Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 3211 - 3212 of 2015, Judgment Date: Mar 27, 2015

  • On applying the principles as laid down in  the
    case of Sarla Verma (supra), 50% of the salary must be added to  the  income
    of  the  deceased  towards  future  prospects  of  income,  which  comes  to
    Rs.6,900/- per month,  i.e.  Rs.82,800/-  per  annum.  Deducting  1/4th  for
    personal expenses  and  applying  the  appropriate  multiplier  taking  into
    consideration the age of the deceased at the time of his death as per  Sarla
    Verma  (supra),  the  total  loss  of  dependency  comes  to   Rs.9,93,600/-
    [(Rs.82,800/- (-) 1/4 X Rs.82,800/-)X 16].
    Further, Rs.1,40,000/- was spent by the appellant-wife for medical  purposes
    of her husband(deceased) during the period of treatment  before  his  death.
    Accordingly, we award an amount of Rs.1,40,000/-  towards  medical  expenses
    incurred for the treatment of the deceased.
    Further, the High Court has erred in awarding only Rs. 5,000/- each  towards
    loss  of  estate,  funeral  expenses  and  loss  of  consortium.  We   award
    Rs.1,00,000/- towards loss of estate according to the principles  laid  down
    in  the  case  of  Kalpanaraj  &  Ors. v.   Tamil   Nadu   State   Transport
    Corporation[2],  Rs.25,000/-  towards  funeral  expenses  and  Rs.1,00,000/-
    towards loss of consortium as per the principles laid down by this Court  in
    the case of Rajesh & Ors. v. Rajbir Singh & Ors.[3]
    Further, we award Rs.1,00,000/- each to the appellant-children towards  loss
    of love and affection due to the loss of their father(deceased) as  per  the
    decision of this Court in the case of Juju Kuruvila  &  Ors.  v.  Kunjujamma
    Mohan & Ors.[4]. Further, a sum of Rs.50,000/- is awarded  to  each  of  the
    appellant-parents towards loss of love and affection of their  deceased  son
    as per the principles laid down by this Court in the case of  M.  Mansoor  &
    Anr v. United India Insurance Co. Ltd.[5].
    Further, the High Court has erred in awarding an interest at the rate of  8%
    per annum only, instead of 9% per annum on the compensation  amount  as  per
    the principles laid by this Court in the case of  Municipal  Corporation  of
    Delhi v. Association of Victims of Uphaar Tragedy[6].



                         IN THE SUPREME COURT OF INDIA
                          CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS.3211-3212 OF 2015
               (Arising out of SLP(C) NOS. 1668-1669 of 2014)


ASHA VERMAN & ORS                                             ...APPELLANTS

                                     Vs.

