Ramandeep Kaur vs Darshan Singh And Others

The award dated 25.11.2016 passed by the Motor Accident Claims Tribunal, Sangrur [for brevity 'the Tribunal'] has been assailed by the widow of Sukhwinder Singh (deceased) seeking enhancement of compensation awarded under Section 166 of the Motor Vehicles Act, 1988 [for brevity 'the Act'].

The driver, insurer (i.e. United India Insurance Company Ltd.) and owner of Indica Car bearing registration No. PB-11AS-8219 [hereinafter referred to as 'offending vehicle'] have been arrayed as respondents No.1 to 3 respectively in the appeal. The parents of the deceased are proforma respondents No.4 and 5.

The factum of the accident has not been disputed by the parties. A motor vehicular accident took place on 16.01.2015. The accident proved fatal for Sukhwinder Singh, aged 28 years. The accident was result of rash and negligent driving of the offending vehicle. FIR No.23, dated 16.01.2015 was registered at Police Station City, Sangrur. The driver, owner and insurer of the offending vehicle were held jointly and severally liable to pay the compensation.

In the claim proceedings, it was claimed that the deceased was working as SEWADAR/GRANTHI and was engaged in dairy farming work. His monthly earning was claimed to be Rs. 12,700/-i.e. Rs. 10,000/- from selling milk and Rs. 2,700/- as salary from Gudwara Mastuana Sahib. The claimants failed to prove monthly earning of the deceased. The Tribunal assessed monthly earning of the deceased as Rs. 6,000/- per month; 1/3rd deduction for self-expenses was made and multiplier of '17' was applied. The Tribunal awarded compensation of Rs. 10,41,000/- alongwith interest @7.5% per annum. The amount awarded included Rs. 1,00,000/- for loss of consortium; Rs. 1,00,000/- for loss of love and affection and Rs. 25,000/- for funeral expenses.

Heard learned counsel for the parties and perused the relevant documents produced by them.

Learned counsel for the appellant states that the income assessed by the Tribunal is less than the minimum wages for an unskilled labourer prevalent in the State at relevant time. He submits that compensation be calculated as per minimum wages. His grievance is that no future prospects have been awarded.

Learned counsel for the insurer argues that the claimants failed to prove earning of the deceased. He further argues that amounts awarded under the conventional heads are on the higher side and no amount be awarded for loss of love and affection.

The claimants failed to prove earning of the deceased, in such circumstances, one of the safest yardstick is to rely upon minimum wages prevalent in the State at the relevant time. In order to award just and equitable compensation and having clue from the minimum wages for an unskilled labourer, monthly income of the deceased is assessed as Rs. 7,000/-.

In consonance with the decision of the Supreme Court in National Insurance Company Limited Vs. Pranay Sethi and others AIR 2017 SC 5157 and Hem Raj Vs. Oriental Insurance Company Ltd. 2018 (2) PLR 480, 40% future prospects are awarded as the deceased was below 40 years and fell in the category of person having fixed wages.

There is no challenge to the 1/3rd deduction made for self-expenses and multiplier applied of '17'.

As the quantum of compensation is being re-visited, it would be appropriate that the amounts under the conventional heads be awarded as per decision of the Supreme Court in Pranay Sethi's case (supra). The claimants are entitled to Rs. 15,000/- each for funeral expenses and for loss of estate. Rs. 40,000/- are awarded to the widow for loss of consortium.

In view of above discussion, the compensation is re-calculated as under:-

Particulars

Amount (in Rs. )

Monthly income of the deceased as assessed

7,000/-

40% Future Prospects

2,800/-

Sub Total

9,800/-

1/3rd deduction for self expenses

3,267/-

Monthly Dependency

6,533/-

Annual Dependency

78,396/-

Applying multiplier of '17'

13,32,732/-

Funeral Expenses

15,000/-

Loss of Estate

15,000/-

Loss of consortium to the widow

40,000/-

Grand Total

14,02,732/-

The award dated 25.11.2016 is modified to the extent that amount of Rs. 10,41,000/- awarded by the Tribunal is enhanced to Rs. 14,02,732/-.

The claimants shall be entitled to the enhanced amount alongwith interest @ 7.5% per annum from the date of filing of the claim petition till realization of the amount.

The appeal is allowed in the aforesaid terms.