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TMI Blog2019 (4) TMI 1930X X X X Extracts X X X X X X X X Extracts X X X X ..... ana has allowed the appeal for enhancement of compensation filed by the claimants and has modified the common award dated 27.01.2000 as made by the Motor Accident Claims Tribunal, Chandigarh in MACT Case Nos. 80 of 1996 and 84 of 1996 that were filed respectively by the parents and by the wife and children of the deceased Shri Rajpal Singh Johal. 3. In the impugned judgment and order dated 06.07.2018, the High Court has made upward revision of the amount of compensation awarded by the Tribunal and, in place of the amount of Rs. 37,71,000/- together with interest @ 12% p.a. as awarded by the Tribunal, the High Court has awarded a sum of Rs. 48,00,000/- together with interest @ 7.5% p.a. from the date of filing of the claim petition till the date of realisation. The High Court has allowed this enhancement essentially with reference to the principles enunciated by this Court in National Insurance Company Ltd. v. Pranay Sethi & Ors.: 2017 ACJ 2700 (SC) and in Sarla Verma and Ors. v. Delhi Transport Corporation and Anr.: 2009 ACJ 1298 (SC). 4. In these appeals, on one hand, the insurer of the offending vehicle has questioned the quantum of compensation so awarded, basically on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same, these two claim petitions were consolidated, and were tried and decided together by way of the common award dated 27.01.2000. 5.3. Before the Tribunal, driver of the offending vehicle remained ex parte while its owner denied any negligence on part of the driver and rather alleged that the accident occured due to rash and negligent driving by the deceased. On the other hand, insurer of the offending vehicle denied the factum of the accident and also alleged that the driver of the offending vehicle did not possess a valid driving license. 5.4. On the pleadings, the Tribunal framed as many as 9 issues. After taking evidence, the Tribunal proceeded to determine the relevant issues in its impugned award dated 27.01.2000. The Tribunal decided the basic issues relating to the factum of accident and the responsibility for the same against the non-applicants while holding that the accident in question occurred due to rash and negligent driving of the offending oil tanker. The Tribunal also held that the wife and children of the deceased were dependent on him and further that the parents were marginally dependent on him. 5.5. On the question of quantification of compensation, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of pay-scale in the year 1996. The High Court, therefore, took the base annual emoluments at Rs. 3,21,801.60 and, while deducting Rs. 20,000/- towards income-tax, rounded off the figure to Rs. 3,00,000/-. The High Court, thereafter, provided for enhancement of 40% towards future prospects and then, looking to five number of dependents, deducted one-fourth towards personal expenses of the deceased. In this manner, the High Court arrived at the multiplicand of Rs. 3,15,000/- and, while applying the multiplier of 15 in view of the age of the deceased at 38 years, worked out the pecuniary loss at Rs. 47,25,000/-. The High Court further awarded Rs. 40,000/- towards loss of consortium, Rs. 15,000/- towards funeral expenses and Rs. 15,000/- towards loss to estate. Accordingly, the High Court assessed the total compensation at Rs, 47,95,000/- and rounded it up to Rs. 48,00,000/-. The High Court, however, allowed interest at the rate of 7.5% p.a., while holding that the respondents related with the offending vehicle were liable to make payment of compensation. As regards apportionment, the High Court allowed a sum of Rs. 26,00,000/- to the wife of the deceased; Rs. 8,00,000/- to the son of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns trite, and need not be over-emphasised, that while dealing with the question of quantification in a claim for compensation under the Motor Vehicles Act, 1988 ('the Act of 1988'), the endeavor has to be to ensure awarding of just compensation to the claimant/s. In Shashi Sharma (supra), this Court reiterated on the basics regarding meaning of the expression "just" in the context of the Act of 1988 in the following:- "17. ........ the term "compensation" has not been defined in the 1988 Act. By interpretative process, it has been understood to mean to recompense the claimants for the possible loss suffered or likely to be suffered due to sudden and untimely death of their family member as a result of motor accident. Two cardinal principles run through the provisions of the Motor Vehicles Act of 1988 in the matter of determination of compensation. Firstly, the measure of compensation must be just and adequate; and secondly, no double benefit should be passed on to the claimants in the matter of award of compensation. Section 168 of the 1988 Act makes the first principle explicit. Sub-section (1) of that provision makes it clear that the amount of compensation must be just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax. 59.4. In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component. 59.5. For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paras 30 to 32 of Sarla Verma which we have reproduced hereinbefore. 59.6. The selection of multiplier shall be as indicated in the Table in Sarla Verma read with para 42 of that judgment. 59.7. The age of the deceased should be the basis for applying the multiplier. 59.8. Reasonable figures on conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and contribution to the family will be taken as two-third. ***** ***** ***** 42. We therefore hold that the multiplier to be used should be as mentioned in Column (4) of the Table, which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for 26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years, and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years." 10. Applying the principles aforesaid to the present case, we find that the award made by the Tribunal suffered from a few fundamental errors and shortcomings as regards the assessment of multiplicand. The Tribunal, instead of taking the last drawn emoluments of the deceased, chose to proceed on his enhanced projected emoluments after the expected promotion and pay revision. However, thereafter, the Tribunal did not provide for any further future prospects. The Tribunal also did not make any deduction towards the tax component. Moreover, the Tribunal deducted one-third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006') whereunder, on the death of a government employee, the family would continue to receive as financial assistance a sum equal to the pay and other allowances that was last drawn by the deceased employee for periods specified in the Rules and after the said period, the family would be entitled to receive family pension. The family would also be entitled to retain the government accommodation for a period of one year in addition to payment of Rs. 25,000/- as ex gratia1. 1 Rule 5 of the Rules of 2006 taken into consideration in Shashi Sharma's case had been as under: "5. Criteria for financial assistance.- (1) On the death of any government employee, the family of the employee would continue to receive as financial assistance a sum equal to the pay and other allowances that was last drawn by the deceased employee in the normal course without raising a specific claim- (a)for a period of fifteen years from the date of death of the employee, if the employee at the time of his death had not attained the age of thirty-five years; (b) for a period of twelve years or till the date the employee would have retired from government service on attaining the age of superannuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, the 'pecuniary advantage' from whatever source must correlate to the injury or death caused on account of motor accident. The view so taken is the correct analysis and interpretation of the relevant provisions of the Motor Vehicles Act of 1939, and must apply proprio vigore to the corresponding provisions of the Motor Contd.. ...contd. (4) Within fifteen days from the date of death of a government employee, an ex gratia assistance of twenty-five thousand rupees shall be provided to the family of the deceased employee to meet the immediate needs on the loss of the bread earner. (5) House rent allowance shall not be a part of allowance for the purposes of calculation of assistance." Vehicles Act, 1988. This principle has been re-stated in the subsequent decision of the two-Judge Bench in Patricia Jean Mahajan's case, 2002 ACJ 1441 (SC), to reject the argument of the insurance company to deduct the amount receivable by the dependants of the deceased by way of 'social security compensation' and 'life insurance policy'." However, while dealing with the scheme the court held that applying a harmonious approach and to determine a just compensati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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