Karnataka High Court
LAKSHMAN - Appellant
Versus
SUSHEEL CHAND CHOUDHARY - Respondent
Decided On : 01-31-96
Fatal Accident - Compensation - Motor Vehicles Act, 1988 - Sections 166, 168, 171 - The court discussed the determination of loss of dependency, funeral expenses, damage to the cycle, and loss of filial love and affection under the Motor Vehicles Act, 1988. The court considered the deceased's potential earning capacity, personal expenses deduction, appropriate multiplier, and the award for loss of filial love and affection.
Fact of the Case:
The deceased, a 19-year-old student, died in a road accident. The claimants, his parents and minor sister, sought compensation for loss of dependency, funeral expenses, damage to the cycle, and loss of love and affection.
Finding of the Court:
The court determined the loss of dependency, funeral expenses, damage to the cycle, and loss of filial love and affection. It modified the tribunal's award and granted a consolidated sum of Rs. 1,00,000/- as total compensation, along with interest at the rate of 9% per annum.
Issues: Determining compensation for loss of dependency, funeral expenses, damage to the cycle, and loss of filial love and affection.
Ratio Decidendi: The court considered the deceased's potential earning capacity, personal expenses deduction, appropriate multiplier, and the award for loss of filial love and affection.
Final Decision: The court allowed the appeal, modified the tribunal's award, and granted a consolidated sum of Rs. 1,00,000/- as total compensation, along with interest at the rate of 9% per annum. It also directed the compensation amount to be kept in a nationalized bank for a period of five years for the claimants' maintenance.
( 1 ) THE deceased was aged 19 years. He was a pre-university student. While he was proceeding on the bicycle on 9-8-1989 at about 8-55 a. m. , a goods lorry bearing registration No. Adt 5495 driven in a rash and negligent manner came from behind and dashed against the cycle. The lorry ran over the deceased who died at the spot. The claimants are his parents and his minor sister.
( 2 ) THE mother of the deceased i. e. , the second appellant has given evidence as P. W. 1. In her evidence she has stated that her son was earning while studying and he was bringing home Rs. 600/- per month by giving private tuition. She has deposed that the deceased had the desire to do postgraduation, in which event he would have contributed not less than Rs. 1,500/- per month for the maintenance of the family. On that basis, the claimants claimed Rs. 4,50,000/- for loss of dependency. A sum of Rs. 10,000/- was claimed for loss of estate; an amount of Rs. 5,000/- for funeral expenses and Rs. 25,000/- for loss of love and affection. In addition, they claimed a sum of Rs. 1,000/- for the damage caused to the cycle. In all they claimed a total compensation of Rs. 4,91,000/-, with interest at the rate of 12% from the date of petition till the date of realisation.
( 3 ) THE tribunal has assumed "a nominal sum of Rs. 250/- per month" for the value of "the service" the deceased would have rendered to his parents. The tribunal has adopted 16 as multiplier. On that basis, a sum of Rs. 48,000/- is determined for loss of dependency. The tribunal has found that the claim of Rs. 3,000/- towards funeral expenses said to have been incurred by the parents, as deposed to by P. W. 1, is exorbitant. The tribunal has awarded Rs. 1,000/- towards funeral and other expenses incidental thereto. The tribunal has awarded Rs. 900/- for the damage caused to the cycle. Thus, a total sum of Rs. 50,000/- is awarded by the tribunal.
( 4 ) SRI a. Niranjan kumar, learned counsel appearing for the appellants, submitted that the amount of Rs. 48,000/- towards loss of dependency as determined by the tribunal is very much on the lower side. He submitted that the deceased was a young boy of 19 years and he had a bright future. Though he was from a family of agriculturists, he had the ambition to study and had studied up to p. u. c. ii year. The learned counsel submitted that in the ordinary course, after completion of education, the minimum he would have earned per month from any avocation, would not have been less than Rs. 1,500/ -. He urged that if the deceased had completed his degree course and secured appointment he would have earned not less than Rs. 2 to 3 thousand per month. He further submitted that even under the Provisions of the minimum wages Act, an ordinary worker is entitled to wages of Rs. 30/- per day.
( 5 ) IN the circumstances of the case, it is impossible to have any arithmetical formula for determining the loss of dependency. We must necessarily have to make a rough estimate. Taking into consideration the prevailing wage structure, we estimate the probable earning capacity of the deceased immediately after completion of p. u. c. examination at Rs. 1,200/ -. Out of Rs. 1,200/-, if 1/3rd of the amount is deducted towards his personal expenses, the balance would be Rs. 800/ -.
( 6 ) SRI u. Abdul khader, learned counsel appearing for the insurance company, submitted that this court in several decisions has observed that normally bachelors spend more on themselves and therefore 50% of their earnings will have to be deducted towards personal expenses. This may be so in respect of bachelors living in cities where there are so many diversions for spending money; but not so in a small backward town where the deceased was living, where the opportunity for spending money would be very much less. Therefore, we consider deduction of 1/3d towards personal expenses would be appropriate.
( 7 ) THE next step in the calculation process would be toascerta in th
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