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2019 Supreme(Sikk) 2

IN THE HIGH COURT OF SIKKIM, GANGTOK
MEENAKSHI MADAN RAI, J.
The Branch Manager, Shriram General Insurance Co. Ltd. - Appellant
Versus
Mrs. Kavita Rai, Wife of Late Suddha Kumar Rai & Ors. - Respondents
MAC App. No. 04 of 2017
Decided On : 26-04-2019

Advocates Appeared:
For the Appellant :Mr. Yadev Sharma, Advocate.
For the Respondent:Mr. N. Rai, Senior Advocate with Ms. Tamanna Chhetri, Ms. Malati Sharma and Ms. Sudha Sewa, Advocates, Mr. Yogesh Gurung, Advocate,

The main legal point established in the judgment is the acceptance of the income certificate issued by the Block Development Officer as valid evidence for computing compensation, and the application of principles for computation of loss of income and future prospects as laid down in Sarla Verma v. Delhi Transport Corporation and Pranay Sethi v. National Insurance Company Limited.

Headnote:

Motor Vehicles Act - Quantification of compensation - Section 166 of the Motor Vehicles Act, 1988 - Summary of Acts and Sections: M.V. Act, Section 166 - The judgment discusses the validity of income certificate issued by the Block Development Officer and its acceptance as evidence for computing compensation. It also refers to the principles laid down in Sarla Verma v. Delhi Transport Corporation and Pranay Sethi v. National Insurance Company Limited for computation of loss of income and future prospects. The court also modifies the compensation amount based on these principles.

Fact of the Case:

The case involves the quantification of compensation payable by the Appellant to the Respondents for the death of the husband of Respondent No. 1 and father of Respondents No. 2 and 3 in a motor vehicle accident. The Appellant disputed the claims of the Respondents, particularly the income of the deceased.

Finding of the Court:

The court found that the income certificate issued by the Block Development Officer was valid and accepted as evidence for computing compensation. It also modified the compensation amount based on the principles laid down in Sarla Verma v. Delhi Transport Corporation and Pranay Sethi v. National Insurance Company Limited.

Issues: The main issue was the validity of the income certificate and the computation of compensation based on the deceased's income and future prospects.

Ratio Decidendi: The court relied on the validity of the income certificate issued by the Block Development Officer and the principles laid down in Sarla Verma v. Delhi Transport Corporation and Pranay Sethi v. National Insurance Company Limited for computation of loss of income and future prospects.

Final Decision: The court modified the compensation amount and directed the Appellant to pay the awarded amount to the Respondents with interest, based on the revised computation. The appeal was allowed to the extent above, with no order as to costs.

JUDGMENT :

Meenakshi Madan Rai, J.

1. Quantification of the compensation of Rs.79,20,000/-(Rupees seventy nine lakhs and twenty thousand) only, payable by the Appellant to the Respondents No. 1 to 3, is being assailed in this Appeal. The learned Motor Accidents Claims Tribunal, East Sikkim at Gangtok (hereinafter 'learned Tribunal') in MACT Case No. 09 of 2016 (Mrs. Kavita Rai and Others vs. Mr. Moni Prasad Gurung and Others), granted the aforestated amount on account of the death of the husband of Respondent No. 1 and father of Respondents No. 2 and 3, in a motor vehicle accident, on 15.09.2015. The claim petition was filed by the Respondents No. 1 to 3 under Section 166 of the Motor Vehicles Act, 1988 (hereinafter “M.V. Act”).

2. The Respondents No. 1, 2 and 3 herein were the Claimants No. 1, 2 and 3 and Respondent No. 4 was the Opposite Party No. 1, while the Appellant herein was the Opposite Party No. 3 before the learned Tribunal. The parties shall be referred to in their order of appearance before this Court.

3. The case of the Respondents No. 1 to 3 before the learned Tribunal was that on 15.09.2015, the victim was travelling to Gangtok, East Sikkim from Dentam, West Sikkim in the vehicle bearing Registration No. SK-02J/1030 (Tata Sumo Gold) when it met with an accident at “Kapuray Bhir,” Ranipool, East Sikkim and the deceased succumbed to his injuries at Central Referral Hospital, Tadong, East Sikkim. That, the cause of death was due to the rash and negligent act of the driver. That, compensation claimed was Rs.65,75,500/-(Rupees sixty five lakhs, seventy five thousand and five hundred) only, with interest at the rate of 10% per annum from the date of filing of the claim petition.

4. The Appellant denied and disputed the claims of the Respondents No. 1 to 3 before the learned Tribunal inter alia on grounds that the income of the deceased was not proved. It was also agitated that Exhibit 12 the “Panchayat Recommendation”, Exhibit 13 the letter addressed to the Block Development Officer by Gram Panchayat, 20 Dentam GPU, West Sikkim and Exhibit 14 the income certificate issued by the Block Development Officer, Dentam, showing the income of the deceased as Rs.40,000/-(Rupees forty thousand) only, were issued after the death of the deceased. That, the documents were thus unreliable.

5. The points pressed before this Court was that the aforestated documents were procured after the death of the deceased with the motive of acquiring enhanced compensation. That, the income of the deceased has remained unestablished, hence the quantum of compensation granted by the learned Tribunal is exorbitant and the impugned Judgment and Award deserves to be set aside. In support of his contention, learned Counsel placed reliance on Sutinder Pal Singh Arora and others vs. Ashok Kumar Jain and others., 2004 ACJ 782.

6. Learned Senior Counsel for the Respondents No. 1 to 3 for his part contended that the Block Development Officer who is a Government Officer has certified the income of the deceased as Rs.40,000/-(Rupees forty thousand) only, per month. That, he is the concerned authority who is empowered to issue the Income Certificate, hence there is no reason to doubt the document Exhibit 14. On this count, the ratio of this Court in The Branch Manager, Oriental Insurance Company Ltd. vs. Smt. Meena Bania and Others., (2012) 1 TAC 444 was relied on. That, the vehicle was insured with the Appellant Company and the Insurance Policy valid from 19.04.2015 to midnight of 18.04.2016.

7. I have heard in extenso and considered the rival submissions of learned Counsel for the parties. I have also carefully perused the impugned Judgment including the documents and evidence on record.

8. It is reiterated that the only grievance in this Appeal is the quantum of compensation of Rs.79,20,000/-(Rupees seventy nine lakhs and twenty thousand) only, computed by the

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