High Court Of Delhi
KELA DEVI - Appellant
Versus
RAM CHAND - Respondent
First Appeal Order 40 of 1978
Decided On : 05/09/1985
MOTOR VEHICLES ACT, 1939 - SECTION 110A - FATAL ACCIDENT - COMPENSATION - ASSESSMENT - FACTORS TO BE CONSIDERED - NORMAL INCREASES IN SALARY AND ALLOWANCES OF CENTRAL GOVERNMENT EMPLOYEES AS RECOMMENDED BY THIRD PAY COMMISSION AND NORMAL INCREMENTS EARNED BY GOVERNMENT SERVANTS IN THE CATEGORY OF CLASS IV EMPLOYEES TO BE TAKEN INTO ACCOUNT - LUMP SUM PAYMENT - DEDUCTION - NOT JUSTIFIED - INTEREST ON COMPENSATION - AWARDED FROM MARCH, 1970.
Fact of the Case:
Ram Singh, a Class IV employee in Nirman Bhavan, was killed in a road accident involving a private bus belonging to Respondent 2. The claimants, his widow and minor son, filed a claim petition seeking compensation of Rs. 50,000. The Tribunal awarded compensation of Rs. 9,780, which was challenged by the claimants in appeal.
Finding of the Court:
The court found that the bus was responsible for the accident and that the driver was driving rashly and negligently. It also found that the deceased would have lived at least up to the age of 58 years and that his salary would have increased substantially due to the recommendations of the Third Pay Commission and normal increments. The court held that the claimants were entitled to compensation of Rs. 1,51,144, but considering the claim made in 1967, the fall in the value of rupee due to inflation, and the fact that the deceased would have spent some amount for his own maintenance, the compensation was fixed at Rs. 1,25,000.
Issues: 1. Whether the bus was responsible for the accident and whether the driver was driving rashly and negligently? 2. Whether the normal increases in salary and allowances of Central Government employees as recommended by the Third Pay Commission and normal increments earned by government servants in the category of Class IV employees should be taken into account in assessing compensation? 3. Whether any deduction should be made from the compensation on account of lump sum payment?
Ratio Decidendi: 1. The court relied on the evidence of the driver of the bus and the fact that there were no dents or damage on the left side of the bus to conclude that the bus was responsible for the accident and that the driver was driving rashly and negligently. 2. The court held that the normal increases in salary and allowances of Central Government employees as recommended by the Third Pay Commission and normal increments earned by government servants in the category of Class IV employees should be taken into account in assessing compensation, as it was reasonable to assume that the deceased would have earned those increases had he lived. 3. The court held that no deduction should be made from the compensation on account of lump sum payment, considering the poor financial condition of the claimants and the fall in the value of rupee due to inflation.
Final Decision: The appeal was allowed and the compensation was enhanced from Rs. 9,780 to Rs. 1,25,000, with simple interest @ 6% from March 1970 till the date of payment. The court directed Respondent 3, the Insurance Company, to draw up a cheque for the amount and deposit it with the Registrar of the Court, who would then issue a notice to the claimants and hand over the cheque personally.
( 1 ) THIS is an appeal against the award of Shri P. P. Sharma, Judge, Motor Accident Claims Tribunal, Delhi, D/- 29-9-1977. The deceased Ram Singh was going on his cycle to Delhi via Rohtak Road at about 8 a. m. on 11-4-1967. A private bus belonging to Respondent 2, M/s. New Transporters was coming from the opposite direction in a great speed. In an attempt to overtake the truck it went to the extreme right side and hit Ram Singh. Ram Singh died on the spot. The claimants, his widow and minor son filed the claim petition. In her evidence before the Tribunal the widow stated that another child was born posthumously to her. Ram Singh was working as a Class IV employee in Nirman Bhavan. At the time of death his salary was Rs. 145. 50. His age was around 29 years at the time of the death. The claimants had claimed compensation of Rs. 50,000. 00 Respondent I. Driver and Respondent 2, New Transporters were served but did not appear. Respondent 3, Insurance Company, appears to have alone contested the claim. Respondent 3 was originally M/s. South India Insurance Company Ltd. After the nationalisation it was merged with New India Assurance Company Ltd.
( 2 ) THE Tribunal has noted that the written statement filed by M/s. New India Assurance Company was not a proper written statement. It was a copy of the written statement filed by the said Insurance Company in some other accident case. What was done was some portions were erased and some over writings were done without even caring to answer the claim petition. The paras did not tally. There was bald denial of the. accident or the responsibility of the driver. The written statement was filed on behalf of all the respondents. It has come to notice in number of eases that where a vehicle is comprehensively insured the Insurance Company contests the claim on behalf of the owner of the Vehicle as well as the Driver also. Normally one written statement is filed and Counsel for the Insurance Company alone argues the matter. This is what has happened in this case. The Tribunal was wrong in holding that no notice can be taken of this attempt to file the written statement on behalf of Respondents 1 and 2. Perhaps this is the reason why in spite of the service Respondents 1 and 2 did not appear before the Tribunal. From the evidence of Driver of the Bus (RW 1) the Tribunal came to the conclusion that the version of the accident given by the claimants was correct. He, however, disagreed with the Driver that the truck hit the bus and ran away. He found the story unbelievable considering the fact that there were no dents or any damage on the left side of the bus. The light of the bus on the right side was broken. It was because of the impact of the bus hitting the cycle. The deceased was about 29 years old. As a Government servant he would have retired at the age of 58 years. On the basis of the salary of Rs. 145. 00 which he was drawing at the time of the death the claim for Rs. 50,000. 00 was made. The learned Judge took the dependency to only fifteen years holding that the "prospects of re-marriage of petitoner No. 1 (widow) are not non-existent. " It is rather strange to fix the multiplier on the basis of a chance of the widow getting re-married particularly where there was no evidence. She had two children of the marriage and it would have been very difficult for her to get re-married with two children. Even if she was to be married, it was reasonable to hold that the expenses of bringing up of the children and their education should have been an important consideration in the payment of compensation. The Tribunal also seriously erred in holding that the deceased would have contributed about Rs. 80. 00 per month to the family, that means he would have spent Rs. 65. 00 for his own expenses. There was no basis for such an assumption. Where the income is so meagre as less than Rs. 150. 00, no reasonable person can spend about half of the income on himself. Where the income is so low it
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