Savitri Devi and Others vs Sarita Kumari and Others

Gurusharan Sharma, J.—Claimants of Compensation Case No. 91 of 1988, filed u/s 110-A of the Motor Vehicles Act, 1939, have filed the present appeal for enhancement of the compensation amount fixed by 6th Addl. Judicial Commissioner-cum-Motor Accidents Claims Tribunal, Ranchi, by the impugned judgment and award.

Admittedly, on 26.6.1988, Sriniwas Singh was going on a jeep (BEP 7778) in a barat party, which was dashed by a bus (BEZ 2616), coming from opposite direction. As a result of the said accident, he received grievous head injuries and died on the same day in hospital.

It was established that accident took place for the fault of the bus driver. The deceased was 37''/2 years old at the time of accident and was earning Rs. 5,000 per month.

In my opinion, 1/3rd of his income towards his personal expenses, in absence of any definite evidence in this regard, was required to be deducted for the purpose of calculating annual dependency. Hence, annual dependency comes to Rs. 39,600 (Rs. 3,300 x 12), i.e., Rs. 40,000. Considering age of the deceased as well as claimants, including his parents and on the ratio of decision of the Supreme Court in General Manager, Kerala State Road Transport Corporation, Trivandrum Vs. Mrs. Susamma Thomas and others, , in my opinion, most suitable multiplier to be used in the present case was 10. In this manner total amount of compensation comes to Rs. 4,00,000. If this amount is kept in term deposit in a nationalised bank, it would definitely fetch amount of interest, which will cover the annual dependency.

In my view, Tribunal has committed error in deducting 50 per cent of income of the deceased, towards his personal expenses, for the reason of lump sum payment uncertainty of life and also uncertainty of income as the business was of contractor and the contract business was not certain, so far income was concerned. It is well settled that in absence of any definite evidence regarding personal expenses of the deceased maximum 1/3rd can be deducted therefrom.

On the ratio of decision of the Apex Court in Smt. Kaushnuma Begum and Others Vs. The New India Assurance Co. Ltd. and Others, , the rate of interest awarded by Tribunal is reduced from 12 per cent to 9 per cent.

In the aforesaid circumstance, the impugned judgment and award is modified to the extent that instead of Rs. 2,65,000, the claimants are held entitled to receive Rs. 4,00,000 (rupees four lakh) with 9 per cent interest on compensation from the date of claim petition till payment.

In the result, this appeal is disposed of with the aforesaid modification in the impugned judgment and award.