IN THE HIGH COURT OF ALLAHABAD
AJAY BHANOT, J.
Pooja Shukla & Ors. - Appellants
Versus
Vijay Kumar Tiwari & Ors. - Respondents
First Appeal From Order No. 17 of 2019
Decided On : 14-02-2023
Income Tax Act - Section 159 - Motor Vehicles Act, 1988 - Section 168 - Seeking compensation – Award - Deduction of 1/3rd made towards personal expenses - Claimants before the learned tribunal was that deceased died of injuries sustained in an accident which occurred and was caused by rash and negligent driving of the driver of JSA Loader offending vehicle was insured by the respondent no. 2-United India Insurance Company Ltd - Claimants are the dependants on the deceased - Deceased was running a unit which manufactures snacks - Deceased was 30 years of age at the time of his death – Held, Conventional and traditional heads, needless to say, cannot be determined on percentage basis because that would not be an acceptable criterion - Unlike determination of income, the said heads have to be quantified. Any quantification must have a reasonable foundation - There can be no dispute over the fact that price index, fall in bank interest, escalation of rates in many a field have to be noticed - Court cannot remain oblivious to the same - There has been a thumb rule in this aspect - There will be extreme difficulty in determination of the same and unless the thumb rule is applied, there will be immense variation lacking any kind of consistency as a consequence of which, the orders passed by the tribunals and courts are likely to be unguided - Appeal is partly allowed
JUDGMENT :
I. INTRODUCTION
1. The instant appeal arises out of an award made by the learned Motor Accident Claims Tribunal/Additional District Judge, Kanpur, [hereinafter referred to as the “learned tribunal”] dated 13.09.2018 in Motor Accident Claim Petition No. 994 of 2013 (Smt. Pooja Shukla and others Vs. Vinay Kumar Tiwari and others) by partly allowing the claim of the claimants.
II. Case of the claimants and respondents before the learned tribunal:
2. Briefly the case of the claimants before the learned tribunal was that the deceased died of injuries sustained in an accident which occurred on 14.08.2013, and was caused by the rash and negligent driving of the driver of JSA Loader bearing Registration No. UP 78 CN 7323. The offending vehicle was insured by the respondent no. 2-United India Insurance Company Ltd. The claimants are the dependants on the deceased Amit Shukla. The deceased was running a unit which manufactures snacks. The deceased was 30 years of age at the time of his death.
III. Compensation awarded by the learned tribunal:
3. The learned tribunal in the impugned judgement dated 13.09.2018 awarded compensation which is depicted in the tabulated form hereunder :
| Sr. No. | Heads | Amount Awarded by the tribunal |
| 1. | Monthly Income | 3000 |
| 2. | Annual Income | 36,000/- |
| 3. | Future prospects | 25% of 36000= 9,000/- |
| 4. | Annual Income + Future Prospects | 36000+9000=45000/- |
| 5. | Deduction towards personal expenses | 1/3 of 45000 =15000/- |
| 6. | Annual loss of dependancy | 45000-15000=30000/- |
| 7. | Multiplier | 17 |
| 8. | Total loss of dependancy | 30,000x17= 5,10,000/- |
| 9. | Conventional Heads (a) Loss of consortium (b) loss of Estate (c) Funeral Expenses | 55,000 |
| 10. | Total compensation | 5,10,000+55000 = 5,65,000/- |
| 11. | Interest | 7% |
4. The claimants seek enhancement of compensation by means of the instant appeal.
IV. Arguments of learned counsels:
5. Shri Prakhar Tandon, learned counsel for the appellants assails the order by contending that the learned tribunal led into error by neglecting to consider the income tax returns which reflects the true income of the deceased. Secondly, the personal expenses were incorrectly deducted. The learned trial court also erred in law in awarding future prospects and conventional heads which is in teeth of the law laid by Supreme Court in New India Assurance Co. Ltd. vs. Urmila Shukla and others, 2021 SCC OnLine SC 822 and National Insurance Company Ltd. vs. Pranay Sethi and others, 2017 (16) SCC 680.
6. The deceased had four dependants. The deduction of 1/3rd made towards personal expenses made by the learned tribunal was excessive. The amount which is liable to be deduction towards personal expenses of the deceased is 1/4th. The claimants were entitled to a higher amount.
7. Shri Anubhav Sinha, learned counsel for the Insurance Company contends that the award was just and lawful. However, he fairly contends that the award of future prospects was at variance in judgment laid by the Supreme Court in Pranay Sethi (surpa). Similarly, the personal expenses could not be disputed.
V. Issues for Consideration:
8. After advancing their arguments, learned counsels for the respective parties agree that only the following question falls for consideration in the appeal:
Whether the learned tribunal while determining the compensation lawfully computed the amounts under these heads: income, future prospects, deduction, application of multiplier, conventional heads and interest?
VI. Number of dependants and deduction towards expenses:
9. The claimants-respondents claim the following persons as dependants on the deceased :
| Sr. No. | Name | Age | Relation |
| 1. | Smt. Pooja Shukla | 33 | Wife |
| 2. | Smt. Madhuri Shukl | ||
National Insurance Company Ltd. vs. Pranay Sethi and others
Sarla Verma (Smt) and others v. Delhi Transport Company and another
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Point of Law : In absence of any governing principle available in statutory regime, it was only in form of an indication - If a statutory instrument has devised a formula which affords better or grea....
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The court applied the Uttar Pradesh Motor Vehicles Rules, 1998 to determine the compensation, including income, future prospects, and conventional heads, and upheld the interest and manner of payment....
The main legal point established in the judgment is that the determination of compensation under the Motor Vehicles Act, 1988 should consider the notional income of the deceased, future prospects, an....
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