MAHARAJ SINGH & ORS.                                        ...RESPONDENTS

                               J U D G M E N T

V. GOPALA GOWDA, J.

     Leave granted.
  These appeals  have  been  filed  by  the  appellants  against  the  final
judgment and order dated 22.02.2013 passed  by  the  High  Court  of  Madhya
Pradesh at Jabalpur in M.A. No.480 of 2008, wherein the  High  Court  partly
allowed the appeal of the  appellants  and  dismissed  the  review  petition
No.256 of 2013 dated 21.6.2013.
  The necessary relevant facts are stated hereunder to appreciate  the  case
with  a  view  to  determine  whether  the  appellants  are   entitled   for
enhancement of compensation amount as prayed in these appeals?
  On 27.11.2006, Jhabbu Verman, aged 35 years, was  on  his  way  back  from
Tripuri to Garha (Jabalpur) on his motorcycle bearing registration  No.  MP-
20-Y-7669 and met with an accident when a truck bearing registration No. MP-
20-GA-2221 being driven by respondent No.1 rashly and  negligently  collided
with the back of his motorcycle. As a result  of  the  same,  Jhabbu  Verman
fell towards his right and the wheel of  the  vehicle  ran  over  his  hands
which lead to severe damage to his left hand.  Due to the grievous  injuries
caused in the said accident, he was immediately  taken  to  the  Mahakaushal
College  and  Hospital  and  he  remained  under  medical   treatment   from
28.11.2006, during which  period  he  underwent  an  operation  and  plastic
surgery twice on his chest and was advised for amputation of his left  hand.
However, due to the severity of injuries caused  to  him  in  the  accident,
Jhambu Verman died on 08.12.2006.
   A claim petition under Section 166 of the Motor  Vehicle  Act,  1988  was
filed on 06.01.2007 before the Motor Accidents Claims  Tribunal  (for  short
'the Tribunal'), at Jabalpur, M.P. by the  appellant  No.1  -  wife  of  the
deceased, appellant Nos.2 & 3 - minor children of  the  deceased,  appellant
Nos. 4 & 5-parents of the deceased, claiming Rs.31,70,000/- as  compensation
for loss caused due to the death of Jhambu Verman.
   The Tribunal after considering the facts, circumstances and  evidence  on
record of the case on hand, passed an Award dated 08.10.2007 by  awarding  a
total compensation of Rs.3,75,500/- at an interest rate of  6.5%  per  annum
to the appellants.
   Aggrieved by the insufficient compensation awarded  by  the  Tribunal  in
its Award, the appellants preferred an  Appeal  before  the  High  Court  of
Madhya Pradesh at Jabalpur for enhancement of  compensation  urging  various
grounds. The  High  Court  after  examining  the  facts,  circumstances  and
evidence  on  record  enhanced  the  amount  to  a  total  compensation   of
Rs.5,35,000/- under all heads with interest at the rate  of  8%  per  annum.
The following is the breakup of compensation under various heads awarded  by
the High Court:-
Loss of dependency - Rs. 4,50,000/-
Funeral Expenses   - Rs.    5,000/-
Loss of estate     - Rs.    5,000/-
Loss of consortium - Rs.    5,000/-
Loss of love       - Rs.   20,000/-
and affection

Towards pecuniary  - Rs.   50,000/-
Loss
------------------------------------
TOTAL              - Rs. 5,35,000/-

