IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
MOHD. YOUSUF WANI, J.
United India Insurance Company Ltd. – Appellant
Versus
Fatima Begum W/o Late Rafeeq Ahmad – Respondent
MA No. 98 of 2013 CM No. 3064 of 2022 CM No. 1180 of 2022 IA No. 139 of 2013 c/w MA No. 94 of 201
Decided on : 18-10-2024
(A) Motor Vehicles Act, 1988 - Section 173 - Claims Tribunal - Just compensation - The learned MACT awarded Rs.27,25,000/- with interest @ 7.5% per annum for the loss of dependency due to a fatal accident involving Rehbar-e-Taleem teachers. The appellant contested the income calculation, asserting it should be Rs.2000/- instead of Rs.20,000/-. The court found no illegality in the MACT's award, emphasizing the need for just compensation based on future prospects and the qualifications of the deceased. (Paras 4, 15, 16, 24, 37)
(B) Just Compensation - The court reiterated that compensation must be fair, reasonable, and equitable, not merely a windfall or pittance. The MACT's approach to determining income and future prospects was upheld. (Paras 24, 33)
Facts of the case:
The appeals arose from a common award by the MACT concerning the deaths of Rafeeq Ahmad and Khalid Hussain in a road accident on 20.04.2008. The MACT awarded compensation based on the deceased's expected future earnings as teachers.
Findings of Court:
The court upheld the MACT's award, stating it was just and reasonable, considering the qualifications and future prospects of the deceased.
Issues: The main issues included the appropriate income calculation for the deceased and the justification for the MACT's compensation amount.
Ratio Decidendi: The court ruled that the MACT's determination of income at Rs.20,000/- was justified based on the deceased's qualifications and the likelihood of future earnings.
Result: Appeals dismissed.
JUDGMENT :
1. Both the appeals are taken up together for common disposal as they arise from the same common Award dated 16.07.2012 of the Learned Motor Accident Claims Tribunal, Ramban (hereinafter referred to as the MACT, for short) inter alia passed on the File Nos. 45/2008 titled “Fatima Begum and others Vs. United India Insurance Company and others” and File No. 36/2008 titled “Zulekha Begum & Ors. Vs. United India Insurance Company and others” which came to be filed before the learned MACT owing to an unfortunate accident that took place on 20.04.2008 at 5 PM in the area of Banihal, Ramban, which took the lives of several passengers including the deceased involved in the claim petitions in question namely Rafeeq Ahmad and Khalid Hussain.
2. The common impugned Award dated 16.07.2012 came to be passed by learned MACT in as many as seven claim petitions including the claim petitions filed by the respondents (claim petitioners) of the instant appeals.
3. The learned MACT after culminating the enquiry proceedings in all the claim petitions including the two pertinent petitions filed by the respondents/claim petitioners awarded a total compensation amount of Rs.27,25,000/- along with interest @ 7.5% per annum from the date of filing of the claim petitions till the realization of the amounts in each of the claim petitions filed by the respondents/claim petitioners.
4. Aggrieved by the common Award dated 16.07.2012 as regards the claim petitions bearing File Nos. 45/2008 and 36/2008, the appellant-Company (respondent) in the claim petitions assailed the same through the medium of the instant appeals filed under the provisions of Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as the "Act‟, for short) on the grounds inter alia that the learned MACT has wrongly calculated the loss of dependency in both the cases by taking the income of the deceased as Rs.20,000/- in each case instead of Rs.2000/- which was being received by them at the time of the accident; that the learned MACT while computing the amount of the compensation admissible in the cases unjustifiably deviated from the guiding principles laid down from time to time by the Hon‟ble Apex Court especially passed in the landmark judgments titled “Sarla Verma and others Vs. Delhi Transport Corporation and another” and “National Insurance Company Limited Vs. Pranay Sethi and others” and that the learned MACT further underestimated the material particular of the case to the effect that the appellant-Company is not liable for indemnification in the cases as the driver of the offending vehicle was not holding a valid and effective driving licence as on the date of the accident.
5. The fateful accident which has taken the lives of the deceased in both the cases along with so many other persons has occurred on 20.04.2008 at 5 PM when Banihal bound passenger vehicle bearing No. JK02M-4595 being driven by one Krishan Gopal in a rash and negligent manner met an accident upon reaching at Anokhifall near Battery Chashma rolling down100 ft from the National Highway.
6. I have heard learned counsel for both the parties.
7. The learned counsel for the appellant-Company, Mr. Ravinder Sharma, Advocate, while reiterating his grounds already taken in the memo of appeals contended that the impugned common Award dated 16.07.2012 suffers from patent illegality and perversity as the learned MACT has fallen in error while taking the income of the deceased in both the claim petitions as Rs.20,000/- instead of Rs.2000/-. The learned counsel contended that the deceased in both the cases were serving as Rehbar-e-Taleem teachers, who admittedly as on date of accident were in receipt of the monthly honorarium/salary of Rs.2000/-. He contended that under the SARV SIKSHA ABHIYAN, unemployed educated persons having minimum qualification of 10+2 are engaged as Rehbar-e-Taleem and are paid an honorarium of Rs.1500/- for the first-two years followed by an amount of Rs.2000/- per month for next th
Compensation under the Motor Vehicles Act must be just, fair, and reasonable, considering future prospects and qualifications of the deceased.
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Compensation for road traffic accidents must be calculated based on gross income less tax, including future prospects and adequate general damages as per legal precedents.
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The court emphasized the necessity of awarding just and fair compensation under the Motor Vehicles Act, considering future prospects and adjusting interest rates appropriately.
Compensation for wrongful death must consider educational qualifications and future earning potential over minimum wage assessments, ensuring fairness and reasonableness in calculations.
The court concluded that minimum wage standards guide but must not constrain just compensation in motor vehicle accidents, allowing for comprehensive income assessments.
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