AMRIT BHANU SHALI & ORS.versusNATIONAL INSURANCE CO. LTD. & ORS.

                     [2012] 5 S.C.R. 207


               AMRIT BHANU SHAU & ORS.                            A
                              v.
         NATIONAL INSURANC~ CO. LTD. & ORS.
             (Civil Appeal No. 3397 of 2012)

                       APRIL 04, 2012
                                                                  B
          [G.S. SINGHVI AND SUDHANSU JYOTI
                  MUKHOPADHAYA, JJ.]

      Motor Vehicles Act, 1988 - s. 166 - Fatal accident - Of
unmarried man aged 26 years - Parents and unmarried sister        C
of deceased filing petition claiming compensation - Tribunal
holding that only parents were dependents as the sister got
married in the meantime - Taking into account his age, his
unmarried status and his annual salary, deducting 50% for
personal and living expenses and applying multiplier of 17,       D
awarded compensation of Rs. 8, 66, 0001- - High Court reduced
the compensation to Rs. 6, 68, 0001- by applying multiplier of
13 - On appeal, held: Tribunal rightly used the multiplier of
17 based on the age of the deceased and not on the basis of
the age of the dependents and rightly deducted 50% for            E
personal and living expenses - Age of dependents has no
nexus with the computation of compensation - Compensation
computed deducting 50% for personal and living expenses
and using multiplier of 17 - Rs. 1,00,000 granted towards the
affection of the son, Rs. 10,000 towards funeral and ritual       F
expenses and Rs. 25001- on account of loss of sight - Thus
granting compensation amounting to Rs. 9,54,0001- - Also
awarded interest @ 6% P.A. from the date of filing of the claim
petition - Compensation - Interest.

   Sar/a Verma v. Delhi Transport Corporation (2009) 6            G
sec 121 - relied on.
     Kera/a SRTC v. Susamma Thomas (1994) 2 SCC 176
; U.P. SRTC v. Trilok Chand (1996) 4 SCC 362; New India
                          207                                     H
    208       SUPREME COURT REPORTS              [2012] 5 S.C.R.


A Assurance Co. Ltd. v. Charlie (2005) 10 SCC 720: 2005 (2)
  SCR 1173; Fakeerappa v. Karnataka Cement Pipe Factory
  2004 (2) SCC 473: 2004 (2) SCR 369 - referred to.

                         Case Law Referennce:

B         (2009) 6 sec 121         Relied on            Para 15

          (1994) 2 sec 176         Referred to          Para 15

          (1996) 4 sec 362        Referred to           Para 15

          2005 (2) SCR 1173       Referred to           Para 15
c
          2004 (2) SCR 369        Referred to           Para 15

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    3397 of 2012.
D       From the Judgment & Order dated 12.11.2010 of the High
    Court of Chhattisgarh at Bilaspur in Misc Appeal © No. 515 of
    2010.

      Dr. Rajesh Pandey Mridula Ray Bharadwaj for the
E Appellants.

         S.L. Gupta, M.S. Mangla, Ram Ashray, Shalu Sharma for
    the Respondents.

          The order of the Court was delivered
F
                                ORDER

          1. Delay condoned

          2. Leave granted.
G
      3. Feeling dissatisfied with the reduction of compensation
  determined by Motor Accident Claims Tribunal, Raipur,
  Chhattisgarh (for short, 'the Tribunal') in Motor Accident Claim
  No.80/2008 and being aggrieved for not enhancing the amount
H as was claimed, the appellants preferred this appeal.
      AMRIT BHANU SHALi & ORS. v. NATIONAL                     209
           INSURANCE CO. LTD. & ORS.