The appellants filed a review petition  before  the  High  Court  which  was
dismissed on 21.06.2013. The appellants have challenged both the  orders  by
filing special leave for enhancement of the compensation amount.
  It has been contended by the learned counsel for the appellants  that  the
High Court has wrongly assessed the monthly salary at Rs.3,500/-  per  month
and failed to appreciate that the deceased was  35  years  of  age  and  was
working as a technician at Mahakaushal Hospital and that he  was  getting  a
salary of Rs.4617/- per month. Further, it is contended that the High  Court
failed to appreciate  that  Rajnikant  Tiwari  (PW-3),  Occupation  Manager,
Mahakaushal  Hospital,  Jabalpur,  has  stated  that  the  deceased  was  an
operation theatre technician at the Hospital and was  getting  a  salary  of
Rs.4,600/- per month. Further, the  courts  below  failed  to  consider  the
legal principles laid down by this Court  with  respect  to  calculation  of
future prospects of income of the deceased in the case  of  Sarla  Verma  v.
DTC[1], according to which case 50% of the actual salary is to be  added  to
the income of the deceased if he is in a permanent job and below the age  of
40 years. Therefore, it is contended that on applying  the  said  principles
laid down by this Court in the above said case, the income of  the  deceased
for calculation of loss of dependency should be  taken  at  Rs.6,900/-  [Rs.
4,600/- + 50% of Rs. 4,600/-].
   It is further contended by him that the deduction  towards  personal  and
living expenses of the deceased should be one-fourth  by  applying  the  law
laid down in Sarla Verma (supra) and not one-third as taken  by  the  courts
below.
It is further contended by him that the High Court has failed to  appreciate
that  the  wife  of  the  deceased  spent  about  Rs.1,40,000/-  on  medical
treatment  of  her  husband(deceased)  and  bills  for   Rs.1,23,630/-   for
treatment have been produced in support of the same.
On the other hand, it has been contended by  the  learned  counsel  for  the
respondent No.3-Insurance Company that the High Court already  enhanced  the
just  and  reasonable   compensation   after   examining   the   facts   and
circumstances of the case and evidence on record  and  therefore,  submitted
that  the  appellants  are  not  entitled   for   further   enhancement   of
compensation as claimed in these appeals.
It is further contended by the learned counsel on behalf  of  the  Insurance
Company that the High Court has rightly upheld the observation made  by  the
Tribunal that no  cogent  evidence  has  been  adduced  to  prove  that  the
deceased was in a permanent job and was getting  salary  of  Rs.4,617/-  per
month.
Further, it is contended by him that the Tribunal  has  rightly  disbelieved
the bills of Rs.1,23,630/- as Ex. P11 alleged to be spent on  the  treatment
of deceased and the same has been duly considered by the High Court.  Hence,
the impugned judgment does not require interference by this Court.
We have heard the learned counsel for both the  parties  and  also  examined
the facts and circumstances of the case and the evidence on record.
We are of the considered view that  the  courts  below  have  erred  in  the
calculation of loss of dependency by wrongly ascertaining the income of  the
deceased at the time of his death. It is clear  that  the  deceased  at  the
time of his death was working in the operation theatre as  a  technician  in
the permanent post at the Hospital and  was  earning  Rs.4,617/-  per  month
(rounded off to Rs.4,600/-). On applying the principles as laid down in  the
case of Sarla Verma (supra), 50% of the salary must be added to  the  income
of  the  deceased  towards  future  prospects  of  income,  which  comes  to
Rs.6,900/- per month,  i.e.  Rs.82,800/-  per  annum.  Deducting  1/4th  for
personal expenses  and  applying  the  appropriate  multiplier  taking  into
consideration the age of the deceased at the time of his death as per  Sarla
Verma  (supra),  the  total  loss  of  dependency  comes  to   Rs.9,93,600/-
[(Rs.82,800/- (-) 1/4 X Rs.82,800/-)X 16].
Further, Rs.1,40,000/- was spent by the appellant-wife for medical  purposes
of her husband(deceased) during the period of treatment  before  his  death.
Accordingly, we award an amount of Rs.1,40,000/-  towards  medical  expenses
incurred for the treatment of the deceased.
Further, the High Court has erred in awarding only Rs. 5,000/- each  towards
loss  of  estate,  funeral  expenses  and  loss  of  consortium.  We   award
Rs.1,00,000/- towards loss of estate according to the principles  laid  down
in  the  case  of  Kalpanaraj  &  Ors. v.   Tamil   Nadu   State   Transport
Corporation[2],  Rs.25,000/-  towards  funeral  expenses  and  Rs.1,00,000/-
towards loss of consortium as per the principles laid down by this Court  in
the case of Rajesh & Ors. v. Rajbir Singh & Ors.[3]
Further, we award Rs.1,00,000/- each to the appellant-children towards  loss
of love and affection due to the loss of their father(deceased) as  per  the
decision of this Court in the case of Juju Kuruvila  &  Ors.  v.  Kunjujamma
Mohan & Ors.[4]. Further, a sum of Rs.50,000/- is awarded  to  each  of  the
appellant-parents towards loss of love and affection of their  deceased  son
as per the principles laid down by this Court in the case of  M.  Mansoor  &
Anr v. United India Insurance Co. Ltd.[5].
Further, the High Court has erred in awarding an interest at the rate of  8%
per annum only, instead of 9% per annum on the compensation  amount  as  per
the principles laid by this Court in the case of  Municipal  Corporation  of
Delhi v. Association of Victims of Uphaar Tragedy[6]. We  accordingly  award
an interest at the rate of 9% per annum on the compensation amount.
    In the result, the appellant shall be  entitled  to  compensation  under
the following heads:
|1.       |Loss of dependency         |Rs.9,93,600/-            |
|2.       |Loss of estate             |Rs.1,00,000/-            |
|3.       |Loss of consortium         |Rs.1,00,000/-            |
|4.       |Loss of love and affection |Rs.2,00,000/-            |
|         |to children                |                         |
|5.       |Funeral expenses           |Rs.25,000/-              |
|6.       |Medical expenses           |Rs.1,40,000/-            |
|7.       |Loss of love and affection |Rs.1,00,000/-            |
|         |to parents                 |                         |
|         |TOTAL                      |Rs. 16,58,600/-          |

