IN HE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Nupur Bhati, J.
Reliance General Insurance Company Limited Through Regional Manager, Jaipur - Appellant
Vs.
Smt. Moti Bai W/o Late Shankar Lal Rawat - Respondent
Civil Misc. Appeal No. 965 of 2017
Decided On : 21-09-2024
Compensation - Motor Vehicle Accident - M.V. Act, 1988 - Sections 166, 171 - The court assessed compensation based on minimum wages and appropriate multipliers, correcting the tribunal's errors in income assessment and future prospects.
Fact of the Case:
The claimants sought compensation for the death of Sh. Shankar Lal in a motorcycle accident. The tribunal awarded Rs. 19,20,000, which the insurance company appealed, challenging the compensation amount and the income assessment of the deceased.
Finding of the Court:
The court found that the tribunal erred in assessing the deceased's income and applying the wrong multiplier. It determined the income based on minimum wage standards and adjusted the compensation accordingly.
Issues: Whether the tribunal correctly assessed the income of the deceased and applied the appropriate multiplier for calculating compensation.
Ratio Decidendi: The court held that in the absence of documentary evidence, the minimum wage notification should guide income assessment, and the multiplier should reflect the deceased's age accurately.
Result: The appeal was partly allowed, reducing the compensation to Rs. 13,01,886.
JUDGMENT :
1. The appellant/non-claimant No.2 has filed the instant appeal under Section 173 of the M.V. Act, 1988, challenging the validity of the judgment and award dated 01.02.2017 passed by learned Judge, Motor Accident Claims Tribunal No.1, Udaipur (‘Tribunal’) in MAC Case No.218/2015, whereby the learned Tribunal has awarded compensation in favour of claimants to tune of Rs.19,20,000/- along with interest @ 8.5% p.a. from the date of filing the claim petition on account of death of Sh. Shankar Lal.
2. Briefly stated, the facts of the case are that claimants filed a claim petition under Section 166 of the M.V. Act, 1988 before the learned Tribunal claiming compensation on account of untimely death of Sh. Shankar Lal. In the claim petition, it was stated by the claimants that on 07.01.2015 at about 8:15 PM, while the deceased was going to his home in Aamli ka Chauda on his motorcycle bearing number RJ-27/M-5712, he met with an accident with the motorcycle bearing number RJ-27/SY6823 at Halopada ka Ghatar, and resultantly, deceased Shankar Lal received griveous injuries and died. At the time of the accident, the ag e of the deceased was 35 years and thus the claimants filed a claim petition claiming compensation of Rs. 54,51,000/-.
3. Thereafter, learned Tribunal issued notices to the non-claimants. Respondent no. 7 denied the facts of the claim petition and stated that it was negligence of the deceased himself while the appellant-non-claimant no. 2 denied the factum and averred that the FIR was registered after a delay of 9 days and that the driver did not have an effective and valid driving license at the time of the accident. Thereafter, claimants in support of their claim petition examined 2 witnesses and produced 19 documents whereas no witness(es) or any document(s) was examined or led in defence.
4. After hearing both the parties, the learned Tribunal allowed the claim petition of the claimants and vide judgment/award dated 01.02.2017 awarded a quantum of compensation to the tune of Rs. 19,20,000/- with the interest @ 8.5% and being dissatisfied of the award, the appellant-Insurance Company has preferred this appeal.
5. Learned counsel for the appellant-Insurance Company has laid a challenge to the impugned award only to the extent of quantum of the compensation so awarded by the learned Tribunal. He submits that the learned Tribunal has erred in assessing the income of the deceased as Rs. 90,000/- per annum, while adding 50% future prospects for his loss of income. He also submits that according to the age of the deceased, i.e. 35 years, the multiplier of 15 ought to have been applied in the light of law laid down by Hon’ble Apex Court in the case of Sarla Verma v. Delhi Transport Corporation : AIR 2009 SC 3104, however the learned Tribunal has erred in taking the multiplier as 16.
6. Per contra, learned counsel for the respondent-claimants submits that the submission of the learned counsel of the appellant that learned Tribunal has erred in taking the income of the deceased as Rs. 90,000/- per annum, cannot be considered and the income determined by the learned Tribunal cannot be reduced inasmuch as the respondent no.1/claimant had deposed that the income of the deceased was Rs. 15,000 per month which was not rebutted while examining respondent no.1/claimant. He thus submits that in the absence of any rebuttal made by the appellant-Insurance Company during the examination of respondent no.1/claimant, the learned Tribunal has rightly arrived at the income of the deceased and thus, the same does not deserve to be reduced. He also relies upon the judgment passed by the Hon’ble Jharkhand High Court in the case of Gautam Banerjee v. Dr. C.P. Vidyarthi [M.A. No. 225 of 2018 decided on 20.12.2023] wherein the High Court has categorically held that inasmuch as there was no rebuttal made by the opposite parties to the statement of the claimant with respect to his income, the opposite parties cannot cast any doubt in respect of th
Sarla Verma v. Delhi Transport Corporation
Minu Rout & Anr. v. Satya Pradyumna Mohapatra & Ors.
Magma General Insurance Company Limited v. Nanu Ram @ Chuhru Ram & Ors.
Sarla Verma (Smt). & Ors. v. Delhi Transport Corporation & Anr.
In absence of documentary proof, minimum wage notifications serve as a basis for income assessment in compensation claims.
Age of deceased should be basis for applying multiplier.
The main legal point established in the judgment is the reliance on oral testimony to determine the deceased's income and the application of established legal principles to modify the compensation am....
The appropriate income, future prospects, and multiplier for calculating compensation under the Motor Vehicles Act were determined based on legal principles established in previous cases.
The main legal point established in the judgment is the re-assessment of notional income and enhancement of compensation under various heads to ensure just and reasonable compensation for the claiman....
The judgment establishes that in motor accident claims, the correct application of multipliers based on the deceased's age and future income prospects is crucial for determining fair compensation, al....
The court ruled that statutory documents like ITR should be prioritized in income assessment for compensation calculations, including allowances and applying the correct age multiplier.
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