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2016 DIGILAW 500 (ORI)

PRIYATAMA SWAIN v. RAMA PRUSTY

2016-07-11

BISWANATH RATH

body2016
JUDGMENT : Biswanath Rath, J. - Both the appeals are directed against the award passed by the 1st M.A.C.T., Jagatsinghpur in M.A.C. No. 15 of 2012. Both the appeals are heard together and decided by this common judgment. 2. M.A.C.A. No. 1213 of 2014 is at the instance of the claimants challenging the quantum of compensation awarded by the 1st M.A.C.T., Jagatsinghpur in M.A.C. No. 15 of 2012 in favour of the appellants therein whereas the M.A.C.A. No. 66 of 2015 is at the instance of the National Insurance Co. Ltd.-respondent No. 2 in M.A.C. No. 15 of 2012 assailing the very same award on the premises of being excess. 3. Facts as narrated in the appeals are that on 31.12.2011 at about 11 P.M. for rash and negligent driving of the driver of the offending bus bearing registration No.OR-05-G-3199, there occurred an accident involving the deceased who was pulling on a motorcycle having no petrol, in the left side of the road near O.M.P. Square, Cuttack. For sustaining severe injuries, the injured was shifted to SCB Medical College, Cuttack for treatment where, he was declared dead. Basing upon some information, the local Police initiated a case bearing Chauliaganj P.S. Case No. 01/12. For loss of life of the bachelor son of Appellant No. 1, mother and brother of the deceased-appellant No. 2 as claimants filed an application under Section 166 of the M.V. Act claiming compensation of Rs. 30,00,000/- (Rupees Thirty Lakhs only). The claimants in the claim application claimed that at the time of death the deceased was about 25 years old and he was working as a FMS Engineer at Kartavya Consultant Private Ltd., Sahid Nagar, Bhubaneswar. It is claimed that he was earning Rs. 12,073/- as salary. 4. On its appearance the Insurance Company-respondent No. 2 in M.A.C.A Case No. 1213 of 2014 and the appellant in M.A.C.A. Case No. 66 of 2015 by filing an objection while denying all the averments of the claimants, asked the claimants for production of some documents for proving of the age, income and employment of the deceased. The Insurance Company also called upon some document from the claimants to prove the accident, involvement of the vehicle and also the death of the deceased in the said accident. The Insurance Company also called upon some document from the claimants to prove the accident, involvement of the vehicle and also the death of the deceased in the said accident. The Insurance Company also prayed to direct the owner of the vehicle to produce the D.L. of the driver, rout permit, document of the vehicle and on failure of which requested the Tribunal to draw adverse inference. Similarly, the owner on its appearance filed a separate written statement denying all the allegations against it and at the same time pleaded that the accident took place due to the fault of the deceased, he also admitted that at the time of accident and place, the driver had a valid and effective driving license vide DL No. OR0519860203819 issued by the Licensing Authority, Cuttack and the same was valid till 12.06.2012 with a valid batch of the driver vide No. 69. The owner in the Court below also claimed that the vehicle was also insured at the relevant point of time. 5. Basing upon the pleadings of the respective parties, the Tribunal framed the following points for determination:- "1. Whether the M.A.C. case is maintainable or not. 2. Whether due to rash and negligent driving of the Driver of the vehicle bearing Regd. No.OR-05-G-3199 (Offending Bus) the accident took place. 3. Whether due to that accident one succumbed to the injuries. 4. Whether the O.Ps or any of the O.P. is liable to pay compensation. 5. To what other relief or reliefs the petitioners are entitled to." 6. The claimants examined three witnesses including the claimant No. 1 as P.W.1 and they have also exhibited eight documents in proof of their case. On the other hand, the Insurance Company neither adduced any oral evidence nor filed any documentary evidence in support of its defense. The owner even though filed a written statement but abstained at the time of hearing. Considering the rival contentions of the respective parties and the materials available on record, Tribunal decided the issue Nos. 2 & 3 holding that the Insurance Company is liable to pay compensation for the negligent Act of the driver of the offending vehicle. Similarly, in deciding the issue No. 4, the Tribunal held that the claimants are entitled to compensation of Rs. 19,03,928.00/- (Rupees Ninteen lacs Three thousand nine hundred twenty eight only). Relying upon the documents vide Ext.Nos. 2 & 3 holding that the Insurance Company is liable to pay compensation for the negligent Act of the driver of the offending vehicle. Similarly, in deciding the issue No. 4, the Tribunal held that the claimants are entitled to compensation of Rs. 19,03,928.00/- (Rupees Ninteen lacs Three thousand nine hundred twenty eight only). Relying upon the documents vide Ext.Nos. 3 & 4, Tribunal found that the vehicle was fully insured and consequently, directed the Insurance Company to pay the compensation decided