Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

MRS. HELEN C. REBELLO Versus MAHARASHTRA STATE ROAD TRANSPORT CORPN

1998 (9) TMI 681 - SUPREME COURT OF INDIA

C.A. 1904 OF1989 - Dated:- 18-9-1998 - K.Venkataswami, A.P.Misra JUDGMENT: MISRA, J. The question raised in this appeal is of great importance on which the High Courts in India are divided. Importance of this question is underlined and revealing since 19th century where there is full debate in the English Courts having divergent views leading to legislation and amendments to set at rest this controversy. So far as our country is concerned, as aforesaid, we have divergent views of the various Hig .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ra State Road Transport Corporation bus from Rathare Badruk to Pune on 12th April, 1973 at about 4.00 P.M. when this bus passed the village Umbraj and came near village Kotri near milestone No. 89/4, Karnataka State Transport bus was seen coming from the opposite direction, i.e., from Satara side towards Kolhapur. The drivers of the two buses were not able to control their buses resulting into collision between the two, seriously injuring the deceased clemant Rebello and Mr. Vincy John Pereira, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er. He was a person of robust health and sober habits. His income from the business and other activities was about Rs- 40,000/- per annum. He was assessed for an income of about ₹ 43,000/- by the Income Tax Authorities for the Assessment Year 1971-72. Being the sole bread winner, he used to provide the family with the support of ₹ 25,000/per year. The claim made by the appellants for damages/compensation under the various admissible heads of damages was for ₹ 4 lacs. The claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fe would have been 25 years from the date of death, but since the claimants had claimed a compensation only taking a period of 20 years, the Trial court held that the appellants were entitled to a compensation of ₹ 3,80,000/by way of pecuniary loss and Rs.l0,000/ on account of pain and suffering, in total ₹ 3,90,000/^ However, in view of the Division Bench judgment of the Bombay High Court in Jaikumar Chhaganlal Patni and Others vs. Many Jerome D'souza and others (AIR 1978 Bombay .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id policy. The claimants were entitled to get an amount of ₹ 4,40193.65p, out of which an amount of Rs. l,52,125.70p was deducted by way of estate duty and the remaining amount of ₹ 3,15,067.95p was paid to the aforesaid heirs. It is this amount, as aforesaid, which was deducted in view of the decision of the Bombay High Court referred to above. On appeal, preferred both by the appellants and also the respondents, the High Court rejected the cross appeal of respondent No .2, namely, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding that this preliminary objection of the respondents has no merit. We find that the High Court had rejected the appeal with the following observation: "As regards the other appeal, bearing No.209 of 1981, Mr. Chaphkar, the learned counsel for the appellants, has urged that in view of the (Full Bench) decision of this Court, he does not press the appeal as the same does not survive." (Full Bench, was wrongly recorded for the Division Bench) This only reveals that since the question o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed the fixation of the quantum of compensation against which no appeal was preferred by the respondents. This leaves us to the only question for adjudication, as aforesaid, whether out: of the compensation amount payable to the appellants under the Motor Vehicles Act 1939, the money received by the appellants on account of life insurance policy of the deceased, is deductible or not which has been done in the present case through the impugned order? Adverting to the said Bombay High Court decisio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

policy is the pecuniary advantage received by the claimant by reason of the death hence liable to be deducted in terms of the ratio in the case of Gobald Motor case (AIR 1962 S.C.I), Jaikumar (supra) holds: ".... Judicial opinion is also sharply divided on the question whether life policy amount can be said to have come to the claimants by reason of the death of the deceased to justify its deduction from the amount of compensation payable to the claimants towards their pecuniary loss. Our a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e same cannot be said to have come to the claimants by reason of the death of the deceased. Mr. Dwivedee, on the other band, drew our attention to the judgments reported in Union of India v. S. Ghosh, AIR 1973 Pat 129, Sushila Devi v. lbrahim, AIR 1974 Madh Pra 181; Sabha Pati v. Rameshwar Singh, 1973 Acc CJ 319 (Orissa High Court) and Automobiles Transport v Dewalal AIR 1977 Raj 121, and a few other judgments of the same courts taking the contrary view. We may at once observe that Patna High Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing the divergent options by the various High Courts in India, said decision itself records the state of uncertainty in the following terms: - "The answer turns really on whether such policy amount can be said to be "pecuniary advantage' that come to the claimants 'by reason of the death of the deceased?' That such amounts amount to pecuniary advantage admits of little doubt. Controversy really centers round if it comes to the dependents 'by reason of death'. Readin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

