SANOBANU NAZIRBHAI MIRZA & ORS.versusAHMEDABAD MUNICIPAL TRANSPORT SERVICE
- Citation
- 2013 INSC 669
- Decided
- 3 October 2013
- Disposal
- Appeal(s) allowed
- Bench
- G S SINGHVI
Holding
The Tribunal and High Court erred in applying the notional income of Rs 15,000 per annum; the correct computation based on actual earnings, a 50% addition, 1/5th deduction, and a multiplier of 20 yields a total compensation of Rs 16,96,000.
Summary
The deceased Nazirbhai, a 25‑year‑old skilled polisher earning Rs 4,000‑5,000 per month, was killed by an Ahmedabad Municipal Transport Service bus. His legal representatives filed a claim petition under Section 166 of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal awarded Rs 3,51,300 based on a notional annual income of Rs 15,000 taken from the Schedule to Section 163‑A, which the High Court later reduced to Rs 2,51,800. The Supreme Court held that both the Tribunal and the High Court erred in using the notional income figure and ignored evidence of the deceased's actual earnings and the skilled nature of his work. Applying a monthly income of Rs 5,000, a 50% addition for future prospects, a 1/5th deduction for personal expenses, and a multiplier of 20, the Court awarded compensation of Rs 16,96,000 along with interest and other heads of loss. The appeal was allowed, directing the respondent to pay the enhanced amount.
Issues considered
- The appropriateness of using the notional income of Rs 15,000 per annum from the Schedule to Section 163‑A for a skilled worker.
- Whether the actual earnings of the deceased (Rs 4,000‑5,000 per month) and a 50% addition for future prospects should be used to compute loss of dependency.
- Whether a multiplier of 20 is proper for a 25‑year‑old deceased.
- Whether heads such as loss of consortium, loss of care and guidance, funeral expenses, and pain and suffering can be awarded even if not claimed.
- Whether the High Court could validly reduce the compensation after a long delay.
Legislation cited
- Minimum Wages Act, 1948s. 3
- Motor Vehicles Act, 1988s. 163-A, s. 166
Subjects
Judgment
[2013] 9 S.C.R. 882
A SANOBANU NAZIRBHAI MIRZA & ORS.
v.
AHMEDABAD MUNICIPAL TRANSPORT SERVICE
(Civil Appeal No. 8251 of 2013)
OCTOBER 03, 2013
B
[G.S. SINGHVI AND V. GOPALA GOWDA, JJ.]
MOTOR VEHICLES ACT, 1988:
c s. 166 - Fatal motor accident - Compensation - Annual
income of deceased-Polisher -- Addition towards future
prospects - Multiplier - Tribunal and High Court taking
annual income of deceased at Rs. 150001- -- Held: Claim
petition having been filed u/s. 166, taking notional income of
0 deceased at Rs. 15, 0001- per annum on the basis of /Ind
Schedule to s. 163-A is an erroneous approach to determine
just and reasonable compensation in favour of legal
representatives of the deceased who was the sole earning
member of family - Deceased was working as a polisher,
E which is a skilled job - Keeping in view the evidence on
record, it would be just and proper to take a sum of Rs. 50001
- as monthly income of deceased - Since deceased was se/f-
emplo yed and about 25 years of age, there must be an
addition of 50 % to his actual income - There being 5
F dependents, 1!5th amount is to be deducted towards personal
expenses - Keeping in view life expectancy of deceased,
multiplier of 20 must be applied - Besides, Rs. 1, 00, 0001-
must be added towards loss of consortium and further Rs.
