IN THE HIGH COURT AT CALCUTTA
Bivas Pattanayak, J.
Banasri Banerjee Alias Banasree Banerjee & Anr. - Appellants
Versus
New India Assurance Company Limited & Anr. - Respondents
FMA No. 3200 of 2016
Decided On : 01-12-2022
Motor Vehicles Act - Compensation Calculation - Section 166
Fact of the Case:
The case involved a motor accident resulting in the death of the victim. The claimants, as legal heirs, filed for compensation under Section 166 of the Motor Vehicles Act, 1988. The tribunal granted compensation, which was appealed by the claimants.
Finding of the Court:
The court found that the tribunal erred in adopting the multiplier and in calculating the annual income of the deceased. It also addressed the issue of granting 'parental consortium' and 'filial consortium' in addition to 'spousal consortium'. The court held that the compensation under conventional heads should be as per the principles laid down in Pranay Sethi's case.
Issues: The issues included the calculation of compensation, the inclusion of 'parental consortium' and 'filial consortium', and the application of the principles laid down in Pranay Sethi's case.
Ratio Decidendi: The court applied the principles laid down in Pranay Sethi's case for the calculation of compensation and held that 'parental consortium' and 'filial consortium' cannot be granted beyond the figures provided by the Constitution Bench. It emphasized the binding nature of the decision of the Constitution Bench.
Final Decision: The court allowed the appeal, modified the judgment and award of the tribunal, and directed the insurance company to deposit the balance amount of compensation along with interest.
JUDGMENT
Bivas Pattanayak, J. - The present appeal is preferred against the judgment and award dated 17 April 2015 (amended by order dated 7 July 2015) passed by learned Additional District Judge cum Judge, Motor Accident Claims Tribunal, 4th court, Alipore, 24-Parganas (South) in M.A.C Case no. 27 of 2010 granting compensation in favour of the appellants-claimants to the tune of Rs.35,01,276/-along with interest @ 9% per annum from the date of filing of the claim application till realisation of the entire amount under Section 166 of the Motor Vehicles Act, 1988.
2. The brief fact of the case is that on 17 February 2010 at about 2.30 hours while the victim was sitting on the driver's seat on stationed motorcycle bearing no. WB-20S-6189 beside the road, at that time the driver of the offending vehicle bearing no. WB-19-2404 (bus) in a rash and negligent manner dashed the said motorcycle as a result of which the victim sustained severe injuries and was removed to the hospital where the attending doctors declared him dead. On account of sudden demise of the victim, the claimants being his legal heirs and representatives filed application under Section 166 of the Motor Vehicles Act, 1988 claiming compensation of Rs. 40,00,000/-along with interest.
3. The respondent no.1-insurance company contested the claim application before the learned tribunal. However respondent no.2-owner of the offending vehicle did not contest the claim application before the learned tribunal and the claim application was disposed of exparte against her. Accordingly, the service of notice of appeal upon respondent no.2-owner of the offending vehicle is dispensed with for the aforesaid reasons.
4. The claimants in order to prove their case examined three witnesses including claimant no.1, wife of the deceased and also produced documentary evidence which is marked as Exhibit 1 to 18 respectively. The contesting opposite party no.2-insurance company (respondent no.1 herein) also produced documentary evidence namely pay slip of the deceased for the month of January, 2010 marked as Exhibit A.
5. Upon considering the materials on record as well as the oral and documentary evidence, the learned tribunal granted compensation in favour of the claimants to the tune of Rs. 35,01,276/-along with interest.
6. Being aggrieved by and dissatisfied with the impugned judgment and award the claimants have preferred the present appeal.
7. Mr Ashique Mondal, learned advocate for the appellants-claimants submitted as follows.
As the deceased-victim at the time of accident was aged 37 years, hence the multiplier to be adopted for calculation of compensation should be 15 as per the observation of Hon'ble Supreme Court passed in Sarla Verma and Others versus Delhi Transport Corporation and Another reported in 2009 ACJ 1298 however the learned tribunal erred in adopting multiplier 16 instead of 15.
Further since the victim was aged 37 years at the time of accident and was on a fixed salary, hence additional amount of 40% of the annual income of the deceased should be taken into account towards future prospect in view of observation of the Hon'ble Supreme Court passed in National Insurance Company Limited versus Pranay Sethi and Others reported in 2017 ACJ 2700.
Moreover as the deceased was married at the time of death, as such in view of Sarla Verma's case (supra) an amount equalling to 1/3rd is to be deducted towards personal and living expenses. However the learned tribunal erred in deducting 1/2 towards personal and living expenses of the deceased.
The learned tribunal has considered the annual income of the deceased as per the income tax certificate (Exhibit 15) of Rs.2,73,023/-. However he failed to consider that such income of the deceased was for the period 1st April 2009 to 17 February 2010 i.e of 11 months and thus the income of the deceased is required to be reassessed adding another one month income to the aforesaid income of the deceased appearing in the income tax certificate. App
National Insurance Company Limited versus Pranay Sethi and Others reported in 2017 ACJ 2700
National Insurance Company Limited versus Sohna Singh and Others reported in 2020 ACJ 1946
Sarla Verma and Others versus Delhi Transport Corporation and Another reported in 2009 ACJ 1298
The main legal point established in the judgment is the binding nature of the decision of the Constitution Bench in Pranay Sethi's case regarding the calculation of compensation and the grant of 'par....
The court established that compensation calculations under the MV Act must consider actual income, appropriate deductions, future prospects, and the right to consortium for dependents.
The assessment of compensation must ensure fairness and reasonableness while considering income, future prospects, and applying the appropriate multiplier based on the deceased's age.
The Court applied the principles laid down by the Supreme Court in determining compensation under the Motor Vehicles Act, emphasizing the retrospective applicability of Supreme Court decisions.
Income tax returns are essential for determining compensation in motor vehicle accident cases, and future prospects should be calculated at 40% for self-employed individuals under 40.
Consistency in awarding compensation under conventional heads and the correct assessment of the deceased's annual income are crucial in determining fair compensation under the Motor Vehicles Act.
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