IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
RAJNESH OSWAL, J.
Swaran Kour and Others – Petitioners
Versus
Chander Mani and Others – Respondents
MA No. 231 of 2008
Decided On : 25-02-2022
Compensation - Motor Accidents Claim Tribunal - The court enhanced the compensation awarded to the claimants based on the application of legal principles established by the Apex Court in Sarla Verma and Others vs. Delhi Transport Corporation, National Insurance Company vs. Pranay Sethi and Others, and Magma General Insurance Co. Ltd. vs. Nanu Ram. The court found that the deceased's income should have been enhanced at the rate of 30% and the multiplier of 14 should have been applied to calculate the total loss of dependency. The appellants were found entitled to compensation for loss of consortium, funeral expenses, and loss of estate.
Fact of the Case:
A claim petition was filed for compensation due to the death of a Deputy Forester in a road traffic accident. The Tribunal awarded a sum of Rs. 7,73,800/- to the claimants, which was challenged by the appellants seeking enhancement of compensation.
Finding of the Court:
The court found that the compensation awarded by the Tribunal needed to be modified based on the application of legal principles established by the Apex Court. The appellants were found entitled to an enhanced compensation amount of Rs. 14,68,900/-, including loss of dependency, loss of consortium, funeral expenses, and loss of estate.
Issues: The issues involved the incorrect application of the multiplier, failure to consider the deceased's future prospects, and the incorrect deduction of personal expenses by the Tribunal.
Ratio Decidendi: The court applied the legal principles established by the Apex Court in Sarla Verma and Others vs. Delhi Transport Corporation, National Insurance Company vs. Pranay Sethi and Others, and Magma General Insurance Co. Ltd. vs. Nanu Ram to determine the correct compensation amount for the claimants.
Final Decision: The court modified the award and found the claimants entitled to an enhanced compensation amount of Rs. 14,68,900/-. The respondents-Insurance Company were directed to deposit the remaining amount with the Registry within a month for release to the claimants along with interest.
JUDGMENT :
RAJNESH OSWAL, J.
1. The present appeal has been filed by the appellants/claimants against the judgment and award dated 30.06.2008 passed by the Motor Accidents Claim Tribunal, Jammu (hereinafter to be referred as the Tribunal) in file No. 54/claims, titled, Swaran Kour and Others vs. Chander Mani and Others, by virtue of which a sum of Rs. 7,73,800/- has been awarded in favour of the appellants/claimants along with interest @ 7.5% from the date of filing of the claim petition.
2. Enhancement of the compensation has been sought by the appellants on the following grounds:
(b) That the future prospects of the deceased have not been taken into consideration by the learned Tribunal.
(c) That the deceased had a large family to support, as such, the income was required to the deducted at the rate of 1/4th, but the learned Tribunal has wrongly deducted the same at the rate of 1/3rd as personal expenses.
3. Mr. Vipan Gandotra, learned counsel for the appellants/claimants vehemently argued that the appellants are entitled to the compensation in terms of the law laid down by the Apex Court in Sarla Verma and Others vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121, National Insurance Company vs. Pranay Sethi and Others, (2017) 16 SCC 680 and Magma General Insurance Co. Ltd. vs. Nanu Ram, (2018) 18 SCC 130.
4. On the other hand, Mr. D.S. Chauhan, learned counsel for the respondent No. 3-Insurance Company submitted that the compensation has been correctly assessed, as such, there is no illegality in the award.
5. Heard and perused the record.
6. The facts necessary for disposal of the instant appeal are that a claim petition was filed by the appellants/claimants for grant of compensation on account of death of Amarjit Singh, who died in road traffic accident on 28.02.2004. The deceased was working as a Deputy Forester in the Jammu and Kashmir Forest Department. The response was also filed by the respondent No. 3-Insurance Company before learned Tribunal and on the basis of the pleadings, issues were framed. The appellants/ claimants examined witnesses in support of their claim. As per the statement of PW-Khurshid, who was examined by the appellants in order to prove the income of the deceased, the salary of the deceased was Rs. 7808/- per month at the time of his death.
7. It requires to be noted here that no evidence was led by the Insurance Company/respondent No. 3, as such, the learned Tribunal considered the income of the deceased as Rs. 7808/- per month and after deducting 1/3rd on account of personal expenses, assessed the loss of dependency as Rs. 7,48,800/-. From the perusal of the award, it is revealed that the a sum of Rs. 15,000/- has been granted on account of funeral expenses and Rs. 10,000/- on account of loss of consortium in favour of the appellant No. 1 herein.
8. As per the law laid by the Apex Court in National Insurance Company versus Pranay Sethi (supra), as the deceased was permanent employee with the Government of Jammu and Kashmir and was 43 years of age at the time of his death, the monthly income was required to be enhanced at the rate of 30%, as such, the monthly income would be Rs. 10150/- (7808 x 30/100 + 7808). Since the deceased was having more than three dependents at the time of his death, 1/4th deduction as personal expenses from this income was required to be made. As such, the total monthly income of the deceased comes to Rs. 7612.50/- (10150-1/4 - 10150). Further, as the deceased was 43 years of age, so as per Sarla Verma and Others vs. Delhi Transport Corporation's case, the multiplier of 14 is required to be applied. Therefore, the total loss of dependency would be Rs. 12,78,900/- (7612.50 x 14 x 12). Further, the appellants/claimants Nos. 1, 2, 3 and 4 are also entitled to compensation on account of loss of consortiu
Magma General Insurance Co. Ltd. vs. Nanu Ram
National Insurance Company vs. Pranay Sethi and Others
Sarla Verma and Others vs. Delhi Transport Corporation and Another
The main legal point established in the judgment is the application of legal principles established by the Apex Court in determining the correct compensation amount for the claimants in a motor accid....
The court established that compensation for loss of dependency must consider minimum wages, future prospects, and appropriate multipliers, ensuring just compensation for claimants.
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