Managing Director Tamil Nadu State Transport Corporation Limited v. Lisy
2011-03-01
P.P.S.JANARTHANA RAJA
body2011
DigiLaw.ai
Judgment :- 1. When the matter came up for admission, the same was opposed by the learned counsel appearing for caveators and by consent, the matter was taken up for final disposal. 2. The appeal is preferred by the appellant-Transport Corporation against the award dated 22.06.2010 made in MCOP.No.708 of 2009 on the file of the Motor Vehicles Accidents Claims Tribunal, Principal District Judge, Salem. 3. Background facts in a nutshell are as follows: The deceased Moorthi met with a Motor Traffic Accident on 10.01.2009 at about 05.30 hours. The said deceased Moorthi was walking along with his son on the left side of the mud road in Attur - Salem Main road, and when they were nearing Chakradevi Spinning Mills, Karumapuram, at that time, a bus bearing registration number TN-30-N-0054 belonging to the appellant transport corporation came from back side, in a rash and negligent manner and hit the deceased Moorthi. Due to the same, the deceased sustained head injuries and immediately he was taken to the Government Hospital, Salem and he died on the same day. The claimants are wife, son, daughter and parents of the deceased and they claimed compensation of Rs.15,00,000/-. The appellant transport Corporation resisted the claim. On pleadings, the Tribunal framed the following issues:- "1. Whether the accident occurred due to the rash and negligent driving of the bus bearing registration number TN-30-N-0054? 2. Whether the petitioners are entitled to any compensation and if so, what is the quantum of amount payable to them? After considering the oral and documentary evidence, the Tribunal held that the accident had occurred only due to rash and negligent driving of the driver of the bus and awarded a compensation of Rs.5,70,000/- with interest at 7.5% per annum from the date of the claim petition and the details of the same are as under:- Loss of income to the family:Rs.5,40,000/- Funeral expenses :Rs. 5,000/- Loss of love and affection: Rs. 25,000/- -------------- Total...Rs.5,70,000/- -------------- Aggrieved by that award, the appellant-Transport Corporation has filed the present appeal. 4. The learned counsel appearing for the appellant/Transport Corporation has questioned only the quantum of compensation awarded by the Tribunal by contending that the amount awarded by the Tribunal is excessive, exorbitant, without basis and justification.
5,000/- Loss of love and affection: Rs. 25,000/- -------------- Total...Rs.5,70,000/- -------------- Aggrieved by that award, the appellant-Transport Corporation has filed the present appeal. 4. The learned counsel appearing for the appellant/Transport Corporation has questioned only the quantum of compensation awarded by the Tribunal by contending that the amount awarded by the Tribunal is excessive, exorbitant, without basis and justification. He further submitted that the Tribunal has awarded a sum of Rs.5,40,000/-towards loss of dependency, which is on the higher side and the interest awarded at the rate of 7.5% per annum is also on the higher side and that therefore, the award passed by the Tribunal is not in accordance with law and the same has to be set aside. 5. Learned counsel appearing for the respondents/claimants submitted that the Tribunal had considered all the relevant materials and evidence on record and came to the right conclusion and awarded a just, fair and reasonable compensation. It is based on valid materials and it is not a perverse order. Hence the order of the Tribunal is in accordance with law and the same has to be confirmed. 6. Heard the learned counsel and perused the materials available on record. On the side of the claimants, PWs.1 and PW.2 were examined and documents Exs.P1 to P4 were marked. On the side of the respondents, one Mr.K.Chandran, conductor of the bus was examined as RW.1 and no document was marked to substantiate their claim. PW1 is the wife of the deceased Moorthi. PW2 Manoj is the eye witness to the accident and also son of the deceased. Ex.P1 is the copy of the First Information Report. Ex.P2 is the Postmortem certificate. Ex.P3 is the Death Certificate of Moorthi. Ex.P4 is the copy of Legal Heirship Certificate. After considering the above oral and documentary evidence, the Tribunal had given a categorical finding that the accident had occurred only due to the rash and negligent driving of the driver of the bus and the finding is based on valid materials and evidence. It is a question of fact and the same is confirmed. 7. In the case of SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows: "7.
