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2020 Supreme(Sikk) 37

HIGH COURT OF SIKKIM
MEENAKSHI MADAN RAI, J.

BRANCH MANAGER, NATIONAL INSURANCE CO. LTD. - APPELLANT VERSUS
SANCHA KUMARI RAI & ANR. - RESPONDENTS
MAC App. No. 14 of 2019
Decided On : 25-02-2020

Advocates Appeared:
For the Appellant :Mr. Sushant Subba, Advocate. Mr. Madan Kumar Sundas, Advocate.
For the Respondent:Mr. K.B. Chettri, Advocate. Mr. N.T. Sherpa, Advocate. Ms. Sabina Gurung, Advocate.

The main legal point established in the judgment is the determination of the deduction for personal and living expenses of the deceased and the entitlement to compensation for loss of Filial consortium under the Motor Vehicles Act.

Headnote:

Deduction - Personal and Living Expenses - Motor Vehicles Act - Section 166 - Sarla Verma (Smt) and Others vs. Delhi Transport Corporation and Another, (2006) 6 SCC 121

Fact of the Case:

The only challenge in the instant Appeal is to the deduction of one-third of the amount towards personal and living expenses of the deceased, which would have been incurred by him had he been alive. The facts are not disputed.

Finding of the Court:

The court found that the deduction for personal and living expenses of the deceased, who was a bachelor, ought to have been 50% instead of one-third as computed by the learned Tribunal. The court also pointed out the exclusion of computing loss of Filial consortium, which was awarded to the mother and brother of the deceased.

Issues: The main issue was the calculation of the deduction for personal and living expenses of the deceased and the exclusion of computing loss of Filial consortium.

Ratio Decidendi: The court relied on the principles established in Sarla Verma (Smt) and Others vs. Delhi Transport Corporation and Another, (2006) 6 SCC 121, which stated that for bachelors, normally 50% is deducted as personal and living expenses. The court also referred to the decision in Magma General Insurance Co. Ltd. vs. Nanu Ram and Ors., MANU/SC/1012/2018, which awarded Filial consortium to the mother and brother of the deceased.

Final Decision: The appeal was allowed to the extent that the deduction for personal and living expenses was modified to 50%. The Respondents No.1 and 2 were entitled to additional compensation for loss of Filial consortium, and the appellant was ordered to pay the awarded amount with interest.

JUDGMENT :

1. The only challenge in the instant Appeal is to the deduction of one-third of the amount towards personal and living expenses of the deceased, which would have been incurred by him had he been alive. The facts are not disputed.

2. Heard learned Counsel for the parties.

3. It is the contention of learned Counsel for the Appellant that in fact 50% ought to have been deducted for the aforestated reasons as the victim was a bachelor at the time of the accident, instead of which only one-third was deducted towards the said purpose resulting in an erroneous computation of compensation.

4. Learned Counsel for the Respondents concede that there has been an error in the calculation of the quantum of compensation awarded to the Respondents inasmuch as the deduction ought to have been 50% towards the personal and living expenses of the deceased.

5. Considered submissions.

6. In Sarla Verma (Smt) and Others vs. Delhi Transport Corporation and Another, (2006) 6 SCC 121 the Hon’ble Supreme Court held as follows;

“31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependent. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependents, because they will either be independent and earning, or married, or be dependent on the father.” (Emphasis supplied)

Hence, the deduction for personal and living expenses of the deceased who was admittedly a bachelor ought to have been 50% instead of one-third as computed by the learned Tribunal.

7. It may be pertinent to point out that on perusal of the impugned Judgment the learned Tribunal appears to have excluded computing loss of Filial consortium. The Respondents No.1 and 2 are admittedly the mother and brother of the deceased. In terms of the decision in Magma General Insurance Co. Ltd. vs. Nanu Ram and Ors., MANU/SC/1012/2018 they would be entitled to Filial consortium. The Hon’ble Supreme Court in the said ratio held as follows; “8.7 A Constitution Bench of this Court in Pranay Sethi (supra) dealt with the various heads under which compensation is to be awarded in a death case. One of these heads is Loss of Consortium.

In legal parlance, "consortium" is a compendious term which encompasses 'spousal consortium', 'parental consortium', and 'filial consortium'.

The right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual relations with the deceased spouse.

Spousal consortium is generally defined as rights pertaining to the relationship of a husband-wife which allows compensation to the surviving spouse for loss of "company, society, co-operation, affection, and aid of the other in every conjugal relation." Parental consortium is granted to the child upon the premature death of a parent, for loss of "parental aid, protection, affection, society, discipline, guidance and training."

Filial consortium is the right of the parents to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. Children are valued for their love, affection, companionship

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