LAXMIDHAR NAYAK AND ORS.versusJU GAL KISH ORE BEHERA AND ORS.

                              [2017) l 1 S.C.R. 242


A                     LAXMIDHAR NAYAK AND ORS.
                                         v.
                   JU GAL KISH ORE BEHERA AND ORS.
                       (Civil Appeal No. l 9X56 of 2017)
B                             NOVEMBER 28, 20 l 7
             [RANJAN GOGOi AND R. BANUMATHI, JJ.J
           Motor Vehicles Act, 1988- Rash a11d negligent driving- Fatal
    accident - Head-on collision between bus and truck resulting in
    death of pedestrian - Victim-deceased aged 42 years was
c   agricultural labourer - Tribunal determined monthly income of
    Rs.650 taking daily income as Rs.25 and after deducting Rs.250
    towards her personal expenses awarded compensation <!l Rs. 706001-
    - High Court affirmed the award of compensation but reduced
    interest fivm 91Yo lo 7%- Instant appeal is filed by sons and daughter
D   of the deceased seeking enhancement of compensation - Held: The
    wages assessed by tribunal for the daily labourer at Rs.251- per
    day and the month~v income al Rs.650/- is loo low - The reasoning
    of the tribunal that a lady labourer may not get engagement daily is
    not acceptable - Deceased being a woman and mother of three
    children, would have also contributed her physical labour for
E
    maintenance of household and also taking rnre of her children -
    Taking income fmm the agricultural labour work at Rs.3.0001- p.m.
    and Rs.1.5001- p.m. fiJr the housdwld wurk. the month~v income of
    the deceased is fixed at Rs.4.5001- p.111. deducting /!3rd/iJr personal
    expenses. contribution <if deceased toward> the family is calculated
F   at Rs.3,0001- p.m. and Rs.36,000/- p.a. -As per the second schedule
    to the Motor Vehicles Act, 1988, for the age groups 40-45 yea1:5
    inultiplier is "/ 5 ·· - .As per Sarla Verma tle1..:isio11 jUr the age groups
  41-45 years. multiplier to be adopted is "14" - Therefore, the
  multiplier of "/ 2" adopted by the tribunal and the High Court is
  not correct-Adopting the multiplier of "/4" loss of dependency is
G
  call'llfated at Rs.5,04.0001- - Also, compensation <if Rs.15.0001-
  for loss of estate and Rs. I 5,(!001- for fi111eral expenses is awarded
  - Thus total compensation awarded to the claimants is enhanced lo
  Rs.5,34,0001- payable with interest at 1/1e rate of 7% p.a.

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                                        242
    LAXMIDHAR NAYAK AND ORS. v. JUGAL KlSHORE                      243
                BEHERA AND ORS.

      Partly allowing the appeal, the Court                        A
      HELD: 1. PW-1 in his evidence stated that the victim-
deeeased was earning Rs.35/- per day as wages out of the labour
work. It is quite improbable that a labourer would be available
for such a small amount of Rs.25/- per day. The reasoning of the
tribunal that a lady labourer may not get engagement daily is not B
acceptable. Even though works like cutting of paddy and other
agricultural labour may not be available on all days throughout
the year, in rural areas other kinds of work arc a\'ltilablc for a
labourer. Deceased even though was said to be earning only
Rs.35/- per day at that time, over the years, she would have earned
more. The High Court as well as the tribunal did not keep in c
view the contribution of the deceased· in the household work,
being a labourer and also maintaining her husband, her daily
income should be fixed at Rs.ISO/- per day and Rs.4,500/- per
month. Deducting I/3rd for personal expenses, contribution of
deceased towards the family is calculated at Rs.3,000/- per month D
and Rs.36,UOO/c p.a. Deceased was aged 42 years. As per the
second schedule to the Motor Vehicles Act, 1988, for the age
groups 40-45 years mulliplicr is "15". As per Sarla Verma
decision for the age groups 41-45 years mnltiplier to be adopted
is "14". Hence, the multiplier of "12" adopted may not be correct.
Adopting the multiplier of "14" loss of dependency is calculated E
at Rs. 5,04,000/- (3,000x12xl4). Further, compensation of
Rs.15,000/- for loss of estate and Rs.15,000/- for funeral expenses
is awarded. Thus total compensation awarded to the claimants is
enhanced to Rs.5,34,000/- payable with interest at the rate of
7% per annum. [Paras 6-9][245-D-H; 246-A-CJ                         F
      Sar/a Venn" (Smt.) and Ors. v. Delhi Transport
      Corporation and Anr. (2009) 6 SCC 121 : [2009] 5
      SCR 1098; National lnsumnce Company Limited v.
      Pranay Sethi and Ors. 2017 (13) SCALE 12 - relied
      on.                                                          G
                      Case Law Reference
[2009] 5 SCR 1098             relied on             Para 7
2017 (13) SCALE 12            relied on             Para 8
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244             SUPREME COURT REPORTS                          (2017] I l S.C.R.


