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2005 Supreme(Gau) 266

IN THE HIGH COURT OF GAUHATI
R.B. Misra & A.B. Pal, JJ.
Nandibrata Tripura
Vs.
Branch Manager, United India Insurance Co. Ltd. and other
Decided On: 30.03.2005

The main legal point established in the judgment is that the Motor Accidents Claims Tribunal should apply the structured formula provided in the Motor Vehicles Act for determining the amount of compensation in motor accident cases.

Headnote:

Motor Accidents Claims Tribunal - Compensation Calculation - Motor Vehicles Act - Section 163-A

Fact of the Case:

The appellant lost his wife and child in a motor accident and filed two claim cases before the Motor Accidents Claims Tribunal. The Tribunal awarded compensation, which the appellant contested, arguing that the amounts were meagre and contrary to the evidence.

Finding of the Court:

The court found that the Tribunal erred in determining the amount of compensation and should have applied the structured formula provided in the Motor Vehicles Act for calculating compensation.

Issues: The main issue was whether the Tribunal committed an error in determining the amount of compensation by not applying the settled ratio or the structured formula provided in the Motor Vehicles Act.

Ratio Decidendi: The court held that the Tribunal should have followed the structured formula provided in the Schedule of the Act for determining the amount of compensation, and calculated the compensation based on the notional income and multiplier specified in the Act.

Final Decision: The court allowed the appeals and directed the insurer of the vehicle to make the payment of the revised compensation amount within a specified period.

JUDGMENT

A.B. Pal, J.

1. Heard Mr. B. Das, the learned senior counsel assisted by Mr. M.L. Saha, learned counsel for the appellant and Mr. P. Gautam, learned counsel appearing on behalf of the respondent United India Insurance Co. Ltd.

2. The aforesaid two appeals have been filed by the appellant who lost his wife and child in the same motor accident. He filed two claim cases before Motor Accidents Claims Tribunal (in short, the Tribunal) which were registered as T.S. No. 77 (MAC) of 1998 and T.S. No. 81 (MAC) of 1998. Both the claim cases have been disposed of by learned Tribunal by a single judgment on 28.7.2000. These two appeals having been directed against the same impugned judgment are taken up together for final disposal by a single judgment.

3. The material facts leading to the claim cases, inter alia, are that on 6.2.1998, the wife of the appellant, Sukanya Tripura and their son, Sagaria Tripura, were traveling by truck No. TR 03-1516, which was carrying certain goods of Food Department and also articles of the deceased Sukanya Tripura. While negotiating the bridge at Chapling Cherra under Natun Bazar Police Station, it met with accident as allegedly the bridge had collapsed. Both Sukanya and Sagaria died as a result of the accident. The appellant being the only survivor filed the claim case, which was contested by the owner of the vehicle and United India Insurance Co. Ltd. the insurer of the vehicle. After a full dressed trial learned Tribunal awarded Rs. 67,000 as compensation for the death of Sukanya and Rs. 62,000 for the death of Sagaria with 11 per cent interest per annum within the specified time failing which 15 per cent interest thereon from the date of such failure. Neither the owner nor insurance company have filed any appeal against the impugned judgment and award.

4. The fact situation being not in dispute the only question, we are called upon to decide in these two appeals is whether the learned Tribunal committed any error in determining the amount of compensation by not applying the settled ratio the unit formula or the structured formula provided in Motor Vehicles Act (in short, the Act).

5. Mr. B. Das, learned senior counsel for appellant submits that a bare perusal of the impugned judgment will show that the amounts of compensation are not only meagre, but also contrary to the evidence adduced by the appellant. In his deposition the claimant-appellant specifically stated that monthly income of deceased Sukanya was Rs. 3,000 by selling bamboo made products she was expert in manufacturing. Again, the learned Tribunal did not follow the structured formula provided in the Schedule of the Act for the purpose of determining the amount of compensation for the loss of his wife and minor son. There is absolutely no basis for awarding a ridiculous lump sum amount of Rs. 67,000 and Rs. 62,000 for the death of wife and the son respectively.

6. None has appeared for the owner respondent. Mr. P. Gautam, learned counsel who entered appearance on behalf of the respondent United India Insurance Co. Ltd. fairly admits that as no cross-appeal has been filed, there is no scope at all to re-appreciate the evidence on record on the factual aspects. However, as regards the calculation of the amount of compensation his submission is that the claimant could not produce any sort of document to prove that monthly earnings of the deceased Sukanya was Rs. 3,000. Be that as it may, we have carefully gone through the evidence on record and considered the rival submissions. Even if we accept that the claimant could not adduce sufficient evidence to prove that the earnings of the deceased Sukanya was Rs. 3,000 per month, we are of the view that Tribunal could reasonably follow the structured formula given in the Schedule relating to compensation under Section 163-A of the Act. According to that formula for a non-earning person, the notional income should be Rs. 15,000 per annum. If this amount is accepted to be the income of the deceased



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