in the matter for the fault of the driver. In concluding the matter Tribunal while allowing the application, directed the Insurance Company to pay compensation of Rs. 19,04,000/- (Rupees Nineteen lacs and four thousand) only to the claimants and also further directed that out of the compensation amount a sum of Rs. 10,00,000/- (Rupees Ten lacs) only in the name of the appellant No. 1, Rs. 2,00,000/- (Rupees Two lacs) only in the name of the appellant No. 2 shall be kept in shape of fixed deposit in any Nationalized Bank for a period of six years without any mortgage or premature withdrawal benefit and the balance amount along with 7% interest per annum on the loss of income of the petitioners of Rs. 12,35,952/- shall be paid to the appellant No. 1 from the date of filing i.e. 1.02.2012 and the amount was directed to be paid within two months from the date of the order, failing which, the appellants were also granted liberty to realise the amount in due process of law along with penal interest. 7. In assailing the aforesaid award, the claimants as appellants in M.A.C.A. No.1213 of 2014 contended that they had a claim of Rs. 30,00,000/- (Rupees Thirty lacs) only but the Tribunal unfortunately granted a measurable amount of compensation to the tune of Rs. 19,04,000/- and consequently, claimed that the award is at a very lower side. These appellants further claimed that the Tribunal failed in accepting the gross salary of the deceased and the compensation has been calculated on the net salary of the deceased, which is not permissible in the eye of Law. Similarly, the appellants also claimed that the Tribunal has failed to appreciate the future prospect of 35 years of the deceased as an Engineer. It is also alleged that the amount granted towards love and affection is also at a lower side. Similarly, the appellants also claimed that the Tribunal has failed to appreciate the future prospect of 35 years of the deceased as an Engineer. It is also alleged that the amount granted towards love and affection is also at a lower side. Further, the Tribunal has also lost the sight of the provision contained in Section 147 (1)(b)(i) of the M.V. Act. 8. Similarly, the Insurance Company in filing the M.A.C.A. No. 66 of 2015 assailed the very same award being illegal, erroneous against the weight of evidence on record, the salary aspect of the deceased @Rs. 11,444/- per month without any documentary evidence and further in absence of any document to prove the salary particular. The Insurance Company also assailed the award on the premises that the award suffers for non-production of document by the claimants on the deceased's qualification being an Engineer. The Insurance Company further assailed the direction of the Tribunal on compensation on the head of funeral expenses and towards the loss of love and affection. The Insurance Company also assailed the award on the premises of the interest granted by the Tribunal, which is at a higher side and claimed that the rate of interest should have been @ 6% per annum from the date of award and not from the date of filing of claim application. 9. Heard. Considering the pleadings and submissions of the respective parties as well as the materials available on record, this Court finds that there is no denial to the fact that the claimants have suffered on account of death of the deceased. There is also no denial to the fact that the deceased was working as FMS Engineer at Kartavya Consultant Private Ltd., Sahid Nagar, Bhubaneswar. There is no denial to the fact that at the time of death, the deceased was aged about 25 years of age. From the rival contentions of the parties, it also clearly appears that there is no dispute with regard to the fact that the Driver of the offending vehicle was holder of a valid license and the offending bus was also having a valid Insurance Policy at the relevant point of time. From the rival contentions of the parties, it also clearly appears that there is no dispute with regard to the fact that the Driver of the offending vehicle was holder of a valid license and the offending bus was also having a valid Insurance Policy at the relevant point of time. This being the admitted situation and the only question remains to be considered in both the appeals is that as to whether the award of compensation as well as other benefits along with percentage of interest is proper or not. 10. Considering the sole issue involved in the matter, this Court finds that the claimants have a positive claim that the deceased was not only working as an Engineer but he was also earning a sum of Rs. 12,073/- per month. This claim of the claimants has been fully corroborated by P.W.3, who was holding an important post in the organisation engaged the deceased. There is no evidence to disprove such claim of the claimants. This Court further finds that the deceased-Engineer was drawing his gross salary of Rs. 12,073/- as clearly borne from the Xerox copy of the Bank account. Similarly, the Tribunal has also a clear finding on the age of the deceased at the time of death. From perusal of the evidence, this Court finds that the computation of compensation on the basis of net salary runs contra (2014) 15 SCC 65 . Consequently, this Court taking into consideration the age of the deceased, assessed the loss of income of the petitioners to a sum of Rs. 12073 X 12X18 = 26,07,768/-. Now coming to the question of deduction of personal expenses, this Court observes that the personal expenses of an individual cannot exceed ?rd of his earning and thus ?rd of his income should go to the family. Thus this Court takes out ?rd from the total loss of income and holds the loss of income to the petitioners would be Rs. 26,07,768/- - Rs. 8,69,256/- = Rs. 17,38,512/-. 