Hardev Singh and Another vs Dharam Singh and Another

Rajeev Gupta, C.J.—The unfortunate parents of deceased Asha Rani are seeking enhancement of the compensation awarded by the Motor Accidents Claims Tribunal/ District Judge, Nainital vide award dated 19.7.2005 passed in the M.A.C. No. 54 of 2005.

The claimants claimed compensation of Rs. 5,00,000 (rupees five lakh) for the death of their daughter Asha Rani aged about 16 years in the motor accident on 18.2.2005 when she was coming back to her house from the school and was dashed by the offending vehicle tractor bearing registration No. UA 06-6596 resulting in her instantaneous death on the spot itself.

The owner and insurer of the offending vehicle tractor contested the claim and denied their liability to pay compensation to the claimants. The owner took the plea that claimants'' daughter herself was negligent and as such the driver of the tractor was not responsible for the accident. The insurer, on the other hand, pleaded that the tractor was being plied in breach of policy conditions and the driver of tractor was not holding a valid driving licence.

Claimants examined Hardev Singh, PW 1, in support of their claim, whereas the owner and insurer of offending tractor did not examine any witness in rebuttal.

The Tribunal on a close scrutiny of the evidence led by the parties held that the claimants'' daughter Asha Rani died on account of injuries sustained by her in the motor accident on 18.2.2005; the accident occurred due to rash and negligent driving of the driver of the tractor and the insurer of the tractor was liable to pay compensation to the claimants.

As deceased Asha Rani was a student of 9th standard and had no income of her own, the Tribunal assessed her notional income at Rs. 15,000 per annum. By deducting 1/3rd of Rs. 15,000 as her personal expenses and multiplying the remainder of Rs. 10,000 with multiplier of ''15'', compensation was worked out to Rs. 1,50,000. By awarding a further sum of Rs. 10,000 under other heads, a total of Rs. 1,60,000 was awarded as compensation to claimants for the death of their daughter Asha Rani in the motor accident. The Tribunal further directed the insurer of the tractor to pay interest at the rate of 6 per cent per annum in the event of its failure to pay the amount of compensation to the claimants within a period of 60 days from the date of the award.

Mr. Bhupendra Singh Bisht, learned Counsel for the appellants, placing reliance on the dictum of the Apex Court in the case of Manju Devi v. Musafir Paswan 2005 ACJ 99 submitted that the compensation of Rs. 1,60,000 awarded by Claims Tribunal is too low and the Tribunal ought to have awarded at least Rs. 2,25,000 as was awarded by the Supreme Court in the case of Manju Devi (supra).

Mr. D.S. Patni and Mr. Dalakoti, the learned Counsel for National Insurance Co. Ltd., respondent No. 2, on the other hand, supported the award and submitted that the Tribunal has been quite liberal in awarding substantial compensation of Rs. 1,60,000 for the death of a minor girl aged about 16 years, who admittedly was not having any income at all.

Mr. Anil Singh Rana and Mr. J.S. Bisht, the learned Counsel for the owner of the offending vehicle tractor, respondent No. 1, also supported the award.

The findings recorded by Tribunal that claimants'' daughter Asha Rani died on account of the injuries sustained by her in the motor accident on 18.2.2005; the accident occurred due to rash and negligent driving of the driver of the tractor; and the insurer of the tractor was liable to pay the compensation to the claimants have, now, attained finality as the respondents have not filed any appeal against the award.

Now we shall examine as to whether compensation of Rs. 1,60,000, awarded by the Tribunal to the claimants for the death of their daughter Asha Rani, aged about 16 years, is just and proper compensation in the facts and circumstances of the present case.

The Supreme Court in the case of Manju Devi (supra) while assessing just and proper compensation in case of death of a child aged about 13 years, observed in paras 1, 2 and 3:

In this case a 13 years old boy was killed in an accident on 2.7.1998. Motor Accidents Claims Tribunal (M.A.C.T.) held that the accident was as a result of rash and negligent driving by the driver of the truck. The Claims Tribunal, whilst awarding compensation, fixed a sum of Rs. 90,000 on the basis that it considered that amount to be just, proper and reasonable. The High Court dismissed the appeal in limine.

(2) In case of U.P. State Road Transport Corporation and Others Vs. Trilok Chandra and Others, , it has been held by this Court that there should be no departure from the multiplier method on the ground that payment being made is just compensation. It has been held that the multiplier method must be accepted method for determining and ensuring payment of just compensation as it is the method which brings uniformity and certainty to awards made all over the country. In view of this authority, it will have to be held that the award of compensation had to be made by the multiplier method.

(3) As set out in the Second Schedule to Motor Vehicles Act, 1988, for a boy of 13 years of age, a multiplier of 15 would have to be applied. As per the Second Schedule, he being a non-earning person, a sum of Rs. 15,000 must be taken as the income. Thus, the compensation comes to Rs. 2,25,000.

Reverting to the present case, the claimants'' daughter Asha Rani was aged about 16 years on the date of the accident. She was a student of 9th standard. After completing her education, she would have secured a reasonably good job for herself and would have rendered financial support to her parents till her marriage. The compensation of Rs. 1,60,000 awarded by the Tribunal, when examined in the context of the foregoing broad features and above-quoted dictum of the Apex Court in Manju Devi (supra), is certainly on the lower side and deserves to be enhanced suitably.

On a cumulative consideration of all the relevant aspects of the matter, we are of the opinion that compensation of Rs. 2,25,000 (rupees two lakh twenty-five thousand), awarded by Apex Court in the case of Manju Devi (supra) for the death of a child aged about 13 years, would be just and proper compensation in the present case also.

We, therefore, award compensation of Rs. 2,25,000 (rupees two lakh twenty-five thousand), inclusive of interest, to the claimants for the death of their daughter Asha Rani in the motor accident.

For the foregoing reasons, appeal filed by the claimants u/s 173 of the Motor Vehicles Act for enhancement of the compensation is allowed in part. The compensation of Rs. 1,60,000 awarded by the Tribunal is enhanced to Rs. 2,25,000 (rupees two lakh twenty-five thousand), inclusive of interest. National Insurance Co. Ltd., respondent No. 2, is directed to deposit the enhanced amount of compensation before the concerned Claims Tribunal within a period of 2 months from today. The enhanced amount of compensation shall be disbursed to the claimants in the same manner and proportion as directed by the Tribunal in the impugned award.

No order as to costs.