Bhikhi Devi And Ors vs Mohan Ram And Ors

The instant appeal under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as "the Act") has been filed seeking enhancement of compensation awarded to the appellants vide judgment and award dated 28.01.2003 passed by Judge, Motor Accident Claims Tribunal-I, Jodhpur (for short, 'Tribunal' hereinafter) in Motor Accident Claim Case No.218/2000, whereby compensation to the tune of Rs. 6,28,000 with interest @9% per annum from the date of filing claim petition has been awarded in favour of the appellants holding the respondents jointly and severally liable for payment of compensation.

Facts of the case in brief are that the appellants, who were claimants in the aforementioned claim case, had filed a claim petition under Section 166 of the Act claiming compensation on account of the death of Gangaram, husband of appellant No.1, father of appellant Nos.2 to 4 and son of appellant No.5, in a motor accident which occurred on 19.11.1999, while he was riding his bicycle at about 09-10 o'clock in the night on the way from home to Banar Army Area. When he reached near Banar Railway crossing towards Jajiwal Kalan who is riding the bicycle in correct direction, one three-wheeler taxi bearing No.RNM 5011 driven by its driver rashly and negligently, came suddenly from Jajiwal Kalan side and dashed with the bicycle, as a result of which, Gangaram fell down from bicycle and sustained head injury. He was taken to Mathuradas Mathur Hospital, Jodhpur and got admitted in Neurosurgery Department, where he died on 20.11.1999 while undergoing treatment. Alleging that the accident occurred due to rash and negligent driving of the driver of three-wheeler taxi, claim petition was filed before the Tribunal, claiming a total compensation of Rs.29,86,000 under various heads.

Before the Tribunal, respondent No.1-driver and owner of the offending vehicle did not appear despite service, as such matter proceeded ex parte against him. Respondent No.2, the insurer of vehicle on filing an application under Section 170 of the Act, was permitted to defend the case. In the written statement filed by the insurance company, it denied most of the averments of claim petition and contended that it was negligence on the part of the deceased himself, due to which the accident took place. The respondent Insurance Company, thus, prayed for rejection of the claim petition.

On completion of pleadings, learned Tribunal framed four issues. After hearing the arguments advanced by learned counsel for the rival parties, the learned Tribunal partly allowed the claim petition of the appellants as aforesaid.

Dissatisfied with the quantum of compensation awarded by the Tribunal under various heads, the appellants/ claimants are before this Court through this appeal.

Learned counsel for the appellant has submitted that at the time of death, the deceased was 26 years of age and serving in MES on the post of Chowkidar drawing a monthly salary of Rs.4075. He has further submitted that while computing compensation future prospects have not been taken into consideration and overall assessment of the compensation is too low, highly unreasonable and against well settled law governing quantum of compensation.

Per contra, learned counsel appearing for respondent Insurance Company has stated that the amount awarded by learned Tribunal is just and proper which requires no interference by this Court in this appeal.

Heard learned counsel for the parties, considered the submissions made at Bar and gone through the judgment and award passed by learned Tribunal.

The issue that arises for consideration in this appeal is as to whether the appellants/claimants are entitled for enhancement of the compensation awarded by the Tribunal under various heads or not.

In National Insurance Co. Ltd. Vs. Pranay Sethi [(2017) 16 SCC 680], a Constitution Bench of the Apex Court held that Section 168 of the Motor Vehicles Act, 1988 deals with the concept of 'just compensation' and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptable legal standard. The aim is to achieve an acceptable degree of proximity to arithmetical precision on the basis of materials brought on record in an individual case. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness on the principle of equitability.

Considering the submissions made at the Bar, the award dated 28.01.2003 is required to be recomputed in light of the judgment of Hon'ble the Supreme Court in the case of Pranay Sethi & Ors. (supra) and while deducting 1/4th of monthly income towards personal expenses instead of 1/3rd as deducted by the Tribunal in relation to loss of income is to be calculated.

In the instant case, as on the date of accident, admittedly the deceased was aged 26 years and was employed in MES. The Tribunal determined the monthly income of the deceased notionally as Rs.4,075/-. The Tribunal applied the multiplier of 18 taking the age of the deceased as 26 years, whereas, the multiplier of 17 should be applied as per law laid down by the Apex Court in the case of Pranay Sethi & Ors. (supra). Besides that, this Court is of the considered view that the amount awarded by the Tribunal under the heads consortium,loss of love and affection and loss of Estate is required to be enhanced to Rs.70,000/-.

The computation which is required to be done in the present case is as under :

Monthly income of the deceased Rs.4,075/- Adding 50% for future prospects Rs.6,112/- (Rs.4,075/- [Rs.2,037; 50% of Rs.4,075] + Rs.2,037/-) Deducting 1/4th towards personal Rs.4,584/- expenses [6112 x 1/4 = Rs.1,528/-] Thus, yearly income of the deceased Rs.55,008/- [Rs.4,584 x 12] Applying Multiplier of 17 as discussed Rs.9,35,136/- above [Rs.55,008 x 17] A lump sum amount of Rs.70,000/- is Rs. 38,500/- awarded towards loss of consortium, for the loss of Estate and loss of love and affection. The Tribunal already awarded a total amount of Rs. 31,500/- under these heads. Thus, deducting the said amount , it comes to [Rs.70,000 -Rs.31,500 = Rs.38,500/-] Total amount of the Award Rs.9,73,636/-

Amount awarded by the Tribunal Rs. 6,28,000/- Enhanced amount [Rs.9,73,636 - Rs. 3,45,636/- Rs.6,28,000]

Consequently, in view of the calculation made above, the appellants/claimants are entitled for payment of an additional compensation of Rs.3,45,636/- (Rupees Three Lakhs Fourty Five Thousand Six Hundred and Thirty Six only), which shall carry interest at the rate of 6% per annum from the date of filing of this appeal. The difference of amount be paid to the appellant No.1 along with interest within a period of two months from today.

The present appeal stands disposed of accordingly. The record of the Tribunal be send back to the Tribunal forthwith.