In a significant ruling by the Supreme Court of India, a case concerning compensation for the family of a deceased employee was decided upon. The judgement carries implications for future similar cases and sets a precedent for such disputes in the legal realm.
Facts
- The deceased was employed as a ‘Khalasi’ in an ambulance
- The ambulance collided with the back of a truck while on its way from Chandikhol to Paradeep
- The owner of the ambulance paid Rs. 6,25,000 towards compensation to the bereaved family
- The driver of the ambulance sustained grievous injuries and the husband of the claimant-appellant died on the spot
- The deceased was earning Rs. 5,000 per month at the time of his death
- The Tribunal held the claim petition not maintainable as only the claimant-appellants appealed while the owner and insurer accepted the findings of fact.
- The High Court ordered a deduction of 1/3 towards personal expenses, but the affidavit showed four dependents, hence the deduction should be by 1/4.
- Loss of dependency calculated to be Rs.7,00,000/- after adding future prospects and deducting personal expenses.
- The deceased’s age at the time of the accident was between 44 to 45 years falling within the slab of 41-45 years.
- A compensation of Rs.6,25,000/- received from the owner of the Ambulance was adjusted from the total compensation amount payable.
- Loss of consortium was awarded at Rs.1,00,000/- for the widow and two children, with an additional Rs.30,000/- towards loss of estate and funeral expenses.
- Total compensation determined at Rs.8,30,000/- by the High Court in the appeal.
- The deceased’s age was confirmed to be about 36 years as per his Voter I-Card produced during the hearing.
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Issue
- Maintainability of the action initiated for award of monetary compensation was questioned.
- The rash and negligent conduct of the truck driver was examined.
- Determining whether the cause of death of the deceased was due to an accident was a key issue.
- The Tribunal assessed the compensation payable, if any, to what extent, and by whom.
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Analysis
- The head related to loss of care and minor children does not exist in the judgement.
- The judgement Rajesh does not follow the approach taken in Santosh Devi.
- The computation mentioned in Rajesh is not in line with Pranay Sethi.
- The judgment in Pranay Sethi states that if the deceased had a permanent job, a 30% addition to the actual salary should be made if the deceased’s age was between 40 to 50 years.
- Conventional and traditional heads cannot be determined on a percentage basis.
- Quantification must have a reasonable foundation.
- Grant of Rs 25,000 towards funeral expenses.
- Grant of Rs 1,00,000 towards loss of consortium.
- Grant of Rs 1,00,000 towards loss of care and guidance for minor children.
- Unlike determination of income, these heads have to be quantified.
- Price index, fall in bank interest, escalation of rates to be considered.
- The court must apply a thumb rule in determining reasonable sums in certain aspects to ensure consistency and guidance in orders passed by tribunals and courts.
- Reasonable figures for conventional heads like loss of estate, loss of consortium, and funeral expenses are fixed at Rs 15,000, Rs 40,000, and Rs 15,000 respectively.
- Revisiting these figures on a percentage basis every three years, with an enhancement rate of 10%, is deemed appropriate to maintain consistency.
- The principle of revisiting should not be focused on specific facts or quantum, but rather on ensuring consistency in the quantified amounts for the specified heads.
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Decision
- 1. 1/4 of Rs.78,000 is Rs.19,500 (Rs.55,500 left).
- 2. Loss of consortium to P1-P4 is Rs.1,00,000 and Rs.48,400 x 4 = Rs.1,93,600.
- 3. Loss of Dependency is Rs.7,00,000.
- 4. No change in Funeral expenses plus Loss of Estates amounting to Rs.30,000.
- 5. Total compensation is nil as Rs.6,25,000 already paid by the Employer of the deceased.
- 6. The amount, initially Rs.40,000 in 2017, stands at Rs.48,400 today after being enhanced by 10% twice.
- 7. It was directed that the amount be enhanced by 10% every three years.
- 8. Rs.15,000, Rs.40,000, and Rs.15,000 were awarded under the heads of loss of estate, loss of consortium, and funeral expenses respectively.
- 9. Personal expenses calculated as 1/3 of Rs.75,000 amount to Rs.25,000 (Rs.50,000 left).
- 10. The remaining amount after deducting the paid Rs.6,25,000 is Rs.3,81,900.
- 11. The rate of interest specified is 6%, 7.5%, and 10%.
- 12. The appeal is allowed and the amount directed accrues from the date of the claim petition.
Case Title: ROJALINI NAYAK Vs. AJIT SAHOO (2024 INSC 584)
Case Number: C.A. No.-008502-008502 – 2024
