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Saturday, April 26, 2014

Accident claim - M.V. Act - Employee died at his age 46 years - future potentiality -Apex court held that where the deceased died at an early age of 46 years, had 12 more years of service, would have got promotions, resulting in hike in his pay and emoluments, we feel that ends of justice would be met if the potential earning capacity of the deceased is fixed at Rs.30,000/- p.m. Accordingly, we fix the potential earning capacity of the deceased per month at Rs.30,000/- instead of Rs.25,000/- as fixed by the Tribunal. After deducting 1/3rd portion from Rs.30,000/- towards personal expenses, the dependency benefit for the appellants would come to Rs.20,000/- and the multiplier applicable is 12 taking into consideration the age of the deceased. Accordingly, the loss of dependency is fixed at Rs. 20,000 x 12 x 12 = Rs.28,80,000/-. In addition to that, the appellants are entitled to Rs. 50,000/- as conventional amount as granted by the Tribunal. Thus, the appellants would be entitled to a total compensation of Rs. 29,30,000/- with interest @ 7.5% p.a.= RAMILABEN CHINUBHAI PARMAR & ORS. … APPELLANTS VERSUS NATIONAL INSURANCE CO. & ORS. … RESPONDENTS = 2014 ( April.Part ) judis.nic.in/supremecourt/filename=41453

     Accident claim - M.V. Act - Employee died at his age 46 years - future potentiality -Apex court held that where the deceased died at an  early  age  of  46 years, had 12 more years of service, would have  got  promotions,  resulting in hike in his pay and emoluments, we feel that ends  of  justice  would  be met  if  the  potential  earning  capacity  of  the  deceased  is  fixed  at
Rs.30,000/- p.m.  Accordingly, we fix the potential earning capacity of  the deceased per month at Rs.30,000/- instead of Rs.25,000/-  as  fixed  by  the Tribunal. After deducting 1/3rd portion from  Rs.30,000/-  towards  personal expenses,  the  dependency  benefit  for  the  appellants  would   come   to Rs.20,000/- and the multiplier applicable is 12  taking  into  consideration the age of the deceased. Accordingly, the loss of  dependency  is  fixed  at Rs. 20,000 x 12 x 12 = Rs.28,80,000/-.  In addition to that, the  appellants are entitled to   Rs. 50,000/- as conventional  amount  as  granted  by  the Tribunal.  Thus, the appellants would be entitled to  a  total  compensation
of Rs. 29,30,000/- with interest @ 7.5% p.a.=
The appellants herein are the claimants who filed  a  petition  before
the Motor Accident Claims Tribunal, Ahmedabad  claiming  an  amount  of  Rs.
40.00 lakhs as compensation on the  ground  that  the  sole  breadwinner  of
their family, who was 46 years  old,  had  died  in  a  road  accident.  The
Tribunal, relying upon the oral as well as documentary  evidence,  took  the
income of the deceased at Rs.15,000/- p.m. and considering his  age  at  46,
applied the multiplier 12.   In  addition  to  that,  the  Tribunal  granted
Rs.50,000/- as conventional amount, and finally  awarded  Rs.22,10,000/-  as
compensation to the appellants with interest  @ 9% p.a.=

