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2005 DIGILAW 8 (HP)

LEELA DEVI v. NARINDER PAL SINGH

2005-01-07

DEEPAK GUPTA

body2005
JUDGMENT Deepak Gupta, J.—This appeal has been filed by the parents of deceased, Ganesh Kumar, who died in an accident on 10.3.1992. The deceased was on his bicycle when he was hit by Scooter No. CH-01-B- 4255. He succumbed to the injuries sustained by him in the accident. Thereafter a claim petition was filed by the appellants for grant, of compensation. The tribunal has come to the conclusion that the just and equitable compensation payable is only Rs. 29,000/-, but has awarded Rs. 50,000/-, i.e. the minimum amount which can be awarded as no fault liability under Section 150 of the Motor Vehicles Act. 2. Learned Counsel for the appellants has vehemently contended that the amount of compensation granted is extremely meagre and the tribunal has not taken into consideration the future earning prospects of the deceased. The appellants submit that the compensation should be awarded in consonance with the judgments of the apex Court in Lata Wadhwa and others v. State of Bihar, (2001) 8 SCC 197 and M.S. Grewal and another v. Deep Chand Sood and others (2001) 8 SCC 151. 3. In Lata Wadhwas case the Supreme Court was dealing with cases relating to the death of the children of the employees of TISCO. Justice Y.V. Chandrachud, former Chief Justice of India, was appointed by the Court to determine the compensation and the Supreme Court in cases of children between the ages of 10 and 15 awarded a sum of Rs. 4/10,000/ - out of which Rs. 3,60,000/- was for loss of monetary benefits and Rs. 50,000/- as additional sum. It would be .pertinent to mention that the judgment of the Supreme Court is based on totally different facts. In that case it had been proved that in TISCO there was a tradition that every employee could get one of his children employed in the Company. It was under these circumstances that the loss of dependency was taken at Rs. 24,000/- per month. This cannot apply as uniform rule in all the cases and each case has to be decided on its own facts. In the present case there is no evidence to show as to what the deceased who was a student of class 8 and aged about 13 years would have earned, in future. 4. Similarly the ratio of M.S. Grewals case is also not applicable because there compensation of Rs. In the present case there is no evidence to show as to what the deceased who was a student of class 8 and aged about 13 years would have earned, in future. 4. Similarly the ratio of M.S. Grewals case is also not applicable because there compensation of Rs. 5,00,000/- per child was awarded on lumpsum basis. In fact in para 31 the Supreme Court has noticed that a number of cases were cited before it wherein quantum granted was between Rs. 50,000 to Rs. 1,50,000/-. Relying upon Lata Wadhwas case the Supreme Court upheld the judgment of the High Court whereby it had awarded Rs. 5,00,000 to the parents of each child. This judgment was given in the peculiar facts of the case wherein number of minor students of the school who were taken to picnic died due to negligence of teachers who were supposed to look after them. It is in the factual situation of the said case that the award of Rs. 5,00,000/- has been made. 5. Even while holding that the judgment of the apex Court in these two cases cannot be applied straightway for the grant of compensation, one has to take into consideration the law laid down by the Supreme Court in Haji Zainullah Khan (dead) by LRs v. Nagar Mahapalika, Allahabad (1994 ACJ 993), G.M. Kerala SRTC v Siisamma Thomas (1994) 2 SCC 176 and U.P. State Road Transport Corporation and others v. Trilok Chandra and others (1996) 4 SCC 362. In Susammas case the apex Court observed as under:— "The multiplier method involves the ascertainment of the loss of dependency or the multiplicand having regard to the circumstances of the case and capitalizing the multiplicand by an appropriate multiplier. The choice of the multiplier is determined by the age of the deceased (or that of the claimants whichever is higher) and by the calculation as to what capital sum, if invested at a rate of interest appropriate to a stable economy, would yield the multiplicand by way of annual interest. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed-up over the period for which the dependency is expected to last." 6. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed-up over the period for which the dependency is expected to last." 6. This was approved by the Supreme Court again in Trilok Chandras case and it was held as under:— "We thought it necessary to reiterate the method of working out just compensation because, of late, we have noticed from the awards made by tribunals and Courts that the principle on which the multiplier method was developed has been lost sight of and once again a hybrid method based on the subjectivity of the Tribunal/ Court has surfaced, introducing uncertainty and lack of reasonable uniformity in the matter of determination of compensation. It must be realized that the Tribunal/Court has to determine a fair amount of compensation awardable to the victim of an accident which must be proportionate to the injury caused/ 7. The approach of the tribunal, to say the least, is pedantic. It is impossible to estimate the magnitude of calamity that has fallen on the parents. All the joy of their life has been taken away by this tragedy. No amount of money can bring back to the helpless parents their dead son. It will take a lot of time for the intensity and finality of the loss to dawn upon the parents. The law at best can provide relief, in the only manner known to it namely in financial terms. However, niceties of calculations can help us only to a point. 