Interpretation of 'pecuniary advantage' and 'compassionate appointment' under the Motor Vehicles Act, and the application of multiplier and deduction guidelines for calculating compensation.

JUDGMENT :

1. Heard Sri Ashok Kumar Singh and Sri Amit Kumar Sinha, learned counsel for the appellants and Sri N.K. Srivastava, learned counsel for the respondent no. 5 and perused the record. No one is present on behalf of other respondents.

2. This first appeal from order has been filed by the claimants-appellants for enhancement of compensation against the judgment and award dated 08.08.2005, passed by Ist Additional District Judge / Motor Accident Claims Tribunal, Chitrakoot, in M.A.C.P. No. 163/70 of 2000 (Raja Beti and others vs. Ashok Kumar and others) by which compensation of Rs.65,000/- only has been awarded to the claimants on account of death of Sri Bachcha Lal, aged about 42 years.

3. It is submitted by learned counsel for the claimants-appellants that the deceased was working as Lekhpal in Tehsil Karvi, District Chitrokoot at the time of accident and was getting salary of Rs. 7,000/-per month. The Claims Tribunal had acted in arbitrary manner has awarded only Rs. 65,000/- on the ground that after the death of Bachcha Lal, the claimant appellant no. 1 who is widow of Bachcha Lal was getting family pension @ Rs. 3,500/-per month and was also provided employment under the Dying in Harness Rules and was also getting salary to the tune of Rs. 4,000/-per month. The Claims Tribunal was of the view that since the widow was getting family pension as well as employment under the Dying in Harness Rules and receiving Rs. 7,500/-per month and there is no financial loss to the family of the deceased on account of death of Baccha Lal. The Claims Tribunal had awarded Rs. 50,000/- for loss of consortium, Rs. 5,000/- for funeral expenses and Rs. 10,000/- for pain and suffering and total amount of Rs. 65,000/- has been awarded to the claimants.

4. Learned counsel for the appellants has placed reliance upon the judgment of Hon'ble Apex Court in the cases of Vimal Kanwar and others vs. Kishore Dan and Others reported in 2013 (3) T.A.C. 6 (S.C.). The relevant paragraph no. 19 and 20 are reproduced herein below :-

"19. The first issue is "whether Provident Fund, Pension and Insurance receivable by claimants come within the periphery of the Motor Vehicles Act to be termed as "Pecuniary Advantage" liable for deduction."

The aforesaid issue fell for consideration before this Court in Helen C. Rebello (Mrs) and others vs. Maharashtra State Road Transport Corporation & Anr. reported in (1999) 1 SCC 90. In the said case, this Court held that Provident Fund, Pension, Insurance and similarly any cash, bank balance, shares, fixed deposits, etc. are all a "pecuniary advantage" receivable by the heirs on account of one's death but all these have no correlation with the amount receivable under a statute occasioned only on account of accidental death. Such an amount will not come within the periphery of the Motor Vehicles Act to be termed as "pecuniary advantage" liable for deduction. The following was the observation and finding of this Court:

"35. Broadly, we may examine the receipt of the provident fund which is a deferred payment out of the contribution made by an employee during the tenure of his service. Such employee or his heirs are entitled to receive this amount irrespective of the accidental death. This amount is secured, is certain to be received, while the amount under the Motor Vehicles Act is uncertain and is receivable only on the happening of the event, viz., accident, which may not take place at all. Similarly, family pension is also earned by an employee for the benefit of his family in the form of his contribution in the service in terms of the service conditions receivable by the heirs after his death. The heirs receive family pension even otherwise than the accidental death. No correlation between the two. Similarly, life insurance policy is received either by the insured or the heirs of the insured on account of the contract with