1,00,0001- under the head loss of care and guidance of minor
children -- Total compensation allowed as Rs. 16,96,0001-
G as detailed in the judgment - Further directions with regard
to payment, its apportionment amongst dependents and fixed
deposits, given.
s. 166 - Fatal motor accident - Compensation - Tribunal
H 882
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 883
TRANSPORT SERVICE
awarding Rs. 3,51,3001- as total compensation - High Court A.
reducing it to Rs. 2,51,5001- and directing to return Rs. 99,5001
- to respondent with 9 % interest - Held: The finding of fact
recorded by Tribunal in the absence of any evidence in
rebuttal to show that deceased was not working as a polisher
and it is not a skilled work, is an erroneous finding for the B
reason that both Tribunal and High Court have not assigned
reason for not accepting the evidence on record with regard
to the nature of work that was being performed by deceased -
- State Government in exercise of its statutory power uls. 3 of
Minimum Wages Act, 1948 must issue a notification for fixing c
the wages of a polisher -- Even in the absence of such a
notification, both Tribunal as well as High Court should have
at least taken the income of deceased as Rs.40,0001- per
annum as per the table provided in the /Ind Schedule to s.
163-A of M. V. Act for the purpose of determining just, fair and
0
reasonable compensation under the heading loss of
dependency of appellants, though said amount is applicable
only to the claims under no fault liability - Minimum Wages
Act, 1923 - s. 3 - Legislation.
s. 166 - Claim petition - Enhancement of compensation E
in appeal - Held: Legal representatives of deceased are
entitled to compensation as mentioned under various heads
in the table as provided in the judgment -- Even though
certain claims were not preferred by them, they are legally and
legitimately entitled for the said claims -- Accordingly, the F
Court awards compensation, more than what was claimed by
dependants as it is the statutory duty of Tribunal and appellate
court to award just and reasonable compensation to legal
representatives of deceased to mitigate their hardship and
agony, as they filed application u/s. 166. G
A youngman of 25 years was crushed under the bus
belonging to the respondent. He succumbed to the
injuries the same day. In a petition filed by the appellants-
dependants u/s. 166 of the Motor Vehicles Act, 1988, it
H
884 SUPREME COURT REPORTS [2013] 9 S.C.R.
A was stated that the deceased was a polisher and was
earning Rs. 4000 - 5000/- per month. However, the
Tribunal took a sum of Rs. 15,000/- per annum as notional
income as provided in II Schedule to s. 163-A of the Act,
and awarded a total sum of Rs. 3,51,300/- with 9% interest.
B On appeal by the respondent, the High Court reduced the
compensation to Rs. 2,51,800/- and directed the claimants
to refund Rs. 99,500/- with 9% interest to the respondent.
Allowing the appeal, the Court
C HELD: 1.1 The approach of the Tribunal in taking
notional income of the deceased at Rs.15,000/- per annum
to which Rs.30,000/- was added and divided by 2,
bringing it to a net yearly income of Rs.22,500/- which has
been further interfered with by the High Court by taking
D Rs.15,000/- as notional income on the basis of the llnd
Schedule to s. 163-A of the M.V. Act, is an erroneous
approach to determine just and reasonable
compensation in favour of the legal representatives of the
deceased who was the sole earning member of the family.
E [Para 7] [892-E-G]
1.2 It is an undisputed fact that the deceased was
working as a polisher, which is a skilled job. This
important aspect of the case of the appellants was not
F taken into consideration by both the Tribunal as well as
the High Court, thereby they have gravely erred by taking
such low notional income of the deceased though there
is evidence on record in support of the claim and the
petition was filed u/s. 166 of the M.V. Act. Taking
Rs.15,000/- per annum as the notional income and
G deducting 1/5th towards personal expenses which would
come to Rs.12,000/- is not only an erroneous approach
of the High Court but is also vitiated in law. Both the
Tribunal and the High court have not assigned any
reason for not accepting the evidence on record with
H regard to the nature of work that was being performed
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 885
TRANSPORT SERVICE
by the deceased. The finding of fact recorded by the A
Tribunal in the absence of any evidence in rebuttal to
show that the deceased was not working as a polisher
and it is not a skilled work is also an erroneous finding.
