Shriram General Insurance Company Limited v. Veepna Devi
2018-03-19
SURESHWAR THAKUR
body2018
DigiLaw.ai
JUDGMENT : SURESHWAR THAKUR, J. 1. The instant appeal, as also, the claimants' cross objections, stand, directed against the award pronounced by the Learned Motor Accident Claims Tribunal (I), Kangra at Dharamshala, upon, claim petition bearing RBT MACP No.88-K/13/12, whereby, the learned Tribunal adjudged compensation vis-a-vis, the LRs of deceased Tarlok Chand, who met his end, in an accident caused, by the rash negligent driving of the offending vehicle, by one Jaspal Singh(respondent No.6 herein). The quantum, of, compensation amount adjudged thereunder vis-a-vis the legal heirs, of deceased Tarlok Chand, is, constituted in a sum of Rs.23,64,648/-, and, interest at the rate of 7.5% per annum, is, levied thereon, accrual thereof is ordered to commence, from, the date of petition, uptill, its deposit. The compensation amount has been apportioned, amongst, the claimants in the hereafter extracted manner:- “Petitioner No.1, being entitled to 40% amount along with proportionate interest and the remaining amount with proportionate interest shall fall in equal shares of the petitioners No.2 to 4.” Obviously indemnificatory liability thereof, has been fastened, upon the insurer/appellant herein. 2. The learned counsel appearing, for the appellant/insurer, (i) does not contest, the tenability of affirmative findings recorded by the learned Tribunal, upon the issue appertaining to the demise of one Tarlok Chand, being a sequel of rash and negligent driving, of, the offending vehicle by respondent No.6 herein, (ii) nor he contests the fastening of the apposite indemnificatory liability(ies), upon the insurer. His trite contention, for making a challenge upon the impugned award, is with respect, to the learned Tribunal, arriving at a conclusion, of the per mensem salary of deceased Tarlok Chand, being borne in a sum of Rs.11,780/-, (iii) and, he contends that the aforesaid assessment of per mensem income, of, deceased Tarlok Chand, being not borne out by the evidence on record. (iv) Conspicuously with the making of or the authorship of EX.PW1/A remaining unproven. The aforesaid submission, is, blunted by PW- 5, during the course his examination-in-chief, rather making a vivid echoing, of, Ex.PW1/A, at circle “Z” hence carrying the signatures, of one Nitu Gill. The aforesaid testification remains unrebutted.
(iv) Conspicuously with the making of or the authorship of EX.PW1/A remaining unproven. The aforesaid submission, is, blunted by PW- 5, during the course his examination-in-chief, rather making a vivid echoing, of, Ex.PW1/A, at circle “Z” hence carrying the signatures, of one Nitu Gill. The aforesaid testification remains unrebutted. Consequently, reiteratedly there is no merit, in the submission of the counsel, for the insurer, that with the authorship of Ex.PW1/A, being not proven, hence no reliance being imputable vis-a-vis it, for making any conclusion qua, the per mensem salary of deceased Tarlok Chand, being constituted, in a sum of Rs.11,780/-. 3. Be that as it may, the learned Tribunal, in consonance, with the verdict, pronounced by the Hon'ble Apex Court, in case tilted as Sarla Verma vs. DTC, reported in (2009)6 SCC 121 , recorded a mandate, (i) of with the number of dependents of the deceased, being more than three, hence, 1/4th deduction from the proven salary of the deceased being meteable, (ii) thereupon, in the learned tribunal meteing ¼ deduction(s) vis-a-vis the per mensem, salary of Rs.11,780/-, is both appropriate and apt. 4. The deceased, is, in the postmortem report, reflected to be aged 42 years, at the relevant time. The learned counsel appearing, for the objectors/claimants, submits that, with the Hon'ble Apex Court, in case titled as National Insurance Co. Ltd. vs. Pranay Sethi and others, reported in 2017 ACJ 2700 , the relevant paragraph No.59 extracted hereinafter: “59.Having bestowed our anxious consideration, we are disposed to think when we accept the principle of standardization, there is really no rationale not to apply the said principle to the self-employed or a person who is on a fixed salary. To follow the doctrine of actual income at the time of death and not to add any amount with regard to future prospects to the income for the purpose of determination of multiplicand would be unjust. The determination of income while computing compensation has to include future prospects so that the method will come within the ambit and sweep of just compensation as postulated under Section 168 of the Act. In case of a deceased who had held a permanent job with inbuilt grant of annual increment, there is an acceptable certainty.