It is a question of fact and the same is confirmed. 7. In the case of SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows: "7. Before considering the questions arising for decision, it would be appropriate to recall the relevant principles relating to assessment of compensation in cases of death. Earlier, there used to be considerable variation and inconsistency in the decisions of Courts Tribunals on account of some adopting the Nance method enunciated in Nance V. British Columbia Electric Rly. Co. Ltd. (1951) AC 601 and some adopting the Davies method enunciated in Davies V. Powell Duffryn Associated Collieries ltd., (1942) AC 601. The difference between the two methods was considered and explained by this Court in General Manager, Kerala State Road Transport Corporation Vs. Susamma Thomas AIR 1994 SC 1631 : (1994) 2 SCC 176 . After exhaustive consideration, this Court preferred the Davies method to Nance method. We extract below the principles laid down in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra). "In fatal accident action, the measure of damage is the pecuniary loss suffered and is likely to be suffered by each dependent as a result of the death.
After exhaustive consideration, this Court preferred the Davies method to Nance method. We extract below the principles laid down in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra). "In fatal accident action, the measure of damage is the pecuniary loss suffered and is likely to be suffered by each dependent as a result of the death. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables, e.g., the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have live or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether." "The manner of arriving at the damages is to ascertain the net income of the deceased available for the support of himself and his dependants, and to deduct therefrom such part of his income as the deceased was accustomed to spend upon himself, as regards both self-maintenance and pleasure, and to ascertain what part of his net income the deceased was accustomed to spend for the benefit of the dependants. Then that should be capitalised by multiplying it by a figure representing the proper number of year’s purchase." "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." "It is necessary to reiterate that the multiplier method is logically sound and legally well-established.
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." "It is necessary to reiterate that the multiplier method is logically sound and legally well-established. There are some cases which have proceeded to determine the compensation on the basis of aggregating the entire future earnings for over the period the life expectancy was lost, deducted a percentage therefrom towards uncertainties of future life and award the resulting sum as compensation. This is clearly unscientific. For instance, if the deceased was, say 25 years of age at the time of death and the life expectancy is 70 years, this method would multiply the loss of dependency for 45 years— virtually adopting a multiplier of 45 — and even if one-third or one-fourth is deducted therefrom towards the uncertainties of future life and for immediate lump sum payment, the effective multiplier would be between 30 and 34. This is wholly impermissible." In UP State Road Transport Corporation V. Trilok Chandra (1996) 4 SCC 362 , this Court, while reiterating the preference to Davies method followed in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra), stated thus: "In the method adopted by Viscount Simon in the case of Nance also, first the annual dependency is worked out and then multiplied by the estimated useful life of the deceased. This is generally determined on the basis of longevity. But then, proper discounting on various factors having a bearing on the uncertainties of life, such as, premature death of the deceased or the dependent, remarriage, accelerated payment and increased earning by wise and prudent investments, etc., would become necessary. It was generally felt that discounting on various imponderables made assessment of compensation rather complicated and cumbersome and very often as a rough and ready measure, one-third to one-half of the dependency was reduced, depending on the life span taken. That is the reason why courts in India as well as England preferred the Davies formula as being simple and more realistic. However, as observed earlier and as pointed out in Susamma Thomas case, usually English courts rarely exceed 16 as the multiplier. Courts in India too followed the same pattern till recently when tribunals/courts began to use a hybrid method of using Nance method without making deduction for imponderables.....
