2024 Supreme(Online)(Bom) 2340
HIGH COURT OF BOMBAY
SHIVKUMAR DIGE, J
ROYAL SUNDARAM ALLIANCE GENERAL INSURANCE CO. LTD. – Appellant
Versus
SHRI. JAGDISH SHANKAR JOSHI AND ORS. – Respondent
FA/302/2014
Mr. Rahul Mehta i/b. KMC Legal Venture, Advocate for the Appellant. Digitally signed by Mr. Yogesh Pande, Advocate for Respondent Nos.1 to 3.
The court established that a widow's remarriage does not negate her entitlement to compensation, and bonuses should be included in income calculations for determining compensation.
Headnote:(A) Motor Vehicles Act, 1988 - Compensation for death in motor accident - The Tribunal's award was challenged on grounds of the driver's license validity, the deceased's employment status, and the calculation of consortium and income. The court found the Tribunal's income calculation erroneous but upheld the widow's entitlement to compensation despite remarriage. (Paras 2, 5.1, 5.2, 5.3, 5.4, 5.5)
(B) Legal Principles - The court reaffirmed that the multiplier should be based on the deceased's age, and bonuses should not be deducted from income calculations. (Paras 5.4, 5.5)
Facts of the case:
The appeal was filed by the Insurance Company against the Tribunal's order, which awarded compensation to the claimants, including the deceased's widow and children. The deceased was under probation at the time of the accident. (Paras 1, 2)
Findings of Court:
The court recalculated the deceased's monthly income to Rs.66,463 and awarded total compensation of Rs.1,37,47,189, allowing for enhanced compensation of Rs.53,53,452. (Paras 5.5, 6)
Issues: The main issues included the validity of the driver's license, the deceased's employment status, and the calculation of compensation. (Paras 2, 5)
Ratio Decidendi: The court ruled that the widow's remarriage does not affect her entitlement to compensation, and the income of the deceased should not have deductions for bonuses. (Paras 5.1, 5.5)
Result: First Appeal No.302 of 2014 is partly allowed; Cross Objection (St.) No.35190 of 2023 is allowed.
Oral Judgment :
1. The appellant-Insurance Company has preferred this appeal against the judgment and order passed by Motor Accident Claims Tribunal, Pune (for short “the Tribunal”). The claimants have filed cross objection for enhancement of compensation. As the appeal and cross- objection are against the same judgment and order, I am deciding it, by this common judgment.
2. It is contention of learned counsel for the appellant – Insurance Company that, at the time of the accident, the driver of the offending vehicle was not holding valid and effective driving license. Learned counsel further submitted that, at the time of the accident, deceased was under probation but the Tribunal has considered his whole salary as income, which is erroneous. Learned counsel further submitted that during the pendency of the claim petition, the widow of the deceased remarried, so the Tribunal should not have considered her as dependent of the deceased. Learned counsel submitted that the Tribunal has awarded consortium amount on higher side. He submitted that the while awarding compensation, the Tribunal should have considered the multiplier of the parents of the deceased instead of deceased.
Hence,requested to allow the appeal.
3. It is contention of learned counsel for respondent Nos.1 to 3/claimants that while considering income of the deceased, bonus and leave encashment have not been considered, it be considered.
4. I have heard both learned counsel, perused the judgment and order passed by the Tribunal.
5. To prove their defense that, at the time of the accident, the driver of the offending bus was not holding effective and valid driving license, the appellant – Insurance Company has not examined any witness, hence, I do not see merit in it. It is settled principle of law that if any defense is taken by the Insurance Company, it must be proved by producing evidence on record.
5.1. It is contention of learned counsel for appellant that during the pendency of the claim petition, the widow of deceased has remarried. In my view, though the widow has remarried, deceased was her husband and, at the time of filing claim petition, she was widow of deceased. Hence, her remarriage cannot be a ground to deprive her from getting compensation.
5.2. It is contention of learned counsel for the appellant that, at the time of the accident, deceased was under probation period and he was not permanent employee, hence, his monthly income should not have been considered. In my view, though the deceased was under probation, he was an employee and he was getting salary as he would have got as a permanent employee. The probation period is the initial period of service, so it cannot be said that deceased was working on temporary basis.
Hence, the monthly income considered by the Tribunal is proper.
5.3. The Tribunal has awarded consortium amount of Rs.2,25,000/-, in my view, it is on higher side. As per the view of Hon’ble Apex Court in Magma General Insurance Co. Ltd. vs. Nanu Ram , 2018 ACJ 2782 (SC), each claimant is entitled for Rs.48000/- as consortium amount, Rs.18,000/- for loss of estate and Rs.18000/- for funeral expenses. There are three claimants, the total comes to Rs.1,80,000/-.
5.4. It is the contention of learned counsel for the appellant that the multiplier as per the age of the parents should have been applied while calculating the compensation of the deceased. In my view, it is settled principle of law that the multiplier must be applied as per the age of the deceased. Hence, I do not see merit in it.
5.5. It has come on record that the monthly salary of the deceased was Rs.76,163/- but the Tribunal has not considered it. It appears from the record that gross salary of the deceased after deducting professional tax is Rs.75963/-. The Tribunal has considered monthly salary of the deceased at Rs.40,000/-, after deducting leave encashment of Rs.9500/-, bonus of Rs.21636/- and taxes of Rs.4,800/-. In my view, the Tribunal should not have deducted the bonus amou