A          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 19856.
      of2017.
            From the J udgmcnt and Order dated 27.01.2016 of the High Court
      of Orissa at Cuttack in MACA No. 802 of 2003.
          Chattamnjan Misra, Bhanu Pratap Singh, D. P. Singh Yadav, Binay
B     Kumar Das, Advs. for the Appellants.
            The Judgment of the Court was delivered by
            R. BANUMATHI, J. l. Leave granted.
            2. Appellants who are the sons and daughter of the deceased
c     Chanchali Nayak have filed this appeal seeking enhancement of
      compensation for the death of their mother in the road accident on
      29.09.1991 as against compensation of Rs.70,600/- awarded by the
      tribunal and affirmed by the High Court ofOrissa.
             3. Mother of appcllants-Chanchali Nayak was working as an
D     agricultural labourer. On the date ofaccidcnt - 29.09.199 l at about 8.00
      a.m., Chanchali Nayak was proceeding on the left side of the road
      alongwith some other labourers. At that time, due to head-on-collision
      between two vehicles-bus (bearing No.OSF 5157) and truck (bearing
      No.OAC 495'). the bus swerved to the extreme left side of the road and
      ran over Chaochali Nayak and she succumbed to injuries. In the claim
E
      petition filed by the claimants, the tribunal held that the accident was due
      to rash and negligent driving of both the vehicles.
             4. So far as the compensation is concerned, the tribunal has taken
      the monthly income of the deceased at Rs.650/- per month and after
      deducting an amount of Rs.250/- towards her personal expenses,
 F
      assessed the contribution to the family at Rs.400/- per month. Deceased
      was aged 42 years and the tribunal adopted multiplier of" 12" and awarded
      compensation of Rs.57.600/- for the loss of dependency and adding
      conventional damages, tribunal has awarded total compensation of
      Rs. 70,600/-. The respondents No. I and 2 - owners of the bus and the
 G    truck were held liable to pay the compensation to the claimants at 50%
      each alongwith interest at the rate of 9% per annum. Pointing out that
      the claimants have not produced the insurance policies of the vehicles,
      the tribunal held that the insurance company is not liable to indemnify
      the compensation. However, it is seen from the judgment of the High
      Court that the insurance company has been satisfied with the award.
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      LAXMIDHAR NAYAK AND ORS. v. JUGAL KISHORE                                245
            BEHERA AND ORS. [R. BANUMATHJ, J.]

On appeal to the High Court by the claimants, the High Court affirmed A
the quantum of compensation ofRs.70,600/- awarded to the claimants
but reduced the rate of interest from 9% to 7%. So far as the liability of
the insurance company is concerned, the High Court held that the
insurance company-respondent No.3 having paid the compensation to
the claimants cannot avoid its liability to pay the compensation amount.
                                                                           B
Being dissatisfied with the quantum of compensation, the appellants have
filed this appeal.
      5. We have heard the learned counsel for the appellants.
Respondent No.2 and insurance company-respondent No.3 have not
entered their appearance. We have perused the impugned j udgmcnt and
the materials placed on record.                                                c
        6. PW-! in his evidence stated that Chanchali Nayak was earning
Rs.35/- per day as wages out of the labour work. Deceased Chanchali
Nayak was an agricultural labourer. The tribunal has taken her income
at the rate ofRs.25/-per day and assessed the monthly income at Rs.650/
- per month. It is quite improbable that a labourer would be available for     D
such a small amount ofRs.25/- per day. The wages fixed by the tribunal
for the daily labourer at Rs.25/- per day and the monthly income at
Rs.650/- is too low. The reasoning of the tribunal that a lady labourer
may not get engagement daily is not acceptable. Even though works like
cutting of paddy and other agricultural Jabour may not be available on all     E
days throughout the year, in rural areas other kinds of work arc available
for a labourer. Deceased Chanchali Nayak even though was said to be
earning only Rs.35/- per day at that time, over the years, she would have
earned more. In our view, deceased Chanchali Na yak. being a woman
and mother of three children, would have also contributed her physical
labour for maintenance ofhousehold and also taking care of her children.       F
The High Court as well as the tribunal did not keep in view the contribution
of the deceased in the household work, being a labourer and also
maintaining her husband, her daily income should be fixed at Rs.150/-
per day and Rs.4,500/- per month.,
      7. Taking income from the agricultural Jabour work at Rs.3,000/-         G
per month and Rs.1,500/- per month for the household work, the monthly
income of the deceased is fixed at Rs.4,500/- per month deducting 1/3"'
for personal expenses, contribution of deceased towards the family is
calculated at Rs.3,000/- per month and Rs.36.000/- per annum. Deceased
Chanchali Nayak was aged 42 years. As per the second schedule to the
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246              SUPREME COURT REPORTS                        [2017] I l S.C.R.



A     Motor Vehicles Act, 1988, for the age groups 40-45 years multiplier is
      '.' 15". As per Sar/a Verma (Smt.) and Others v. Delhi Transport
      Corporation and Another (2009) 6 SCC l 2 l, for the age groups 41-45
      years multiplier to be adopted is" l 4". Therefore, the multiplier of" I 2"
      adopted by the tribunal and the High Court may not be correct. Hence,
      the multiplierof" 12" adopted may not be correct. Adopting the multiplier
B
      of" 14" Joss ofdcpcndcncy is calculated at Rs.5,04,000/-(3,000xl2xl4).
              8. As per the tkcision of the Constitution Bcnch in National
      l11sura11ce Company Li111i1ed 1: Pranav Set/1i and Others 2017 (13)
      SCALE l 2. compensation of Rs.15,000/- for loss ofrstate and Rs.15,0001
      - for funeral expenses is awarded. Thus total compensation awarded to
c     the claimants is enhanced to Rs.5.34,000/- payable with interest at the
      rate of 7'Vo per annum.
            9. The impugned judgment is modified and the compensation
      payable to the claimants is enhanced to Rs.5,34.000/-. The enhanced
      compensation is payabk with interest at the rate of7% per annum from
 D    27.01.2016 (the date of judgment of the High Court) and this appeal is
      pm1ly allowed. Respondents No. l to 3 are jointly and severally liable to
      pay the cnlrnnccd compensation with interest.


      Dc:vika Gujral                                           Appc:al partly allowt'd.