However, as observed earlier and as pointed out in Susamma Thomas case, usually English courts rarely exceed 16 as the multiplier. Courts in India too followed the same pattern till recently when tribunals/courts began to use a hybrid method of using Nance method without making deduction for imponderables..... Under the formula Advocated by Lord Wright in Davies, the loss has to be ascertained by first determining the monthly income of the deceased, then deducting therefrom the amount spent on the deceased, and thus assessing the loss to the dependants of the deceased. The annual dependency assessed in this manner is then to be multiplied by the use of an appropriate multiplier"(emphasis supplied) 8. In the case of SYED BASHEER AHAMED AND OTHERS VS. MOHAMMED JAMEEL AND ANOTHER reported in (2009) 2 Supreme Court Cases 225, the Apex Court has held as follows: "13. Section 168 of the Act enjoins the Tribunal to make an award determining “the amount of compensation which appears to be just”. However, the objective factors, which may constitute the basis of compensation appearing as just, have not been indicated in the Act. Thus, the expression “which appears to be just” vests a wide discretion in the Tribunal in the matter of determination of compensation. Nevertheless, the wide amplitude of such power does not empower the Tribunal to determine the compensation arbitrarily, or to ignore settled principles relating to determination of compensation. 14. Similarly, although the Act is a beneficial legislation, it can neither be allowed to be used as a source of profit, nor as a windfall to the persons affected nor should it be punitive to the person(s) liable to pay compensation. The determination of compensation must be based on certain data, establishing reasonable nexus between the loss incurred by the dependants of the deceased and the compensation to be awarded to them. In a nutshell, the amount of compensation determined to be payable to the claimant(s) has to be fair and reasonable by accepted legal standards. 15. In Kerala SRTC v. Susamma Thomas, M.N. Venkatachaliah, J. (as His Lordship then was) had observed that: (SCC p.181, para 5) “5. … The determination of the quantum must answer what contemporary society ‘would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his neighbours and say with their approval that he has done the fair thing’.
… The determination of the quantum must answer what contemporary society ‘would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his neighbours and say with their approval that he has done the fair thing’. The amount awarded must not be niggardly since the ‘law values life and limb in a free society in generous scales’.” At the same time, a misplaced sympathy, generosity and benevolence cannot be the guiding factor for determining the compensation. The object of providing compensation is to place the claimant(s), to the extent possible, in almost the same financial position, as they were in before the accident and not to make a fortune out of misfortune that has befallen them. 18. The question as to what factors should be kept in view for calculating pecuniary loss to a dependant came up for consideration before a three-Judge Bench of this Court in Gobald Motor Service Ltd. v. R.M.K. Veluswami, with reference to a case under the Fatal Accidents Act, 1855, wherein, K. Subba Rao, J. (as His Lordship then was) speaking for the Bench observed thus: (AIR p.1) “In calculating the pecuniary loss to the dependants many imponderables enter into the calculation. Therefore, the actual extent of the pecuniary loss to the dependants may depend upon data which cannot be ascertained accurately, but must necessarily be an estimate, or even partly a conjecture. Shortly stated, the general principle is that the pecuniary loss can be ascertained only by balancing on the one hand the loss to the claimants of the future pecuniary benefit and on the other any pecuniary advantage which from whatever source comes to them by reason of the death, that is, the balance of loss and gain to a dependant by the death must be ascertained.” 19. Taking note of the afore extracted observations in Gobald Motor Service Ltd. in Susamma Thomas it was observed that: (Susamma Thomas case, SCC p.182, para 9) “9.
Taking note of the afore extracted observations in Gobald Motor Service Ltd. in Susamma Thomas it was observed that: (Susamma Thomas case, SCC p.182, para 9) “9. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables e.g.the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have lived or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether.” 20. Thus, for arriving at a just compensation, it is necessary to ascertain the net income of the deceased available for the support of himself and his dependants at the time of his death and the amount, which he was accustomed to spend upon himself. This exercise has to be on the basis of the data, brought on record by the claimant, which again cannot be accurately ascertained and necessarily involves an element of estimate or it may partly be even a conjecture. The figure arrived at by deducting from the net income of the deceased such part of income as he was spending upon himself, provides a datum, to convert it into a lump sum, by capitalising it by an appropriate multiplier (when multiplier method is adopted). An appropriate multiplier is again determined by taking into consideration several imponderable factors. Since in the present case there is no dispute in regard to the multiplier, we deem it unnecessary to dilate on the issue." After considering the principles enunciated in the judgments cited supra, let me consider the facts of the present case. 9. The age of the deceased Moorthi was 40 years, at the time of the accident. Ex.P2 is the Postmortem certificate, in which also it is mentioned that the age of the deceased was 40 years. Therefore, the Tribunal fixed the age of the deceased as 40 years at the time of the accident.