     4. The deceased-Ritesh Bhanu Shali, son of the 1st and           A
2nd appellants, was going to Thanod on 20th July, 2008 by Swift
Car bearing Registration No.CG-04-HA/6905 from Naharpara,
Raipur, Chhattisgarh. While he was coming back at about 4.30
p.m. near Thanod, one Scorpio Car bearing Registration
No.CG-04-HA/5372 coming rashly and negligently from                   B
Abhanpur dashed the Maruti Swift Car. Due to that accident,
Ritesh Bhanu Shali and one Sardar Jaspreet died on the spot
and another Shivam received injuries. The 1st appellant-Amrit
Bhanu Shali is the father, the 2nd appellant-Smt. Sarlaben is
the mother and 3rd appellant-Mamta Bhanu Shali is the sister          c
of the deceased. Claiming to be the dependent on the
deceased they filed Motor Accident Claim Case No.80/2008
before the Tribunal u/S 166 of the Motor Vehicles Act, 1988
(for short, 'the Act') for award of compensation to the fune of
Rs.25,50,000/-.                                                       D
     5. The non-applicants, owner of the car, driver and National
Insurance Company Ltd. (hereinafter referred to as the
"Insurance Company") appeared and defended their case. On
the pleadings <;>f the parties the Tribunal framed the following
issues:                                                               E

    "SL.NO.                     ISSUE

      1.    Whether on 20.07.2001 at about 4.30 P.M. near
            Village Thanod more, the non applicant No.1 had
                                                                      F
            hit the Swift Car by driving rashly and negligently the
            vehicle Scorpio bearing No.CG 04 HA/5372 under
            the ownership of non applicant No.2 and insured
            with the non applicant No.3 due to which Ritesh
            Bhanushali died after receiving the injuries ?
                                                                      G
      2.    Whether applicants have the right to get the
            compensation separately and jointly from the non
            applicants ? If yes then how much ?

                                                                      H
    210        SUPREME COURT REPORTS             [2012] 5 S.C.R.


A         3.    Whether at the time of accident the non applicant
                No.1 was having valid driving license ?

          4.    Whether the non applicant was driving the vehicle
                in violation of terms and agreement of policy ?

B         5.    Relief and cost."

       6. In support of the claim petition, the 1st appellant-Amirt
  Bhanu Shali examined himself (AW-1) and one Shivam Mahobe
  (AW-2), who was also travelling in the same Maruti Swift Car.
c The appellants have produced Exhibits P-1 to P-10 series
  including a report to the Police Station, Abhanpur. The 1st
  Appellant-Amirt Bhanu Shali (AW-1) in his statement stated that
  at the time of accident his son-Ritesh Bhanu Shali was 26 years
  old, as his date of birth is 24.08.1982 and he was doing
0 business of real estate and used to sale handset mobile and
  also took tuitions and used to earn Rs. 10,000/- per month. The
  deceased-Ritesh Bhanu Shali also used to file Income Tax
  Returns. The Income Tax Returns filed by his son-Ritesh was
  produced in the Court as Exhibit P-10 and the photocopies of
E which is Exhibit.P-10-C. No separate document was placed
  pertaining to the sale and purchase of land. The 1st Appellant-
  Amrit Bhanu Shali (AW-1) stated that both the appellants- father
  and the mother were not earning and 3rd appellant was
  unmarried at the time of accident and was dependent on the
F deceased. It is stated that Mamta Bhanu Shali has also got
  married.

       7. The non-applicant No.1-Mukesh Agrawal stated that he
  is the owner of the Scorpio Car bearing Registration No. CG-
  04-HA/5372 and at the time of accident the licence holder
G driver was Bakar Khan. At the time of accident the original
  licence was with the driver. During that accident licence was
  not seized. After the accident he took out the details of the
  licence of Bakar Khan from Regional Transport Officer, Raipur.
  He denied that Bakar Khan does not know driving. He further
H stated that he has presented the original policy of the vehicle
      AMRIT BHANU SHAU & ORS. v. NATIONAL                   211
           INSURANCE CO. LTD. & ORS.
before the Insurance Company. At the time of accident the          A
surveyor of the Insurance Company came for examination and
a sum of Rs.3,20,000/- was paid by the Insurance Company
towards damage.

     8. The Tribunal on appreciation of oral evidence and
                                                                   8
analysis of documentary evidence' set the Issue No.1 in the
affirmative and held that the accident was caused due to rash
and negligent driving by the driver of the Scorpio Car.

