IN THE HIGH COURT OF GAUHATI
PARTHIVJYOTI SAIKIA, J.
New India Assurance Co. Ltd. – Petitioner
Versus
Babita Singh and Others – Respondents
MAC App. No. 197 of 2019
Decided On : 07-03-2022
Motor Vehicles Act, 1988 – Section 173 – compensation - Matter of charity - Provides for filing of an appeal against the award passed by the Claims Tribunal - The factual matrix leading to filing of this appeal lies within a very short campus -One person died in a motor accident - His wife, his father, his sister and his brother jointly filed a claim petition before the tribunal - Tribunal awarded a total compensation of tribunal further held that the father, brother and sister of the deceased are not his dependence and therefore, they are not entitled to any compensation – Held, Tribunal has correctly that the father of the deceased, the brother and sister of the deceased are not dependent of the deceased - In spite of that out of the total awarded amount has been directed to be given to the father of the deceased , tribunal further directed to give each out of the total awarded amount to the brother and sister of the deceased - This view of the tribunal is contrary the view taken by the tribunal in paragraph 22 of the judgment - The father, brother and sister of the deceased cannot be held to be dependent upon the deceased - Awarding compensation under the motor vehicles Act is not a matter of charity - The tribunal had distributed to the father, brother and sister of the deceased as if doing charity – Ordered Accordingly.
JUDGMENT :
PARTHIVJYOTI SAIKIA, J.
1. Heard Mr. R. Goswami, learned counsel appearing for the appellant as well as Ms. A.G. Choudhury, learned counsel representing the respondents.
2. This is an appeal under Section 173 of the Motor Vehicles Act, 1988 (as amended) against the Judgment and Award dated 07.12.2018 passed by the MACT No. 2, Kamrup (M) Guwahati in MAC Case No. 492/2016.
3. The factual matrix leading to filing of this appeal lies within a very short campus. One person died in a motor accident. His wife, his father, his sister and his brother jointly filed a claim petition before the tribunal. The tribunal awarded a total compensation of Rs. 47,90,397/-. The tribunal further held that the father, brother and sister of the deceased are not his dependence and therefore, they are not entitled to any compensation.
4. The learned counsel Mr. Goswami has pointed out that though the tribunal had held that only the wife of the deceased is the dependent then 1/3 of the total yearly income of the deceased should not have been deducted on account of personal expenses of the deceased. Referring to Smt. Sarla Verma vs. Delhi Transport Corporation, (2009) 6 SCC 121, Mr. Goswami has submitted that this judgment does not say anything about deduction on account of personal expenses if there is only one dependent.
5. The learned counsel Ms. Choudhury has submitted that the tribunal has correctly compensation by deducting 1/3 of the annual income on account of personal expenses.
6. I have considered the submissions made by the learned counsels for both sides.
7. At this stage a brief visit to paragraph 30 of Sarla Verma supra would be fruitful. Paragraph 30 reads as under:
8. So Sarla Verma supra is silent if there is only one dependent. Since there is no guideline in case there is only one dependent of the deceased it should be calculated in the manner as in the case of a bachelor. I have decided to agree with to Mr. Goswami on this point. Therefore, the calculation done by the tribunal needs to be modified in the light of the aforesaid observation of this Court:
| S. No. | Heads | Calculation |
| 1. | Income | Rs. 2,97,504/- per annum |
| 2. | 40% of Rs. 2,97,504/- to be added as future prospect. | Rs. 2,97,504/- plus Rs. 1,9,001.60 = Rs. 4,16,505.60/- per annum |
| 3. | 50% of Rs. 4,16,505.60/- is deducted as personal expenses of the decease who left on dependent | Rs. 4,16,505.60/- minus Rs. 2,08,253/- = Rs. 2,08,252/- per annum |
| 4. | Compensation after multiplier of 17 is applied | Rs. 2,08,252/- × 17 = Rs. 35,40,301/- |
9. In paragraph 22 of the impugned judgment, the tribunal has correctly held that the father of the deceased, the brother and sister of the deceased are not dependent of the deceased. In spite of that Rs. 20,000,00/- out of the total awarded amount has been directed to be given to the father of the deceased. The tribunal further directed to give Rs. 5,000/- each out of the total awarded amount to the brother and sister of the deceased. This view of the tribunal is contrary the view taken by the tribunal in paragraph 22 of the judgment.
10. The father, brother and sister of the deceased cannot be held to be dependent upon the deceased. Awarding compensation under the m
The main legal point established in the judgment is that family pension cannot be deducted from compensation, and future prospects and dependency deductions should be considered in the calculation of....
In cases of bachelor deceased, deductions for personal expenses can be adjusted based on the number of dependents, allowing for 1/3rd deduction when multiple dependents exist.
The court's decision emphasized the proper calculation of compensation based on the deceased's income, future prospects, and dependency, and the application of the appropriate interest rate.
Calculation of loss of dependency and determination of compensation under the Motor Vehicles Act.
In cases where spouses share expenses and both are employed, a deduction of 2/3rd from the deceased's income for personal expenses is appropriate for calculating compensation.
The main legal point established in the judgment is the application of a different yardstick for the deduction in the case of the death of a housewife, considering the immeasurable services rendered ....
Important Point : In cases involving married couples with similar incomes, the deduction for personal expenses in compensation claims should be adjusted based on shared living circumstances.
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