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2010 Supreme(P&H) 2778

PUNJAB & HARYANA HIGH COURT
K.Kannan, J.
New India Assurance Company Limited Through Its Deputy Manager, Chandigarh
Versus
Smt.Santosh Wife Of Ajay Kumar
First Appeal from the Order No. 3432 of 2009,3433 of 2009,3434 of 2009,3435 of 2009,3487 of 2009,2246 of 2009,2247 of 2009,2248 of 2009,2249 of 2009,2250 of 2009,
Decided On : SEPTEMBER 29, 2010

The main legal point established in the judgment is that pure ex gratia payments should not be deducted from the compensation, and benefits obtained through government schemes should be factored into the compensation calculation.

Headnote:

ex gratia payments - Motor Accident Compensation - Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006 - 1.1, 1.2, 1.3, 1.4, 1.5, 5 - The court considered the relevance of ex gratia payments received by the representatives of the deceased in determining the compensation. It examined various court decisions and legal principles to conclude that pure ex gratia payments should not be deducted from the compensation. The court emphasized that benefits obtained through government schemes should be duly factored into the compensation calculation.

Fact of the Case:

The cases involved the issue of whether representatives of the deceased, who received ex gratia payments from the government due to a motor accident, would forfeit or have their compensation reduced. The accident involved government servants in Haryana, and the representatives had come by benefits through a government notification.

Finding of the Court:

The court found that ex gratia payments should not be deducted from the compensation. It emphasized that benefits obtained through government schemes should be factored into the compensation calculation. The court also addressed the relevance of continued employment in determining loss and compensation for injuries.

Issues: The main issue was whether ex gratia payments received by the representatives of the deceased should be considered in determining the compensation for the motor accident. Additionally, the court addressed the relevance of continued employment in assessing loss and compensation for injuries.

Ratio Decidendi: The court's decision was based on the principle that pure ex gratia payments should not be deducted from the compensation. It also emphasized that benefits obtained through government schemes should be duly factored into the compensation calculation. The court also considered the loss of amenities to life, pain and suffering, and non-pecuniary damages in determining compensation for injuries.

Final Decision: The court allowed the appeals in favor of the claimants, increasing the compensation amounts and directing the additional amounts to be paid with interest. The court also dismissed the appeal filed by the insurer, confirming the award passed by the Tribunal.

Judgment

K.Kannan, J.

1. I. The issue for consideration

This batch of cases involves the issue of whether the representatives of the deceased, who have come by a financial benefit through ex gratia payments by the Government arising out of the death of the persons in the motor accident would stand to forfeit the benefit of compensation and if not, would that be relevant to slice down the compensation. The contrary position is what is contended on behalf of the claimants that ex-gratia payments are wholly irrelevant as the Tribunal has found and that they are entitled to a full compensation on the basis of the extent of dependence of the family as though no benefit has accrued and by the application of suitable multiplier commensurate with the age of the respective deceased at the time of the accident.

II. Occurence of motor accident leading to deaths and injuries

2. In this batch of cases, FAO Nos.3432, 3433, 3434 and 3487 relate to cases of deaths of persons, all of whom were Government servants in the State of Haryana. The accident is said to have taken place when on 24.07.2005, the Financial Commissioner and Secretary to Government of Haryana, Agriculture Development and Director of Agriculture Department had called a meeting with high level officials of various government departments at Panchkula. Officials at various levels attended the meeting and while they were returning in a Government vehicle, they was a collision with a truck belonging to private individual and insured with the New India Assurance Company Limited. Some persons died and several were seriously injured.

III. Text of Government notification

3. All the representatives have come by benefit of notification issued by the Haryana Government, General Administration Department dated 1.08.2006. The notification publishes the rules called the Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006. The relevant rules are reproduced in so far as, they have a bearing to this case:-

"1.(1) These rules may be called the Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006.

(2) They shall come into force at once.

2. The object of the rule is to assist the family of a deceased/missing Government employee of Group C and D category, in tiding over the emergent situation, resulting from the loss of bread-earner while in regular service by giving financial assistance.

3. The eligibility to receive financial assistance under these rules shall be as per the provision in the pension/family pension scheme, 1964.

4. An eligible family member of the deceased/missing Government employee shall make an application in Form A for compassionate financial assistance.

5. (1) On the death df any Government employee, the family of the employee would continue to receive as financial assistance a sum equal to the pay and other allowances that was last drawn by the deceased employee in the normal course without raising a specific claim:-

(a) for a period of fifteen years from the date of death of the employee, if the employee at the time of his death had not attained the age of thirty five years;

(b) for a period of twelve years or till the date the employee would have retired from Government service on attaining the age of superannuation, whichever is less, if the employee at the time of his death had attained the age of thirty five years but had not attained the age of forty-eight years;

(c) for a period of seven years or till the date the employee would have retired from Government service on attaining the age of superannuation, whichever is less, if the employee had attained the age of forty five years;

(2) The family shall be eligible to receive family pension as per the normal rules only after the period during which he receives the financial assistance as above is completed.

(3) The family of a deceased Government employee who was in occupation of a Government residence would continue to retain the resi





























































































































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