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2023 Supreme(Online)(Pat) 1772

PATNA HIGH COURT
Mr. Justice Rajeev Ranjan Prasad
Sangita Devi and Ors – Appellant
Versus
Rajesh Kumar and Ors – Respondent
MA/236/2015



The calculation of compensation in death cases under Section 166 of the Motor Vehicles Act, 1988, including the addition of future prospects, deduction for personal living expenses, claims on conventional heads, and payment of interest on future prospects.

Headnote:

MOTOR VEHICLES ACT - [SECTION 173] - ENHANCEMENT OF COMPENSATION - [SECTION 166] - DEATH CASE - CALCULATION OF COMPENSATION - FUTURE PROSPECTS - PERSONAL LIVING EXPENSES - CONVENTIONAL HEADS - INTEREST ON FUTURE PROSPECTS

Fact of the Case:

The deceased, who was 30 years old at the time of the accident, was survived by his wife and two minor daughters. He was employed in a private company and his monthly salary was Rs. 4,100/-. The Tribunal awarded a compensation of Rs. 4,99,500/- to the claimants, which was challenged by them in appeal.

Finding of the Court:

The High Court held that the Tribunal erred in not adding future prospects to the deceased's income while calculating the total loss of dependency. The Court also held that the Tribunal should have deducted only 1/4th of the deceased's income towards personal living expenses, instead of 1/3rd. Further, the Court held that the claimants were entitled to claim on conventional heads, including funeral expenses, loss of estate, spousal consortium, and parental consortium, and that the amounts under these heads should be increased by 10% at the end of every three years. The Court also held that interest should be paid on the future prospects amount.

Issues: 1. Whether future prospects should be added to the deceased's income while calculating the total loss of dependency?2. What is the appropriate deduction for personal living expenses?3. Are the claimants entitled to claim on conventional heads?4. Should interest be paid on the future prospects amount?

Ratio Decidendi: 1. Future prospects should be added to the deceased's income while calculating the total loss of dependency, as per the judgment of the Supreme Court in National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. (2017) 16 SCC 680.2. The appropriate deduction for personal living expenses is 1/4th of the deceased's income, as per the judgment of the Supreme Court in Sarla Verma & Ors. Vs. Delhi Transport Corporation and Another (2009) 6 SCC 121.3. The claimants are entitled to claim on conventional heads, including funeral expenses, loss of estate, spousal consortium, and parental consortium, as per the judgment of the Supreme Court in Pranay Sethi (supra).4. Interest should be paid on the future prospects amount, as it is part of the claim to be allowed to the claimants.

Final Decision: The High Court allowed the appeal and enhanced the compensation payable to the claimants to Rs. 10,40,220/-. The Court directed the insurance company to pay the balance amount of Rs. 5,41,720/- to the claimants within two weeks from the date of receipt of the order.

IN THE HIGH COURT OF JUDICATURE AT PATNA

Miscellaneous Appeal No.236 of 2015

======================================================

1.

Sangita Devi, W/o Late Prabhat Kumar,

2.

Ansu, D/o Late Prabhat Kumar

3.

Anubha, D/o Late Prabhat Kumar

Appellant No. 2 is minor under the guardianship of her mother, Appellant

no- 1. All resident of Village- Pahetiya, P.S.- Sadar Hajipur, District-

Vaishali

... ... Appellant/s

Versus

1.

Rajesh Kumar, S/o Girja Prasad, District- Muzaffarnagar, Uttar Pradesh

2.

Raj Narayan Singh, S/o Suman Bahadur Singh, Resident of Village- Dingur

Patti, District- Mirzapur

3.

United India Insurance Company Ltd. through Branch Manager, District-

Hajipur

... ... Respondent/s

======================================================

Appearance :

For the Appellant/s

:

Mr.Alok Kumar @ Alok Kr. Shahi, Advocate

For the Respondent no.3 :

Mr.Durgesh Kumar Singh, Advocate

======================================================

CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD

ORAL JUDGMENT

Date : 09-01-2023

Heard Mr. Alok Kumar Shahi, learned counsel for the

appellants and Mr. Durgesh Kumar Singh, learned counsel for the

respondent no.3.

2. This appeal under Section 173 of the Motor Vehicles

Act, 1988 (hereinafter referred to as ‘the Act of 1988’) has been

filed for enhancement of the compensation allowed to the

claimants-appellants by the learned Motor Accident Claim

Tribunal, Hajipur, Vaishali (hereinafter referred to as ‘the learned

Tribunal’) in Claim Case No.82 of 2003. By the order dated

02.08.2014 and award dated 02.03.2015, the learned Tribunal has

Patna High Court MA No.236 of 2015 dt.09-01-2023

2/16

been pleased to allow a sum of Rs.4,99,500/- towards the claim

with simple interest at the rate of 6% per annum. The Insurance

Company (respondent no.3) has been directed to pay the claimants

the award amount.

Brief facts of the case

3. The facts of the case as revealed from the records are

that on 15.06.2002 at about 8.00 PM the husband of the claimant

no.1 was going to Mirzapur after finishing his office work on a

jeep bearing Reg.No.UP3A 6198. The said jeep met an accident

with a Tata Sumo and in the said accident husband of the claimant

no.1 died. In connection with the said accident Case No.26 dated

16.06.2002 was registered in Chilh police station, Janpad Mirzapur

and police submitted a charge-sheet against the driver Pappu

Sonkar under Sections 279, 304A, 338 and 427 of the Indian Penal

Code. According to the claimant no.1 her husband was working in

the Electro Jecknow at Mirzapur and his monthly salary was

Rs.4100/-. At the time of accident and death he was 30 years old.

The employer of the deceased certified the fact that the deceased

was working in the said establishment and his monthly salary was

Rs.4100/-.

4. The Insurance Company opposed the claim before the

learned Tribunal on only ornamental grounds. Since the Insurance

Company has not come in appeal and has not challenged the

Patna High Court MA No.236 of 2015 dt.09-01-2023

3/16

findings of the learned Tribunal, this Court need not go into any

detail discussion on those ornamental grounds of the Insurance

Company.

5. The learned Tribunal framed as many as six issues

which are as under:-

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2- D;k vkosnd dks eqvkotk nkok okn nkf[ky djus dk

vf/kdkj vkSj dkj.k Fkk\

3- D;k vkosnd }kjk iz”uxr okgu ij nq?kZVuk ds fy,

ftEesokn gksus dk dkj.k lR; vkSj lgh gS\

4- D;k vkosndx.k nkok vkosnu ds vuqlkj eqvkotk ikus

ds gdnkj gS\

5- D;k foi{khx.k nq?kZVuk vkSj eqvkots ds Hkqxrku ds fy,

ftEesokj gS\

6- D;k vkosnd nkok vkosnu ds vuqlkj vuqrks’kksa dks ikus

dk vf/kdkj gS\

Findings of the Tribunal

6. The learned Tribunal held that on the basis of the

evidences on the record, it is proved that the husband of the

claimant/applicant no.1 died in the accident due to fault of the

driver. The learned Tribunal accepted the income of the

deceased at Rs.4100/- per month but while cal

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