Delve into a detailed legal analysis of a compensation appeal case where the High Court’s conclusions were crucial in determining the compensation amount. The case involved intricate discussions on factors such as the deceased’s age, income, multiplier application, and established legal precedents. Stay tuned to uncover the insights provided by the court’s thorough legal examination.
Facts
- Manoj Kumar Biswal died in a motor vehicle accident on 09.05.2013
- Claimants and insurer challenged the award of the Tribunal before the High Court via MACA Nos.1134 and 1169 of 2014
- The first appellant is Manoj Kumar Biswal’s wife, and the second and third appellants are their minor sons
- Owner of the offending truck denied negligence by the driver in the written statement
- Insurer also filed a written statement opposing the claim petition
- Appellants filed claim petition in MAC No.46/2013 before the Tribunal seeking compensation for Manoj Kumar Biswal’s death
- High Court in MACA No.965 of 2016 reduced the compensation payable to the appellants/claimants from Rs.22,60,000/- to Rs.17,00,000/-
- The Tribunal held that the deceased was aged 33 years and applied a multiplier of ’16’.
- The Tribunal awarded a total compensation of Rs.12,90,064/- with 6% interest per annum.
- After deducting ΒΌ of the income towards the personal expenses of the deceased, the Tribunal awarded Rs.21,60,000/- for loss of dependency and Rs.1,00,000/- under other conventional heads.
- The High Court set aside the Tribunal’s award and remitted the matter back for fresh disposal.
- In the appeal, the High Court modified the award, granting compensation of Rs.17,00,000/- with 7.5% interest per year.
- The Tribunal found the accident’s cause to be the rash and negligent driving by the offending truck’s driver.
- Upon reconsideration, the Tribunal awarded a total compensation of Rs.22,60,000/-.
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Arguments
- Learned counsel for the appellant argues that the High Court unjustly reduced the compensation without providing any reason.
- Deceased had a permanent job and was 33 years old, with a multiplier of ’16’ used instead of ’15’.
- No compensation was awarded for loss of future prospects, and the awarded amount does not align with the judgment in National Insurance Company Limited v. Pranay Sethi and Others.
- Appellant was earning Rs. 15,000/- and was 28 years old at the time of death.
- The learned advocate representing the respondent-insurer supported the decision of the High Court.
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Analysis
- The Tribunal assessed the deceased’s income at Rs.15,000 per month, a finding not disputed.
- The High Court modified the compensation awarded, increasing it to Rs.17,00,000 without giving reasons.
- Evidence from Exhibit P-8 and witness PW-3 confirmed the deceased’s monthly salary of Rs.15,000.
- The deceased was confirmed to be 33 years old at the time of death based on records and a PAN card.
- The Tribunal’s application of a multiplier of ’16’ was deemed proper.
- An additional 25% should be added for ages between 40 to 50 years and 10% for ages between 50 to 60 years in compensation calculations.
- An appeal allows for the reconsideration of all questions of fact and law decided by the Tribunal.
- The deceased worked as a supervisor for M/s. Divine Construction.
- Pranay Sethi case established that an addition of 40% of the established income should be awarded in case the deceased was self-employed or on a fixed salary and below the age of 40 years.
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Decision
- Total compensation payable to claimants: (1) Loss of dependency – Rs.30,24,000/-, (2) Loss of estate – Rs.16,500/-, (3) Funeral expenses – Rs.16,500/-, (4) Spousal consortium – Rs.44,000/-, Total – Rs.31,01,000/-
- High Court awarded Rs.17,00,000/- to claimants.
- Proposal to constitute ‘Motor Vehicle Appellate Tribunals’ through amendment of Section 173 of the Motor Vehicles Act for faster disposal of compensation appeals.
- Motor Vehicle Appellate Tribunals could consist of two Senior District Judges; Benches to be set up in regional cities.
- Deceased’s annual salary of Rs.1,80,000/- multiplied by ’16’ results in Rs.28,80,000/-.
Case Title: RASMITA BISWAL Vs. DIVISIONAL MANAGER, NATIONAL INSURANCE CO. LTD. (2021 INSC 844)
Case Number: C.A. No.-007549-007549 / 2021
