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2018 Supreme(Bom) 1292

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
A. M. Dhavale, J.
Shri. Bhagwat Namdev Dunde and Ors. – Appellant
Versus
Shri. Dinesh Kantilal Bedmutha and Ors. – Respondents
First Appeal No. 368 of 2017
Decided On : 27-07-2018

Advocates Appeared:
For the Appellant :Mr. Madhav M. Bhokarikar, Advocate
For the Respondent:Mr. Kalyan V. Patil, Advocate, Mr. Atul B. Gatne, Advocate

The main legal point established in the judgment is the application of principles from relevant cases to determine just and reasonable compensation for the claimants in a motor accident claims case.

Headnote:

Compensation - Motor Accident Claims - National Insurance Company Vs. Pranay Sethi - Section 168 of the Act, Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr., National Insurance Company Vs. Indira Srivastava, Sunil Sharma & Ors. vs. Bachitar Singh and others, Manasvi Jain vs. Delhi Transport Corporation - 57, 59(iv), 59.4 - The court discussed the deceased's fixed salary, future compensation, and deductions, applying the principles established in the mentioned cases to determine just and reasonable compensation.

Fact of the Case:

The deceased's family appealed for higher compensation after the Motor Accident Claims Tribunal awarded a lower amount. The deceased was a 21-year-old employee who died in a road accident. The appellants argued for an increase in compensation based on the deceased's salary and future prospects.

Finding of the Court:

The court found that the deceased was on a fixed salary and entitled to future compensation. It enhanced the compensation to Rs. 8,51,016/- with interest at 7.5% p.a. and proportionate costs.

Issues: The issues included the deceased's salary, future compensation, and deductions for personal expenses, as well as the determination of just and reasonable compensation for the claimants.

Ratio Decidendi: The court applied the principles established in National Insurance Company Vs. Pranay Sethi and other relevant cases to determine the deceased's fixed salary, future compensation, and deductions for personal expenses, ultimately leading to the enhancement of the compensation awarded by the Tribunal.

Final Decision: The appeal was partly allowed, and the court modified the judgment and decree of the Tribunal, ordering the respondents to pay Rs. 8,51,016/- to the claimants along with interest and proportionate costs.

JUDGMENT :

1. The appellants are parents and minor brother and sister of the deceased Gajanan, aged 21 years, who died in accident on 28.10.2013. The Motor Accident Claims Tribunal (MACT), Jalgaon by judgment dt. 11.01.2016 in MACP No. 343/2013, awarded compensation of Rs. 7,52,000/- with interest at the rate of 7.5% p.a. Still, the claimants expect higher compensation and they have preferred this appeal.

2. Shri. M. M. Bhokarikar, learned counsel for the appellants argued that, the deceased was aged 21 years and was getting gross salary of Rs. 6045/-. The Tribunal erred in taking his salary at Rs. 5,000/- by wrongly considering the deductions. The Tribunal awarded future prospects at the rate of 30%. Those should have been awarded at the rate of 50%, as per the law prevailing then, but, now in view of the judgment in National Insurance Company Vs. Pranay Sethi reported in AIR 2017 SC 5157 (Bench of 5 Judges), the future prospects should be quantified at 40% with multiplier of 18 and there should be proportionate enhancement. He fairly conceded that, as per Pranay Sethi's case (supra), the compensation under conventional heads should be Rs. 30,000/- only. He submitted that, claimant Nos.3 and 4 were aged 17 and 15 years and were dependants on the deceased. They should be taken into consideration while deducting the amount towards personal expenses. It should be 1/4th and not 1/3rd.

3. Per contra, learned advocate Shri. Gatne for respondent No. 2 submitted that, the deceased was working as a daily labourer. The employer examined by the claimants have given admission to that effect. He was getting Rs. 242/- per day. Therefore, he cannot be treated as an employee with fixed salary so as to grant him enhancement under the head of future prospects. He also relied on various judgments to submit that the conveyance allowance and other benefits, which do not go to the family, should not be taken as part of the salary. He argued that, in case of person having parents, normally his brother and sister who are dependant on his father cannot be said to be dependants on the deceased and they cannot be counted for determining the share for deduction of personal expenses. The rulings cited by both the parties shall be considered in due course.

4. The points for my consideration with my findings thereon are as follows:

Sr. No.

Point

Finding

1

Whether the deceased was a person on fixed salary entitled for future compensation?

...In the affirmative.

2

What is the salary of the deceased to be considered for grant of compensation?

Rs. 5430/+ future prospects 40% = Rs. 7602/- per month.

3

Whether the learned Tribunal has not granted just and reasonable compensation to the claimants?

Yes. Compensation enhanced to Rs. 8,51,016/- with interest @7.5% p.a. and proportionate costs.

4

What Order?

The appeal is partly allowed.

REASONS

5. The evidence on record shows that, deceased Gajanan was aged 21 years. His father and mother were aged 45 and 40 years, and brother and sister were aged 17 and 15 years, respectively. The occupation of father, brother and sister is shown as labourer. The deceased was appointed in a company as an employee through contractor. The claimants pleaded that, the deceased was getting Rs. 220/- per day whereas; CW2 Vitthal has stated that he was paying Rs. 242/- per day as per Minimum Wages Act, but he was getting work everyday. The certificate about wages was at the rate of Rs. 242/- per day only, but later on CW2 has produced its official record showing salary of the deceased.

6. There is evidence and finding of the Tribunal that, on 28.10.2013 at about 5:30 pm, the deceased Gajanan was proceeding on his bike and one Luxury bus owned by respondent No. 1 insured with respondent No. 2 gave him a dash which resulted into death of Gajanan instantaneously. The drive






















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