IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARCHANA PURI, J.
Shanti Devi @ Sham Kala – Appellant
Versus
Rajasthan State Road Transport Corporation – Respondents
F.A.O. No. 4886 of 2009
Decided On : 01-05-2024
Compensation - Motor Accident - The court discussed provisions related to compensation for motor vehicle accidents, emphasizing the need for adequate compensation based on the deceased's notional income, applying relevant multiplier and conventional heads for a fair assessment.
Fact of the Case:
The appeal was filed questioning the adequacy of compensation awarded for the death of a 9-year-old child in a motor accident. The initial compensation was deemed insufficient, prompting a re-evaluation.
Finding of the Court:
The court found that the initial compensation did not reflect the deceased's potential earnings and the emotional loss to the family, warranting an increase based on established legal precedents.
Issues: Whether the compensation awarded by the Motor Accident Claims Tribunal was adequate considering the age and potential of the deceased child.
Ratio Decidendi: The court applied the principles from previous judgments to determine a fair compensation amount, considering the notional income and applying the appropriate multiplier.
Result: The appeal was allowed, and the compensation was enhanced to Rs.5,34,700.
JUDGMENT :
Mrs. Archana Puri, J.: The present appeal has been filed by the appellant-claimant, thereby questioning the adequacy of the compensation granted by Motor Accident Claims Tribunal, on account of death of Rekha, 9 year old child, in a motor vehicular accident, which took place on 15.01.2007.
2. So far as, the factum of accident and manner of taking place of the same as well as the liability fastened upon the respondents is concerned, none of the respondents, who have been made liable, have filed any appeal to question the role assigned to them.
3. In the given circumstances, proceeding further, at the very outset, it is pertinent to mention that the accident had taken place on 15.01.2007, as a result whereof, Rekha was run over by the bus. She was taken to General Hospital, where she was declared ‘brought dead’. The mother of deceased Rekha had filed the claim petition for seeking compensation to the extent of Rs.10 lakh.
4. Learned Tribunal had appropriately considered the deceased to be 9 year old, at the time of accident. Considering the same, lumpsum amount of Rs.1,50,000/- had been awarded by learned Tribunal. Besides the same, Rs.20,000/- had been awarded towards ‘transportation and last rites’. In total, the compensation awarded was Rs.1,70,000/-. However, the compensation, so awarded, do call for re-determination, as per prevalent law.
5. It is pertinent to mention that Shanti Devi @ Sham Lal, in her affidavit Ex.PW2/A, had categorically stated that Rekha had been very brilliant student and she was studying in 3rd class, at the relevant time.
6. At the very outset, keeping in view the deceased to be brilliant child, beneficial reference is made to ‘Kishan Gopal and another v/s Lala and others, 2013(4) RCR (Civil) 276’, wherein while considering the death of a child, aged 10 years, the notional income of the deceased was taken as Rs.30,000/- and after application of multiplier of ‘15’ and the compensation was worked upon as Rs.4,50,000/-. Besides the same, a sum of Rs.50,000/- was granted towards love, affection, funeral expenses and last rites. The accident in the case under consideration, related to the year 1992.
7. Furthermore, the Hon’ble Supreme Court in case titled ‘Kurvan Ansari alias Kurvan Ali and another v/s Shyam Kishore Murmu and another, 2022 (1) RCR (Civil) 165’, while considering the case of death of 7 years old child, in a motor vehicular accident and also while making specific observation about the government not paying any heed to amend Schedule- II, had also placed reliance upon ‘R.K.Malik and another vs. Kiran Pal and others, 2009(3) RCR (Civil) 403’ and Kishan Gopal’s case (supra) and therein, concluded about the case (under consideration), to be a fit case to increase the notional income, while taking into account, inflation, devaluation of rupee and cost of living. Considering the same, the Hon’ble Court, took the notional income of the deceased child as Rs.25,000/- per annum and applied multiplier of ‘15’ as prescribed in Schedule-II and worked upon the amount as Rs.3,75000/-, towards the loss of dependency. Besides the same, Rs.40,000/- each was given to the claimants, who were two in number, towards filial consortium and Rs.15,000/- was given towards funeral expenses. The total compensation was worked upon as Rs.4,70,000/-.
8. Also, beneficial reference is made to ‘Meena Devi v/s Nunu Chand Mahto @ Nemchand Mahto and others, 2022(4) RCR (Civil) 553’, wherein, while relying upon the observations made in R.K. Malik’s case (supra) and Krishan Gopal’s case (supra), and also taking into consideration, the guidelines laid down in Smt.Sarla Verma vs. Delhi Transport Corporation and anr., 2009(3) RCR (Civil) 77, the Hon’ble Supreme Court, while considering the death of 12 year old, in a motor vehicular accident, took the notional earnings as Rs.30,000/- inclusive of future prospects and applied the multiplier of ‘15’. The loss of dependency was worked upon to be Rs.4,50,000/- and further addition of
Kishan Gopal and another v/s Lala and others
Kurvan Ansari alias Kurvan Ali and another v/s Shyam Kishore Murmu and another
R.K.Malik and another vs. Kiran Pal and others
Meena Devi v/s Nunu Chand Mahto @ Nemchand Mahto and others
Smt.Sarla Verma vs. Delhi Transport Corporation and anr.
National Insurance Company Limited vs. Pranay Sethi and others
Magma General Insurance Company Limited vs. Nanu Ram @ Chuhru Ram and others
The court established that the notional income for a non-earning child should be set at Rs.30,000 per annum, applying a multiplier of 15 for calculating compensation, considering inflation and emotio....
The main legal point established in the judgment is the application of legal principles under the Motor Vehicles Act 1988, particularly Section 163A, to determine compensation for the death of a chil....
The main legal point established in the judgment is the application of the multiplier method and the use of minimum wages for determining notional income in cases of motor accidents involving the dea....
Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding amount so claimed – Tribunal/Court ought to award ‘just’ compensation.
The main legal point established in the judgment is the determination of compensation for the deceased based on the notional income and future prospects, as guided by the principles established in re....
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