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Supreme Court of India

NATIONAL INSURANCE CO. LTD.versusSHYAM SINGH AND ORS.

Citation
2011 INSC 440
Decided
4 July 2011
Disposal
Appeal(s) allowed

Holding

The multiplier is to be determined by the higher of the age of the deceased or the claimant, but when the claimants are aged parents, their age governs; therefore the Tribunal’s multiplier was correct and the High Court’s enhancement was erroneous.

Summary

The parents of a 19‑year‑old mechanical fitter who died in a motor accident claimed compensation for loss of dependency. The Motor Accident Claims Tribunal awarded Rs 1,72,000 using a multiplier of 9 based on the average age of the parents (55‑56 years). The High Court enhanced the multiplier to 18, relying on the deceased’s age, and increased the award to Rs 3,39,000. On appeal, the Supreme Court held that the multiplier must be determined by the higher of the age of the deceased or the claimant, but where the claimants are aged parents, their age governs, as articulated in Vijay Shankar Shinde. Consequently, the Tribunal’s multiplier (8/9) was deemed correct and the High Court’s enhancement was set aside. The appeal was allowed and the original award restored.

Issues considered

  • Whether the High Court correctly enhanced the multiplier by applying the age of the deceased rather than the age of the claimants (the parents).
  • How the multiplier should be determined under the Motor Vehicles Act, 1988, when a young unmarried deceased leaves behind aged parents.

Legislation cited

Subjects

Motor accident compensationMultiplier determinationDependency claimMotor Vehicles ActSecond ScheduleAssessment of damagesAge factor in compensation

Judgment

                       (2011) 7 S.C.R. 810


A               NATIONAL INSURANCE CO. LTD.
                                v.
                    SHYAM SINGH AND ORS.
                 (Civil Appeal No. 4921 of 2011)
                          JULY 4, 2011
8
              [DR. MUKUNDAKAM SHARMA AND
                     ANIL R. DAVE, JJ.]

       Motor Vehicles Act, 1988 - s. 163A; Second Schedule -
C Motor accident - Qeath of 19 year old unmarried young man
  - Compensati9n,..claim by his parents - Determination of
  multiplier - ffeld: Choice of multiplier is determined by the
  age of the deceased or claimants whichever is higher - In this
  case, a young unmarried man died in an accident leaving
D behind aged parents :- Multiplier applied keeping in view the
  average age of the deceased's parents.

       Respondent No. 3 and 4 are parents of a 19 year old
  boy who died in a motor accident. They filed claim petition
  stating that the deceased was a young man of robust
E health and was working as mechanical fitter in an
  Engineering Prism Cement Factory on a salary of Rs.
  4500/- per month and in total was getting Rs. 6000/- per
  month inclusive of salary and over-time allowance and
  was supporting his parents financially; and that after his
F death, Respondents No. 3 and 4 were rendered without
  any financial support and deprived of the association and
  pleasure of having a family and grand children in future.
       The Motor Accident Claims Tribunal came to a finding
G that the deceased was earning Rs. 3000/- per month and
  deducted 50% therefrom towards personal expenses, as
  he was a bachelor. Considering the age of the parents
  which was 56 and 55 years, it applied the Multiplier of 9,
  and awarded a total compensation of Rs. 1,72,000/- (Rs.
H                              810
 NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 811
                 AND ORS.

1,62,000/- towards the loss of dependency+ Rs. 10,000/-     A
towards conventional heads) alongwith 6% interest p.a.
from the date of claim petition. Being aggrieved,
Respondent 'No. 3 and 4 preferred miscellaneous appeal
before the High Court for enhancement of amount of
compensation. The High Co~rt enhanced the multiplier        B
to 18 instead of 9 and granted expenses to the tune of
Rs. 15000/- under conventional heads. Accordingly, the
High Court enhanced the.amount of compensation from
Rs. 1,72,000/- to Rs. 3,39,000/-.

    The· question which· arose for consideration in the     C
instant appeal was whether the High Court correctly
enhanced the multiplier keeping in view the age of the
deceased which was 19 years.

    Allowing the appeal, the Court                          D
     HELD: The assessment of damages and
compensation takes into account a number of
imponderables. This Court in the case of Vijay Shankar
Shinde dealt with the law with regard to determination of E
the multiplier in a similar situation as in the present case.
The Court held that the choice of multiplier is determined
by the age of the deceased or claimants whichever is
higher. It held that the selection of multiplier cannot in all
cases be solely dependent on the age of the deceased.
If a young man is killed iri the accident leaving behind F
aged parents who may not survive long enough to match
with a high multiplier provided by the 2nd Schedule, then
the Court has to offset such high multiplier and balance
the same wit~ the short life expectancy of the claimants.
The dictum laid down in *Vijay Shankar Shinde is G
applicable to the present case. Accordingly, it is held that
the Tribunal had. rightfully applied the multiplier of 8 by
taking the average of the parents of the deceased who
were 55 and 56 years .. The award passed by the Tribunal
is restored. [Paras 8, 9, 10, 11] [814-G; 815-C-H; 816-A-H] H
    812      SUPREME COURT REPORTS                 [2011] 7 S.C.R.


