1. Motor accident resulting in death of a heavy goods vehicle driver — Claim for compensation under motor vehicle laws. (Para 2 , 3 )
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2023 Supreme(SC) 1867
SUPREME COURT OF INDIA
Surya Kant, Dipankar Datta, JJ.
Rehiyanathu Beevi & Anr. – Appellants
Versus
Divisional Manager, United India Insurance Co. Ltd. & Anr. – Respondents
Civil Appeal No. 7901 of 2023 (Arising out of SLP (C) No. 9818 of 2020)
Decided On : 01-12-2023
Important Points
The court emphasized the need to consider the deceased's potential future earnings and career growth when calculating compensation for their dependents.
Subject
Civil Law - Motor Accident Claims
Headnote
(A) Motor Vehicles Act, 1988 - Compensation - The appellants sought compensation following the death of the deceased in a motor accident. The Tribunal awarded Rs. 4,29,000/- based on a monthly income of Rs. 3,000/-, which was enhanced by the High Court to Rs. 6,02,000/- after fixing the notional income to Rs. 4,000/- (Paras 4, 6).
(B) Legal Principles - The court recognized the necessity to consider the deceased's skills and the likelihood of income growth over time. It stated, "the ends of justice will be adequately met by granting additional lumpsum compensation" (Paras 7).
(C) Findings of Court - The court concluded that an additional sum of Rs. 4,00,000/- should be awarded, maintaining the right for the insurance company to recover from the vehicle owner (Paras 7, 9).
(D) Issues - The main issue involved the determination of just compensation for the dependents of the deceased. (E) Ratio Decidendi - The court highlighted the importance of considering the deceased's potential future earnings as a skilled workman when determining compensation. (F) Result - Appeal allowed; appellants awarded additional compensation.
(B) Legal Principles - The court recognized the necessity to consider the deceased's skills and the likelihood of income growth over time. It stated, "the ends of justice will be adequately met by granting additional lumpsum compensation" (Paras 7).
(C) Findings of Court - The court concluded that an additional sum of Rs. 4,00,000/- should be awarded, maintaining the right for the insurance company to recover from the vehicle owner (Paras 7, 9).
(D) Issues - The main issue involved the determination of just compensation for the dependents of the deceased. (E) Ratio Decidendi - The court highlighted the importance of considering the deceased's potential future earnings as a skilled workman when determining compensation. (F) Result - Appeal allowed; appellants awarded additional compensation.
Legal Category Hierarchy
Advocates Appeared:
For the Petitioner: Mr. P. A. Noor Muhamed, AOR, Mr. M. Shareef K.P., Adv., Mrs. Giffara S., Adv., Mr. Lindons C. Davis, Adv., Mr. A. Shukoor, Adv., Mr. A. Nowfal, Adv., Mr. Avaneesh, Adv.
For the Respondent: Mr. Varinder Kumar Sharma, AOR, Mr. S. L. Gupta, Adv., Mr. Asutosh Sharma, Adv., Ms. Gunjan Sharma, Adv., Mr. Ankit Bhatnagar, Adv., Mr. Mata Prasad Singh, Adv., Mr. Kuldeep Singh Tomar, Adv., Mr. Himanshu Gandhi, Adv., Mr. Bikash Chandra, Adv., Mr. Mrinal Kumar Sharma, Adv., Mr. Nityananda Mahato, Adv., Mr. Aun Kumar Singh, Adv., Mr. Shekhar Kaushik, Adv., Mr. K.K. Chauhan, Adv., Ms. Rinki Singh, Adv., Mr. Shiv Nath, Adv.
For the Petitioner: Mr. P. A. Noor Muhamed, AOR, Mr. M. Shareef K.P., Adv., Mrs. Giffara S., Adv., Mr. Lindons C. Davis, Adv., Mr. A. Shukoor, Adv., Mr. A. Nowfal, Adv., Mr. Avaneesh, Adv.