come to his heirs or dependents by way of inheritance, unless it is sought to be disposed of by deceased otherwise. Nominee mentioned therein is not necessarily the beneficiary but invariable happens to be merely an authorized collector thereof for the benefit of all heirs. We are unable to see any difference between this amount, and any other income yielding estate. That comes to the dependents either by way of inheritance or pursuant to any will or settlement. The causal connection between rec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eipts. We are ourselves unable to see how and why the policy amount or other amounts from income yielding assets, such as bank balances, or interests thereon, or on fixed deposits, or dividends from shares and securities, left or settled by the deceased on the dependents, cannot be said to have come to the claimants by "reason of the death" of the deceased and why it should not be balanced against the pecuniary losses caused by the death of the bread winner in terms of Gobald Motor' .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o the question raised in this appeal would mainly depend on defining this "pecuniary benefit" in the context of the law under the Motor Vehicles Act with its preceding historical facts. The state of fluidity shows writ at large when the court records while considering the 'pecuniary benefit' by further circumscribing its periphery which is evident from the following: "It is nobody's case that it was an accident policy entitling the claimants to such amount, on the deat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t seems that they have also been oscillating with different interpretations under various facts and circumstances. The uncertainty went for a long time which was ultimately resolved by making legislation and the statutory amendments to set at rest this question. Now this question is no more res integral there and is settled that life insurance policy is not deductible from the compensation assessed on account of the death of the deceased. As aforesaid, before this, even in England, this question .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Accidents Act, 1846. This situation was reversed by the Fatal Accidents (Damages) Act of 1908 which was further rendered advantageous to the claimants by Law Reforms (Personal Injuries) Act of 1948 and finally altered drastically by the Fatal Accidents Act of 1959 ensuring various kinds of insurance and pensionary benefits not to be excluded from the compensation payable by the tortfeasors. In India, first such legislation was the Fatal Accidents Act 1855 analogous to English, Fatal Accident Ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

received by the heirs by reason of the death of the bread winner. The question that arises, firstly, whether language of the provisions under 1855 Act and 1846 Act are the same and even if same, whether language of 1939 Act is similar to 1855 Act? So far as the first question is concerned, though something may be said but since the present case is only under 1939 Act, it is not necessary to go into this question In this case, we would be examining whether there is difference of language between .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

