Hublal Sharma and Others vs Akbar Ali and Others

Rajiv Gupta, C.J.—The unfortunate husband and major sons of deceased Smt. Satti Sharma are the appellants before us in this appeal for enhancement of the compensation awarded by the 8th Additional Motor Accident Claims Tribunal, Durg (for short the Tribunal'') vide award dated 28.06.2007, passed in Claim Case No. 366/2005. As against the compensation of Rs. 46,40,000/- claimed by the appellants/ claimants, unfortunate husband and major sons of deceased Smt. Satti Sharma, by filing a claim petition u/s 166 of the Motor Vehicles Act, for her death in the motor accident on 04.09.2005, the Tribunal awarded a total sum of Rs. 1,45,500/- as compensation along with interest @ 6% per annum from the date of filing of the claim petition till the date of actual payment.

The Tribunal on a close scrutiny of the entire evidence led before it held that deceased Smt. Satti Sharma died on account of the injuries sustained by her in the motor accident on 04.09.2005; the accident occurred due to rash and negligent driving of the driver of the offending vehicle Truck-Dumper bearing registration No. C.G. 04/J-1714; as the above offending vehicle Truck-Dumper on the date of the accident was insured with the Oriental Insurance Company Limited and the Insurance Company could not establish any breach of the policy conditions, the Insurance Company was liable to pay compensation to the claimants.

As the respondents have not filed any appeal against the award, the above findings recorded by the Tribunal have now attained finality.

The Tribunal assessed the income of the deceased at Rs. 15,000/- per annum on the basis of the notional income prescribed in the Second Schedule u/s 163A of the Motor Vehicles Act. By deducting 1/3rd of Rs. 15,000/- towards the personal expenses of the deceased, the claimants dependency was assessed at Rs.10,000/- per annum. By multiplying the annual dependency of Rs.10,000/- with the multiplier of 13, the compensation was worked out to Rs. 1,30,000/-. By awarding further sum of Rs. 15,500/- under other heads, the Tribunal awarded a total sum of Rs. 1,45,500/- as compensation to the claimants for the death of deceased Smt. Satti Sharma in the motor accident. The Tribunal further directed payment of interest on the above amount of compensation of Rs. 1,45,500/- @ 6% per annum from the date of filing of the claim petition till the date of actual payment.

Shri Amrito Das, learned counsel for the appellants submitted that the Tribunal has erred in not accepting the claimants'' evidence about the income of the deceased and in assessing his income at Rs. 15,000/- per annum only; in selecting the lower multiplier of 13; and in awarding low compensation of Rs. 1,45,500/- only.

Shri Manish Upadhyay, learned counsel for respondent No. 3, the Oriental Insurance Company Limited, the insurer of the offending vehicle Truck-Dumper, on the other hand, supported the award and contended that the compensation of Rs. 1,45,500/- awarded by the Tribunal is just and proper compensation in the facts and circumstances of the present case.

In a motor accident claim case, what is important is that, the compensation to be awarded by the Courts/Tribunals should be just and proper compensation in the facts and circumstances of the case. It should neither be a meager amount of compensation, nor a Bonanza.

Now we shall examine as to whether the compensation of Rs. 1,45,500/-awarded by the Tribunal is just and proper compensation in the facts and circumstances of the case.

True, the claimants pleaded that deceased Smt. Satti Sharma used to earn Rs. 6,000/- per month from tuition, no cogent and reliable evidence was led before the Tribunal for establishing the income of the deceased to the extent of Rs. 6,000/- per month. We, therefore, do not find any fault in the approach of the Tribunal in discarding the claimants'' evidence about the income of the deceased.

Nevertheless, the income of the deceased assessed by the Tribunal at Rs. 15.000/- per annum in the year 2005 is certainly on the lower side and requires consideration.

Considering that deceased Smt. Satti Sharma was aged about 45 years on the date of the accident, we are of the opinion that she could have easily earned Rs.70-75/- per day even by working as an unskilled labour in the year 2005. We, therefore, propose to re-compute the compensation taking the income of the deceased at Rs. 2,000/- per month and Rs. 24,000/- per annum.

By deducting the usual 1/3rd of Rs. 24,000/- towards the personal expenses of the deceased, the claimants'' dependency is assessed at Rs. 16,000/- per annum.

Considering that claimant No.1 Hublal Sharma, husband of the deceased mentioned his age before the Tribunal as 51 years, we are of the opinion that multiplier of 11 would be appropriate in the present case in view of the dictum of the Apex Court in the Case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, wherein multiplier of 11 has been prescribed for the age group between 51-55 years.

By multiplying the annual dependency of Rs. 16,000/- with the multiplier of 11 the compensation works out to Rs. 1,76,000/-. The claimants are further entitled to receive Rs. 5,000/- towards funeral expenses; Rs. 5,000/-for loss of estate: and Rs.5000/- for loss of consortium to the husband. The claimants, thus, become entitled to receive a total sum of Rs. 1,91,000/- as compensation for the death of deceased Smt. Satti Sharma in the motor accident.

Learned counsel for the parties submitted that with a view to avoid any possible dispute between the parties before the Tribunal about the period for which the claimant are entitled to receive interest on the enhanced amount of compensation, the amount of interest on the enhanced amount of compensation may be quantified in this appeal itself.

Considering all the relevant aspects of the matter, including the delay in disposal of the claim petition, and the present appeal and the fact that the Insurance Company alone is not to be blamed for the entire delay in the matter, we quantify the amount of interest on the enhanced amount of compensation of Rs. 45,500/- at Rs. 5,500/-.

For the foregoing reasons, the appeal filed by the appellants/ claimants for enhancement of the compensation is allowed in part. The compensation of Rs. 1,45,500/- awarded by the Tribunal is enhanced to Rs. 1,91,000/- with further quantified amount of interest of Rs. 5,500/- on the enhanced amount of compensation of Rs. 45,500/-.

Respondent No. 3 the Oriental Insurance Company Limited is granted three months time for depositing the total sum of Rs, 51,000/- (Rs. 45,500/-towards enhanced amount of compensation + Rs. 5,500/- towards quantified amount of interest on the enhanced amount of compensation of Rs. 45,500/-) before the concerning Claims Tribunal. No order as to costs.