Further, though all the appellants are legally entitled for equal  share  of
Rs.1,98,720/- (Rs.9,93,600/- divided by 5)  each  out  of  the  compensation
awarded towards loss of dependency, however, by keeping in mind the  age  of
the parents of the deceased and also the future educational requirements  of
the minor-children of the deceased, we are of the view that the  parents  of
the deceased shall be entitled to 1 lakh each out of the total  compensation
amount awarded towards loss of dependency and the remaining  part  of  their
share (i.e. Rs.98,720/- each) shall be equally  divided  and  added  to  the
appellant-minors' share of compensation.  Therefore  the  following  is  the
apportionment of the amount  awarded  towards  loss  of  dependency  of  the
appellants with proportionate interest:
Appellant No.1 - Rs. 1,98,720/-
Appellant No.2 - Rs. 2,97,440/-
Appellant No.3 - Rs. 2,97,440/-
Appellant No.4 - Rs. 1,00,000/-
Appellant No.5 - Rs. 1,00,000/-
Thus, the total compensation payable to the appellants  by  the  respondent-
Insurance Company will be Rs. 16,58,600/- with interest at the  rate  of  9%
p.a. from the date of filing of the application till the  date  of  payment.
The respondent-Insurance Company is directed to deposit the sum  payable  to
the appellant-children with proportionate interest awarded by this Court  in
fixed deposit in any nationalised bank as per the preference  of  appellant-
No.1/guardian till the appellant Nos. 2  and  3  attain  majority  with  the
liberty to the mother/guardian to  withdraw  interest  &  such  amounts  for
their  education,  development  and  welfare  by  filing   the   appropriate
application before  the  Motor  Accidents  Claims  Tribunal,  Jabalpur.  The
respondent-Insurance Company shall either  pay  the  remaining  compensation
amount by way of demand-draft in favour of the appellant Nos.1, 4 and  5  or
deposit the same with interest as awarded before the Motor Accidents  Claims
Tribunal,  Jabalpur,  after  deducting  the  amount  already  paid  to   the
appellants, if any, within six weeks from the date of receipt  of  the  copy
of this judgment.


      The appeals are allowed as per the above said directions. No Costs.

..............................................................................
                                                                          J.
                        [V.GOPALA GOWDA]


..............................................................................
                                                                          J.
                        [C. NAGAPPAN]


New Delhi,
March 27, 2015



ITEM NO.1B-For Judgment     COURT NO.10               SECTION IVA

               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

C.A.No......./2015 @ SLP (C)  No(s).  1668-1669/2014

(Arising out of impugned final judgment and order dated 22/02/2013 in MA
No. 480/2008,21/06/2013 in RP No. 256/2013 passed by the High Court Of M.P
At Jabalpur)

ASHA VERMAN & ORS.                                 Petitioner(s)

                                VERSUS

MAHARAJ SINGH & ORS.                               Respondent(s)

Date : 27/03/2015 These petitions were called on for hearing today.

For Petitioner(s)       Mr. M.P. Singh, Adv.
                     Mr. Rajeev Kumar Bansal,Adv.

For Respondent(s)
                     Mr. Viresh B. Saharya,Adv.

            Hon'ble Mr. Justice V.Gopala Gowda pronounced  the  judgment  of
the Bench comprising His Lordship  and  Hon'ble  Mr.  Justice  C.  Nagappan.

            Leave granted.
            The appeals are allowed in terms of  the  signed  Non-Reportable
Judgment.

    (VINOD KR. JHA)                             (MALA KUMARI SHARMA)
      COURT MASTER                                COURT MASTER
            (Signed Non-Reportable judgment is placed on the file)

-----------------------
[1]
      [2] (2009) 6 SCC 121
[3]   [4] 2014 (5) SCALE 479
[5]   [6]  (2013) 9 SCC 54
[7]   [8] (2013)9 SCC 166
[9]   [10]   2013 (12) SCALE 324
[11]  [12] (2011) 14 SCC 481

-----------------------
|NON REPORTABLE    |