titled the party injured to maintain an action and recover damages: in respect thereof, the party who would have been liable if death had 3101 ensued, shall be liable to an action or suit for damages, notwithstanding the death of the person, injured, and although the death shall have been caused under such circumstances as amount in law to felony or other crime. And in every such action, the court may give such damages as it may think, proportioned to the loss resulting from such death to the pa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on for compensation made under Section 110-A the Claims Tribunal shall, after giving the parties an opportunity of being heard, hold an inquiry into the claim and may make an award determining the amount of compensation which appears 'to it to be just and specifying the person or persons to whom compensation shall be paid', and in making the award the Claims Tribunal shall specify the amount which shall be paid by the insurer (or owner or driver of the vehicle involved in the accident or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ot to be reduced because the plaintiff has insured himself against accidental injury. In such a case the plaintiff is entitled to receive the amount payable by the insurer in addition to the damages recoverable from the defendant." In this case, the plaintiff got himself insured against accident by railway in the railway accident insurance office and on account of the injury received, he received for his treatment from the insurance a sum of 31 pounds. The jury found a verdict for the plain .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ble think in the world if he were not to be allowed to get it, because a man pays his premiums on these insurances against accidents with the intention and object of getting them back again, if he should have the misfortune to meet with an accident and be injured." In this decision, another earlier decision is also referred, which may have some relevance, is quoted here under: "It is not worthwhile to go into it, but the subject of insurances will be found to have been thoroughly discu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd therefore, it is, I say, that he ought to have this sum in addition to the damages that he may have sustained at the hands of the defendants by reason of the accident itself; for otherwise he would be a loser by insuring against accidents in a case where the railway company was in the wrong. I am, therefore, clearly of opinion that the verdict stands at present for the right amount." The Grand Trunk Railway of Canada Vs. Jennings, (1888) 13 A.C. 800, held that at the Common law, pecuniar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mant and other not to deduct till, as aforesaid, the matter was set at rest by various legislations culminating into the Fatal Accidents Act, 1959. Till before this, within the limitation of the restrictive language of the Act and in the absence of any motivating and guiding words under the statute the general principles under the common Jaw was applied to ascertain the pecuniary loss and gain. Thus, the 'pecuniary advantage' from whatever source comes to the claimant by reason of the de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ther, even after holding deductible, expressed their conscience in favor of the sufferer. This we find both in the English decisions and the Indian decisions. In Parry Vs. Cleaver (1969 (Vol. 1) All England Law Reports p.555) records uncertainty in England, which is evident from the following words: "My Lords, the facts of this case are of a pattern becoming increasingly common. The appellant was in pensionable employment. By the negligent driving of the respondent he was disabled from cont .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ident but which, by reason of the accident, he or his dependents can no longer get? And second, what are the sums which he or his dependents did in fact receive as a result of the accident but which he or his dependents would not have received if there had been no accident? The Court while dealing with the second point also felt the same difficulty, to which we are in, which is recorded hereunder: "None of the noble and learned Lords who took part gave it more than a passing reference, and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cidents Act, 1846) had any bearing on this matter it must have impinged on these classes. But no one suggests that it had any effect as regards sums coming to the plaintiff by reason of benevolence, and I see no reason why it should have made any difference as regards insurance." It further records: "The common law has treated this matter as one depending on justice, reasonableness and public policy. xxx xxx xxx As regards moneys coming to the plaintiff under a contract of insurance, I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m money; if he had not spent it he would have had it in his possession at the time of the accident grossed up at compound interest" It is true that the aforesaid two English decisions were cases of injuries, but the principle as spelt out is equally applicable in cases of death. The English Court held that any money coming under the contract of insurance, it would be unjust and unreasonable to hold that the money which he prudently spent: on premiums, the benefit from it should endure to th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ontingency of injury or death does not happen, the insurer is the gainer as it receives more under premium than to pay on maturity of the policy, and in case contingency occurs the claimant, the gainer as he receives the amount even before paying the full premiums and the gain is to the proportion of the balance unpaid premium, whether it is injury or death. A Large number of persons, under the policy may live upto the maturity of policy by paying full premium and the contingency of injury or de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quoted hereunder: "An Act to provide for the Nationalization of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation, and control of the business of the Corporation and for matters connected therewith or incidental thereto." Many invest through this policy for variety of reasons, maybe, to secure the sum for himself as forced saving, maybe, as in India, for deduction towards his income-tax lia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ife insurance would result" into the gain to the wrong doer in proportion to the higher scale of premium paid by the insured for no contribution of bus and loss to the claimant in proportion to the higher scale of premium paid, as he would have received the compensation amount without payment of any premium. Before we proceed to decide the question raised, it is necessary to refer to the decision of this Court in Gobald Motor case (supra) which is the foundation of the decision in Jaikumar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

called upon to consider regarding any deduction out of the compensation payable as assessed, either under the aforesaid Act or under the Motor Vehicles Act. The question of life insurance deduction, which is in issue here or the deduction of pension, gratuity or any other pecuniary advantage received by the claimant was neither raised, considered or adjudicated. The passage quoted above only referred to the general principle under the common law with reference to tile decisions of the English Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on 2 for the loss sustained by the estate on account of the death of Rajaratnam. 'the Court awarded damages to the claimants. On appeal to the High Court, it confirmed the compensation awarded with some modification in the quantum of compensation. In this background, this Court was called upon to decide the limited question raised by the counsel for the appellant, which is evident from the following: "Learned counsel for the appellants raised before us the following points: (I) The find .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act as damages under that head had already been taken into consideration in giving compensation to respondents 2 to 7 for the pecuniary loss sustained by them by the death of Rajaratnam." These questions, raised itself, reveal that the Court was adjudicating limited issue raised. It is true, in adjudicating the said questions that the Court did scrutinize two English decisions based on its Section 9 under the Fatal Accidents Act, 1846 as that Act was similar to Section I of our Fatal Accide .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

