SUPREME COURT OF INDIA
SANJAY KAROL AND MANMOHAN, JJ.
SMT. Indira Sahu And Others - Appellant
Versus
The Oriental Insurance Company Ltd And Another - Respondent
Civil Appeal No. 243 of 2025 (@ Special Leave Petition(C) No. 5271 of 2023)
Decided on : 03-01-2025
| Table of Content |
|---|
| 1. circumstances surrounding the accident. (Para 2 , 3) |
| 2. calculation of compensation based on income. (Para 4) |
| 3. critique of the high court's reduction of compensation. (Para 5 , 6 , 7) |
| 4. restoration of the original compensation amount. (Para 8) |
ORDER :
1. Leave granted.
2. This appeal is directed against the final order dated 12th July 2022 passed by the High Court of Orissa at Cuttack whereby the High Court in MACA No. 36 of 2022, on appeal from the judgment and Order dated 28th October 2021 entered by the Learned Motor Accident Claims Tribunal-III Bhadrak, reduced to Rs. 15,00,000/-, the compensation as awarded by the latter, which was to the tune of Rs. 21,70,000/-.
3. The claimant-appellants herein are the wife and children of one Kishore Sahu who, at the age of 44, met an untimely end on 5th January, 2016 upon collision of his truck bearing registration number OR-01A-5175, with a truck bearing registration number OR-22-4023. The learned MACT found that the accident was a result of rashness and negligence on the part of the driver of truck number OR-22-4023.
4. Having considered the testimonies and evidence on record, the learned Tribunal passed an award which can be summarized thus:-
i) Monthly income: Rs.15,000/-
ii) 25% of (i) above to be added as future prospect: Rs.15,000/- + Rs.3750/- = Rs.18,750/-
iii) 1/3 of (ii) deducted as personal expenses of the deceased: Rs.18,750/- - Rs.6,250/- = Rs.12,500/-
iv) Compensation after multiplier 14 is applied Rs.12,500 x 12 x 14 = Rs.21,00,000/-
v) Funeral expenses: Rs. 15,000/-
vi) Loss of consortium: Rs.40,000/-
vii) Loss of estate : Rs.15,000/-Total: Rs.21,70,000/- (Rupees twenty one lakh seventy thousand only)"
5. The respondent herein (insurer)carried the matter in appeal to the High Court. It was found that no document had been exhibited to prove the income of the deceased. Therefore, it was observed that minimum wages had to be applied to him and so Rs.15,000/- could not be taken as his income. This appears to be the only reason given in the impugned judgment for ordering a reduction of compensation to Rs.15,00,000/- with 6% interest. The respondent Company was directed to deposit the amount within 8 weeks. It was further stipulated that should the period granted to deposit the amount expire, the interest shall be enhanced to 7% from the date of expiry of 8 weeks till the date of payment.
6. We are of the view that the High Court erred in ordering reduction of compensation. A perusal of the order of the Tribunal shows that the figure of Rs.15,000/- had been arrived at after due consideration. Relevant extract of the order is as under:
(1) Determination of income while computing compensation has to include future prospects.(2) Multiplier has to be adopted/applied considering age of deceased and not age of parents.(3) Fatal accident....
The main legal point established in the judgment is the assessment of compensation in motor vehicle accident cases, including the factors of loss of dependency, future prospects, appropriate multipli....
The main legal point established in the judgment is the proper calculation of compensation under Section 166 of the Motor Vehicles Act, 1988, including the consideration of future prospects, personal....
(1) At the stage of appeal, all questions of fact and law decided by Tribunal are open for reconsideration.(2) In case deceased was self-employed or on a fixed salary, addition of 40% of established ....
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