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1981 Supreme(Del) 338

High Court Of Delhi
AVON DELUX TRANSPORT COMPANY - Appellant
Versus
SHEELATHA SELVAMANI - Respondent
L.P.A. 200 of 1981
Decided On : 11/12/1981

Advocates Appeared:
H.R.Khan, R.M.TUFAIL

Benefits received from life insurance and pension should not be deducted from the compensation awarded.

Headnote:

Insurance - Compensation - The court held that the benefits received from life insurance should not be deducted from the compensation awarded, as they are received by virtue of an independent contract with the deceased. The court also noted that the amount of pension received by the deceased's wife should not be deducted, as it was received for services rendered by the employee and should not be considered in assessing the compensation payable.

Fact of the Case:

The deceased was involved in a fatal accident with a bus belonging to the appellant. The appellant argued that it was not proved that the accident was due to the rash and negligent act of the driver. Additionally, the appellant sought deductions from the compensation awarded for life insurance and pension received by the deceased's wife.

Finding of the Court:

The court found that the accident was due to the rash and negligent driving of the bus, as evidenced by a witness. The court also concluded that the benefits received from life insurance and the amount of pension received by the deceased's wife should not be deducted from the compensation awarded. The court granted interest from the date of the application, in line with Section 110-CC of the Motor Vehicles Act.

Issues: Proof of rash and negligent driving, deductions from compensation for life insurance and pension received by the deceased's wife.

Ratio Decidendi: The court held that the accident was due to rash and negligent driving, and benefits received from life insurance and pension should not be deducted from the compensation awarded.

Final Decision: The court dismissed the appellant's arguments and upheld the compensation awarded, granting interest from the date of the application.

M. L. Jaini

( 1 ) THE first argument is that it was not proved that it was due to the rash and negligent act of the driver that the accident took place. The trial court had noted that Public Witness. 5 who was travelling on pillion of the scooter being driven by the deceased has given evidence that the bus belonging to the appellant came from the opposite side, took a sudden swerve and hit the scooter which resulted in the fatal death and injuries to this witness also. No evidence was led from the appellant s side and therefore the Tribunal was justified in coming to the conclusion that it was due to rash and negligent driving of the bus which caused the accident.

( 2 ) THAT next argument was that there was some life insurance amount received by the deceased s wife and, therefore, this amount should be deducted from the compensation awarded. He refers to Jaikumar Chhagan Lal Patni and others v. Mar Jerome D. Souze and another, 1978 ACJ 28 for this proposition. With respect we arc unable to agree. It has been, more or less the consistent practice of the Punjab and Haryana and Delhi High Courts that the deduction on account of insurance received is not to be deducted, as the benefits are received by virtuc of independent contract entered into with the deceased by the L. I. C. (see Bhagwanti Devi and others v. Ish Kumar and other, 1975 ACJ 56 and other judgments mentioned therein. Notwithstanding this, a sum of Rs. 2000. 00 has been deducted in connection with life insurance. We cannot, therefore, find that the appellant can have any grievance.

( 3 ) THE next argument was that deduction should also have been made on account of pension receivable by the deceased s wife. We may note that there is no such claim put forward in the petition because we find no such discussion by the Tribunal in its order. We also find that no such specific grievance has been made in the grounds of appeal before us. We, therefore, cannot be asked to make a guess as to what amount was received on a account of pension. This is apart from the fact that in our view the amount of pension was received on account of services rendered by the employee and on the same grounds as the insurance amount was not to be deducted in assessing the compensation payable. In this connection it may also be noticed that the tribunal did not take into consideration the prospective increase in the income of the deceased and thereby the prospective increase in the amount of dependency. These things he did because according to him, this would set off some other amount which requires to be deducted. We cannot say that this view is an unreasonable one.

( 4 ) THE next argument is that the Tribunal granted interest from the date of the application. This relief is consistent with Section 110-CC of the Motor Vehicles Act, which empowers the Tribunal that it may in addition to the amount of compensation award simple interest from such date not earlier than the date of making the claim. This is what has been done and the rate of interest has been awarded at 6% p. a. which is very reasonable rate considering the present high rate of interest. No merit. Dismissed.

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