[para 7] [892-H; 893-A-C]
B
1.3 The State Government in exercise of its statutory
power u/s 3 of the Minimum Wages Act, 1948 must issue
a notification for fixing the wages of a polisher. Even in
the absence of such a notification, both the Tribunal as
well as the High Court should have at least taken the C
income of the deceased as Rs.40,000/- per annum as per
the table provided in the llnd Schedule to s. 163-A of the
M.V. Act for the purpose of determining just, fair and
reasonable compensation under the heading loss of
dependency of the appellants, though the said amount
is applicable only to the claims under no fault liability. If D
1/5th amount is deducted out of the said annual income
the resultant multiplicand would be Rs.32,000/- per
annum. [Para 7] [893-C-F]
1.4 In view of the facts of the case, it would be just E
and proper for this Court to take a sum of Rs.5000/- as
the monthly income of the deceased and thus, the annual
income would come to Rs.60,000/-. In the recent decision
in Rajesh & Ors. vs. Rajbir Singh, this Court while
referring to the case of Santosh Devi has held that in the F
case of self-employed persons or persons with fixed
wages, in case the deceased victim was below 40 years,
there must be an addition of 50% to the actual income of
the deceased while computing future prospects of the
deceased. Keeping in view the five dependants of the G
deceased in the case on hand, 1/5th amount is to be
deducted towards personal expenses. Having regard to
the age of the deceased as 25, as mentioned in the post
mortem report, which age is taken by both the Tribunal
as well as the High Court, and keeping in mind the life H
886 SUPREME COURT REPORTS [2013] 9 S.C.R.
A expectancy of the deceased, multiplier of 20 must be
applied to the multiplicand for the purpose of quantifying
loss of dependancy. Further, following the decision of
this Court in Rajesh V. Rajbir Singh, Rs.1,00,000/- must
be added under the head of loss of consortium and
B Rs.1,00,000 under the head of loss of care and guidance
for minor children. [Para 8) [893-G-H; 894-A-E]
Santosh Devi v. National Insurance Co. Ltd. & Ors. 2012
=
(3) SCR 1178 (2012) 6 SCC 421; Rajesh & Ors. v. Rajbir
C Singh 2013 (6) SCALE 563; Nagappa v. Gurudaya/ Singh &
Ors. 2002 (4) Suppl. SCR 499 = (2003) 2 SCC 274 - relied
on.
1.5 Even though certain claims were not preferred by
the dependants, they are legally and legitimately entitled
D for the said claims. Accordingly this Court awards the
compensation, more than what was claimed by the
dependants as it is the statutory duty of the Tribunal and
the appellate court to award just and reasonable
compensation to the legal representatives of the
E deceased to mitigate their hardship and agony. Therefore,
this Court has awarded just and reasonable
compensation in favour of the appellants as they filed
application claiming compensation u/s. 166 of the M.V.
Act. Keeping in view the relevant facts and legal evidence
F on record and in the absence of rebuttal evidence
adduced by the respondent, this Court determines just
and reasonable compensation by awarding a total sum
of Rs. 16,96,000/- under various heads as detailed in the
judgment, with interest@ 7.5% from the date of filing the
G claim petition till the date payment is made to the
appellants. [Para 9) [896-F-H; 897-A-B]
Ritaben @ Vanitaben & Anr. Vs. Ahmedabad Municipal
Transport Service & Anr. 1998 (2) GLH 670 S. Chandra &
Ors. Vs. Pallavan Transport Corporation (1994) 2 SCC 189,
H General Manager, Kera/a State Road Transport Corporation,
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 887
TRANSPORT SERVICE
Trivendrum Vs. Susamma Thomas & Ors. (1994) 2 SCC 176, A
Gujarat State Road Transport Corporation Vs. Suryakantaben
D. Acharya & Ors. 2001 (2) GLR 1777 - cited.
Case Law Reference:
1998 (2) GLH 670 cited para 6 8
(1994) 2 sec 189 cited para 6
(1994) 2 sec 116 cited para 6
2001 (2) GLR 1777 cited para 6 c
2012 (3) SCR 1178 relied on para 8
2013 (6) SCALE 563 relied on para 8
2002 (4) Suppl. SCR 499 relied on para 8
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
8251 of 2013.
