IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, MAULIK J. SHELAT, JJ.
SHWETAKUMARI UMESHKUMAR SHRIWASTWA – Appellant
Versus
BHAIYARAM VIDHIYACHALSING – Respondent
First Appeal No. 526 of 2012
Decided On : 22-11-2024
(A) Motor Vehicle Act, 1988 - Section 166 - Claim for compensation due to death in vehicular accident - Claimants appealed against the tribunal's award of Rs. 10,05,584/- seeking higher compensation based on actual income and conventional heads - Tribunal found the driver solely negligent in causing the accident. (Paras 3.1, 3.5, 4.4)
(B) Compensation - The court recognized the deceased's actual income of Rs. 7,800/- per month, considering additional income components - The appropriate multiplier was determined to be 15 due to the deceased's age at the time of the accident. (Paras 8.4, 8.5, 8.7)
Facts of the case:
The appeal arises from a claim petition filed by the deceased's family after he was killed in a truck accident, with the tribunal awarding compensation based on a lower assessed income.
Findings of Court:
The court adjusted the compensation to Rs. 15,98,800/- after considering the deceased's actual income and applicable legal principles.
Issues: The main issues included the assessment of the deceased's actual income and the appropriate multiplier for calculating compensation.
Ratio Decidendi: The court held that the tribunal failed to consider all components of the deceased's income, thus warranting an adjustment in compensation based on established legal precedents.
Result: The appeal was partly allowed, granting additional compensation of Rs. 5,93,216/- with interest.
JUDGMENT :
MAULIK J. SHELAT, J.
1. The present appeal is filed by the original claimants under Section 173 of the Motor Vehicle Act (herein after referred to as ‘the MV Act’) challenging judgment and award dated 20.10.2011 passed by the Motor Accident Claim Tribunal (Aux.) Additional Sessions Court, Vadodara in Motor Accident Claim Petition No. 248 of 2008.
2. The parties will be referred as their original position before the tribunal.
3. Short facts of the case appear to be as under:
3.2 It is the case of claimants that due to such vehicular accident, deceased had suffered severe injuries and succumbed to such injuries.
3.3 The deceased was aged about 40 years, serving in Steelage Industries Limited and drawing salary of Rs. 6563/- per month + additional benefits. The deceased was survived by original claimants namely widow, two minor children and parents.
3.4 As the death of the deceased was due to rash and negligent driving on the part of the truck involved in the accident, so the claimants have filed claim petition under Section 166 of the Act claiming compensation of Rs. 40,00,000/- from driver, owner and insurance company of truck.
3.5 After appreciating evidence on record, the tribunal has found driver of the truck solely negligent for causing accident and held that deceased died due to vehicular accident due to sole negligence of the driver of the truck.
3.6 Thereafter, the tribunal has decided the quantum of compensation and taking into account, salary of the deceased as Rs. 6563/- per months and considering 30% future rise of income applying 14 multiplier, awarded Rs. 9,55,584/- towards loss of dependency.
3.7 Further, tribunal has granted Rs. 25,000/- towards loss to the estate, Rs. 20,000/- towards loss of consortium and Rs. 5,000/- towards funeral expenses. Thus, tribunal has awarded in all Rs. 10,05,584/- as compensation to the claimants.
3.8 Claimants are not satisfied with the compensation and chosen to file present appeal on the ground of non consideration of other income of deceased received from his employer thereby awarding less compensation under other conventional heads.
4. Submissions of the appellant:
4.2 He would submit that to prove actual income of the deceased at the time of accident, claimants have examined following witnesses:
(1) Shwetakumari Umeshkumar Shrivastav at Exh.22
(2) Narendrakumar Balubhai Parmar at Exh.28
(3) Pranavbhai Vipinchnadra Pandya at Exh.39
(4) Anant Nareshbhai Panchal at Exh.42
4.3 He would further submit that deceased was serving in Steelage Industries Limited and his last few years’ salary income as well as salary slips from 01.07.2007 to 31.12.2007 were produced on record at Exh.33. The salary income chart showing his actual salary income with other benefits as on date of accident till superannuation was submitted at Ex.34. He has further stated that income tax return of the deceased as well as Form 16 were also submitted on record at Exh.59. He has drawn our attention that for the month of October 2007 and December 2007 deceased was paid a bonus and leave travel allowance respectively which was not at all considered by the tribunal while considering income of deceased.
4.4 According to learned advocate Mr. Hakim, if this Court would consider these two components which are part and parcel of earning of the deceased and claimants are beneficiary, then income which ought to have derived would be Rs. 7800/- per month instead of Rs. 6563/-.
4.5 Learned advocate Mr. Hakim would further submit that the deceased has not completed 40 years but he was in a
Magma General Insurance Co. Ltd. vs. Nanu Ram & Ors. 2018 (18) SCC 130
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Sarla Verma vs. Delhi Transport Corporation
United India Insurance Co. Ltd. vs. Satinder Kaur @ Satwinder Kaur & Ors. 2021 (11) SCC 780
The court determined that the tribunal erred in calculating compensation by not considering the deceased's full income, leading to a revised compensation amount based on established legal principles.
The appropriate income, future prospects, and multiplier for calculating compensation under the Motor Vehicles Act were determined based on legal principles established in previous cases.
In absence of documentary proof, minimum wage notifications serve as a basis for income assessment in compensation claims.
The court established that actual income evidence must be prioritized over notional income in compensation claims under the Motor Vehicle Act.
The calculation of compensation under the Motor Vehicles Act, 1988 is based on the deceased's actual income, future prospects, and multiplier as per relevant case laws.
The main legal point established in the judgment is the re-assessment of notional income and enhancement of compensation under various heads to ensure just and reasonable compensation for the claiman....
Compensation for vehicular accidents must be just and reasonable, focusing on equitable loss recovery, while applying correct legal principles without succumbing to strict technicalities.
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