11. Coming to the question of claimants' entitlement to Rs. Thus this Court takes out ?rd from the total loss of income and holds the loss of income to the petitioners would be Rs. 26,07,768/- - Rs. 8,69,256/- = Rs. 17,38,512/-. 11. Coming to the question of claimants' entitlement to Rs. 6,17,976/- towards future loss of income, objection is being raised by Sri Das, learned counsel for the Insurance Company that since the deceased was self employed, otherwise was on fixed salary without having any provision for annual increments, he was only entitled to compensation on loss of income and the grant of amount on account of Future prospect is inappropriate and in justifying its claim, learned counsel for the Insurance Company referred to the paragraph No.36 of a decision reported in 2013 AIR (SCW) 3120 in the case in between Reshma Kumari and Ors. v. Madan Mohan and another, this Court observed that the Hon'ble Apex Court in paragraph 36 of the said decision held as follows: "36. The standardisation of addition to income for future prospects shall help in achieving certainty in arriving at appropriate compensation. We approve the method that an addition of 50% of actual salary be made to the actual salary income of the deceased towards future prospects where prospects where the deceased had a permanent job and was below 40 years and the addition should be only 30% if the age of the deceased was 40 to 50 years and no addition should be made where the age of the deceased is more than 50 years. Where the annual income is in the taxable range, the actual salary shall mean actual salary less tax. In the cases where the deceased was self-employed or was on a fixed salary without provision for annual increments, the actual income at the time of death without any addition to income for future prospects will be appropriate. Where the annual income is in the taxable range, the actual salary shall mean actual salary less tax. In the cases where the deceased was self-employed or was on a fixed salary without provision for annual increments, the actual income at the time of death without any addition to income for future prospects will be appropriate. A departure from the above principle can only be justified in extraordinary circumstances and very exceptional cases." Thus, while observing that the position of Law on this aspect is well settled, this Court from the pleadings involved in the present case particularly keeping in view that the deceased was on a fixed salary employee, finds that the principle laid down in the above cited case is very much applicable to the present case and consequently, comes to hold that the claimants are not entitled to the benefit on account of future loss of income. Thus, the direction of the Tribunal for payment of Rs. 6,17,976/- towards future loss of income is hereby set-aside. 12. Now coming to decide on the question of funeral expenses as well as loss of love and affection @ Rs. 25,000/- on each account, this Court observes that there is no illegality in the grant of Rs. 25,000/- on the head of funeral expenses but following the recent decisions of the Hon'ble Apex Court as laid down in the case of Yerramma & Ors. v. G. Krishna Murthy & Anr. as reported in (2014) 15 SCC 65 , Civil Appeal No. 348-349 of 2015 in the case of Smt. Neeta W/o-Kallappa Kadolkar & Ors. v. The Divisional Manager, MSRTC, Kolhapur delivered on 13.01.2015 in the matter of loss on love and affection, this Court enhances the said head from Rs. 25,000/- to Rs. 50,000/- for both the claimants. Thus the claimants will be entitled to Rs. 12,35,952/- towards loss of income, Rs. 25,000/- towards funeral expenses and Rs. 50,000/- each towards loss of love and affection. Further finding that the claimants are suffering on account of death of the deceased since 31.12.2011, following the dictum of the Hon'ble Apex Court in Municipal Corporation of Delhi, Delhi v. Uphaar Tragedy Victims Association and others reported in (2011) 14 SCC 481 this Court also holds that the claimants will also be entitled to interest on all the above items at least @ 9% per annum allthrough. This Court also directs the National Insurance Company to release all the above amounts in 75/25 proportionate in favour of the claimants-the mother and the brother of the deceased within a period of one month from the date of this judgment. Failure of which the claimants will be entitled to recover the entire amount from the National Insurance Company with interest @ 10% for the delayed period. 13. Both the Appeals are disposed in terms of the direction contained herein above. Under the circumstances, there is no order as to cost. Final Result : Disposed Off