From the Judgment and Order dated 11.01.2012 of the
High Court of Gujarat at Ahmedabad in First Appeal No. 1549 E .
of 2002.
Saroj Raichura for the Appellants.
Kuldeep S Parihar for the Respondent.
F
The Judgment of the Court was delivered by
V. GOPALA GOWDA, J. 1. Leave granted.
2. The legal representatives of the deceased Nazirbhai
who died in a road accident on 30th May, 1998 were aggrieved G
by the judgment and order dated 11.01.2012 of the High Court
of Gujarat at Ahmadabad in First Appeal No. 1549 of 2002
wherein the High Court had partly allowed the appeal of the
respondent and reduced the compensation awarded in favour
of the claimants by the Motor Accident Claims Tribunal (in short H
888 SUPREME COURT REPORTS [2013] 9 S.C.R.
A 'the Tribunal') at Ahmedabad in MACP No. 563 of 1998 dated
23.10.2001 from Rs.3,51,300/- to Rs.2,51,800/- with a direction
to the appellants-claimants to refund the excess amount of
Rs.99,500/- along with the interest at the rate of 9% per annum.
The appellants-claimants have filed this appeal urging certain
B grounds and prayed for setting aside the impugned judgment
and award passed by the High Court.
3. The brief facts of this case are stated below to
appreciate the rival claims of the parties:
C On 30.05.1998, the deceased Nazirbhai was going on his
bicycle to his contract work of polishing at about 10.30 a.m. at
the house of one Rashidbhai Pathan in Haranwali Pole. While
he was waiting for other labourers at Kalidas Mill Kachha cross
road with a bicycle, at about 10.45 a.m., one Ahmedabad
D Municipal Transport Service (AMTS) bus bearing registration
No. GJ-1-TT-8337 came with high speed in a rash and
negligent manner in the one-way and hit him with its front portion
and knocked him down and caused bodily injuries. He was
crushed under the wheel of his bicycle and later succumbed to
E his injuries at 6.00 p.m on the same day. The legal heirs of the
deceased - his widow, his minor children and his parents filed
a claim petition before the Tribunal for awarding just and
reasonable compensation wherein the Tribunal awarded a sum
of Rs. 3 ,51,300/- along with interest @ 9% per annum 'from the
F date of application till realization. The respondent aggrieved by
the judgment and award of the Tribunal filed an appeal in the
High Court urging for reduction of compensation awarded in
favour of the claimants on the ground that the Tribunal has
committed an error on facts and in law in assessing the income
G of the deceased on the basis of the llnd schedule to Section
163-A of the Motor Vehicles Act, 1988 (in short the M.V. Act)
and that the accident being of the year 1998, income should
have been assessed as Rs.15,000/- per annum. The High Court
partly allowed the appeal of the respondent and reduced the
H compensation to Rs.2,51,800/- and ordered that the excess
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 889
TRANSPORT SERVICE [V. GOPALA GOWDA, J.]
amount of Rs.99,500/- shall be returned to the respondent A
along with interest @ 9% per annum. Being aggrieved by this
judgment and award passed by the High Court, the legal
representatives of the deceased filed this civil appeal urging
various grounds and legal contentions and requested this Court
to set aside the impugned judgment and award and further, B
award just and reasonable compensation by modifying the
judgment of the Tribunal.
4. It is urged by the learned counsel for the appellants, Ms.
Saroj Raichura, that the Gujarat High Court in exercise of its C
appellate jurisdiction has modified the judgment and award
passed by the Tribunal after a long lapse of 11-12 years, which
is in violation of the right to life and natural justice and statutory
rights of the appellants under the provisions of the M.V.Act.