It is evident from the order of the Tribunal as well  as
Salary Certificate filed as (Annexure P-2) the deceased was getting a  gross
salary of Rs.14,103.77 ps. p.m. apart from  benefits  like  GPF,  D.A.,  and
other allowances. 
It is also stated therein that  the  deceased  was  having
another 12 years of service and there is a chance of revision of pay  scales
and getting one more promotion. 
Taking all  these  into  consideration,  the
Tribunal arrived at a conclusion that the salary of the  deceased  would  be
Rs.35,000/- p.m. at the time of his retirement and Rs.25,000/- p.m.  as  his
potential earning capacity on  the  date  of  his  death.   
After  deducting
Rs.10,000/- towards personal expenses, his liability towards taxation  etc.,
the net contribution of the deceased towards his dependents was  arrived  at
Rs.15,000/- p.m., applied the multiplier 12 taking  into  consideration  the
age of the deceased and finally  awarded  an  amount  of  Rs.22,10,000/-  as
total compensation payable with interest @ 9% p.a.  The High  Court  without
properly appreciating the factum of  the  young  age  of  the  deceased  and
without taking future prospects  of  the  deceased  into  consideration  has
reduced the compensation from Rs.22,10,000/- to Rs.13,90,000/- and the  rate
of interest from 9% p.a. to 7.5% p.a.
7.    Even though we are not convinced with the  calculation  and  reasoning
given  by  the  Tribunal,  but  keeping  in  view  the  peculiar  facts  and
circumstances of the case, where the deceased died at an  early  age  of  46
years, had 12 more years of service, would have  got  promotions,  resulting
in hike in his pay and emoluments, we feel that ends  of  justice  would  be
met  if  the  potential  earning  capacity  of  the  deceased  is  fixed  at
Rs.30,000/- p.m.  Accordingly, we fix the potential earning capacity of  the
deceased per month at Rs.30,000/- instead of Rs.25,000/-  as  fixed  by  the
Tribunal. After deducting 1/3rd portion from  Rs.30,000/-  towards  personal
expenses,  the  dependency  benefit  for  the  appellants  would   come   to
Rs.20,000/- and the multiplier applicable is 12  taking  into  consideration
the age of the deceased. Accordingly, the loss of  dependency  is  fixed  at
Rs. 20,000 x 12 x 12 = Rs.28,80,000/-.  In addition to that, the  appellants
are entitled to   Rs. 50,000/- as conventional  amount  as  granted  by  the
Tribunal.  Thus, the appellants would be entitled to  a  total  compensation
of Rs. 29,30,000/- with interest @ 7.5% p.a.
8.    The appeals are accordingly allowed. The orders passed by  the  Courts
below are set aside. There shall be no order as to costs.

 2014 ( April.Part ) judis.nic.in/supremecourt/filename=41453
P SATHASIVAM, RANJAN GOGOI, N.V. RAMANA
                                                           NON - REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                     CIVIL APPEAL NOs. 6091-6092 OF 2011



RAMILABEN CHINUBHAI PARMAR & ORS. …  APPELLANTS

VERSUS

NATIONAL INSURANCE CO. & ORS.            … RESPONDENTS


                                  JUDGMENT

N.V. RAMANA, J.


