HIGH COURT OF ALLAHABAD
Devi Prasad Singh, V.D.Chaturvedi
UMAKANT DWIVEDI
Versus
NEW INDIA ASSURANCE CO LTD
Decided On : 12 February 2009
First Appeal From Order No. 767 of 2006
Motor Vehicles Act - Compensation Calculation - Sections 140, 141, 142, 163-A, 163-B, 166, 167, 168 - The court discussed the application of the structured formula provided under the Second Schedule of the Act for the purpose of grant of compensation to a third party involved in a fatal accident or injury. The court emphasized that while deciding the case under Section 166 read with Section 168 of the Act, the Tribunal may award compensation taking assistance from the structured formula provided under Second Schedule of the Act. However, it shall always be open for the Tribunal to award higher compensation under Section 166 read with Section 168 of the Act keeping in mind the justness and fairness of the compensation with reasoned order. Even the notional income should not be less than Rs. 3,000/- per month.
Fact of the Case:
The claimant Uma Kant Dwivedi filed a claim petition for payment of compensation on account of the death of his wife Smt. Maya Dwivedi in a motor vehicle accident. The Tribunal awarded compensation to the claimant, which the claimant appealed for enhancement.
Finding of the Court:
The court found that the Tribunal had not applied the structured formula provided under the Second Schedule of the Act appropriately and had used a lower multiplier than necessary. The court emphasized that the Tribunal may award higher compensation under Section 166 read with Section 168 of the Act, and the notional income should not be less than Rs. 3,000/- per month.
Issues: The issues included the appropriate application of the structured formula provided under the Second Schedule of the Act for the calculation of compensation, the use of multipliers, and the determination of just and fair compensation under Section 166 read with Section 168 of the Act.
Ratio Decidendi: The court emphasized that the Tribunal may award compensation taking assistance from the structured formula provided under Second Schedule of the Act. However, it shall always be open for the Tribunal to award higher compensation under Section 166 read with Section 168 of the Act keeping in mind the justness and fairness of the compensation with reasoned order. Even the notional income should not be less than Rs. 3,000/- per month.
Final Decision: The appeal for enhancement of the compensation succeeded, and the impugned award was modified to award compensation to the tune of Rs. 9,16,480/- to the claimants. The amount awarded by the Tribunal was enhanced and stands modified accordingly.
Present appeal has been preferred against the impugned award dated 24. 7. 2006, passed by Motor Accidents Claim Tribunal/additional District Judge (Court No. 1), Barabanki.
2. In brief, the facts of the case are that on 12th September, 2004, at about 11. 45 p. m. , when claimant Uma Kant Dwivedi alongwith his wife Smt. Maya Dwivedi, on his motor-cycle were going to their parental house at village Nawabpur Kodri, Police Station Jaidpur, District Barabanki, Truck No. U. P. 32 78 T-6293 coming from the reverse direction with high speed dashed with the motor-cycle. It has been stated that the truck was being driven by one Lallan Yadav son of Ram Suchit Yadav rashly and negligently. The truck hit the motor-cycle from front side and Smt. Maya Dwivedi fell under the truck between two tyres and succumbed to the injuries. Claimant Uma Kant Dwivedi was seriously injured and the motor cycle was also badly damaged. The truck driver ran away leaving the truck as well as injured and deceased at the spot. Injured Uma Kant Dwivedi was admitted in the district hospital, Barabanki and thereafter shifted to Jain Nursing Home, Barabanki on 12th September, 2004. Later on, he was again shifted to Jagrani Hospital for orthopaedic treatment. However, he pursued long treatment in Jagrani Hospital, Lucknow up to November, 2004. F. I. R. of the incident was also lodged at Police Station Kotwali, Barabanki as Crime No. 1109 of 2004, under Sections 279, 337, 338, 304-A, 427, I. P. C. Smt. Maya Dwivedi was brought dead in the district hospital, Barabanki. At the time of death, the age of Smt. Maya
Dwivedi was 46 years and she was a teacher working under the Basic Shiksha Adhikari, Barabanki with a monthly salary of Rs. 8,745/ -. The income of the injured-claimant Uma Kant Dwivedi has been shown to Rs. 2,000/- per month from the profession of law.
3. The claim petition was filed by Sri Uma Kant Dwivedi along with his son and daughter before the Tribunal for payment of compensation to the tune of Rs. 10,97,500 on account of death of Smt. Maya Dwivedi. The Tribunal on the basis of oral and documentary evidence arrived at the conclusion that the claimant Uma Kant Dwivedi incurred expenses to the tune of Rs. 37,522/- for medical treatment, Rs. 10,000/- for other expenses including mental pain and agony and Rs. 9,000 for professional loss (total Rs. 56,522 ).
4. It has not been disputed that regular monthly income of Smt. Maya Dwivedi was Rs. 9,240/- and after deducting house rent allowance, the monthly income in lieu of salary as Assistant Teacher comes to Rs. 8,745/ -. The Tribunal has deducted 50% of the salary i. e. Rs. 4,372/- as expenses incurred for herself. However, the Tribunal recorded a finding that for the purpose of compensation instead of looking to the age of the deceased, the age and source of income of the claimant Uma Kant Dwivedi is to be seen. The Tribunal further observed that the claimants daughter Kumari Archana Dwivedi was aged about 19 years and his son Shaurabh Dwivedi was 16 years of age. After deducting 50% as expenses, the total annual income comes to Rs. 52,464/- and in consequence thereof, the Tribunal proceeded to use multiplier of 10 and awarded compensation to the tune of Rs. 5,24,640/ -. Rs. 2,000/- has been awarded by the Tribunal as funeral expenses and Rs. 5,000/- for loss of matrimonial life. Thus the total compensation assessed by the Tribunal comes to Rs. 5,31,640/ -. An amount of Rs. 56,522/- has been allowed as compensation to Sri Uma Kant Dwivedi in separate claim petition. Feeling aggrieved, present appeal has been filed for enhancement of the compensation.
5. While assailing the impugned award, Sri R. P. Singh, learned counsel for the appellants submits that the deceased Smt. Maya Dwivedi was aged about 46 years at the time of accident and even if her monthly income is treated as Rs. 8,745, the deduction of half of the amount in lieu of expenses is not permissible. It has been stated that the incom
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