The determination of income while computing compensation has to include future prospects so that the method will come within the ambit and sweep of just compensation as postulated under Section 168 of the Act. In case of a deceased who had held a permanent job with inbuilt grant of annual increment, there is an acceptable certainty. But to state that the legal representatives of a deceased who was on a fixed salary would not be entitled to the benefit of future prospects for the purpose of computation of compensation would be inapposite. It is because the criterion of distinction between the two in that event would be certainty on the one hand and staticness on the other. One may perceive that the comparative measure is certainty on the one hand and uncertainty on the other but such a perception is fallacious. It is because the price rise does affect a self-employed person; and that apart there is always an incessant effort to enhance one’s income for sustenance. The purchasing capacity of a salaried person on permanent job when increases because of grant of increments and pay revision or for some other change in service conditions, there is always a competing attitude in the private sector to enhance the salary to get better efficiency from the employees. Similarly, a person who is selfemployed is bound to garner his resources and raise his charges/fees so that he can live with same facilities. To have the perception that he is likely to remain static and his income to remain stagnant is contrary to the fundamental concept of human attitude which always intends to live with dynamism and move and change with the time. Though it may seem appropriate that there cannot be certainty in addition of future prospects to the existing income unlike in the case of a person having a permanent job, yet the said perception does not really deserve acceptance. We are inclined to think that there can be some degree of difference as regards the percentage that is meant for or applied to in respect of the legal representatives who claim on behalf of the deceased who had a permanent job than a person who is self-employed or on a fixed salary. But not to apply the principle of standardization on the foundation of perceived lack of certainty would tantamount to remaining oblivious to the marrows of ground reality.
But not to apply the principle of standardization on the foundation of perceived lack of certainty would tantamount to remaining oblivious to the marrows of ground reality. And, therefore, degree-test is imperative. Unless the degree-test is applied and left to the parties to adduce evidence to establish, it would be unfair and inequitable. The degree-test has to have the inbuilt concept of percentage. Taking into consideration the cumulative factors, namely, passage of time, the changing society, escalation of price, the change in price index, the human attitude to follow a particular pattern of life, etc., an addition of 40% of the established income of the deceased towards future prospects and where the deceased was below 40 years an addition of 25% where the deceased was between the age of 40 to 50 years would be reasonable.” (p.2721-2722) expostulating (i) that where the deceased concerned, is rendering employment, in non government organization(s), as is the employer of the deceased, (a) thereupon, hikes or accretions, on anvil of future incremental prospects vis-a-vis the salary drawn by him, at the time contemporaneous to the ill fated mishap, from his employer, being also meteable thereto. However, before applying the mandate of the aforesaid relevant paragraph, borne in the judgment supra, it is significant to also bear in mind, the age of the deceased, (ii) since the postmortem report reflects, the deceased being aged 42 years, at the relevant time, hence with the afore extracted paragraph, mandating, of, accretions towards future incremental prospects vis-a-vis the salary drawn by the deceased, being pegged upto 25% thereof, besides being tenably meteable vis-a-vis the apposite last drawn salary. Consequently, after meteing 25% increase(s) vis-a-vis the apposite last drawn salary, thereupon, the relevant last drawn salary of the deceased is recoknable to be Rs.14725/-, [Rs.11780(last drawn salary of the deceased)+Rs.2945/-(25% of the last drawn salary). Significantly, the number of dependents, of, the deceased, are, four, hence, 1/4th deduction is to be vistited upon a sum of Rs.14,725/-, deducted, amount whereof is calculated at Rs.3,681/- per mensem. Consequently, the annual dependency, including the future hikes towards prospects, is, worked out, now at Rs.14,725–Rs.3,681= Rs.11,044/-. In sequel whereto, the annual dependency, of the dependents, upon, the income of the deceased is computed, at Rs.11,044x12= Rs.1,32,528/-. After applying the apposite multiplier of 14, the total compensation amount, is assessed in a sum of Rs.1,32,528x14=Rs.18,55,392/-. 5.