accruing to a dependent by reason of the relevant death must be taken into account. Under those Acts the balance of loss and gain to a dependent by the death must be ascertained, the position of each dependent being considered separately". Lord Write elaborated the theme further thus at p. 611: "The damages arc to be based on the reasonable expectation of pecuniary benefit or benefit reducible to money value. In assessing the damages all circumstances which may be legitimately pleaded .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sions of the British Columbia legislation. Viscount Simon Said down the mode of estimate of the damages. This authority spelt out the method of calculating damages and thus held: "...It would be seen from the said mode of estimation that many imponderables enter into the calculation. Therefore, the actual extent of the pecuniary loss to the respondents may depend upon data which cannot be ascertained accurately, but must necessarily be an estimate, or even partly a conjecture. Shortly state .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erred to the said principle as enunciated in the English decisions, since our provisions under the Act in consideration, was similar to Section 9 of the English Fetal Accidents Act 1846. This Court was neither called upon to consider computing damages under the Motor Vehicles Act nor to consider any form of deductions, whether justified under the Motor Vehicles Act. We have already referred to above the Section (1A) of the Fatal Accidents Act, 1855 and Section 110-B of the Motor Vehicles Act, 19 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s the party to recover damages, whenever death is occasioned by the wrongful act, negligence or default, which would have entitled the party injured (if death had not resulted) to maintain an action to recover damages in respect thereof. This provision was interpreted within the limitation of the words used therein and in the absence of any guiding words therein. The Courts rightly drew the general principle of common law of loss and gain. But Section 110-B of 1939 Act empowers the Tribunal to d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uctibility of any amount, like, life insurance, gratuity, pension etc., from the amount payable under the Motor Vehicles Act. In M/s Sheikhupura Transport Company Ltd. Vs. Northern India Transporters Insurance Co. Ltd. (AIR 1971 SC 1624) this Court did consider the case of compensation under Section 110-B of the Motor Vehicles Act, 1939 and did refer to the decision in Gobald Motor Service (supra), in case the compensation is to be computed under 1855 Act. This inference was drawn by assuming if .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xing compensation under that provision is wide. Even if we assurance (we do not propose to decide that question in this case) that compensation under that provision has to be fixed on the same basis as is required to be done under Fatal Accidents Act, 1855 (Act 13 of 1855), the pecuniary loss to the aggrieved party would depend upon data which cannot be ascertained accurately but must necessarily be an estimate or even partly a conjecture. The general principle is that the pecuniary loss can be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which appears to it to be just" under Section 110-B gives wider power to the Tribunal in the matter of determination of compensation under 1939 Act. There is another case of this Court in which there is passing reference to the deduction out of the compensation payable under the Motor Vehicles Act. In N.Sivammal & Ors. Vs. Managing Director, Pandian Roadways Corporation & Anr., 1985 (1) SCC 18, this Court held that ₹ 10,000/receivable as monetary benefit to the widow of the pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e applicable while adjudicating the compensation payable to the claimant in the later Act. Fleming, in his classic work; on the Law of Torts, has summed up the law on the subject in these words. This is also referred to in Sushila Devi and Ors. Vs. Ibrahim and Anr., 1974 MP 181: "The pecuniary loss of such dependent can only be ascertained by balancing, on the one hand, the loss to him of future pecuniary' benefit, and, on the other, any pecuniary advantage which, from whatever source, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assume that the widow would have received some benefit, if her husband had pre-deceased her during the currency of the policy or if the policy had matured during their joint lives. The exact extent of permissible reduction, however, is still a matter of uncertainty..,." Fleming has also expressed that the deduction, or set off of the life insurance could not be justifiable. When he uses the words "not be justifiable" he refers to one's conscience, fairness and contrary to wha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h under the English Fatal Accidents Act, 1846 and under the Indian Fatal Accidents Act, 1855 by the earlier decision, were restrictive in nature In the absence of any guiding words therein, hence the courts applied the general principle at the common law of loss and gain but that would not apply to the considerations under Section 110-B of 1939 Act which enlarges the discretion to deliver better justice to the claimant, in computing the compensation, to see what is just. Thus, we find that all t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion in computation of compensation based on the limitation of the language of the Fatal Accidents Act, fell into an error, as it did not take into account the change of language in the 1939 Act and did not consider the widening of the discretion of the Tribunal under Section 110-B. The word 'just", as its nomenclature, denotes equitability, fairness and reasonableness having large peripheral field. The largeness is, of course, not arbitrary; it is restricted by the conscience which is f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the context. 'Just" may apply in nearly all of its senses, either to ethics or law, denoting something which is morally right and fair and sometimes that which is right and fair according to positive law. If connotes reasonableness and something conforming to rectitude and justice something equitable, fair (vide page 1100 of volume 50, Corpus Juris Secundum). At page 438 of Words and Phrases, edited by West Publishing Co., vol.23 the true meaning of the word "just" is in these .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nney's Law Dictionary defines 'Just" as fair, adequate, reasonable, probable; and just a cause as a just cause, a lawful ground. Vide Bregman v. Kress, 81 N.Y.S.1072, 1073, 83 App.Div. I." Thus; we have no hesitation concluding that the Tribunal, which computing the compensation under Section 110-B of the 1939 Act, has a wider discretion, than what it had under the 1855 Act. Various provisions of this Act indicate legislature's intend conferring visible benefit to the claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lity covered by the insurance policy. Then, Section 96 casts obligation on the insurers to satisfy judgements in respect of third party risks. No settlement between insurer and insured in respect of any claim to which the third party is entitled, is valid unless third party is a party to such settlement under Section 97. All these and such other provisions are clearly beneficial legislation, hence should be interpreted which confers benefit and not which usurp its benefit. This being so, we fina .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e aid to have been received by the heirs only on account of the death of the deceased, but truly it is a fruit of the premium paid by the deceased during his time. The deceased bought this insurance policy as an act of his prudence, to confer benefit either to himself or to his heirs in case of death. This amount is receivable by the claimant irrespective of the accidental death, even if he would have died the natural death. He further submits that the interpretation given by the High Court conf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e submits it would mean anything given to make things equal in value. He submits that in this case the death of the deceased-husband of the claimant was due to the negligence of the respondents has to be offset by a. just equivalent, where claimants are put back in position where they would have been but for such death. On this, he draws the conclusion, the benefits of insurance policy cannot be deducted while awarding the compensation. On the other hand, learned counsel for the respondents rest .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cuniary benefits that would have accrued to him but for the death with the 'pecuniary advantage which from whatever source comes to him by reason of the death. In other words, it is the balancing of loss and gain of the claimant occasioned by the death. But this has to change its colour to the extent a statute intends to do. Thus, this has to be interpreted in the light of the provisions of the Motor Vehicles Act, 1939. It is very clear, to which there could be no doubt that this Act deliver .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