     9. While dealing with issue No. 2, the Tribunal adverted to
the statement made by the appellant No.1 in his cross              C
examination and held that the appellant No.3 Mamta Bhanu
Shali cannot be treated as dependant upon the deceased
because she was aged about 29 years and was married by
that time. The rest of the appellant Nos. 1 and 2, the parents,
were accepted as dependents. The Tribunal taking into              o
consideration the fact that the deceased was unmarried and
26 years old young man at the time of accident and his salary
was Rs.99,000/- per annum, deducted 50% of the income and
applying the multiplier of 17 as per the decision of this Court
in "Sar/a Verma v. Delhi Transport Corporation" (2009) 6           E
sec    121 held that the appellants are entitled to get
compensation of Rs.8,66,000/-. Rest of the issues were
decided in favour of the appellants.

      10. The appellants challenged the award of the Tribunal by
filing Miscellaneous Appeal (C) No. 765 of 2010 before the         F
Chhattisgarh High Court for enhancement of compensation.
The National Insurance Company also challenged the same
award by filing Miscellaneous Appeal (C) No. 515 of 2010
before the Chhattisgarh High Court. Therefore, the appellants
withdrew their Miscellaneous Appeal (C) No. 765 of 2010 on         G
2.8.2010 with a liberty to file cross-objection for enhancement
of compensation in Miscellaneous Appeal (C) No. 515 of 2010.
The permission was so granted. The appellants filed cross
objection in Miscellaneous Appeal (C) No. 515 of 2010 for
enhancement of compensation.                                       H
    212       SUPREME COURT REPORTS                  [2012] 5 S.C.R.


A        11. The High Court by impugned order dated 12.11.2010
    reduced the compensation to Rs.6,68,000/- by applying the
    multiplier of 13 and observed as follows:-

          "The impugned award of the Tribunal is liable to be
          modified as we feel that looking to the age of the deceased
B         as 26 years, the multiplier of 13 was to be applied
          according to the decision of Hon'ble the Apex Court in the
          case of Sar/a Verma (Smt) and others vs. Delhi Transport
          Corporation and Another, reported in (2009) 6 SCC 121,
          but the learned Tribunal has applied the multiplier of 17.
c         Therefore, without changing the annual income and other
          amounts as awarded by the Tribunal on other heads, in our
          opinion, the multiplier of 13 would be appropriate in the
          instant case. Thus the compensation towards dependency
          would come to Rs.6,43,500/- (Rs.49,500 X · 13 =
D         6,43,500/-). Besides this amount, the claimants (father &
          mother of deceased) are entitled to get Rs.10,000/- (each)
          (i.e. Rs.20,000/-) on account of loss of love & affection, Rs.
          2,0001- on account of funeral expenses and Rs.2500/- on
          account of loss of estate as awarded by the Tribunal.
E         Therefore, the Total amount comes to Rs.6,68,000/-
          (Rs.6,43,500/-+20,000/-+2,000/-+2500/-=Rs.6,68,000/-).
          Therefore, the claimants are entitled to get the said amount
          of compensation instad of the amount as awarded by the
          Tribunal. The claimants would be entitled to get interest
F         @6% per annum from the date of filing of the claim
          petition. Rest of the conditions mentioned in the impugned
          award shall remain intact."

        12. Learned counsel appearing on behalf the appellants
  submitted that 50% deduction towards 'personal and living
G expenses' of the deceased is totally disproportionate to the size
  of the his family and as the family of the deceased bachelor
  was large and there are three dependent-non-earning members,
  the 'personal and living expenses' ought to have been restricted
  to one-third and contribution to the family should have been
H
      AMRIT BHANU SHALi & ORS. v. NATIONAL                     213
           INSURANCE CO. LTD. & ORS.
taken as two-third. He further submitted that the High Court          A
committed serious error by applying multiplier of 13 which was
against the law laid down by this Court in the case of Sar/a
Verma (supra).