Another ground urged is that the High Court was not right in
holding that the compensation awarded by the learned D
Members of the Tribunal is excessive and consequently, the
direction issued to the appellants to refund an amount of
Rs.99,500/- along with an interest of 9% interest after long
lapse of 11 years is wholly unsustainable in law. It is submitted
that at the time of death the deceased was aged 25 years and E
was hale and hearty and would have lived long, had he not met
with the accident. Prior to the accident, he was engaged in the
work of polishing and colouring and was earning Rs.4,000/- to
Rs.5,000/- per month and he was good at his work and would
have progressed in the future. It is urged that since the appellant F
No.3 was born after the death of the deceased, compensation
under the head of loss of fatherhood should also be awarded.
The further legal contention urged is that the High Court
interfered with the judgment and award by reducing the
compensation after 11 long years even though the Tribunal after G
proper appreciation of facts and legal evidence on record has
rightly awarded the compensation. The same should not have
been interfered with by the High Court in the exercise of its
appellate jurisdiction. Therefore, the appellants have
approached this Court to set aside the impugned judgment and H
890 SUPREME COURT REPORTS [2013] 9 S.C.R.
A order of the High Court and prayed to pass an order awarding
just and reasonable compensation.
5. We have carefully examined the correctness of the
impugned judgment and award passed by the High Court of
B Gujarat in exercise of its appellate jurisdiction with a view to
find out whether the interference of the High Court with the
quantum of compensation awarded by the Tribunal in its
judgment is legal, valid and justified and further, as to what
amount the claimants are entitled to. We have also perused the
C judgment passed by the Tribunal on the basis of pleadings and
evidence on record wherein it has recorded the categorical
finding of fact holding that the deceased sustained bodily
injuries in a road traffic accident on 30.05.1998 at about 10.30
a.m. while he was going to attend his contract work of polishing
at the house of one Rashidbhai Pathan in Haranwali Pole.
D While he was waiting for the other labourers at Kalidas Mill
Kachha cross road with a bicycle, at that point of time at about
10.45 a.m. one AMTS bus bearing registration No. GJ-1-TT-
8337 came at high speed in a rash and negligent manner in
the one-way and hit him with its front portion and knocked him
E down and caused grievous bodily injuries. He was crushed
under the wheel of his bicycle and later succumbed to the
injuries at 6.00 p.m. The finding is recorded by the Tribunal on
the basis of legal evidence on record and held that the accident
occurred on account of rash and negligent driving of the
F offending vehicle by its driver and the deceased sustained
injuries and succumbed to them on the evening of the same
day. The above said finding of fact has not been set aside by
the appellate authority in exercise of its appellate jurisdiction.
G 6. The Tribunal has taken a sum of Rs. 15,000/- per annum
as provided in the llnd schedule to Section 163-A of the M.V.
Act as notional income on the basis of ratio laid down by the
Gujarat High Court in the case of Ritaben @ Vanitaben & Anr.
Vs. Ahmedabad Municipal Transport Service & Anr. 1 wherein
H 1. 1998 (2) GLH 670.
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 891
TRANSPORT SERVICE [V. GOPALA GOWDA, J.]
