs. 16,34,000/-. For the death of brother, the appellant was granted an amount of Rs. 2,55,000/- in addition, and in other words, enhanced the compensation from Rs. 2,45,000/- to Rs. 5,00,000/-. As noted earlier, the appellant claims enhancement of compensation in all the three cases and at the same time, the respondent seeks deduction of quantum of compensation granted in the case of the parents of the claimant. In other words, the respondent has chosen not to prefer any appeal against the enhanced compensation granted for the death of the brother of the appellant.
5. Heard the learned counsel appearing for the appellant and also the learned counsel appearing for the respondent.
6. We will, firstly, consider the appeals preferred by the respondent-insurer seeking reduction of the enhanced quantum of compensation granted in the case of the parents of the appellant. Needless to say, that only if the said question of such deduction is answered in negative, the appeals by the claimant invite consideration. A perusal of the appeals by the respondent would reveal that the very same three questions of law have been raised while contending for reduction of the enhanced compensation, as hereunder:
“(A) Whether the Hon'ble High Court of Judicature at Madras has erred or not deducting the 1/3 of the income of the deceased regarding personal expenditures where the deceased has a minor daughter and old aged parents as the dependents?
(B) Whether the Hon'ble High Court has error in considering the income of the deceased, where there is no proof of income considered by the Hon'ble High Court and considered the income on assumption basis?
(C) Whether the Hon'ble High Court has error in awarding Rs. 2,00,000/- to the respondent No. 1 and also Rs. 20,000/- to the respondent no. 2 & 3 towards the loss lo
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