HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
Anoop Kumar Dhand, J.
Manju Devi & Ors. – Appellants
Versus
Saleem & Ors. – Respondents
S.B. Civil Miscellaneous Appeal No. 4557 of 2017
Decided On : 25-04-2022
Compensation - Assessment of Income - Judgments referred to by the appellants - Future prospects - Recomputation of award - National Insurance Company Ltd. Vs. Indira Srivastaba & Ors., Sunil Sharma & Ors. Vs. Bachitar Singh & Ors., National Insurance Company Ltd. Vs. Pranay Sethi - Sections 168, 129 of the Act - Deductions from salary/income of the deceased - Components of salary/income - Just compensation - Deduction for personal expenses - Revision in pay scale - Compensation for loss of love and affection, consortium, funeral rites
Fact of the Case:
The claimants-appellants appealed against the judgment and award passed by the Court of Motor Accident Claims Tribunal, Laxmangarh, Alwar, which awarded compensation on account of death of Daya Ram in an accident. The appellants contested the assessment of the deceased's income and the failure to grant future prospects, relying on judgments and legal provisions.
Finding of the Court:
The court found that the Tribunal erred in assessing the deceased's income and not granting future prospects. It recalculated the income and awarded additional compensation to the appellants.
Issues: Assessment of deceased's income, deductions from salary/income, grant of future prospects, computation of compensation, and investment of enhanced compensation.
Ratio Decidendi: The court held that deductions from the deceased's salary should have been included in the income assessment, and future prospects should have been granted. It also directed the investment of the enhanced compensation.
Final Decision: The court allowed the appeal, awarded additional compensation to the claimants, and directed the insurance company to make the payment within a specified period.
JUDGMENT
1. Instant appeal has been preferred by the claimants- appellants against the judgment and award dated 29.06.2017 passed by the Court of Motor Accident Claims Tribunal, Laxmangarh, Alwar (hereinafter referred to as 'the Tribunal') in Motor Claim Case No.111/2016 whereby an amount of 43,71,560/- was awarded as compensation on account of death of Daya Ram in the accident occurred on 22.03.2016.
2. Learned Tribunal after framing the issues and evaluating the evidence on record and after hearing counsel for the parties, decided the claim petition of the claimants-appellants and awarded compensation to the tune of Rs.43,71,560/- under various heads in favour of the claimants-appellants.
3. Learned counsel for the appellants submitted that the deceased Daya Ram was working on the post of Teacher at Government Primary School, Village Jakhopur, Tehsil Ramgarh, District Alwar and at the time of his death, his age was 43 years 8 months and 10 days and his monthly salary was Rs.43,510/-. Counsel further submitted that in order to prove the income of the deceased, salary certificate (Ex.17) issued by the Block Elementary Education Officer, Tehsil Ramgarh District Alwar produced on the record, which clearly indicates that the monthly salary of the deceased was Rs.43510/-. Learned counsel further submitted that under various heads i.e. GPF, State Insurance, LIC, PMFI and Tax, deductions of Rs.12055/- have been made.
4. Learned counsel further submits that the Tribunal while passing the award, has assessed the monthly income of the deceased as Rs.31455/- only, while it is the settled principle of law that except income tax, other deductions i.e. GPF, State Insurance, LIC and PMFI, are the components of salary/income of the employee and while assessing the income of the deceased, these components should be added in the income of the deceased, so, under these circumstances, after deducting the income tax, monthly salary of the deceased should have been assessed as Rs.41,450/-, but the Tribunal has erred in assessing the salary of the deceased as Rs.31455/- per month.
5. In support of his contentions, learned counsel for the appellants has placed reliance on the judgment of Hon'ble Supreme Court in the case of National Insurance Company Ltd. Vs. Indira Srivastaba & Ors. reported in 2008(1) R.C.R. (Civil) 359, Sunil Sharma & Ors. Vs. Bachitar Singh & Ors. reported in 2011 (2) KLT 451 wherein in identical situation, the deductions were treated as components of the salary of the deceased and the compensation was awarded accordingly.
6. Learned counsel further submitted that the Tribunal has committed an error in not granting future prospects in the light of the judgment of Hon'ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi reported in AIR 2017 SC 5157. Learned counsel further submitted that recomputation of the award in the present case may be done in the light of the judgments referred above.
7. Per contra, learned counsel for the respondent-Insurance Company submits that the Tribunal while deciding the claim petition of the claimant-appellant has rightly taken into consideration all the factors while calculating the award in this case on the anvil of the evidence produced before it. Thus, the judgment dated 29.06.2017 does not call for any interference by this Court. Learned counsel, however, is not in a position to controvert the submissions made by learned counsel for the appellants and the settled position of law on the issue raised in this appeal with respect to assessment of income of and with respect to recomputation of the award in the present case in the light of judgments Indira Srivastaba (supra), Sunil Sharma (supra) and Pranay Sethi (supra).
8. I have considered the submissions made at Bar and gone through the judgment dated 29.06.2017 as well as the other relevant documents available on record
Concord of India Insurance Co. vs. Nirmaladevi and Ors.
N. Sivammal & Ors. vs. Managing Director
National Insurance Company Ltd. vs. Pranay Sethi reported in AIR 2017 SC 5157
New India Assurance Co. Ltd. vs. Charlie & Anr [(2005) 10 SCC 720]
New India Assurance Co. Ltd. vs. Kalpana (Smt.) & Ors. [(2007) 3 SCC 538]
Rathi Menon vs. Union of India [(2001) 3 SCC 714]
Sarla Verma (Smt.) and others vs. Delhi Transport Corporation & Anr.
Sunil Sharma & Ors. vs. Bachitar Singh & Ors. reported in 2011 (2) KLT 451
T.N. State Transport Corporation Ltd. vs. S. Rajapriya & Ors. [(2005) 6 SCC 236]
The main legal point established is that deductions from the deceased's salary should be included in the income assessment, and future prospects should be granted to the claimants.
The main legal point established in the judgment is the determination of just and reasonable compensation under the Motor Vehicles Act, 1988, considering the deceased's income, future prospects, loss....
Financial assistance received by dependents is only deductible from motor accident compensation if it directly overlaps with the pecuniary loss of income. Benefits unrelated to income substitution, s....
The main legal point established in the judgment is the determination of just compensation under the Motor Vehicles Act, considering the deceased's income, future prospects, and other conventional he....
The court concluded that minimum wage standards guide but must not constrain just compensation in motor vehicle accidents, allowing for comprehensive income assessments.
Section 171 of Motor Vehicles Act pertains to award of interest where any claim is allowed.
Compensation under the Motor Vehicles Act must be just, fair, and reasonable, considering future prospects and qualifications of the deceased.
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