train, air flight not involving motor vehicle. would not be covered under the Motor Vehicles Act. Thus. the application of general principle under the common law of loss and gain for the computation of compensation under this Act must co-relate to this type of injury or deaths, viz, accidental. If the words "pecuniary advantage' from whatever source are to be interpreted to mean any form of death under this Act it would dilute all possible benefits conferred on the claimant and would be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gislature. By such an interpretation the tortfeasor in spite of his wrongful act or negligence, which contributes to the death, would have in many cases no liability or meagre liability. In our considered opinion, the general principle of loss and gain takes colour of this statute, viz., the gain has to be interpreted which is as a result of the accidental death and the loss on account of the accident death. Thus, under the present Act whatever pecuniary advantage is received by the claimant, fr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ived even apart from accidental death. Thus, such. pecuniary advantage would have no correlation to the accidental death for which compensation is computed. Any amount received or receivable not only on account of the accidental death but that would have come to the claimant even otherwise, could not be construed to be the "pecuniary advantage", liable for deduction. However, where the employer insures his employee, as against injury or death arising out of an accident, any amount rece .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ough the wisdom of legislature or through the principle of loss and gain through deduction not to give gain to the claimant twice arising from the same transaction, viz., same accident. It is significant to record here in both the sources, viz., either under the Motor Vehicles Act or from the employer, the compensation receivable by the claimant is either statutory or through the security of the employer securing for his employee but in both cases, he receives the amount without his contribution .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otor Vehicle Act. There is no co-relation between the two amounts. Not even remotely. How can an amount of loss and gain of one contract could be made applicable to the loss and gain of another contract. Similarly, how an amount receivable under a statute has any co-relation with an amount earned by an individual. Principle of loss and gain has to be on the same place within the same sphere, of course, subject to the contract to the contrary or any provisions of law. Broadly, we may examine the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oyee for the benefit of his family in the form of his contribution in the service in terms of the service conditions receivable by the heirs after his death. The heirs receive family pension even otherwise than the accidental death. No co-relation between the two. Similarly, life insurance policy is received either by the insured or the heirs of the insured on account of the contract with the insurer, for which insured contributes in the form of premium. It is receivable even by the insured, if .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the heirs on account of one's death but all these have no co-relation with the amount receivable under a statute occasioned only on account of accidental death. How could such an amount come within the periphery of the Motor Vehicles Act to be termed as 'pecuniary advantage' liable for deduction. When we seek the principle of loss and gain, it has to be on similar and same plane having nexus inter so between them and not to which, there is no semblance of any co-relation. The ins .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

this Act, he receives without any contribution. As we have said the compensation payable under the Motor Vehicles Act is statutory while the amount received under the life insurance policy is contractual. As we have observed the whole scheme of the Act, in relation of the payment of compensation to the claimant, is beneficial legislation, the intention of the legislature is made clearer by the change of language from what was in Fatal Accidents Act, 1855 and what is brought under Section 110-B o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version