IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
SANJAY KUMAR MEDHI, J.
Bhuban Ch. Borah, S/o. Late Khudlara Borah and Anr. – Petitioners
Versus
New India Assurance Co. Ltd., Represented By The Chief Regional Manager and Anr. – Respondents
Review Pet. No.51 of 2015, Review Pet. No.7 of 2016
Decided On : 11-06-2024
Review Petition - Motor Vehicle Accident Compensation - National Insurance Company Ltd. Vs Pranay Sethi and Ors. - S. Madhusudhan Reddy Vs. V Narayana Reddy & Ors. - Chhajju Ram v. Neki - Moran Mar Basselios Catholicos v. Most Rev. Mar Poulose Athanasius - Union of India v. Sandur Manganese & Iron Ores Ltd. - Kamlesh Verma Vs. Mayawati & Ors. - MAC Case No. 82/2006 - Section 20 of the Motor Vehicles Act, 1988 - Section 166 of the Motor Vehicles Act, 1988 - Section 168 of the Motor Vehicles Act, 1988
Fact of the Case:
The claimants filed a claim petition before the MACT, Dibrugarh on the death of their son in a motor vehicle accident. The Tribunal granted compensation, which was later modified by the court. The review petitions were filed by the claimants and the Insurance Company regarding the calculation of compensation.
Finding of the Court:
The court found that there was an error in applying the multiplier vis-à-vis the age of the victim and in construing the monthly salary of the deceased. Both the applications for review were allowed, and the compensation payable was recalculated.
Issues: The issues raised in the review petitions included the application of the multiplier based on the age of the victim and the calculation of the deceased's monthly salary.
Ratio Decidendi: The court applied the principles laid down in National Insurance Company Ltd. Vs Pranay Sethi and Ors. and S. Madhusudhan Reddy Vs. V Narayana Reddy & Ors. to determine the correct multiplier and the calculation of compensation. The court also considered the grounds for review as stipulated by the statute and found that the applications warranted merit.
Final Decision: Both the review petitions were allowed, and the compensation payable was recalculated. The balance amount was directed to be paid within a specified period with interest if there was a delay in payment.
JUDGMENT :
Both these two applications for review have been filed by the rival parties in the MAC App. No. 128/2015. While Review Pet. No. 51/2015 is filed by two applicants who were the claimants before the MACT, Dibrugarh, Review Pet. No.7/2016 has been filed by the Insurance Company both qua the judgment and order dated 04.03.2015 passed by this Court in the aforesaid appeal. Accordingly, this Court proposes to dispose of both the petitions by this common order.
2. Before going to the issues which have been raised in the two petitions, it would be convenient if a brief background on the factual aspect is given.
3. The claimants had instituted the claim petition before the MACT, Dibrugarh being MAC Case No. 82/2006 on the death of their son in a motor vehicle accident. The learned Tribunal vide the award dated 15.03.2012 had granted an amount of Rs. 7,24,252/- (Rupees Seven Lakhs Twenty Four Thousand Two Hundred Fifty Two) only as compensation along with interest @ 9% per annum and further interest in case of delay.
4. The aforesaid award dated 15.03.2012 was the subject matter of challenge in MAC App No. 128/2012. This Court vide the judgment and order dated 04.03.2015 had modified the award and the amount concerned was modified to Rs.6,98,720/- (Rupees Six Lakhs Ninety Eight Thousand Seven Hundred Twenty) only along with interest @ 12% per annum after expiry of one month by which time the amount was directed to be released. The breakup of the amount in question was in the following manner:-
| “1) Loss of dependency | = Rs. 6830/- |
| less 50% | = Rs. 3,415.00 |
| p.m.x12 | = Rs 40,980/-p.a. |
| Rs 40,980/- Multiplier of 14 | = Rs 5,73,720.00 |
| 2. Funeral expenses | = Rs 25.000.00 |
| 3) Loss of consortium | = Rs 1,00,000.00 |
| Total: | = Rs. 6,98,720.00” |
5. It is this judgment in respect of which the present applications for review has been made.
6. I have heard Shri G. Jalan, learned counsel for the claimants and Shri S. Dutta, learned counsel for the Insurance Company which are the petitioners in these two petitions and also the corresponding respondents.
7. Shri Jalan, the learned counsel has submitted that the multiplier has been wrongly applied by taking into consideration the age of the claimants. It is submitted that the relevant age is that of the victim and in the instant case, the victim of the accident was the son of the claimants who died in the said accident and was aged 24 years and accordingly the correct multiplier was 18 and not 14 as was held by this Court. In this connection, he has also relied upon the case of National Insurance Company Ltd. Vs Pranay Sethi and Ors. reported in (2017) 16 SCC 680 wherein the principles for determining compensation have been laid down, the relevant paragraph of which is extracted herein below:-
8. So far as the review sought for by the Insurance Company is concerned, Shri Dutta, the learned counsel for the Insurance Company has submitted that while making the calculation, the income of the deceased has been taken to be Rs.6,830/-. However, the salary of the deceased was Rs.6030/- which was inclusive of the GPF amount of Rs.835/. He accordingly submits that this Court had made a wrong assumption regarding the aforesaid factor by which the GPF amount of Rs.835/- was taken into account twice.
9. The exercise of the powers of review are well established. In a recent judgment, namely, S. Madhusudhan Reddy Vs. V Narayana Reddy & Ors. reported in (2022) SCC OnLine 1034, the Hon’ble Supreme Court has reiterated the earlier principles laid down in the case of Kamlesh Verma Vs. Mayawati & Ors. reported in (2013) 8 SCC 320 wherein the principles laid down are extracted herein below:
20.1. When the review will be maintainable:
(i) Discovery of new and important matter or evidence which, after the exercise of
The main legal point established in the judgment is the application of the correct multiplier and the calculation of compensation in motor vehicle accident cases, as well as the grounds for review as....
The main legal point established in the judgment is that the deceased's actual income and age should be considered for applying the multiplier in motor accident compensation cases, as per the Supreme....
The age of the deceased should be the basis for determining the multiplier in motor accident compensation cases, as established in previous judgments.
The age of the deceased should be considered in determining the appropriate multiplier for calculating compensation in the case of the death of a bachelor.
Compensation under the Motor Vehicles Act must be based on minimum wages in the absence of proof of income, with deductions for personal expenses adjusted according to the number of dependents.
Point of Law : While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age o....
Multiplier has to be determined o the basis of age of the deceased and not his mother.
Compensation in motor accident claims must accurately reflect lost earnings and dependencies, allowing modifications based on newly presented evidence.
Age of deceased should be basis for applying multiplier.
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