      The appellants herein are the claimants who filed  a  petition  before
the Motor Accident Claims Tribunal, Ahmedabad  claiming  an  amount  of  Rs.
40.00 lakhs as compensation on the  ground  that  the  sole  breadwinner  of
their family, who was 46 years  old,  had  died  in  a  road  accident.  The
Tribunal, relying upon the oral as well as documentary  evidence,  took  the
income of the deceased at Rs.15,000/- p.m. and considering his  age  at  46,
applied the multiplier 12.   In  addition  to  that,  the  Tribunal  granted
Rs.50,000/- as conventional amount, and finally  awarded  Rs.22,10,000/-  as
compensation to the appellants with interest  @ 9% p.a.
2.    Aggrieved thereby, the respondent-Insurance  Company  preferred  First
Appeal No. 301 of 2003 before the High Court.  The  appellants  herein  also
filed  Cross  Objection  No.  107  of  2006  in  the  said  appeal   seeking
enhancement.  After hearing the Insurance Company as well as claimants,  the
High Court determined the net salary of the deceased as Rs.14,000/- p.m.  by
applying the multiplier 8, arrived  at  the  compensation  towards  loss  of
dependency as Rs.13,44,000/-. It  further  added  Rs.25,000/-  for  loss  of
estate and Rs.15,000/- for loss of consortium to the widow of  the  deceased
and Rs.5,000/- towards funeral expenses. The High  Court  ,  thus,  in  all,
awarded  a  total  amount  of  Rs.13,90,000/-  as  compensation  with   7.5%
interest.  Thus,  the  High  Court  by  the  impugned  order   reduced   the
compensation from Rs.22,10,000/- to Rs.13,90,000/- and reduced the  rate  of
interest from 9% p.a. to 7.5% p.a.
3.    Now aggrieved by the order of the High Court the  claimants-appellants
filed these appeals for enhancement of compensation.
4.    It is mainly contended by the  learned  counsel   for  the  appellants
that the earning capacity of the deceased was Rs.35,000/- p.m.  as  per  the
salary certificate and other documents, but the High Court has  without  any
reason, reduced  the  compensation  amount  by  fixing  Rs.14,000/-  as  the
monthly salary of the deceased. Similarly,  the  High  Court  has  not  even
considered the future prospects of the deceased who died at  the  young  age
of 46 years and the High Court has ignored the fact that  12  years  service
was left for the deceased on the date of death.
5.     On  the  other  hand,  learned  counsel  for  the  Insurance  Company
supported the order of the High Court and submitted that there is no  reason
for this Court to interfere with the order of the High Court.
6.    We have  heard  learned  counsel  for  the  parties  and  perused  the
material before us. It is evident from the order of the Tribunal as well  as
Salary Certificate filed as (Annexure P-2) the deceased was getting a  gross
salary of Rs.14,103.77 ps. p.m. apart from  benefits  like  GPF,  D.A.,  and
other allowances. It is also stated therein that  the  deceased  was  having
another 12 years of service and there is a chance of revision of pay  scales
and getting one more promotion. Taking all  these  into  consideration,  the
Tribunal arrived at a conclusion that the salary of the  deceased  would  be
Rs.35,000/- p.m. at the time of his retirement and Rs.25,000/- p.m.  as  his
potential earning capacity on  the  date  of  his  death.   After  deducting
Rs.10,000/- towards personal expenses, his liability towards taxation  etc.,
the net contribution of the deceased towards his dependents was  arrived  at
Rs.15,000/- p.m., applied the multiplier 12 taking  into  consideration  the
age of the deceased and finally  awarded  an  amount  of  Rs.22,10,000/-  as
total compensation payable with interest @ 9% p.a.  The High  Court  without
properly appreciating the factum of  the  young  age  of  the  deceased  and
without taking future prospects  of  the  deceased  into  consideration  has
reduced the compensation from Rs.22,10,000/- to Rs.13,90,000/- and the  rate
of interest from 9% p.a. to 7.5% p.a.
7.    Even though we are not convinced with the  calculation  and  reasoning
given  by  the  Tribunal,  but  keeping  in  view  the  peculiar  facts  and
circumstances of the case, where the deceased died at an  early  age  of  46
years, had 12 more years of service, would have  got  promotions,  resulting
in hike in his pay and emoluments, we feel that ends  of  justice  would  be
met  if  the  potential  earning  capacity  of  the  deceased  is  fixed  at
Rs.30,000/- p.m.  Accordingly, we fix the potential earning capacity of  the
deceased per month at Rs.30,000/- instead of Rs.25,000/-  as  fixed  by  the
Tribunal. After deducting 1/3rd portion from  Rs.30,000/-  towards  personal
expenses,  the  dependency  benefit  for  the  appellants  would   come   to
Rs.20,000/- and the multiplier applicable is 12  taking  into  consideration
the age of the deceased. Accordingly, the loss of  dependency  is  fixed  at
Rs. 20,000 x 12 x 12 = Rs.28,80,000/-.  In addition to that, the  appellants
are entitled to   Rs. 50,000/- as conventional  amount  as  granted  by  the
Tribunal.  Thus, the appellants would be entitled to  a  total  compensation
of Rs. 29,30,000/- with interest @ 7.5% p.a.
8.    The appeals are accordingly allowed. The orders passed by  the  Courts
below are set aside. There shall be no order as to costs.


                            …………………………………………CJI.
                            (P. SATHASIVAM)




                            ……………………………………………J.
                            (RANJAN GOGOI)




                            ……………………………………………J.
                            (N.V. RAMANA)
 NEW DELHI,
 APRIL  23 , 2014

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