9. The age of the deceased Moorthi was 40 years, at the time of the accident. Ex.P2 is the Postmortem certificate, in which also it is mentioned that the age of the deceased was 40 years. Therefore, the Tribunal fixed the age of the deceased as 40 years at the time of the accident. In the evidence of PW.1, it is stated that the deceased Moorthi was working as Canteen Master in Hatson Agro Products Ltd., Karumapuram and earning a sum of Rs.7,500/- per month. But no documentary evidence was filed to support the same. After considering the facts and circumstances of the case, the Tribunal fixed the monthly income of the deceased at Rs.4,500/-. Out of the said sum, 1/3rd amount, viz., Rs.4,500 x 1/3 = Rs.1,500/- has been deducted towards personal expenses. The balance of Rs.3,000/- is the monthly contribution to the Family and Rs.36,000/-(Rs.3,000/- X 12) is the annual contribution. The Tribunal, after taking into consideration the age of the deceased Moorthi as 40 years at the time of the accident, has adopted the multiplier of 15 and arrived the loss of dependancy at Rs.5,40,000/- (Rs.36,000 x 15= Rs.5,40,000/-). The learned counsel for the appellant contended that the Tribunal ought not to have fixed Rs.4,500/- as monthly income, in the absence of any documentary evidence. Hence, it is reasonable to fix the monthly income at Rs.4,000/-and annual income works out to Rs.48,000/- and out of Rs.48,000/-, 1/3rd amount, viz., Rs.16,000/- (Rs.48,000 x 1/3 ) is deducted towards personal expenses, and the balance sum of Rs.32,000/- is taken as the annual contribution to the family. After considering the age of the deceased as 40 years at the time of the accident, the Tribunal has correctly adopted the multiplier of 15 as per the Schedule. Therefore, the loss of income to the family works out as follows : - Rs.32,000/- x 15 = Rs.4,80,000/- Therefore, the claimants are entitled to modified compensation of Rs.4,80,000/- as against Rs.5,40,000/- awarded by the Tribunal. The Tribunal also awarded a sum of Rs.5,000/- towards funeral expenses, which is reasonable and the same is confirmed. No amount was awarded by the Tribunal for loss of consortium. The age of the wife was 35 years at the time of the accident. Hence, it is reasonable to award a sum of Rs.15,000/- towards loss of consortium.
The Tribunal also awarded a sum of Rs.5,000/- towards funeral expenses, which is reasonable and the same is confirmed. No amount was awarded by the Tribunal for loss of consortium. The age of the wife was 35 years at the time of the accident. Hence, it is reasonable to award a sum of Rs.15,000/- towards loss of consortium. The Tribunal has awarded a sum of Rs.25,000/- towards loss of love and affection, which I feel is very low and meagre. The age of son of the deceased was 21 years, daughter was 19 years, father was 65 years and mother was 58 years at the time of accident and filing of the petition. Children lost their father's love and affection and parents also lost their son's love and affection. Hence, it is reasonable to award a sum of Rs.30,000/- towards love and affection as against Rs.25,000/- awarded by the Tribunal. The Tribunal has fixed the rate of interest at 7.5% p.a from the date of petition. The date of accident is 10.01.2009. Keeping in view the prevailing rate of interest at the time of the accident, the rate of interest awarded by the Tribunal is also reasonable and the same is confirmed. The details of the modified compensation as per the above discussion are as under:- Loss of income Rs.4,80,000/- Funeral Expenses Rs. 5,000/- Loss of consortium Rs. 15,000/- Loss of love and affection Rs. 30,000/- ------------- Total Rs.5,30,000/- ------------- Therefore, the claimants are entitled to the modified compensation of Rs.5,30,000/- as against the compensation of Rs.5,70,000/- awarded by the Tribunal, with interest at the rate of 7.5% per annum from the date of the petition. 10. In these circumstances, the appellant-Transport Corporation is directed to deposit the modified compensation of Rs.5,30,000/- with interest at the rate of 7.5% p.a from the date of petition, less the amount already deposited if any, within a period of eight weeks from the date of receipt of a copy of this order. On deposit of the same, the claimants are permitted to withdraw their respective shares with interest, as apportioned by the Tribunal, less the amount already withdrawn, on making proper application. 11. With the above modification, the Civil Miscellaneous Appeal is disposed of. Consequently, connected Miscellaneous Petition is closed. No costs.