IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
REKHA BORANA, J.
Goga Devi W/o Harchand Nath - Appellant
Versus
Mohan Lal S/o Umaram - Respondent
S.B. Civil Misc. Appeal No. 1692/2020
Decided on : 03-03-2025
(A) Motor Vehicles Act, 1988 - Compensation - Enhancement of compensation awarded by Motor Accident Claims Tribunal - Original award of Rs.10,61,000/- modified to Rs.17,57,831/- based on proper assessment of income and medical expenses - Court emphasized the need for accurate income assessment and adherence to established compensation standards. (Paras 1, 11, 12)
(B) Compensation - Assessment of income - Court found the Tribunal's assessment of income based on unskilled labor wages to be disproportionate, ruling that the deceased's actual income should reflect his business activities. (Paras 7, 11)
(C) Medical Expenses - Court allowed additional medical expenses after scrutinizing the admissibility of bills, awarding Rs.1,83,703/- for valid medical expenses. (Paras 9, 11)
Facts of the case:
The appeal was filed by dependents of the deceased Harchand Nath, who died in a vehicular accident caused by a negligent truck driver. The Tribunal initially awarded Rs.10,61,000/- as compensation, which the claimants sought to enhance. (Paras 1, 2)
Findings of Court:
The Court modified the compensation amount to Rs.17,57,831/- after reassessing the deceased's income and medical expenses, emphasizing the need for fair compensation. (Paras 11, 12)
Issues: The main issues included the proper assessment of the deceased's income and the admissibility of medical expenses. (Paras 4, 5)
Ratio Decidendi: The Court ruled that the income should reflect the deceased's actual business activities rather than minimum wage for unskilled labor, and that only admissible medical bills should be considered for compensation. (Paras 7, 9)
Result: Appeal partly allowed, enhancing compensation to Rs.17,57,831/- with interest. (Paras 11, 12)
ORDER :
REKHA BORANA, J.
1. The present misc. appeal has been preferred by the appellants-claimants seeking enhancement of the compensation amount awarded vide Judgment and Award dated 08.11.2017 passed by Motor Accident Claims Tribunal, Nagaur in MACT Case No. 118/2014 (Computer No.441/15).
Vide impugned judgment/award dated 08.11.2017 the learned Tribunal awarded a sum of Rs.10,61,000/- in favour of the claimants along with the interest @7.5% per annum from the date of filing of the claim petition.
2. Brief facts as pleaded in the claim petition are that on 16.03.2014, one Harchand Nath along with Kan Nath, was en route from Nagaur to Baghnada on his vehicle bearing registration No.RJ-21-GA-9539. At around 6:30 PM, a truck bearing registration No. RJ-07-GB-6755 being driven rashly and negligently on the wrong side of the road, collided with Harchand Nath’s vehicle resulting in his fatality. FIR No. 12/2014 pertaining to the said accident was lodged at Police Station Nagaur.
The offending vehicle, on the date of the accident, was insured with respondent No.3 Insurance Company.
3. The appellants-claimants are the dependents of deceased Harchand Nath. The learned Court after framing the issues, evaluating the evidence available on record and after hearing the counsel for the parties, while assessing the monthly income of the deceased to be Rs.4,914/-, awarded total compensation of Rs.10,61,000/- in favor of the appellants-claimants, the breakup of which is as under:
| 1. | Income per month (after addition of future prospects (40%) and deduction for personal and living expenses (1/4th) in the monthly income of Rs.4,914/-) | Rs.5,159.7/- |
| 2. | Loss of Income (as per the age of the deceased i.e. 35 years, a multiplier of 16) | 5,159.7 x 16 x 12= Rs.9,90,662.4/- |
| 3. | Under the head of ‘Consortium’ | Rs.40,000/- |
| 4. | Under the head of ‘Funeral Expenses’ | Rs.15,000/- |
| 5. | Under the head of ‘Loss of Estate | Rs.15,000/- |
| 6. | Total amount of compensation | Rs.10,61,000/- (Round Figure) |
Learned Tribunal below also awarded interest @7.5% per annum from the date of filing of the claim petition, i.e.
17.10.2014.
4. Learned counsel for the appellants-claimants raised the following grounds:
(i) The learned Tribunal erroneously computed the income of the deceased to be Rs.4,914/- per month on basis of the wages of an unskilled labour whereas the deceased was engaged in selling construction material and hence, a monthly income of Rs.18,000/-ought to have been considered for computation of income.
(ii) The learned Tribunal committed a significant error in its adjudication by non-grant of compensation qua the medical bills and expenses placed on record amounting to Rs.4,00,000/-.
(iii) The learned Tribunal erroneously awarded insufficient compensation qua the conventional head of ‘Consortium’.
5. Learned counsel for the respondent-Insurance Company while supporting the impugned award submitted that the learned Tribunal rightly assessed the monthly income on basis of the prevalent minimum wages as there was no documentary evidence available on record to prove the income of the deceased. Further, while refuting the submission made with regard to the medical bills and expenses, counsel submitted that certain bills were not admissible on count of being incomplete and not being the original copies.
However, learned counsel could not refute the position of law regarding the compensation qua the conventional head of ‘Consortium’.
6. Heard counsel for the parties and perused the material available on record.
7. A bare perusal of the material available on record reflects that Smt. Goga Devi (AW-1), the wife of the deceased deposed her husband to be running a business of building material and to be earning a monthly income of Rs.18,000/-. AW-2 Chun Nath deposed that he had purchased building material from Harchand Nath worth Rs.22,000/-. True it is that no specific documentary evidence was placed on record to substantiate the above statements but then it is established on record that the deceased was involved in a
The court emphasized accurate income assessment for compensation, ruling that actual business income should be prioritized over minimum wage for unskilled labor.
The court recognized factors influencing compensation calculation in motor accidents, specifically income dependency and future prospects.
Compensation for motor accident claims must reflect actual income and future prospects, applying appropriate multipliers as established in case law.
The court determined that actual income of the deceased as a driver should be considered for compensation, overriding minimum wage assumptions, and affirmed the entitlement of all dependents to loss ....
The court upheld the Tribunal's income assessment based on minimum wages due to lack of evidence for higher claims and awarded enhanced compensation for loss of consortium.
The court recalculated compensation based on the deceased's potential earnings as a Mason, enhancing the total compensation awarded to Rs.11,82,312/- with interest.
The main legal point established is the importance of assessing 'just and fair' compensation under the Motor Vehicles Act, 1988, Section 168, based on income tax returns and legal precedents.
The court ruled that future prospects must be considered in compensation calculations, leading to an enhanced award for the claimants.
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