IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT NAGPUR
Anuja Prabhudessai, J.
Shobha - Appellant
Versus
New India Insurance Co Ltd - Respondent
First Appeal No. 678 of 2015
Decided On : 22-01-2021
Motor Vehicles Act - Compensation Calculation - Section 166 of the Motor Vehicles Act, 1988 - [166] - The court discussed the compensation calculation under Section 166 of the Motor Vehicles Act, 1988 and referred to the judgments in National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680, Sarla Verma & Others Vs. Delhi Transport Corporation & Another, (2009) 6 SCC 121, and Magma General Insurance Company Limited Vs. Nanu Ram Alias Chuhru Ram, (2018) 18 SCC 130. The court emphasized the principles of compensation, deductions against personal expenses, and the concept of consortium, and applied these principles to assess 'just compensation' for the claimants.
Fact of the Case:
The claimants challenged the judgment and award passed by the Claims Tribunal, Chandrapur, regarding compensation under Section 166 of the Motor Vehicles Act, 1988. The deceased was involved in an accident caused by rash and negligent driving, and the claimants contested the adequacy of the compensation awarded by the Tribunal.
Finding of the Court:
The court found that the compensation awarded by the Tribunal was not 'just and reasonable' considering the deceased's income, deductions, and future prospects. The court referred to relevant judgments and recalculated the compensation, enhancing it from Rs.6,13,792 to Rs.12,53,888, inclusive of compensation under no fault liability, with interest at the rate of 6% from the date of the petition till final realization.
Issues: Calculation of 'just and reasonable' compensation under Section 166 of the Motor Vehicles Act, 1988.
Ratio Decidendi: The court applied the principles of compensation, deductions against personal expenses, and the concept of consortium as established in relevant judgments to assess 'just compensation' for the claimants.
Final Decision: The appeal was allowed, and the compensation was enhanced to Rs.12,53,888, inclusive of compensation paid under no fault liability, with interest at the rate of 6% from the date of the petition till final realization. The Respondent No.1 was directed to deposit the balance compensation within a specified period, and the impugned judgment and award were modified accordingly. The appeal was disposed of.
JUDGMENT
Anuja Prabhudessai, J. - Considering the narrow controversy involved in the matter, the parties were put to notice that an endeavor would be made to dispose of the appeal finally at the stage of admission. Hence, with consent heard finally.
2. The Appellants herein, who shall be hereinafter referred to as the Claimants, have challenged the judgment and award dated 19/01/2015 passed by the Claims Tribunal, Chandrapur in M.A.C.P. No.112/2006. By the impugned judgment and award, the Claims Tribunal has partly allowed the claim petition under Section 166 of the Motor Vehicles Act, 1988 (in short "M.V. Act") and awarded compensation of Rs.6,13,792/- inclusive of compensation under no fault liability, along with interest at the rate of 6% per annum from the date of the petition i.e. 27/07/2006 till its realization.
3. Learned counsel for the Claimants states that the Tribunal has erred in calculating the compensation on the basis of monthly salary of Rs.4,873/-, when the salary certificate produced by the Claimants, sufficiently proves that the salary of the deceased was Rs.6,495/- per month. He further submits that the Tribunal has also erred in deducting 1/3rd salary towards personal expenses of the deceased when there were four dependents. He has further stated that the Tribunal has not awarded adequate compensation towards future prospects and other conventional heads.
4. I have perused the records and considered the submissions advanced by learned Counsel for the Appellants and learned counsel for Respondent No.2. The evidence on record amply proves that Vomesh Tulshiram Walke had expired as a result of the injuries sustained in an accident involving a Bus bearing No.MH-32 B-2300. The Tribunal has recorded a finding that the said accident was caused due to rash and negligent driving by the driver of the offending vehicle. The Respondents have not challenged the said finding. The only question which falls for consideration is whether the compensation awarded by the Tribunal is 'just and reasonable'.
5. It is pertinent to note that the deceased was employed as a Peon in the Revenue Department and was drawing a salary of Rs.6,495/- per month. The Tribunal has deducted Rs.1,625/- from the monthly salary and assumed his annual income as Rs.58,476/-. The Tribunal has not assigned any reasons for such deduction. There has no justification for computing the compensation on the basis of monthly salary of Rs.4,873/-
6. The Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680 has approved the multiplier as well as norms laid down in Sarla Verma & Others Vs. Delhi Transport Corporation & Another, (2009) 6 SCC 121 regarding deductions against personal expenses. The Apex Court has also issued guidelines in addition of income towards future prospects and has further quantified amount of Rs.40,000/- towards spousal consortium, Rs.15,000/- each towards funeral expenses and loss of estate. In Magma General Insurance Company Limited Vs. Nanu Ram Alias Chuhru Ram, (2018) 18 SCC 130, the Apex Court has held that the 'Consortium' is a compendious term which encompasses 'spousal consortium', 'parental consortium' and 'filial consortium'. Spousal consortium is granted to the surviving spouse for loss of 'company, society, co-operation, affection and aid of the other in every conjugal relations. Parental consortium is granted to the child upon the pre-mature death as a parent for loss of 'parental aid, protection, affection, society, discipline, guidance and training'. 'Filial consortium' is the right of the parents to compensation in the case of an accidental death of a child. The Apex Court has held that the amount of compensation to be awarded for loss of consortium will be governed by the principles by awarding compensation under loss of consortium as laid down in Pranay Sethi (supra).
7. In the
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.