IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Nidhi Gupta, J.
Cholamandalam MS General Insurance Co. Ltd. - Appellant - Appellant
Versus
Jaswant and others - Respondents - Respondent
FAO 5811 of 2014 (O&M)
Decided On : 22-02-2023
Motor Accident Claims Tribunal - Compensation - Motor Vehicles Act, 1988, Section 166 - Sarla Verma and others v Delhi Transport Corporation and Another - Susheel Kumar Ezkiel and another versus U. Rajasehar and another, 2013 ACJ 839 (AP) - N. Jayasree v. Cholamandalam MS General Insurance Company Ltd. (SC) - Reliance General Insurance Company Limited v Shalu Sharma and others
Fact of the Case:
The appellant Insurance Company challenged the Award passed by the Motor Accident Claims Tribunal, awarding compensation to the claimant for the death of his brother in a motor vehicular accident. The appellant contended that the claimant was not entitled to compensation as a dependent and that the future prospects and income assessment were incorrect.
Finding of the Court:
The court found that there was no cogent evidence to establish the claimant's dependency on the deceased. It also noted discrepancies in the claimant's assertions and actions, leading to the conclusion that dependency was not established. The court set aside the remaining 50% of the compensation but directed that the amount already released to the claimant would not be recovered.
Issues: The main issue was the claimant's entitlement to compensation as a dependent and the correctness of the future prospects and income assessment.
Ratio Decidendi: The court relied on the judgment in Sarla Verma and others v Delhi Transport Corporation and Another to determine the claimant's dependency. It also considered the case law in Susheel Kumar Ezkiel and another versus U. Rajasehar and another, 2013 ACJ 839 (AP) and N. Jayasree v. Cholamandalam MS General Insurance Company Ltd. (SC) to support its decision.
Final Decision: The court partly allowed the appeal, setting aside the remaining 50% of the compensation but directing that the amount already released to the claimant would not be recovered.
NIDHI GUPTA, J.
1. Present appeal has been filed by the appellant Insurance Company challenging the Award dated 22.2.2014 passed by Motor Accident Claims Tribunal, Hisar (for short ‘the Tribunal’) in Claim Petition MACT case No.279 of 2012, filed by the claimant/respondent no.1 herein, u/s 166 of the Motor Vehicles Act, 1988, whereby compensation of Rs. 5.65 lacs has been awarded to respondent no.1/ claimant for the death of deceased Nand Lai. Claimant is the brother of deceased Nand Lai.
2. Brief facts of the case are that the learned Tribunal on appraisal of the pleadings and evidence led before it, concluded that the deceased Nand Lai, brother of respondent no.1 had died due to injuries suffered by him in a motor vehicular accident that took place on 24.10.2012 due to rash negligent driving of Mahindra and Mahindra Maxi Truck bearing registration No. HR-39-B-5699 (hereinafter referred to as ‘the offending vehicle’), being driven by respondent no.2 herein, and owned by respondent no.3. Proforma Respondents no. 4 and 5 herein, are the other brothers of deceased Nand Lal, who have given up their claim in respect of compensation awarded by the Tribunal. Vide impugned Award, appellant, and respondents no. 2 and 3 were jointly and severally were held liable to pay the compensation along with interest @ 7.5% per annum from the date of filing claim petition till realization.
3. Vide order dated 11.1.2016 this Court had directed that 50% of the compensation be released to the claimant without any security, and balance 50% of the awarded amount has still not been released.
4. It is inter alia, submitted by the learned counsel for the appellant Insurance Company that the claimant is the brother of the deceased and, therefore, cannot be taken as a ‘dependent’ as understood in legal parlance, and is therefore, not entitled to any compensation. It is submitted that as per para 15 of judgment of Hon’ble Supreme Court in Sarla Verma and others v Delhi Transport Corporation and Another, appellant is not entitled to compensation as his dependency upon deceased has not been established on record.
5. It is further submitted that the deceased was a bachelor. He was 38 years of age at the time of his death as per his Post Mortem Report Ex.P2. It is submitted that deceased being a self-employed labourer and not in a permanent salaried job, future prospects @ 40% ought to have been granted, whereas the learned Tribunal has incorrectly granted future prospects @ 50%.
6. It is further stated that the ld. Tribunal has erroneously assessed income of the deceased as Rs. 4000/- per month without there being any proof of the same.
7. Per contra, it is submitted by the learned counsel for the respondent/claimant that the learned Tribunal has recorded the contention of the claimant in para 21 of the impugned Award as follows:-
“21. On the other hand, learned counsel for the petitioner contended although the deceased Nand Lai was a bachelor but he was contributing his entire income to the welfare of his brother and his family with whom he was residing. Moreover, petitioner Jaswant is younger brother of deceased Nand Lai and he and his family was more dependent upon the income of deceased Nand Lai. In support of his contention learned counsel for petitioner has relied upon case law titled Susheel Kumar Ezkiel and another versus U. Rajasehar and another, 2013 ACJ 839 (AP”).
8. Learned counsel also refers to para 25 of the impugned Award wherein learned Tribunal has recorded that the respondents led no evidence to rebut the evidence led by the claimant in support of his contentions. It is submitted that therefore, the dependency of the claimant on the deceased is established.
9. Learned counsel relies upon judgment of the Andhra Pradesh High Court in Susheel Kumar Ezkiel v U. Rajasekhar, Law Finder doc Id # 423961, to submit that in the said case also in similar circumstances where the deceased was a bachelor and contributing his entire income to the welfare of the fa
The main legal point established in the judgment is the requirement for cogent evidence to establish dependency for entitlement to compensation under the Motor Vehicles Act, 1988.
Where claimants are non-dependent brothers/sisters claiming loss of estate, savings can be taken as 15% of the income and such savings then multiplied to compute the total loss of estate of the claim....
Legal representatives can claim compensation under the Motor Vehicle Act regardless of dependency, emphasizing a broad interpretation of 'legal representative' to ensure justice.
The main legal point established in the judgment is the interpretation of 'legal representative' under the Motor Vehicles Act and the entitlement of the legal representative to enhanced compensation,....
Legal representatives, including major children, are entitled to claim compensation regardless of dependency; the Tribunal erred in limiting the compensation amount based on dependency status.
The main legal point established in the judgment is the determination of compensation in motor accident claims, considering the dependency of the claimants on the deceased and the income of the decea....
Major married and earning children of a deceased have the right to claim compensation under the Motor Vehicles Act, irrespective of their dependency status.
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