For the Respondent: Mr. Varinder Kumar Sharma, AOR, Mr. S. L. Gupta, Adv., Mr. Asutosh Sharma, Adv., Ms. Gunjan Sharma, Adv., Mr. Ankit Bhatnagar, Adv., Mr. Mata Prasad Singh, Adv., Mr. Kuldeep Singh Tomar, Adv., Mr. Himanshu Gandhi, Adv., Mr. Bikash Chandra, Adv., Mr. Mrinal Kumar Sharma, Adv., Mr. Nityananda Mahato, Adv., Mr. Aun Kumar Singh, Adv., Mr. Shekhar Kaushik, Adv., Mr. K.K. Chauhan, Adv., Ms. Rinki Singh, Adv., Mr. Shiv Nath, Adv.
Table of Contents
2. Enhancement of compensation based on the notional monthly income and future earning capacity of the deceased. (Para 3 , 4 , 5 )
3. The deceased was a skilled workman whose monthly income would have gradually increased over time. (Para 7 )
4. Compensation may be enhanced for skilled workmen to account for the potential gradual increase in monthly income over time. (Para 7 )
5. Appeal allowed — Additional lumpsum compensation granted — Insurance company's right to recover from vehicle owner preserved. (Para 7 , 8 , 9 )
6. How does the court treat the income of a skilled workman for compensation purposes?
The court may grant additional compensation by considering that a skilled workman's income would have gradually increased over time to ensure the ends of justice are met. (Para 7 )
7. Does the grant of enhanced compensation affect the insurance company's right of recovery?
No, the court may keep the insurance company's right to recover the compensation amount from the owner of the vehicle intact. (Para 7 )
8. What is the condition for avoiding interest on the enhanced compensation amount?
No interest is liable to be paid if the insurance company deposits the enhanced compensation amount with the Tribunal within the stipulated period. (Para 8 )
ORDER :
1. Leave granted.
2. The appellants are the widow and daughter of the deceased Nazarudeen, who died in a motor accident that occurred on 07.02.2005. Nazarudeen was driving a lorry bearing no. KL-01/E-1672 when his vehicle was hit by another lorry coming from the opposite side. He sustained grievous injuries and eventually died on the spot.
3. The appellants along with the mother of the deceased (Shereefa Beevi) filed a claim petition seeking compensation of Rs. 5,00,000/-. Their plea was that the deceased had a valid driving license to drive heavy goods vehicle and was earning a monthly income of Rs. 3,500/-.
4. The Motor Accidents Claims Tribunal assessed the income of the deceased to Rs. 3,000/- per month. He was 33 years old at the time of the accident. One-third of his income was deducted towards his personal expenses. The appellants were thus held entitled to a compensation of Rs. 4,29,000/-. The appellants thereafter approached the High Court for enhancement of compensation. Their appeal has been allowed in part, holding them entitled to an additional sum of Rs. 2,73,000/-. The High Court has enhanced the compensation after fixing the notional monthly income of the deceased to Rs. 4,000/- per month.
5. Still aggrieved, the appellants are before this Court.
6. We have heard learned counsel for the parties and perused the record.
7. It is true that in the claim petition the appellant stated that the monthly income of the deceased at the time when he met with an unfortunate accident was Rs. 3,500/- per month but having regard to the fact that he was a skilled workman and in due course of time his monthly income would have gradually increased, it appears to us that the ends of justice will be adequately met by granting additional lumpsum compensation of Rs. 4,00,000/- to the appellants over and above to what has been awarded to them by the High Court. Ordered accordingly. The right of the respondent-Insurance Company to recover the compensation amount from the owner of the vehicle is also kept intact.
8. The respondent-Insurance Company shall deposit the enhanced compensation amount with the Tribunal within eight weeks. It is clarified that if the amount is deposited within a stipulated period, no interest etc. shall be liable to be paid.
9. The appeal is allowed in the aforesaid terms.
10. Pending application(s), if any, stand disposed of.
