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1998 Supreme(Guj) 203

Gujarat High Court
Judgename :A.M.KAPADIA, J.N.Bhatt
RITABEN ALIAS VANITABEN - Appellant
Versus
AHMEDABAD MUNICIPAL TRANSPORT SERVICE - Respondent
C.A. 2353 of 1987
Decided On : 04/17/1998

Advocates Appeared: K.F.DALAL, K.M.SATVANI

Headnote:Motor Vehicles Act, 1939 - Sec. 110-D - Appeal - Compensation - Claim petitions filed by widow & parents of deceased - Rs, 38,440/- & Rs. 97,840/- awarded to parents & widow respectively - Legality & validity of the order - Deduction of amount Rs. 300/- P.M. on account of imponderables & uncertainties of life is erroneous - Deceased was a partner in the business with 20% share - Finding of Tribunal that deceased was a sleeping partner is also erroneous - Awarding of consolidated amount is faulty - Tribunal applied the multiplier of 20 instead of 16 - Deceased was of 25 years of age at the relevant time - Prospective earnings of deceased not considered - Loss of dependency wrongly calculated & it should not be less than 1,000/- P.M. - Held, compensation enhanced with 12% interest from the date of application.

       It is a settled proposition of law that which a view to award a just and reasonable amount of compensation in a case of fatal injury, it is incumbent upon the Tribunal to consider as to what was the income at the relevant time of the accident and what would have been or probable prospective earnings in the later years of the life. The amount of income prevalent at the relevant time, in absence of any other evidence, is required to be doubled and then divided by half so as to reflect the prospective average income for the purpose of determining the datum figure. It is an admitted fact that the Tribunal has, totally, lost sight of the material point of considering prospective earnings of the deceased. This proposition of law is very well settled and, extensively, explored by catena of judicial pronouncements and it would not detain us any longer on this aspect.

       [Para 8]

       In Court opinion, multiplier of 20 is on higher side and in view of the celebrated decisions on this score, it would be just and reasonable to adopt in the present case the multiplier of 16. Therefore, the claimants shall be entitled to an amount of Rs .12,000 x 16 = Rs. 1,92,000. Therefore, we have no hesitation in finding that the claimants are entitled to an amount of Rs. 1,92,000 under the head of loss of dependency value. Obviously, the claimants would be entitled to the then conventional amount of Rs. 10,000 under the head of loss of expectation of life. The claimaints also shall be entitled to an amount of Rs. 3,000 for funeral expenses. In the result, the claimants shall be entitled to, in aggregate, an amount of Rs. 2,05,000. The consolidated sum of Rs. 1,36,280 awarded by the Tribunal in both the claim petitions filed by the widow and minor on one hand and the parents of the deceased on the other, is required to be deducted so as to reach the additional amount of compensation to which the claimant will be entitled to. Consequently, the claimant shall be entitled to Rs. 68,720 (Rs. 2,05,000 minus Rs. 1,36,280 = Rs. 68,720) by way of additional amount of compensation, which is required to be rounded off to Rs. 70,000. Accordingly, the claimant shall be entitled to, in aggregate, an additional amount of Rs. 70,000 against the additional claim of Rs. 1,00,000 in the present appeal, with interest at the rate of 12% per annum from the date of the application till the date of payment with proportionate costs.

       [Para 9]

J. N. BHATT, J.

( 1 ) THE question which has come up for consideration in short in this appeal under Sec. 110-D of the Motor Vehicles Act, 1939 (old M. V. Act) challenging the legality and validity of the judgment and ward recorded in Motor accident Claim Petition No. 70 of 1985, decided by Motor Accident Claims Tribunal i (Main), Ahmedabad, which is a part of a composite judgment rendered in MACP no. 12 of 1985 and MACP No. 70 of 1985.

( 2 ) A few material facts giving rise to this appeal may, shortly, be articulated so as to appreciate the merits of the appeal and challenge against it.

( 3 ) A road accident which occurred, on 11-12-1984, at about 10. 30 P. M. took toll of the rider of the scoter, deceased Deepak Hariram. The appellants are the original claimants and respondents are the original opponents of the said claim petition. Two claim petitions came to be filed. Motor Accident Claim Petition No. 70 of 1985 came to be filed by the widow o the deceased for herself and as guardian of minor daughter of the deceased, whereas, MACP No. 12 of 1985 came to be filed by the parents of the deceased. The Tribunal decided both the claim petitions by a common judgment, whereby, the appellants/original opponents came to be directed to pay an amount of Rs. 38. 440. 00 in MACP No. 12 of 1985 and an amount of Rs. 97. 840. 00 in MACP No. 70 of 1985 by way of compensation for the untimely demise of deceased Deepak. Thus, the Tribunal awarded a total amount of Rs. 1,36,280 by way of compensation. The present appeal is directed against the judgment and award recorded in MACP No. 70 of 1985, whereby, the respondents have been directed to pay an amount of Rs. 97,840. The Tribunal has also directed to pay interest at the rate of 9% per annum from the date of the application till payment.

( 4 ) THE short question which falls tor our consideration in this appeal, is as to whether the amount of compensation awarded to the appellants who are the widow and minor daughter of deceased Deepak, who also died during the pendency of the appeal, is just and reasonable or not. The contention of the appellants is that the tribunal should have awarded at least an amount of Rs. 1,00,000. 00 more towards the compensation.

( 5 ) NEEDLESS to say that the amount of compensation in a case of tortious liability arising out of a road accident under the Motor Vehicles Act has to be decided in the light of two recognised heads, i. e. , (i) loss of dependency benefits and (ii) loss to the estate and loss of expectation of life, in case of fatal injury like one of hand. The Tribunal has dealt with this aspect in paragraphs 14, 15 and 16 of the impugned composite judgment. The Tribunal found that the income of the deceased at the relevant time would not be, in any case, more than Rs. 1,000. 00. However, the Tribunal has reduced it to Rs. 700. 00 per month on account of imponderables and uncertainties in life. The Tribunal also took the net income of the deceased at Rs. 700. 00 per month and considering nine units in the family, deducted an amount of Rs. 178. 00 towards the personal expenses of the deceased. Therefore, an amount of Rs. 522. 00 was accepted as the loss of dependency value per month and the annual loss of dependency, therefore, came to be Rs. 522 x 12 = 6,264/- which came to be mutiplied by 20. Therefore, a total amount of Rs. 1,25,280. 00 under the head of dependency benefit came to be awarded. The conventional amount of Rs. 10,000. 00 came to be awarded by the Tribunal under the head of loss of expectation of life. The Tribunal observed that this amount should be paid to the widow of the deceased, who is appellant No. 1 herein. An amount o Rs. 1,000. 00 came to be awarded for funeral expenses which has been directed to be paid to the father of the deceased.

( 6 ) IT could very well be seen from the aforesaid facts that the Tribunal, unfortunately, has committed three serious errors : (i) deduction of an amount of Rs. 300. 00 out of the income of Rs. 1,000












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