IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
Dinesh Mehta, J.
Smt. Munna Devi Jain & Ors. – Appellant
Versus
Shri Mahendra Bhai Tabiyad & Ors. – Respondent
S.B. Civil Misc. Appeal No. 5225/2011
Decided On : 25-11-2022
House Rent Allowance - Motor Accident Compensation - The court modified the judgment and award of the tribunal to include the house rent allowance in the calculation of compensation, citing the judgment of the Hon’ble Supreme Court in the case of Sunil Sharma and Others vs. Bachitar Singh and Others.
Fact of the Case:
The appellants challenged the judgment and award passed by the Motor Accident Claims Tribunal, arguing that the tribunal erred in not considering the amount of House Rent Allowance while calculating the compensation.
Finding of the Court:
The court found that the deceased was receiving house rent allowance, and in light of the judgment of the Hon’ble Supreme Court, the court allowed the appeal partly in relation to HRA and modified the judgment and award accordingly.
Issues: The main issue was whether the amount of house rent allowance should be included in the calculation of compensation for a motor accident claim.
Ratio Decidendi: The court relied on the judgment of the Hon’ble Supreme Court in the case of Sunil Sharma and Others vs. Bachitar Singh and Others to support the inclusion of house rent allowance in the compensation calculation.
Final Decision: The appeal was allowed partly, and the judgment and award of the tribunal were modified to include the house rent allowance in the calculation of compensation.
JUDGMENT
(IA No. 1/2022)
For the reasons stated and considering that the basic issue raised in the present appeal is squarely covered by the judgment of the Hon’ble Supreme Court, the application seeking early hearing is allowed and the matter is taken up for consideration today itself.
S.B. Civil Misc. Appeal No. 5225/2011
1. While challenging the judgment and award dated 04.08.2011 passed by the Judge, Motor Accident Claims Tribunal, Udaipur, Mr. Modi, learned counsel for the appellants argued that the tribunal has erred in not considering the amount of House Rent Allowance while calculating the amount of compensation.
2. Learned counsel for the appellants submitted that the issue that house rent allowance is to be included in the amount of compensation is no more res-integra in light of the judgment of Hon’ble Supreme Court rendered in the case of Sunil Sharma and Others vs. Bachitar Singh and Others reported in (2011) 11 Supreme Court Cases 425.
3. In light of the judgment aforesaid, learned counsel for the appellants submitted that amount of Rs. 2,721/- per month availed by the deceased as house rent allowance is required to be included in the amount of compensation and the impugned judgment and award of the tribunal deserves to be modified accordingly.
4. Mr. Kothari, learned counsel for the respondent-insurance company opposed the appellants’ prayer and argued that the amount of house rent allowance cannot be included in the compensation amount.
5. Heard rival counsel for the parties and perused the material available on record.
6. On perusal of the award impugned, this Court finds that the appellants - legal representatives of the deceased have placed on record the salary certificate (Ex.15), which showed that the deceased - Komalchand Bhulawat was being confessed the house rent allowance of Rs. 2,721/- per month.
7. In light of the established fact and considering the judgment of the Hon’ble Supreme Court rendered in the case of Sunil Sharma (supra), this Court is inclined to allow the appeal partly in relation to HRA. The appellants are also entitled for future prospects in light of the judgment of Pranay Sethi.
8. Considering the aforesaid, the judgment and award is modified as under :-
Monthly Income :- Rs. 37,278/- p.m.
For future prospects :- | 30% of Rs. 37,278/- (Income of deceased) | Rs. 11,183/- |
Rs. 37,278/- + Rs. 11,183/- | Rs. 48,461/- | |
Amount to be deducted as spent on himself | Rs. 48,461/- - 1/3th = Rs. 16,153.67 | |
Dependence Amount (Rs. 48,461/- - Rs. 16,153.67) | Rs. 32,307.33 | |
The age of deceased was 47 years at the time of accident, therefore, a multiplier of 13 will be applied.
(I) | Compensation due to death | Rs.32,307.33 x 12 x 13 | Rs. 50,39,944/- |
(II) | For the Loss of Estate | Rs. 15,000/- | |
(III) | For Funeral Expenses | Rs. 15,000/- | |
(III) | For the loss of consortium | Rs. 40,000/- | |
(IV) | Medical Bills | Rs. 51,713/- | |
(V) | Misc. Expenses | Rs. 13,596/- | |
|
| Total | Rs. 51,75,253/- | |
|
| Amount awarded by the Tribunal vide award dated 04.08.2011 | Rs. 36,70,000/- | |
|
| Enhanced amount | Rs. 15,05,253/- | |
9. The enhanced amount of Rs. 15,05,253/- shall carry out interest @ 6% per annum from the date of filing the claim petition i.e. 10.11.2009.
10. The appeal is allowed partly in the aforesaid terms.
Compensation calculation for motor vehicle accidents must include all components of income, including house rent allowance, to ensure just compensation.
The court emphasized the necessity of accurately calculating compensation by including all income components and future prospects, leading to an enhanced award.
Compensation in motor accident claims must be based on accurate income assessments and relevant legal precedents for future prospects.
Point of Law : Accident claim - Purpose of keeping compensation is to safeguard the interest of the claimants. As long time has elapsed, the amount be deposited in the Saving Account of claimants in ....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.