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1991 Supreme(MP) 162

1992 ACJ 304
R.K. Varma, J.
Sagoobai And Ors.
vs
Sohanlal And Ors.
Decided On : 22 March, 1991

In assessing compensation for the death of an agriculturist in a motor accident, the court should consider both the contribution of land and the contribution of labour in determining the deceased's earning capacity from agricultural lands.

Headnote:

MOTOR VEHICLES ACT, 1939 - SECTION 110A - ASSESSMENT OF COMPENSATION - AGRICULTURAL INCOME - CONTRIBUTION OF LAND AND LABOUR - DEPENDENCY - LOSS OF CONSORTIUM - NON-PECUNIARY DAMAGES.

Fact of the Case:

A 20-year-old agriculturist, Mohan, died in a motor accident due to the rash and negligent driving of a truck. His widow, father, and daughter filed a claim petition seeking compensation of Rs. 1,74,300/-.

Finding of the Court:

The Motor Accidents Claims Tribunal awarded a compensation of Rs. 18,000/- with interest at 6% per annum, considering the deceased's earning capacity as an agricultural labourer and ignoring the income from his own agricultural lands.

Issues: 1. Whether the Tribunal erred in assessing the deceased's earning capacity solely based on his potential earnings as an agricultural labourer, ignoring the income from his own agricultural lands. 2. Whether the Tribunal erred in not awarding adequate compensation for dependency, loss of consortium, and non-pecuniary damages.

Ratio Decidendi: 1. The court held that the Tribunal should have considered both the contribution of land and the contribution of labour in assessing the deceased's earning capacity from agricultural lands. 2. The court opined that a reasonable estimate of the deceased's personal earning from agricultural labour would be Rs. 3,000/- per year, out of which he would have contributed Rs. 2,000/- per year for his family. 3. The court found that the Tribunal erred in not awarding adequate compensation for dependency, loss of consortium, and non-pecuniary damages.

Final Decision: The court modified the Tribunal's award and held that the appellants were entitled to a compensation of Rs. 55,000/- with interest at 12% per annum from the date of the claim petition. The compensation was apportioned as follows: Rs. 30,000/- to the widow, Rs. 20,000/- to the minor daughter, and Rs. 5,000/- to the father.

JUDGMENT

R.K. Varma, J.

1. This is an appeal by the claimants against the award dated 17.6.1982 made by the Motor Accidents Claims Tribunal, Dhar, in Claim Case No. 83 of 1981 whereby the learned Tribunal has awarded a total compensation of Rs. 18,0007- only with interest at the rate of 6 per cent per annum in respect of the death of the deceased Mohan, an agriculturist aged 20 years, who died as a result of a motor accident due to rash and negligent driving of truck bearing registration No. MTB 2638 which hit the deceased, who was going on a cycle on Badnatar-Ratlam Road.

2. The widow, father and daughter of the deceased filed the instant claim petition claiming a compensation of Rs. 1,74,3007-alleging that the claimants have been deprived of the learnings of the deceased who was tilling 28 bighas of agricultural lands of his own and was earning wages at the rate of Rs. 400/- per month. The young widow, the minor daughter and the aged father have also claimed non-pecuniary damages to the extent of Rs. 30,000/-. An amount of Rs. 1,44,000/- was claimed by way of dependency from the earnings of the deceased. The claim was resisted by the respondents. After trial, the learned Tribunal, on appreciation of evidence on record, has awarded a total compensation of Rs. 18,000 with interest at the rate of 6 per cent per annum only as aforesaid. Being aggrieved by the inadequacy of the compensation awarded by the learned Tribunal, the claimants have filed this appeal.

3. The learned Counsel for the appellant-claimants has submitted that the learned Tribunal has made an unreasonable assumption that the deceased had the capacity of earning Rs. 4/- per day as an agricultural labourer and on that basis has assessed the monthly income of the deceased as Rs. 120. The earnings from the cultivation of lands owned by the deceased have not been taken into account, and as such, the claimants have been deprived of just and fair compensation. The learned Counsel has submitted that the kishta bandi khatoni, Exh. A-1, shows that the agricultural holding which stands in the name of the father of the deceased is 8.200 hectares, i.e., nearly 28 bighas as alleged by the claimants. The widow-claimant Sagoo, AW 1, has stated that the agricultural lands were tilled by the deceased and his father and that the deceased had a brother who was a minor of six or seven years only,

4. Learned counsel for the appellant-claimants has submitted that the earnings from agricultural property can be attributed mainly to the two factors, namely, the contribution of the land and the contribution of labour by the tiller. On a reasonable estimate it can be fairly presumed that the contribution of land and labour to the earnings from agricultural lands is half and half and on such assumption the learned Tribunal should have assessed the earning capacity of the deceased. In my opinion, the submission of the learned Counsel for the appellants deserves to be accepted.

5. The witness Sagoo, AW 1, has stated that the deceased used to earn Rs. 15,000/-to Rs. 16,000/- per annum from agriculture, Even on a modest estimate it would not be too much to assume that the 28 bighas of land cultivated by the deceased and his father would yield atleast Rs. 12,000/- as income par annum. Out of this yield of income, Rs. 6,000/- can be assumed to be the contribution of labour out of which the deceased who was a youngman of 20 years can be presumed to have made his contribution of labour to the extent of Rs. 3,000/-. It can also be reasonably estimated that out of this personal earning of Rs. 3,000/- the deceased would have contributed an income of Rs. 2,000/- per year for his family. Since the deceased was only 20 years of age, it would be reasonable to adopt a multiplier of 20 years to compute the amount of dependency to which the dependants of the deceased would be entitled. Computing thus, the widow and the daughter of the deceased must be held entitled to a compensation of Rs. 40,000/- by way of depe


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