A        General Manager, Kera/a State Road Transport
    Corporation, Trivandrum v. Mrs. Susamma Thomas and Ors.
    AIR 1994 SC 1631 and *V1fay Shankar Shinde and Ors. v.
    State of Maharashtra (2008) 2 SCC 670 - relied on.

        Sar/a Verma (Smt.) and Others v. Delhi Transport
8
    Corporation andAnother (2009) 6 SCC 121 - referred to.

                         Case Law Reference:
          (2009) 6 sec 121      referred to          Para 5, 6
c         AIR 1994 SC 1631      relied on            Para 8
          (2008) 2 sec 670      relied on            Para 9, 10 .

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    4921 Of 2011.                             .
D
        From the Judgment & Order dated 15.3.2010 of the High
    Court of Madhya Pradesh Principal Seat at Jabalpur in Misc.
    Appeal No. 4867 of 2009.

E       Ramesh Chandra Mishra, Dr. Meera Agarwal for the
    Appellant.

          Dr. Kailash Chand for the Respondents.

          The Judgment of the Court was deliver~d by
F
          DR. MUKUNDAKAM SHARMA, J.1. Leave granted.

        2. This appeal is directed against the judgment and order
  dated 15.03.2010 passed by the High Court of Madhya
  Pradesh at Jabalpur in Miscellaneous Appeal No. 4867 of
G 2009, whereby the High Court had partially allowed the appeal
  filed by the Respondent No. 3 and 4 herein, against the award
  dated 28.08.2009 passed by the Second Additional Motor
  Accident Claims Tribunal, Satna, Madhya Pradesh and
  enhanced the compensation awarded by the Tribunal.
H
 NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 813
   AND ORS. [DR. MUKUNDAKAM SHARMA, J.]

      3. The factual matrix of the case is that Respondent No.        A
3 and 4 are parents of one Yogendra Kumar Pathak, who was
19 years of age and on 01.11.2007 while on his way to his
village Kor Gaon, he alongwith his sister were travelling_in jeep
No. MP 19-A 930. The said jeep wasbeing driven by
Respondent No. 1 and met with an accident near Dhal Factory           B
General Road due to rash and negligent driving by the
Respondent No. 1which resulted in his death on the spot. FIR
was lodged at Police Station, Civil Lines, Satna against the
driver under Sections 229 and 304-A of the Indian Penal Code.
His dead body was taken to his village from the hospital on           c
payment of Rs. 800/- and·amount of Rs. 25000/- was spent on
cremation.
      4. It was stated in the claim petition that before his death,
the deceased was a young man of robust health and was
working as mechanical fitter in Priya Engineering Prism               D
Cement Factory on the salary of Rs. 4500/- per month and in
total was getting Rs. 6000/- a month inclusive of salary and over
time allowance and was supporting his parents financially. After
his death, Respondents No. 3 and 4 have been rendered
without any financial support and have been deprived of the           E
association and pleasure of having a family and grand children
in future.
     5. The M.A.C.T., Satna, came to a finding that the
deceased was earning Rs. 3000/- per month and deducted 50
% therefrom towards personal expenses, as he was a bachelor.          F
Considering the age of the parents which was 56 and 55 years,
applied the Multiplier of 9, and awarded a total compensation
of Rs. 1, 72,000/- (Rs. 1,62,000/- towards the loss of
dependency+ Rs. 10,000/~ towards conventional heads) along
with 6 % interest per annum from the date of claim petition.          G
Being aggrieved, the Respondent No. 3 and 4 preferred
miscellaneous appear No. 4867 of 2009 before the High Court
for enhancement of amount of compensation stating that the
income of the deceased was Rs. 4500/- and not Rs. 3000/- as
determined by the Tribunal, and a multiplier of 16 instead of 9       H
    814       SUPREME COURT REPORTS               [2011] 7 S.C.R.


