The quantum of compensation under the Motor Vehicles Act should be just and based on objective factors establishing a reasonable nexus between the loss incurred and the compensation awarded. Factors to be considered include the income of the deceased, the expectancy of living, and the portion of the income spent on the family members.

G. K. MISRA, C. J.

( 1 ) PUBLIUS Machir Das was working as a Missioner in Children's Special Service mission, Orissa, on a pay of Rs. 293 per month which included his salary, clearness allowance, house-rent, children's allowance etc. His headquarters was at Baptist church Lane, Berhampur, in the district of Ganjam. He had gone to Rourkela in the district of Sundargarh on tour on 10-10-1963. At about 11-30 a. m. that day while he was going on a cycle, a Mercedes Benz Truck O. R. O. 2022 came at a very high speed and tan over him by rash and negligent driving. He died instantaneously on the spot as a result of the accident. The vehicle had been insured with Oriental Fire and General Insurance Co. , Branch Janpath, New Delhi (hereinafter to be referred to as the Company) (Opposite Party No. 3 ). The date of birth of the deceased was 13th April, 1905 and he was about 58 1/2 years old at the time of death. The ten claimants are the widow, sons and daughters of the deceased. An application for compensation was filed under Section 110-A of the motor Vehicles Act, 1939 (hereinafter to be referred to as the Act) before the motor Accidents Claims Tribunal (hereinafter to be referred to as the Tribunal)wherein Rs. 59,772/- was claimed as the amount of compensation. It was stated in the application that the deceased was very healthy and was expected to survive till his 75th year. The ancestors of the deceased were said to have lived up to the 80th year and the normal expectancy of life in the family of the deceased was not less than the 75th year. The amount of compensation was calculated with an expectancy of life for 17 years more on the basis of Rs. 283/- as the monthly income of the de-ceased. Opposite Parties 1 and 2 were des-called as the owners of the vehicle. Opposite Party No. 1 having purchased the vehicle from Opposite party No. 2 on hire-purchase system and all the instalments not having been paid by then. The defence was that the deceased was a workman under the Workmen's compensation Act and as such the Tribunal had no jurisdiction to entertain the claim. The claim was barred by limitation and the expectancy of life of the deceased cannot be more than 55 years. The monthly income of the declared had been highly exaggerated and the claim was excessive. Five witnesses were examined on behalf of the petitioners and sons on behalf of the opposite parties. No documents were put in evidence except the post-mortem report and the F. I. R.

( 2 ) THE Tribunal recorded the following findings:

(i) The deceased was killed by the rash and negligent driving of the driver of O. R. O. 2022; (ii) The deceased was not a workman and the Workmen's Compensation act has no application to this case; (iii) The claim was not barred by limitation; (iv) The monthly income of the deceased was Rs. 283/-; (v) The petitioners were entitled to compensation at a round figure of rs. 40,000/-which is to be paid by S. Karam Singh (Opposite Party No. 1 ). The appeal has been filed by Opposite Party No. 3 making the petitioners and opposite Parties 1 and 2 as respondents. The first four findings are not assailed in this appeal.

( 3 ) MR. Patnaik challenges the quantum of compensation and the extent of liability of the appellant,

( 4 ) THE judgment of the learned Tribunal is somewhat superficial and does not refer to the relevant law on the point. It is therefore necessary to first state and analyse the relevant law.

( 5 ) CLAIMS Tribunals have been constituted under Section 110 of the Act. An application for compensation is to be filed under Section 110-A within a period of six months of the occurrence of the accident. Section 110-B speaks of the award of the Claims Tribunal. It runs thus:--"section 110-B. Award of the Claims Tribunals.-- On receipt of an application for compensation made under Section 110-A, the Claims tribunal shall, after giving the parties an opportunity of being heard, hold an inquiry into the claim and may make an award determining the a