2025 (2) TMI 1193 - SC - Indian Laws

Exclusion of Appellants herein as dependants of the deceased - major sons and married daughter of the deceased can be considered dependants for the purpose of compensation under the Motor Vehicles Act despite their age and marital status or not - HELD THAT - This Court in National Insurance Company Limited v. Birender Ors. 2020 (1) TMI 1730 - SUPREME COURT had expounded that major married and earning sons of the deceased being legal representatives have a right to apply for compensation and the Tribunal must consider the application irrespective of whether the representatives are fully dependent on the deceased or not. The Court went on to conclude that since the sons in that case were earning merely Rs.1, 50, 000/- per annum they were largely dependent on the earnings of the deceased and were staying with her. Adverting to the facts at hand on a perusal of the statement of Shashi Kumar the son of the deceased (Appellant No.2 herein) annexed as Annexure P6 was working at a petrol pump while the other son was involved in temporary employment opportunities only. Both of them were residing with the deceased. In such circumstances it cannot be said that they were self-sufficient or independent of the deceased. Similarly applying the exposition in Birender there is no reason to exclude a married daughter from compensation. Therefore in view of this the High Court erred in excluding these dependants. The total compensation payable to the claimants is Rs.37, 80, 681/- reflecting proper dependency income future prospects and statutory heads of loss. Appeal allowed.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered by the Court were:

• Whether the major sons and married daughter of the deceased can be considered dependants for the purpose of compensation under the Motor Vehicles Act, despite their age and marital status.
• The appropriate quantum of compensation payable to the claimants, including the applicability of future prospects and the correct deduction for personal expenses of the deceased.
• The correctness of the High Court's approach in excluding certain family members as dependants and the consequent impact on the compensation amount.

2. ISSUE-WISE DETAILED ANALYSIS

Dependents of the Deceased:

Relevant legal framework and precedents: The Court relied heavily on the precedent set in National Insurance Company Limited v. Birender & Ors. (2020) 11 SCC 356, which clarified that major married and earning sons, as legal representatives, have a right to claim compensation irrespective of their full dependency on the deceased. The ruling emphasized that the Tribunal must consider the dependency status based on actual facts rather than rigid presumptions.

Court's interpretation and reasoning: The Court found that the High Court erred in excluding the major sons and married daughter from the list of dependants. The evidence showed that the sons were engaged in modest employment and resided with the deceased, indicating they were not financially independent. The Court extended the reasoning from Birender to include the married daughter as well, rejecting the High Court's exclusion.

Key evidence and findings: The statement of Shashi Kumar, son of the deceased, revealed employment at a petrol pump, while the other son had only temporary employment. Both sons lived with the deceased, reinforcing their dependency. No evidence was presented to show the daughter's financial independence.

Application of law to facts: Applying the Birender precedent, the Court concluded that the sons and the married daughter were rightly dependants and eligible for compensation. The High Court's contrary finding was therefore set aside.

Treatment of competing arguments: The insurance company argued for a 50% deduction on the ground that the major children were not dependants. The Court rejected this contention, holding that the deduction should be one-fourth, consistent with the dependency status of the claimants.

Conclusion: The Court restored the status of the major sons and married daughter as dependants, entitling them to compensation.

Quantum of Compensation and Future Prospects:

Relevant legal framework and precedents: The Court applied the principles from National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680, particularly paragraphs 42, 52, and 59, which provide guidance on calculating compensation including future prospects, multiplier, and deductions.

Court's interpretation and reasoning: The Court accepted the High Court's allowance of future prospects at 30%, appropriate for the deceased's age of 50 years. The yearly income was taken as Rs.2,80,140/- after adjustment, and future prospects were added accordingly. Deduction for personal expenses was fixed at one-fourth.

Key evidence and findings: The deceased's income was established at Rs.23,345/- per month, adjusted to Rs.2,80,140/- annually. The multiplier of 13 was applied as per the age of the deceased. Additional heads of compensation such as loss of estate, funeral expenses, and loss of consortium were included as per statutory norms.

Application of law to facts: The Court recalculated the total compensation to Rs.37,80,681/-, significantly higher than the amounts awarded by the Tribunal and the High Court, reflecting proper inclusion of dependants and future prospects.

Treatment of competing arguments: The claimants sought higher compensation, especially on account of future prospects, which the High Court had accepted. The insurance company's contention to reduce compensation by increasing deductions was rejected.

Conclusion: The Court enhanced the compensation amount by including future prospects and correcting the deduction rate, thereby ensuring just and fair compensation.

Delay in Disposal of Claims:

Though not a primary issue, the Court noted the time taken for disposal at various levels: one year at the Tribunal, nearly seven years at the High Court, and four months at the Supreme Court. This underscores the need for expeditious adjudication in motor accident claims, but did not directly influence the substantive decision.

3. SIGNIFICANT HOLDINGS

"Major married and earning sons of the deceased, being legal representatives, have a right to apply for compensation, and the Tribunal must consider the application, irrespective of whether the representatives are fully dependent on the deceased or not."

"Since the sons were engaged in modest employment and residing with the deceased, they cannot be said to be self-sufficient or independent."

"There is no reason to exclude a married daughter from compensation in view of the dependency principles laid down."

"The appropriate deduction for personal expenses of the deceased in this case is one-fourth, not fifty percent."

"Future prospects at 30% are to be applied given the age of the deceased at 50 years."

"The total compensation payable to the claimants is Rs.37,80,681/-, reflecting proper dependency, income, future prospects, and statutory heads of loss."