     13. Learned Counsel appearing on behalf of the                   8
respondents-Insurance Company submitted that the deceased-
Ritesh Bhanu Shali was unmarried boy aged about 26 years
and the High Court rightly applied the multiplier of 13 as per
the age of the claimants, i.e. parents. According to the
respondents, the multiplier is to be applied as per the age of        C
the deceased or as per the age of the claimant, whichever is
higher but aforesaid submission cannot be accepted in view
of the finding of this Court in the case of Sar/a Verma (supra).

     14. We have considered the respective arguments and
perused the record. The questions which arise for consideration       D
are:

     (i) What should be the deduction for the 'personal and living
     expenses of the deceased- Ritesh Bhanu Shali to decide
     the question of the contribution of the dependent members        E
     of the family; and

     (ii) What is the proper selection of multiplier for deciding
     the claim.

      15. The question relating to deduction for 'personal and        F
living expenses' and selection of multiplier fell for consideration
before this Court in the case of Sar/a Verma (Smt) and others
vs. Delhi Transporl Corporation and another reported in (2009)
6 sec 121. In the said case this Court taking into
consideration the decisions in Kera/a SRTC v. Susamma                 G
Thomas, (1994) 2 SCC 176; UP. SRTC v. Trilok Chand,
(1996) 4 SCC 362; New India Assurance Co. Ltd. v. Charlie,
(2005) 10 SCC 720 and Fakeerappa v. Karnataka Cement
Pipe Factory, (2004) 2 SCC 473, held as follows:
                                                                      H
    214        SUPREME COURT REPORTS                   [2012] 5 S.C.R.


A         "(i)Re Question - Deduction for personal and living
          expenses:

                30. Though in some cases the deduction to be made
          towards personal and living expenses is calculated on the
          basis of units indicated in Trilok Chandra, the general
B
          practice is to apply standardised deductions. Having
          considered several subsequent decisions of this Court, we
          are of the view that where the deceased was married, the
          deduction towards personal and living expenses of the
          deceased, should be one-third (1/3rd) where the number
c         of dependent family members is 2 to 3, one-fourth (1/4th)
          where the number of dependent family members is 4 to
          6, and one-fifth (1 /5th) where the number of dependent
          family members exceeds six.

D                31 . Where the deceased was a bachelor and the
          claimants are the parents, the deduction follows a different
          principle. In regard to bachelors, normally, 50% is deducted
          as personal and living expenses, because it is assumed
          that a bachelor would tend to spend more on himself. Even
E         otherwise, there is also the possibility of his getting married
          in a short time, in which event the contribution to the
          parent(s) and siblings is likely to be cut drastically. Further,
          subject to evidence to the contrary, the father is likely to
          have his own income and will not be considered as a
F         dependant and the mother alone will be considered as a
          dependant. In the absence of evidence to the contrary,
          brothers and sisters will not be considered as dependants,
          because they will either be independent and earning, or
          married, or be dependent on the father.
G               32. Thus even if the deceased is survived by parents
          and siblings, only the mother would be considered to be
          a dependant, and 50% would be treated as the personal
          and living expenses of the bachelor and 50% as the
          contribution to the family. However, where the family of the
H         bachelor is large and dependent on the income of Jhe
      AMRIT BHANU SHALi & ORS. v. NATIONAL                     215
           INSURANCE CO. LTD. & ORS.
     deceased, as in a case where he has a widowed mother             A
     and large number of younger non-earning sisters or
     brothers, his personal and living expenses may be
     restricted to one-third and contribution to the family will be
     taken as two-third."
                                                                      B
     (ii)Re Question - Selection of multiplier

           42. We therefore hold that the multiplier to be used
     should be as mentioned in Column (4) of the table above
     (prepared by applying Susamma Thomas, Trilok Chandra
     and Charlie), which starts with an operative multiplier of 18    C
     (for the age groups of 15 to 20 and 21 to 25 years),
     reduced by one unit for every five years, that is M-17 for
     26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to
     40 years, M-14 for 41 to 45 years, and M-13 for 46 to 50
     years, then reduced by two units for every five years, that      D
     is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7
     for 61 to 65 years and M-5 for 66 to 70 years."