8. It is no doubt true that in cases of very young children, no basis exist for estimating the future pecuniary benefits which the parents could be said to have lost by the death. The prospects of employment and of financial assistance to the parents who look up to their dutiful children for such assistance are remote in future and any estimate has to be, by its intrinsic nature, speculative. Such an estimate of chances of future monetary contribution to the parents are based on the earning of the deceased and other myriad uncertainties and imponderables of the future. 9. In cases of children one aspect is also to be kept in mind that it is normally children who belong to the lower middle class and poorer section of the society, who render financial assistance to their parents. 9. In cases of children one aspect is also to be kept in mind that it is normally children who belong to the lower middle class and poorer section of the society, who render financial assistance to their parents. Children of the parents in fact inherit the wealth of the parents and are usually not required to render financial assistance to them. Where there is more than one child, the parents cannot be exclusively depending on one child. They may provide emotional help, but this is not taken into account while considering the compensation under the Motor Vehicles Act. 10. While calculating the compensation in the case of a child the Court has to balance the equities. All children are not necessarily dutiful. However, keeping in view the Indian family system, it is expected of a child to look after his parents. Some times this hope may not be fulfilled. Children go and fettle in abroad. Some children settle within India, but at a distant places. Sometimes it is the children who are dependant on the parents as long as the parents are alive. However, we have to go by conventional wisdom and the award has to be made on conventional basis. 11. The Supreme Court in Haji Zainullah Khans case (1994 ACJ 993) while dealing with the death of a 20 years old young boy awarded Rs. 50,000/-. A Division Bench of this Court in H.R.T.C. v. Bimla Devi (2000 ACJ 959) where parents aged 42 and 37 years claimed compensation for the death of a 14 years old boy were awarded Rs. 84,000/-. 12. After the amendment of the Motor Vehicles Act, 1988 in the year 1994 Section 163-A has been added. According to this Section, compensation is payable as per the structured formula keeping in view the age of the deceased. 13. This Court is not unmindful of the fact that the apex Court in U.P. State Road Transport Corporation and others v. Trilok Chandra and others, (1996) 4 SCC 362, has cautioned that the table which is the second schedule attached to the Motor Vehicles Act is full of errors. However, the apex Court has also laid down that the said table can be used as a good guide for fixing the multiplier. 14. However, the apex Court has also laid down that the said table can be used as a good guide for fixing the multiplier. 14. Even if the provisions of Section 163-A are not applicable in a particular case, such as the present one where the accident had occurred prior to the amendment, the structured formula can be made a basis for award of compensation, especially in case of children where it is very difficult to assess what their future income would be. 15. A Division Bench of Calcutta High Court in Fatama Matul Bibi and another v. Oriental Insurance Co. Ltd. and another, (2003 ACJ 365) after taking into consideration number of decisions has held that the structured formula is a safe guideline for arriving at the amount of compensation payable when the victim is the child. 16. Now coming to the facts of the present case. The mother of the deceased was 42 years old. The parents have four other children. The father of the deceased is an Instructor in the I.T.I, and the other sibling are all studying. Keeping in view all the relevant facts, future earning of the deceased can be assessed at about Rs. 2,500/- per month and the contribution towards the parents at Rs. 800/- per month or Rs. 9,600/- per year. The multiplier applicable in this case, keeping in view the age of the parents and the age of the deceased, would be 15. The compensation on this account comes to Rs. 1,44,000/-. In addition to this the claimants are entitled to conventional damages and funeral expenses etc. at Rs. 6,000/- and compensation is enhanced to Rs. 1,50,000/-. The appeal is allowed in the aforesaid terms and the compensation is enhanced from Rs. 50,000/- to Rs. 1,50,000/-. The respondents are jointly and severally liable to pay the compensation. Since the vehicle was insured with respondent No. 3, it is liable to pay and deposit the said amount. The claimants are also held entitled to interest on the enhanced amount at the rate of 9% per annum w.e.f. 30.6.1992, the date of institution of the petition. In case the amount is not paid to the claimants or deposited within 2 months from today the rate of interest shall stand enhanced to 12% per annum w.e.f. today. The appeal is disposed of in the aforesaid terms. No costs. Appeal allowed.