Sahi Ram and Others vs Ram Babu and Others

Kailash Gambhir, J.—By way of the present appeal, the appellants seek to challenge the impugned award whereby the Tribunal has awarded a lump sum compensation of Rs. 1,60,000/- mainly on the ground that the tribunal has not correctly assessed the income of the deceased and has not even taken the help of appropriate multiplier to award compensation. The Tribunal has also not awarded any amount separately towards loss of love and affection and funeral expenses and has awarded compensation of Rs. 1,60,000/- without any rationale and basis, contends the counsel for the appellant.

The brief summary of the facts to deal with the contentions of the parties are as under:

On 27.11.99 at about 7.50 p.m. the deceased Sh. Bansi Lal was waiting for the bus at Delhi Gate bus stop at Bahadur Shah Zafar Marg, opposite LNJP Hospital and a blue line bus bearing registration No. DL 1P 2765, plying on route No. 405 came from the side of ITO which was driven by respondent No. 1 in a rash and negligent manner. The bus hit Sh. Bansi Lal who received fatal injuries. He was taken to LNJP Hospital from the accident spot, where he was declared as ''brought dead''.

Mr. Multan Singh, counsel appearing for the appellant contends that the deceased was 24 years of age and was non-matriculate at the relevant time of accident. Counsel contends that complete injustice has been meted out to the appellants by the Tribunal in not properly assessing the compensation amount. The grant of lump sum compensation of Rs. 1,60,000/- is without any basis and the Tribunal has ignored the basic principles for the award of compensation under different heads. Counsel for the appellant further contends that although it was proved on record that the deceased was earning a sum of Rs. 150-200 per day from his job of fruit selling but still the Tribunal has ignored the said income for the purpose of assessing the compensation. Even in the absence of any documentary evidence or other supporting evidence, the Tribunal could have taken recourse to the Minimum Wages Act for the purposes of assessing correct income of the deceased. No future prospects has also been taken into account to assess the loss of income towards financial dependents and, Therefore, as per counsel for the appellant, there is no rationale for awarding such a meagre amount of compensation in favor of the appellants by the Tribunal. No amount towards funeral expenses and no amount towards loss of love and affection has been awarded in favor of the appellants.

Per contra, Ms.Neerja Sachdeva, counsel appearing for respondent No. 4 submits that the award passed by the Tribunal is absolutely just and fair. Counsel further contends that the award of Rs. 1,60,000/- in favor of the appellants cannot be termed to be on the lower side in the facts and circumstances of the case. Counsel further contends that the deceased was of 24 years of age and would have got married at the age of 27 years and even if the criteria of minimum wages is taken into consideration, then also the compensation amount would not increase than the one as granted by the Tribunal.

I have heard learned Counsel for the parties and have perused the records.

Perusal of the award clearly shows that the Tribunal in very casual manner has determined the compensation amount. A young boy of 24 years had died in the accident and by ignoring all the settled norms, the Tribunal had passed an award for the said unrealistic amount of Rs. 1,60,000/-. The award impugned herein was passed in the year 2003. Through various judgments of the Hon''ble Supreme Court, this Court and other High Courts, the law has taken its shape and broad parameters have been laid down to determine as to how under different heads of non-pecuniary and pecuniary compensation is to be granted. The appellants although failed to prove the income at Rs. 150-200 per day but in the absence of any documentary or other evidence, the safest course was to take the aid of Minimum Wages Act so as to determine the income of the deceased. The deceased was non-matriculate having passed only up to 7th standard on the relevant date of accident and, Therefore, as per the contention of counsel for the appellant the income for non-matriculate under the Minimum Wages Act was Rs. 2,541/- p.m. It is a matter of common knowledge that the minimum wages as prescribed under the Minimum Wages Act become more than doubled within a span of about 10 years as the Minimum Wages Act gets revised almost twice in a year by the government after taking into consideration, the price index, inflation rate and other economic factors. The deceased who was of 24 years is survived by his parents i.e. father of 56 years of age and mother of 53 years of age. The multiplier of 11 will be applicable as per the Second Schedule of the Motor Vehicles Act comparing the age of the deceased with the age of the dependent parents. The minimum wages of Rs. 2,541/- can be taken to have doubled within a period of 10 years making it to Rs. 5,082/- and after taking average of both Rs. 2,541/- and Rs. 5,082/- his monthly increased average income would come out to Rs. 3,811.5. Deducting 1/3rd expenses towards his personal expenses, the loss of dependency would come to Rs. 2541/- per month or Rs. 30492/- per annum. Calculating the multiplicand accordingly with the multiplier of 11 years, the total loss towards financial dependence would come to Rs. 3,35,412/-. The Tribunal has not awarded any amount towards funeral expenses. A sum of Rs. 5,000/- is granted towards funeral expenses. No amount has been granted towards loss of love and affection. Rs. 25,000/- is granted in favor of the appellants towards loss of love and affection. In all a sum of Rs. 3,65,412/- would be just, fair and reasonable compensation to have been granted by the Tribunal. The appellants have already received compensation amount of Rs. 1,60,000/-. Now the differential amount of Rs. 2,05,412/- shall be paid by the respondent No. 4 in equal proportion to appellants along with up-to-date interest at the rate of 7.5% from the date of filing of the petition till realization.

With these directions, the appeal is disposed of.