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SUPREME COURT OF INDIA
G.S. Singhvi and V. Gopala Gowda, JJ.
Rekha Jain and Anr. —Appellants
versus
National Insurance Co. Ltd. —Respondent
Civil Appeal Nos.5373-5375 OF 2013
(Arising out of SLP (C) Nos. 7407-7409 of 2012)
Decided on 1.8.2013

IMPORTANT POINT
Quantum of compensation must be just and reasonable.

Headnote:Motor Vehicles Act, 1988—Sections 168 and 173—Accident—Compensation—Just compensation—Deceased was a renowned doctor serving as a Lecturer—Tribunal also recorded finding of fact holding that accident took place on account of rash and negligent driving by driver of offending vehicle while awarding compensation of Rs.10,62,000/-—However, amount of compensation reduced by High Court to Rs.8,00,000/-—It should have been taken into consideration that employment of deceased was a public employment—It was a stable employment for a period of another seven years and there could have been revision of wages and promotional benefits accrued in her favour if she was alive—For determining annual income of deceased principles laid down in Sarla Verma & Ors. v. Delhi Transport Corp. should have been applied to case of appellants by taking into consideration monthly salary of deceased at Rs.12,000/- to which 30% should have been added as future prospects of income and that much amount could have been taken as monthly income of deceased for the purpose of determining compensation towards loss of dependency of appellants—Impugned judgment, award and orders set aside and award passed by Tribunal restored. (Paras 15 to 17)

JUDGMENT

V. Gopala Gowda, J.—Leave granted by this Court vide order dated 02.07.2013 after condoning the delay in filing the special leave petitions.

2. These appeals are filed by the claimants namely Rekha Jain and T.A. Sebastian. They have questioned the correctness of the judgment and award and order dated 24.2.2011 passed by the High Court of Orissa, Cuttack in MACA No. 579 of 2007 and order dated 10/03/2011 in MC No. 385 of 2011 in MACA No. 579 of 2007 in the aforesaid appeal and final order dated 24.11.2011 in M.A.C.A. No.844 of 2007 urging rival facts and legal contentions.

3. The daughter and the husband of the deceased have filed these appeals seeking just and reasonable compensation on account of the death of the deceased in a motor vehicle accident, which took place on 17.08.2001. The deceased was traveling alongwith her daughter, the first appellant in her Maruti Car bearing Regn. No. OR 15 D-9005. The accident took place on account of rash and negligent driving of the offending truck bearing Regn. No. MP 23 D-0096. The deceased Dr. Grace Jain died on the spot, as she had sustained grievous injuries on account of the said accident. It is stated by the appellants that the deceased was a renowned doctor serving as a lecturer in Odisha College of Homeopathy and Research, Sambalpur and had private practice as well.

4. It is stated in the claim petition and in the evidence that the salary of the deceased was Rs.12,000/- per month. The appellants herein filed claim petition i.e. Misc.(A) Case No.118 of 2002 claiming compensation of Rs.27,00,000/- before the Second Motor Accidents Claims Tribunal, Northern Division, Sambalpur (hereinafter referred to as ‘the Tribunal’).

5. The owner of the truck (since deleted from the array of parties) appeared and filed identical written statement in the claim petition as that of the written statement filed in Rekha Jain’s claim petition. According to him, the driver of the truck had valid driving licence and the same was insured with Respondent - National Insurance Company Limited (hereinafter referred to as the ‘Insurance Company’). The owner of the offending vehicle has further stated that his driver was not negligent. A motor cyclist suddenly came in front of the truck overtaking him from its left side and hence the driver had to move to the right side in order to avoid accident with the motor cyclist. In that process the truck hit the Maruti car causing death of the deceased.

6. The respondent-Insurance Company had also filed similar written statement in both the claim petitions denying its liability on the ground that the driver of the offending truck was negligent and that the accident occurred due to the negligence of the driver of the Maruti Car. On behalf of Rekha Jain, the first appellant herself was examined as a witness PW 3 and two other eye witnesses were examined as PW 1 and PW 2 to prove the occurrence of the accident. On the basis of documentary and oral evidence particularly eye witnesses’ evidence, the finding of fact was recorded on issue Nos. 2 and 3 that the accident took place on account of rash and negligent driving of the offending truck driver and it was also answered that the claim petition filed by the appellants is maintainable. The Tribunal held that the appellant’s mother died and the first appellant was grievously injured due to the accident involving offending vehicle. The Tribunal also recorded the finding of fact holding that the accident took place on account of rash and negligent driving by the driver of the offending vehicle. Consequently, issue No.4 was answered by awarding compensation at Rs.10,62,000/- with 6% interest per annum by accepting the pleading of the appellants that the deceased was a renowned doctor practicing in Government Hospital.

7. The claim petition Misc.(A) Case No. 118/2002 was allowed with interest @ 6% per annum from the date on which the claim petition was filed and the respondents were directed by the Tribunal to deposit Rs.5,00























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