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2008 Supreme(J&K) 379

IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
Sunil Hali, J.
Himachal Road Transport Corp. - Appellant
Versus
Bindu & Ors. - Respondent
CIMA No. 4/2004, CMP No. 10/2004
Decided On : 10 November, 2008

Advocates Appeared:
Advocate For Respondent: S.C. Gupta
Advocate For Respondent: Anil Sethi
Advocate For Appellant: Rupinder Singh

The calculation of future earnings should be based on reliable evidence, and family pension cannot be deducted from the compensation amount as it is unrelated to the accidental death.

Headnote:

Compensation - Motor Accident Claims - Future Earnings - Motor Vehicles Act - [DEPENDENCY, FUTURE EARNINGS, COMPENSATION] - The court discussed the calculation of future earnings of the deceased and the dependency of the claimants. It emphasized the need for reliable evidence to prove potential future earnings and highlighted the importance of considering future prospects and promotions. The court also addressed the deduction of family pension from the compensation amount, emphasizing that it cannot be deducted as it is a pecuniary advantage unrelated to the accidental death.

Fact of the Case:

The case involved a claim petition for compensation filed by the family of a deceased victim of a bus accident. The Motor Accident Claims Tribunal awarded compensation, which was appealed by the Himachal Road Transport Corporation on grounds related to the calculation of future income and deduction of family pension.

Finding of the Court:

The court found that the calculation of future earnings should be based on reliable evidence and considered the deceased's potential for future promotions. It also ruled that family pension cannot be deducted from the compensation amount as it is unrelated to the accidental death.

Issues: The issues revolved around the calculation of future earnings, dependency, and the deduction of family pension from the compensation amount.

Ratio Decidendi: The court emphasized the need for reliable evidence to prove potential future earnings and highlighted the importance of considering future prospects and promotions. It also ruled that family pension cannot be deducted from the compensation amount as it is unrelated to the accidental death.

Final Decision: The appeal was dismissed, and any deposited amount was ordered to be released to the claimants along with interest as per the award of the Motor Accident Claims Tribunal.

1. A bus No.HP-48-0980, which was going from Baror to Holee (H.P) met with an accident on 01.03.2001. The said accident resulted into death of many passengers including the driver of the vehicle. One of the victims, namely, Deepak Raj Majahan, who hailed from Jammu also died in the said accident.

2. A claim petition came to be filed before the learned Motor Accident Claims Tribunal, Jammu on behalf of widow, one daughter and parents of deceased Deepak Raj Mahajan. The learned Tribunal after hearing the parties, awarded compensation of Rs.16,58,600/- along with interest @ 9% p.a. from the date of filing of the claim petition under the following heads :-

1. Loss of dependency : Rs.16,23,600.00

2. Loss of consortium : Rs. 15,000.00

3. Loss to the estate : Rs. 15,000.00

4. Funeral expenses : Rs. 5,000.00

3. Being aggrieved of the said award, present appeal has been filed by the Himachal Road Transport Corporation on the following grounds:-

(a) That calculating the average income of deceased at Rs. 22,800/- per month which includes the future income, which the deceased would have earned, is based on no material.

(b) That family pension payable to the deceased was also required to be deducted from the gross income calculated by the learned Tribunal.

4. On the other hand, learned counsel for the respondents states that future prospects of the deceased has to be taken into consideration while assessing the dependency and economic loss to the dependants of the deceased. This arrangement has been made on the basis of the material available with the learned Tribunal. The plea that the family pension has to be deducted from the annual income assessed is not correct for the reason that it is peculiar loss to the claimants. It is further stated that compensation payable under the Motor Vehicles Act is a statutory income and any contribution made by deceased like General Provident Fund, Special Provident Fund, LIC, etc., which are repayable to the employee at the time of voluntary retirement, death or for any other reason, are in fact the deferred payments and are savings and those cannot be deducted.

5. Heard learned counsel for the parties and perused the record.

6. The contention raised by learned counsel for the appellant is that future income which would have accrued to the deceased, has been calculated without there being any basis. He states that future earnings cannot be considered unless all relevant facts are proved by reliable and cogent evidence. He placed reliance on a Supreme Court judgment in Bijoy Kumar Dugar Vs. Bidyadhar Dutta and others, reported in AIR 2006 SC 1255.

7. While analyzing the import of the judgment (supra) there is no dispute that while calculating the future earnings of the deceased there has to be cogent and reliable evidence before the learned tribunal. The claimants are required to prove that the deceased was in a trade where he would have earned more from time to time or that he had special merits or qualifications or opportunities which would have led to an improvement in his income. The import of the judgment clearly reveals that the claimants were required to prove that deceased was in a trade where he would have earned more from time to time. In other words, if the claimants would have been able to prove that the deceased would have earned more from time to time then alone they would be entitled to this increase. Admittedly, the deceased was working as Senior Assistant in Himachal Pradesh State Electricity Board, Bharmour and was at the age of 45 years. His chances of promotion were apparent and one could have safely drawn this conclusion that the deceased would have earned promotion till he attained the age of superannuation. It is not a case where no such view could be drawn that the deceased would earn future promotion also. Even, the learned tribunal was conscious of this fact that deceased would have earned further promotion and there would be increase in his salary. The learned tribunal has recorded the fi










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