A was supposed to be applied. The High Court relying on the
  judgment of this Court in the case of Sar/a Verma (Smt.) and
  Others v. Delhi Transport Corporation and Another (2009) 6
  sec 121, enhanced the multiplier to 18 instead of 9 and
  granted expenses to the tune of Rs. 15000/- under conventional
B heads. Accordingly, the High Court enhanced the amount of
  compensation from Rs. 1,72,000/- to Rs. 3,39,000/-
          6. The learned counsel appearing for the appellant
  submitted that the High Court had failed to correctly apply the
  ratio laid in the case of Sar/a Verma case (supra.). It was
C further contended that this Court has repeatedly held that in
  case where an unmarried young man dies, the average age of
  the parents will be taken for determining the multiplier and not
  the age of the deceased. In the aforesaid case, it has been
  clearly stated that for the age group of 56-60 years the
D multiplier should be 8, as has been correctly applied by the
  Tribunal by taking the average age of the Respondents 3 and
  4 who are 55 and 56 years of age. It was further submitted that
  assuming, though not admitting, even if the age of the deceased
  is to be considered for determining the multiplier, the correct
E multiplier should have been 16 instead of 18, which is
  applicable to the age group between 15 to 20 years.
      7. On the other hand, the learned counsel appearing for
  the Respondents No. 3 and 4 supported the impugned
  judgment and submitted that the High Court correctly enhanced
F the multiplier keeping in view the age of the deceased which
  was 19 years.
          8. The assessment of damages and compensation takes
  into account a number of imponderables. This has been held
  by this court in the case of General Manager, Kera/a State
G Road Transport Corporation, Trivandrum v. Mrs. Susamma
  Thomas and Ors. (AIR 1994 SC 1631) as: -
          "The assessment of damages to compensate the
          dependents is beset with difficulties because from the
          nature of things, it has to take into account many
H         imponderables, e.g. the life expectancy of the deceased
NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH                    815
  AND ORS. [DR. MUKUNDAKAM SHARMA, J.]

    and the dependents, the amount that the deceased would            A
    have earned during the remainder of hi~ life, the amount
    that he would have contributed to the dependents during
    that period, th_e chances that the deceased may not have
    lived or the dependents may not live up to the estimated
    remaining period of their life expectancy, the chances that       B
    the deceased might have got better employment or income
    or might have lost his employment or income together etc."
     9. This Court in the case of Vijay Shankar Shinde and Ors.
v. State of Maharashtra (2008) 2 SCC 670, after referring to
the earlier judgments of this Court, in detail, dealt with the law    C
with regard to determination of the multiplier in a similar
situation as in the present case. The said findings of this Court
are as under:
     "6. We have given anxious consideration to these
     contentions and are of the opinion that the same are             D
     devoid of any merits. Considering the law laid down in New
     India Assurance Co. Ltd. v. Charlie AIR 2005 SC 2157,
     it is clear that the choice of multiplier is determined by the
     age of the deceased or claimants whichever is higher.
     Admittedly, the age of the father was 55 years. The              E
     question of mother's age never cropped up because that
     was not the contention raised even before the Triat Court
     or before us. Taking the age to be 55 years, in our opinion,
     the courts below have not committed any illegality in
     applying the multiplier of 8 since the father was running 56th   F
     year of his life.
     7. The learned Counsel relying on the 2nd Schedule of the
     Act contended that. the deceased being about 16. or 11
     years of age, a multiplier of 16 or 17 should have been
     granted. It is undoubtedly true that Section 1€3A was            G
     brought on the Statute book to shorten the period of
     litigation. The burden to·prove the·negligence or fault on
     the part ofdriver and other allied burdens u/s 140 or 166
     were really cumbersome and time consuming. Therefore
     as a part of social justice, a system was introduced via         H
    816     SUPREME COURT REPORTS                    [2011] 7 S.C.R.


A        Section 163A wherein such burden was avoided and
         thereby a speedy remedy was provided. The relief u/s
         163-A has been held not to be additional but alternate. The
         Schedule provided has been threadbare discussed in
         various pronouncements including Deepal Girishbhai Soni
B        v. United India Insurance Co. Ltd. AIR 2004 SC 2107.
         2nd Schedule is to be used not only referring to age of
         victim but also other factors relevant therefore.
         Complicated questions of facts and law arising in accident
         cases cannot be answered all times by relying on
c      · mathematical equations. In fact in U.P. State Road
         Transport Corporation v. Trilok Chandra (1996) 4 SCC
         362, Ahmedi, J. (As the Chief Justice then was) has
         pointed out the shortcomings in the said Schedule and has
         held that the Schedule can only be used as a guide. It was
         also held that the selection of multiplier cannot in all cases
D
         be solely dependent on the age of the deceased. If a
         young man is killed in the accident leaving behind aged
         parents who may not survive long enough to match with a
         high multiplier provided by the 2nd Schedule, then the
         Court has to offset such high multiplier and balance the
E        same with the short life expectancy of the claimants. That
         precisely has happened in this case. Age of the parents
         was held as a relevant factor in case of minor's death in
         recent decision in Oriental Insurance Co. Ltd. v. Syed
         Ibrahim and Ors. AIR 2008 SC 103. In our considered
F        opinion, the Courts below rightly struck the said balance."
      10. In our view, the dictum laid down in Vijay Shankar
  Shinde (supra) is applicable to the present case on all fours.
  Accordingly, we hold that the Tribunal had rightfully applied the
G multiplier of 8 by taking the average of the parents of the
  deceased who were 55 and 56 years.
         11. Thus, the present appeal is allowed to the aforesaid
    extent and the award passed by the Tribunal is restored. No
    costs.
H B.B.B.                                             Appeal allowed.


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