Consequently, the annual dependency, including the future hikes towards prospects, is, worked out, now at Rs.14,725–Rs.3,681= Rs.11,044/-. In sequel whereto, the annual dependency, of the dependents, upon, the income of the deceased is computed, at Rs.11,044x12= Rs.1,32,528/-. After applying the apposite multiplier of 14, the total compensation amount, is assessed in a sum of Rs.1,32,528x14=Rs.18,55,392/-. 5. However, the quantification, of damages, by the learned Tribunal in a sum of Rs.1 lacs vis-a-vis, the widow of deceased, (i) under the head, loss of consortium, (ii)and quantification, of compensation vis-a-vis the mother and off springs of the deceased, under the head, loss of love and affection, is (a) in, conflict with the mandate of the Hon'ble Apex Court rendered in Pranay Sethi's case (supra), (b) wherein, it has been expostulated, that reasonable figures, under conventional heads, namely, loss to estate, loss of consortium, and, funeral expenses being quantified only upto Rs.15,000/-, Rs.40,000/-, and Rs.15,000/- respectively, (iii) and, with no expostulation occurring therein vis-a-vis the compensation amount(s), being awardable, to the mother, and, to the off springs of the deceased, especially under the head, loss of love and affection, hence reliefs in respect thereto being impermissibly granted. Consequently, the award of the learned tribunal is interfered, to the extent aforesaid, of, its determining compensation, under, the aforesaid heads vis-a-vis the widow of the deceased, as also, vis-a-vis the off springs, and, mother of the deceased. Accordingly, in addition to the aforesaid amount of Rs.18,55,392/-, the petitioners, are, entitled under conventional heads, namely, loss to estate, loss of consortium, and, funeral expenses, sums of Rs.15,000/-, Rs.40,000/- and Rs.15,000/- respectively, as such, the total compensation to which the petitioners are entitled comes to Rs.18,55,392 + 15,000/- + 40,000/- + 15,000/-= Rs.19,25,392/-(Rs. Nineteen lakhs, twenty five thousand, three hundred ninety two only). 6. For the foregoing reasons, the appeal filed by the insurer is partly allowed, whereas, the objections filed by the claimants are also partly allowed, and, the impugned award, is, in the aforesaid manner, hence modified. Accordingly, the petitioners, are, held entitled to a total compensation of Rs.19,25,395/-, along with pending and future interest @7.5 %, from, the date of petition till the date, of, deposit, of the compensation amount. The amount of interim compensation, if awarded, be adjusted in the aforesaid compensation amount, at the time of final payment.
Accordingly, the petitioners, are, held entitled to a total compensation of Rs.19,25,395/-, along with pending and future interest @7.5 %, from, the date of petition till the date, of, deposit, of the compensation amount. The amount of interim compensation, if awarded, be adjusted in the aforesaid compensation amount, at the time of final payment. Compensation amount be apportioned, amongst the claimants in the hereinafter extracted manner:- “Petitioner No.1, being entitled to 40% amount along with proportionate interest and consortium as also funeral expenses, and, the remaining amount with proportionate interest shall fall in equal shares of the petitioners No.2 to 4.” The shares of the minor children, shall remain invested, in FDRs, upto, the stage of theirs attaining majority. However, interest accrued thereon, shall be releasable vis-a-vis their mother, only when she explains, of, its being required, for, the upkeep and benefit of the minor children. All pending applications also stand disposed of. Records be sent back forthwith.