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2023 Supreme(P&H) 3115

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
NIDHI GUPTA, J.
The New India Assurance Company Limited – Appellant
Versus
Smt.Somti Devi & Ors. – Respondents/Cross Objectors
FAO 6758 of 2018(&M) AND CROSS OBJECTION NO.243 of
Decided On : 16-03-2023

Advocates Appeared:
Mr.Rahul Pathania, Advocate for the Appellant-Ins. Co.
Mr. Ashwani Arora, Advocate for Respondents 1 to 6/ Claimants/Cross Objectors.
Mr.Hitesh Sood, Advocate for Respondents 7 & 8/ Driver and owner of the offending vehicle.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for wrongful death in motor accident - Tribunal awarded varying compensation to the deceased's widow and major children based on assessed income, personal expenses, and dependency. Court ruled on the distinction between 'legal representatives' and 'dependents' for compensation eligibility. (Paras 4, 7, 12, 18, 25)

(B) Compensation Assessment - Tribunal must consider actual dependency of claimants; awards under No Fault Liability must align with the law. The Supreme Court has emphasized context for compensation claims, ensuring fairness and equity. (Paras 22, 24)

Facts of the case:
The deceased, aged 78, died from injuries in a vehicular accident. Claimants included his widow and major children, with arguments concerning dependency and income estimation. (Paras 5, 8, 10, 22)

Findings of Court:
The court upheld the Tribunal's finding that only the widow was a dependent, adjusting compensation accordingly and rejecting claims from major children due to their independent circumstances. (Paras 15, 25)

Issues: Eligibility of major children for compensation as dependents under the Motor Vehicles Act; determination of appropriate income for calculating compensation.

Ratio Decidendi: The distinction between legal representation and actual dependency is crucial for compensation claims. The claimants must show actual financial dependency on the deceased to be entitled to compensation. (Paras 20, 22)

Result: Appeal and Cross Objections partly allowed; compensation to widow enhanced.

Table of Content
1. application for condonation of delay in filing cross objections. (Para 1 , 2)
2. common disposal of appeal and cross objections arises from tribunal award. (Para 3 , 4)
3. tribunal's findings on accident and awarded compensation to claimants. (Para 5 , 6 , 7)
4. argument regarding dependency of claimants and compensation entitlements. (Para 8 , 10 , 11)
5. dispute on income assessment for compensation and claimant dependency. (Para 9 , 12 , 14 , 15)
6. legal interpretations of dependency for compensation entitlement. (Para 13 , 20 , 21)
7. nature of compensation under motor vehicles act and judicial considerations. (Para 18 , 23 , 24)
8. final determination of compensation amount to claimant and appeal outcomes. (Para 25 , 26 , 27 , 28)

JUDGMENT

Ms. Nidhi Gupta, J.

CM 25581-CII/2019

Since there is delay of 21 days in re-filing the Cross Objections, aforesaid application has been filed seeking condonation of said delay. The application is supported by affidavit dated 3.10.2019 of the counsel for the Cross-Objectors.

2. For the reasons stated in the application, the application is allowed and delay of 21 days in filing the Cross Objections is condoned.

Main Appeal and Cross Objections:

3. By this common order I shall dispose of FAO No.6758/2018 filed by the Appellant-Insurance Company; and Cross Objections No. 243 of 2019 filed by the claimants. Both, the Appeal as well as the Cross Objections arise from the Award dated 18.5.2018 passed by the Motor Accident Claims Tribunal, Chandigarh (hereinafter referred to as 'the Ld. Tribunal') in claim petition MACT Case no. 635 of 2017, filed under section 166 of the MOTOR VEHICLES ACT , 1988(hereinafter referred to as 'the Act').

4. For the sake of convenience, parties are being referred to as per their litigative status in the Appeal filed by the Insurance Company, same being FAO No. 6758 of 2018.

5. The Ld. Tribunal on appraisal of the facts, pleadings and evidence adduced before it concluded that the deceased Megh Nath aged 78 years, had died due to the injuries suffered by him in a motor vehicular accident that took place on 22.9.2017, due to the rash and negligent driving of the Truck bearing registration No. PB-65N-1781 (hereinafter referred to as 'the offending vehicle') being driven by respondent no.7, and owned by respondent no.8, and insured by the appellant Insurance Company. Claimants are the widow, 3 major sons and 2 major married daughters of the deceased Megh Nath.

6. The Ld. Tribunal awarded compensation as follows:

    Respondent no.1 - Rs. 1,70,000/- being widow of deceased Megh Nath

    Respondents no. 2 to 6 - Rs. 2,50,000/- total i.e. Rs.50,000/- each, being 3 major sons and 2 married daughters of deceased Megh Nath, under 'No Fault Liability'

7. The learned Tribunal calculated the compensation admissible to the claimants in the following manner:-

    On the basis of the photocopy of the Aadhar Card of the deceased wherein his year of birth was mentioned as 1939, age of the deceased was determined to be 78 years at time of death. Though the deceased was stated to be an agriculturist and earning Rs. 30,000/- pm, however, as no cogent evidence was led by the claimants in support of said assertion, ld. Tribunal took the notional income of the deceased as Rs.5000/- per month/Rs. 60,000/- per annum. Ld. Tribunal deducted 1/3rd income of the deceased towards personal expenses, and annual dependency of the claimants worked out to Rs.20,000/-. The deceased being 78 years, multiplier of 5 was applied and total dependency was worked out to be Rs.1 lac. Claimant no.1-widow of the deceased was awarded Rs.40,000/- towards consortium; Rs.15,000/- was granted on account of loss of estate; and Rs.15,000/- towards transportation, and expenses for funeral and last rites. Thus, as already noticed above, the claimant widow was awarded total compensation of Rs.1.70 lacs; and the other 5 claimants, being 3 major sons and 2 major married daughters, were awarded Rs.50,000/- each under the "No Fa

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