it has held that a datum figure is required to be taken into A
consideration for compensation in fatal cases. The same was
applied to the case on hand by the Tribunal and further
Rs.30,000/- was added to this figure which was then divided
by 2 such that the net yearly income comes to Rs.22,500/- out
of which 1/3rd amount was deducted towards personal B
expenses and maintenance of the deceased and thus the net
awardable dependency was calculated at Rs.15,000/- per
annum. The case of S.Chandra & Ors. Vs. Pallavan Transport
Corporation 2, of this Court has also been referred to regarding
the average life expectancy, wherein this Court has taken 20 c
as multiplier in case of the deceased aged 42 years. Adverting
to the case of General Manager, Kera/a State Road Transport
Corporation, Trivendrum Vs. Susamma Thomas & Ors. 3, this
Court discussed the method to be followed to determine the
multiplier to the multiplicand and taken multiplier of 12 in a case
0
where the deceased was aged 39 years. However, the Tribunal
after referring to S. Chandra's case (supra) preferred to rely
on the same for taking multiplier of 20 in the case of the
deceased at the time of death as he was aged about 25 years
as reflected in the post mortem report. Therefore, the future
economic loss awardable to the appellants was calculated at E
Rs.3,00,000/-. Thereafter, following the decision in the case of
Gujarat State Road Transport Corporation Vs. Suryakantaben
D. Acharya & Ors. 4, wherein the Gujarat High Court ruled that
the conventional amount was required to be raised to
Rs.20,000/- from Rs.10,000/- having regard to the rise in prices F
and higher rate of inflation which is a common phenomenon in
Indian economy, the Tribunal awarded a sum of Rs.20,000/-
towards loss of expectancy of life and Rs.500/- towards medical
expenses. Since no evidence was produced before the Tribunal
by the appellants to sustain the medical claim and attendant G
charges of Rs.2000/- therefore, the Tribunal has held that the
2. (1994) 2 sec 189.
3. (1994) 2 sec 176.
4. 2001 (2) GLR 1777. H
892 SUPREME COURT REPORTS [2013] 9 S.C.R.
A claim was on the higher side and it has awarded a sum of
Rs.500/- towards attendant charges. Further, Rs.300/- was
awarded towards transportation charges since the appellants
have not adduced evidence to show that Rs.2000/- was spent
towards transportation of the dead body. The award has been
B interfered with by the High Court in the impugned judgment and
the compensation was reduced to Rs.2,51,000/- taking only
notional income of Rs.15,000/- per annum as provided in the
llnd Schedule to Section 163-A of the M.V. Act and deducted
1/5th amount towards personal expenses. The dependency
c benefit is taken to Rs.12,000/- per annum and 18 multiplier was
applied and awarded a sum of Rs.2, 16,000 and another
Rs.10,000/- was awarded towards loss of consortium,
Rs.10,000/- towards loss to estate, Rs.5000/- towards funeral
expenses, Rs.5,000/- towards pain, shock and suffering,
0 Rs.500/- towards attendant charges and Rs.300/- towards
transportation charges. The total compensation of Rs.
2,51,800/- was awarded by the High Court by modifying the
judgment and award of the Tribunal which has awarded a
compensation of Rs.3,51,300/- and further the High Court
E directed the appellants to refund an excess amount of
Rs.99,500/- with interest at the rate of 9% per annum to the
respondent. The same was rightly challenged by the appellants
before this Court by filing this appeal urging various grounds.
7. In our considered view, the approach of both the
F Tribunal as well as the High Court in taking notional income of
the deceased at Rs.15,000/- per annum to which Rs.30,000/-
was added and divided by 2 bringing it to a net yearly income
of Rs.22,500/-which has been interfered with by the High Court
by taking Rs.15,000/- as notional income on the basis of the
G llnd Schedule to the Section 163-A of the M.V. Act is an
erroneous approach to determine just and reasonable
compensation in favour of the legal representatives of the
deceased who was the sole earning member of the family. It
is an undisputed fact that the deceased was working as a
H
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 893
TRANSPORT SERVICE [V. GOPALA GOWDA, J.]
