IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Gita Gopi, J.
Patel Alpaben Yogeshkumar – Appellant
Versus
Jadeja Bhanvarsinh Umedsinh – Defendant
R/First Appeal No. 212 of 2020
Decided On : 04-09-2023
Compensation - Motor Vehicles Act - Loss of Consortium - Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Ors., reported in (2018) 18 SCC 130, National Insurance Company Limited Vs. Pranay Sethi & Ors. reported in (2017) 16 SCC 680
Fact of the Case:
The appellants, widow and minors, challenged the judgment and award passed by the MACT primarily on the ground that the income of the deceased, an agriculturist, was not assessed correctly. The deceased died in a road accident, and the appellants argued for a higher compensation considering the loss of managerial skill and consortium amount.
Finding of the Court:
The court found that the income assessment was not in line with the evidence presented and granted a higher compensation considering loss of managerial skill and consortium amount as per relevant legal provisions.
Issues: Assessment of deceased's income, loss of managerial skill, consortium amount, and overall compensation.
Ratio Decidendi: The court applied the principles of loss of consortium as defined in Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Ors., and National Insurance Company Limited Vs. Pranay Sethi & Ors. to determine the appropriate compensation for the claimants.
Final Decision: The appeal was partly allowed, and the court directed the insurance company to deposit the enhanced amount of compensation within a specified time frame.
JUDGMENT :
1. The widow and the minors are the appellants who have challenged the judgment and award dated 27.8.2019 passed by the MACT (Aux), Mehsana at Visnagar in MACP no.1337/2012, which was originally registered as MACP no.512/2011 primarily on the ground that the income of the deceased has not been assessed in right perspective. Mr. Thakore, learned advocate for the applicants submitted that the deceased was an agriculturist and he was owning the agricultural land. The relevant documents by way of village form no.7/12 were produced on record at Exh.18 and the learned Tribunal by taking into consideration the date of the accident should have assessed the income for the loss of managerial skill. Mr. Thakore stated that the amount of Rs.3,000/- assessed as notional income does not commensurate to the documents produced on record for the loss sustained by the family of the managerial skill of the deceased to look after the agricultural land.
2. Mr. Thakore further stated that the learned Tribunal was also required to grant consortium amount as per the decision in the case of Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Ors., reported in (2018) 18 SCC 130 to all the claimants.
3. Countering the arguments, Mr. Deepak Aloria, learned advocate for respondent no.2 stated that the claimants had failed to prove any evidence on record to show the income generated from the agricultural property for the Court to assess a managerial skill and thus, stated that the amount of Rs.3,000/- as granted by the Tribunal is just and proper. It is submitted that the loss of consortium has been granted to the widow and the total amount is reasonable to consider it as just and proper.
4. The claim petition was filed on the facts that on 28.6.2011 at about 03:00 O’Clock in the noon, the deceased – Yogeshkumar was traveling on a motorcycle bearing registration no. GJ-2– AR-5448 as a pillion rider and the motorcycle was driven by Ankitkumar and at that time, one S.T. bus came in a full speed in a rash and negligent manner and dashed the motorcycle. The motorcyclist died on the spot while the pillion rider Yogeshkumar died during the course of treatment.
5. At the time of the accident, the deceased was 35 years of age. The documents on record shows that village form no.7/12 have been produced at Exh.18. The deceased was holding the agricultural land and the claimant during the course of examination-in-chief had stated that her husband was earning Rs.10,000/- per month by doing agricultural activities. The learned Tribunal while deciding the income at Rs.3,000/- per month has observed that the claimants have not produced any documentary evidence on record showing the income, while record suggests that at Exh.18, revenue extracts were produced which are reflected in the judgment. The learned Tribunal should have granted the amount under the head of loss of managerial skill of the deceased who was looking after the agricultural property. Taking into consideration the date of accident as 28.6.2011 and keeping in mind the minimum wages schedule, Rs.4,500/- ought to be granted as just and reasonable amount and the age of the deceased was 36 years at the time of the accident which was proved by way of school leaving certificate at Exh.19 and multiplier of 15 will be applicable. Since he was below 40 years of age, 40% prospective rise in income is to be considered and thus accordingly, Rs.4,500/- + 40% = Rs.1,800/- = Rs.6,300/-. One-third is deducted for personal expense considering 3 dependents. Thus, from Rs.6,300/- dependency amount of Rs.2,100/- is deducted. Hence, the monthly dependency would be considered as Rs.4,200/-. Considering the annual dependency of Rs.50,400/- with multiplier of 15, loss of dependency would be assessed at Rs.7,56,000/-.
6. In the case of Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ra
Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Ors.
The main legal point established in the judgment is the application of principles related to loss of consortium and the correct assessment of compensation under the Motor Vehicles Act.
The main legal point established in the judgment is the proper assessment of compensation in motor vehicle accident cases, considering factors such as loss of dependency, loss of consortium, and fune....
The court emphasized the application of the Minimum Wage Schedule and relevant case law in determining compensation for motor accident claims, including dependency loss, loss of consortium, funeral e....
The main legal point established in the judgment is the application of principles for determining compensation under various heads as per the Motor Vehicles Act, 1988 and relevant Supreme Court decis....
Death in motor accident – Assessment of income of victim cannot be on lower side.
The judgment established the entitlement to enhanced compensation for loss of dependency, loss of consortium, loss to estate, and funeral expenses in a motor vehicle accident case, based on the Motor....
The main legal point established is the importance of assessing 'just and fair' compensation under the Motor Vehicles Act, 1988, Section 168, based on income tax returns and legal precedents.
Point of Law : 24. Amount of compensation to be awarded as consortium will be governed by the principles of awarding compensation under `loss of consortium'.
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