      16. Admittedly both the parents, 1st appellant-Amrit Bhanu
 Shali (father) and 2nd appellant- Smt. Sarlaben (mother) have        E
 been held to be dependents of deceased- Ritesh Bhanu Shali
and, therefore, the Tribunal held that the 1st appellant and 2nd
appellant have the right to get the compensation. On the date
of the accident the 3rd appellant- Mamta was not married but
by the time the case was heard by the Tribunal the 3rd
appellant-Mamta had already been married. In these                    F
circumstances, she is not found to be dependent upon the
deceased. Thus, both the parents being dependents, i.e.,.father
and the mother, the Tribunal rightly restricted the 'personal and
living expenses' of the deceased to 50% and contribution to
the family was required to be taken as 50% as per the decision        G
of this Court in the case of Sar/a Verma (supra).

    17. The selection of multiplier is based on the age of the
deceased and not on the basis of the age of dependent. There
may be a number of dependents of the deceased whose age               H
    216      SUPREME COURT REPORTS                 [2012] 5 S.C.R.


A   may be different and, therefore, the age of dependents has no
    nexus with the computation of compensation.

       18. In the case of Sar/a Verma (supra) this Court held that
  the multiplier to be used should be as mentioned in Column (4)
  of the table of the said judgment which starts with an operative
8
  multiplier of 18. As the age of the deceased at the time of the
  death was 26 years, the multiplier of 17 ought to have been
  applied. The Tribunal taking into consideration the age of the
  deceased rightly applied the multiplier of 17 but the High Court
  committed a serious error by not giving the benefit of multiplier
C of 17 and brining it down to the multiplier of 13.

         19. The appellants produced Income Tax Returns of
    deceased-Ritesh Bhanu Shali for the years 2002 to 2008 which
    have been marked as Ext.P-10-C. The Income Tax Return for
D   the year 2007-2008 filed on 12.03.2008 at Raipur, four months
    prior to the accident, shows the income of Rs.99,000/- per
    annum. The Tribunal has rightly taken into consideration the
    aforesaid income of Rs.99,000/- for computing the
    compensation. If the 50% of the income of Rs.99,000/- is
E   deducted towards 'personal and living expenses' of the
    deceased the contribution to the family will be 50%, i.e.,
    Rs.49,500/- per annum. At the time of the accident, the
    deceased-Ritesh Bhanu Shali was 26 years old, hence on the
    basis of decision in Sar/a Verma (supra) applying the multiplier
F   of 17, the amount will come to Rs.49,500/- x 17 =Rs.8,41,500/
    -. Besides this amount the claimants are entitled to get
    Rs.50,000/- each towards the affection of the son, i.e.,
    Rs.1,Q0,000/- and Rs.10,000/- on account of funeral and ritual
    expenses and Rs.2,500/- on account of loss of sight as
    awarded by the Tribunal. Therefore, the total amount comes to
G   Rs.9,54,000/- (Rs.8,41,500/- + Rs.1,00,000/- + Rs.10,000/- +
    Rs.2,500/-) and the claimants are entitled to get the said amount
    of compensation instead of the amount awarded by the Tribunal
    and the High Court. They would also be entitled to get interest
    at the rate of 6% per annum from the date of the filing of the
H
     AMRIT BHANU SHALi & ORS. v. NATIONAL                 217
          INSURANCE CO. LTD. & ORS.
claim petition leaving rest of the conditions mentioned in the   A
award intact. Accordingly, the appeal is allowed. The impugned
judgment dated 12.11.2010 passed by the High Court of
Chhattisgarh at Bilaspur in Misc. Appeal No.(C) No.515 of
2010 is set aside and the award passed by the Tribunal is
modified to the extent above. The amount which has already       B
been received by the claimants-appellants shall be adjusted
and rest of the amount be paid at an early date. No order as
to costs.

K.K.T.                                       Appeal allowed.