polisher, which is a skilled job. This important aspect of the case A
of the appellants was not taken into consideration by both the
Tribunal as well as the High Court, thereby they have gravely
erred by taking such low notional income of the deceased
though there is evidence on record and the claim petition was
filed under Section 166 of the M.V. Act. The High Court taking B
Rs.15,000/- per annum as the notional income and deducting
1/Sth towards personal expenses which would come to
Rs.12,000/- is not only an erroneous approach of the High Court
but is also vitiated in law. The finding of fact recorded by the
Tribunal in the absence of any rebuttal evidence to show that c
the deceased was not working as a polisher and it is not a
skilled work is also an erroneous finding for the reason that both
the Tribunal and the High court have not assigned reason for
not accepting the evidence on record with regard to the nature
of work that was being performed by the deceased. The State 0
Government in exercise of its statutory power under Section 3
of the Minimum Wages Act, 1948 must issue a notification for
fixing the wages of a polisher. Even in the absence of such a
notification, both the Tribunal as well as the High Court should
have at least taken the income of the deceased as Rs. E
40,000/- per annum as per the table provided in the llnd
Schedule to Section 163-A of the M.V. Act for the purpose of
determining just, fair and reasonable compensation under the
heading loss of dependency of the appellants, though the said
amount is applicable only to the claims under no fault liability.
If 1/Sth amount is deducted out of the above annual income the F
resultant multiplicand would be Rs.32,000/- per annum. Both the
Tribunal and the High Court should have proceeded on the
aforesaid basis and determined the compensation under the
heading loss of dependency of the appellants.
G
8. In view of the aforesaid fact, we have to hold that it would
be just and proper for this Court to take a sum of Rs.5000/- as
the monthly income of the deceased having regard to the nature
of job that the deceased was performing as a polisher, which
H
894 SUPREME COURT REPORTS [2013] 9 S.C.R.
A is a skilled job, wherein the annual income would come to
Rs.60,000/-. This Court in judgment of Santosh Devi v. National
Insurance Co. Ltd. & Ors. 5, has held that an addition of 30%
increase must be applied for increase in total income of the
deceased over a period of time if he had been alive. Further,
B in the recent decision in Rajesh & Ors. v. Rajbir Singh 6, this
Court while referring to the case of Santosh Devi (supra) held
that in the case of self-employed persons or persons with fixed
wages, in case the deceased victim was below 40 years, there
must be an addition of 50% to the actual income of the
c deceased while computing future prospects of the deceased.
Keeping in view the five dependants of the deceased in the
case on hand, 1/5th amount is to be deducted towards personal
expenses. Having regard to the age of the deceased as 25,
as mentioned in the post mortem report, which age is taken
by both the Tribunal as well as the High Court, and keeping in
0
mind the life expectancy of the deceased, multiplier of 20 must
be applied to the multiplicand for the purpose of quantifying loss
of dependancy. Further, following the decision of this Court in
Rajesh v. Rajbir Singh (supra), Rs.1,00,000/- must be added
under the head of loss of consortium and Rs.1,00,000 under
E the head of loss of care and guidance for minor children.
Further, it was held by this Court in the case referred to supra
that Rs.25,000/- must be awarded for funeral expenses as this
Court has made observations in the case referred to supra that
the tribunals have been frugal in awarding the compensation
F under the head 'funeral expenses' and hence, we award
Rs.25,000 under the head of funeral expenses to the claimants/
legal representatives.
Hence, the total compensation has to be assessed under
G the various heads as follows:
5. c2012) 6 sec 421.
H 6. 2013 (6) SCALE 563
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 895
TRANSPORT SERVICE [V. GOPALA GOWDA, J.]
SI No. HEADS CALCULATIONS A
(i) Income Rs.5,000/- p.m.
(ii) 50% of above to be added as [Rs.5,000+Rs.2,500]
future prospects =Rs.7,500/- p.m. B
(iii) 1/5th of (ii) to be deducted as [Rs.7,500-Rs.1,500/-]
personal expenses of the =Rs.15,000/- p.m.
deceased
(iv) Compensation after multiplier [Rs.6,000/-x12x20] c
of 20 is applied =Rs.14,40,000/-
(v) Loss of consortium Rs.1,00,000/-
(vi) Loss of care and guidance for
D
minor children Rs.1,00,000/-
(vii) Funeral and obsequies Rs.25,000/-
expenses
(ix) Pain, loss and suffering Rs.25,000/- E
(x) Medical expenses Rs.3,000/-
(xi) Attendant charges and
transportation expenses Rs.3,000/-
F
TOTAL COMPENSATION AWARDED Rs. 16,96,000/-
The amount of Rs.16,96,000/- as calculated above, under
the various heads of losses, should be awarded in favour of
appellants-claimants, though there is no specific mention G
regarding enhancing of compensation as in the appeal it has
been basically requested by the appellants to set aside the
judgment and order passed by the High Court in the appeal
filed by the respondent. We must follow the legal principles of
Nagappa Vs. Gurudaya/ Singh & Ors. 7 at para 7, wherein with
respect to the provisions of the M.V. Act, this Court has H
'
896 SUPREME COURT REPORTS [2013] 9 S.C.R.
A observed as under:
"There is no restriction that compensation could be
awarded only up to the amount claimed by the claimant.
In an appropriate case, where from the evidence brought
8 on record if the Tribunal/court considers that the claimant
is entitled to get more compensation than claimed, the
Tribunal .may pass such award. The only embargo is - it
should be "just" compensation, that is to say, it should be
neither arbitrary, fanciful nor unjustifiable from the evidence.
This would be clear by reference to the relevant provisions
c of the MV Act. Section 166 provides that an application
for compensation arising out of an accident involving the
death of, or bodily injury to, persons arising out of the use
of motor vehicles, or damages to any property of a third
party so arising, or both, could be made (a) by the person
D who has sustained the injury; or (b) by the owner of the
property; or (c) where death has resulted from the
accident, by all or any of the legal representatives of the
deceased; or (d) by any agent duly authorised by the
person injured or all or any of the legal representatives of
E the deceased, as the case may be."
9. In view of the aforesaid decision of this Court, we are
of the view that the legal representatives of the deceased are
entitled to the compensation as mentioned under the various
F heads in the table as provided above in this judgment even
though certain claims were not preferred by them as we are of
the view that they are legally and legitimately entitled for the said
claims. Accordingly we award the compensation, more than
what was claimed by them as it is the statutory duty of the
G Tribunal and the appellate court to award just and reasonable
compensation to the legal representatives of the deceased to
mitigate their hardship and agony as held by this Court in a
catena of cases. Therefore, this Court has awarded just and
reasonable compensation in favour of the appellants as they
H filed application claiming compensation under Section 166 of
SANOBANU NAZIRBHAI MIRZA v. AHMEDABAD MUNICIPAL 897
TRANSPORT SERVICE [V. GOPALA GOWDA, J.]
the M.V. Act. Keeping in view the aforesaid relevant facts and A
legal evidence on record and in the absence of rebuttal
evidence adduced by the respondent, we determine just and
reasonable compensation by awarding a total sum of Rs.
16,96,000/- with interest @ 7.5% from the date of filing the
claim petition till the date payment is made to the appellants. B
10. Accordingly, the appeal is allowed on the above said
terms. The respondent is directed to pay the enhanced
compensation in this appeal with interest awarded, in favour
of the appellants in the following ratio. 75% of the awarded C
amount shall be paid equally in favour of appellant Nos. 1 to 3
and the remaining 25% must be in the name of appellant Nos.
4 and 5 in equal proportion with proportionate interest. Out of
the 75%, each of appellant Nos. 1 to 3 will get 25% and further,
10% of the share of appellant No.2 and 10% of the share of
appellant No.3 must be deposited with proportional interest D
payable to each one of them in any Nationalized Bank of their
choice and the rest 15% of each of their award amounts, with
proportionate interest to be paid to them. The appellant Nos.
2 and 3 are at liberty to move the Tribunal to release the money
so deposited for their welfare and developmental purpose. The E
above said direction regarding the payment and deposit shall
be made within six weeks by depositing it in the Bank and
disburse the amount by way of demand draft drawn in the name
of each one of them as directed above. There will be no order
as to costs. F
R.P. Appeal allowed.
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