Gujarat High Court
New India Assurance Company Ltd vs Pritiben Balram Sangtani on 30 January, 2025
NEUTRAL CITATION
C/FA/4508/2024 ORDER DATED: 30/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 4508 of 2024
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NEW INDIA ASSURANCE COMPANY LTD.
Versus
PRITIBEN BALRAM SANGTANI & ORS.
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Appearance:
MS DIMPLE A THAKER(6838) for the Appellant(s) No. 1
NOTICE NOT RECD BACK for the Defendant(s) No. 2,3
NOTICE SERVED for the Defendant(s) No. 1
NOTICE UNSERVED for the Defendant(s) No. 4
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 30/01/2025
ORAL ORDER
1. The present First Appeal, under Section 173 of Motor Vehicles Act, 1988, is preferred by the appellant being aggrieved and dissatisfied with the judgment and award dated 5.9.2024 passed by the Motor Accident Claims Tribunal, Rajkot in Motor Accident Claim Petition No.395 of 2015.
2. Brief facts of the case are as under:
2.1 On 14.1.2015, deceased Dineshbhai of MACP No.398 of 2015 was driving car bearing No.GJ 3 ER 9561 towards Somnath for darshan and in which, deceased Mansukhbhai was sitting. Since deceased Dineshbhai was driving the car rashly and negligently, accident took place, in which, Mansukhbhai received serious injuries and died.Page 1 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025
NEUTRAL CITATION C/FA/4508/2024 ORDER DATED: 30/01/2025 undefined
3. Learned advocate for the insurance company raised two fold contentions. Firstly, she would submit that the learned Tribunal in absence of any documentary evidence assessed the income of the deceased to RS.7500/-, whereas, rate of minimum wage at the relevant time for unskilled labourer was much less. Secondly, she would submit that the learned Tribunal has taken departure from the settled principles for relaxation. She would further submit that the learned Tribunal has taken 1/3 of the income of the deceased towards personal and pocket expenses and deducted said amount, whereas in para 15 of the judgment of the Hon'ble Apex Court in case of Sarla Verma Vs. Delhi Road Transport Corporation and another, 2009(6) SCC 121, it is held that normally 50% is to be deducted towards personal and pocket expenses on the assumption that bachelor would tend to spend more on himself. She would further submit that even taking departure from settled principles of law, the claimant was required to prove that the deceased was spending more amount towards family rather than towards himself. In the present case, no such evidence is recorded and therefore, the findings of the learned Tribunal to deduct 1/3 towards personal and pocket expenses is required to be rectified by taking 50% towards personal and pocket expenses.
4. Process was served to the other side, but none remained present.
5. Apt to note that the Motor Vehicle Act, 1988 is a beneficial piece of Legislation. The concept of just and fair compensation is integral and seminal to the MV Act. The Page 2 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025 NEUTRAL CITATION C/FA/4508/2024 ORDER DATED: 30/01/2025 undefined compensation to be awarded under the principle of just and fair compensation to the injured of the road accident or the legal representative/s of the deceased person is based on the principle of fairness, reasonableness and equability. Anguish of the heart or for mental turbulence being consequential result of the road accident cannot be actually compensated, but the quint essentiality lies in adopting holistic and pragmatic view to the computation of the compensation for the loss sustained, which is to be in the realm of realistic approximation. Although exact or perfect arithmetical calculation of compensation for reparation of the loss arrived from the road accident is almost impossible. The Tribunal is bestowed with duty to make an endevour to award just compensation regardless of the amount claimed by the claimant. The determination of the quantum of compensation therefore, must be liberal and not niggardly since the law values life and limb in a free country in generous scale. Needless to state that money may be awarded, so that something tangible may be procured to reach something else of the like nature, which has been destroyed or lost, but money cannot renew physical frame that has been battered and shattered being a result of the road accident. Yet Tribunal to endavour to bring back victim to stage of pre-road accident as far as possible Thus, the award must be reasonable and cannot be assessed with moderation though it cannot at the same time be pity and what could be granted must be just, fair and equitable compensation.
6.1 I have considered the submissions made by the rival parties. I have perused the record and proceedings of the Page 3 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025 NEUTRAL CITATION C/FA/4508/2024 ORDER DATED: 30/01/2025 undefined Tribunal. I have gone through the impugned judgment and award passed by the learned Tribunal. According to learned advocate Ms. Thakkar, the deceased was running grocery shop to earn livelihood. In such circumstances, and in such evidence, the rate of minimum wage for unskilled worker cannot be adopted, but for the skilled worker. The accident took place on 14.1.2015 and the rate of minimum wage at the relevant time was Rs.7348/- as per the notification of the State Government. Thus, the learned Tribunal has not committed any error in taking up monthly income of Rs.7500/- of the deceased.
6.2 The learned Tribunal has deducted 1/3 of the income of the deceased towards personal and pocket expenses in the case where the deceased was bachelor. Normal rule of deduction towards personal and pocket expenses is 50%. Departure therefrom though is permissible as rule, is flexible to take departure from normal rule of deduction, 50% in case of bachelor. The claimant has to prove that there were more members in the family and were depending upon the income of the deceased. In the present case, the learned Tribunal has erred in deducting 1/3 towards personal and pocket expenses, which ought to have been deducted 1/2 being personal and pocket expenses. Further, considering the ratio laid down by the Hon'ble Apex Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi reported in (2017) 16 SCC 680, the general and non-pecuniary damages, Rs.18,150/- each towards loss of estate and funeral expenses should be awarded. Towards loss of consortium, there are four dependents and therefore, Rs.48,400/- to each dependent should be awarded as per the Page 4 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025 NEUTRAL CITATION C/FA/4508/2024 ORDER DATED: 30/01/2025 undefined decision of the Hon'ble Apex Court in the case of United India Insurance Co. Ltd., versus Satinder Kaur @ Satwinder Kaur reported in (2021) 11 SCC 780.
6.3 Therefore, total compensation would be as under, which the claimant/s is/are entitled to get.
Particulars Amount (Rs.)
Actual income Rs.11,34,000/-
Rs.7500/- x
40% =
Rs.10,500/- i.e.
1/2 of
Rs.10,500/- =
Rs.5250 x 12 x
18
Loss of Estate 18,150
Loss of consortium 48,400
Funeral expenses 18,150
Total... 12,18,700/-
Less : Amount which is already awarded 15,96,000/-
Refund amount to be awarded to the 3,77,300/-
insurance company
7. Therefore, I hold that the insurance company is entitled to refund back the amount of Rs.3,77,300/- with accrued interest, which would meet the ends of justice. Rest of the direction(s) of the Tribunal remain same.
8. For the reasons recorded above, the following order is Page 5 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025 NEUTRAL CITATION C/FA/4508/2024 ORDER DATED: 30/01/2025 undefined passed.
8.1 The present appeal is partly allowed.
8.2 The claimants are entitled to have compensation of Rs.12,18,700/- along with 9% interest per annum from the date of filing the claim petition till realization.
8.3 Since the insurance company has deposited entire decretal amount of Rs.15,96,000/- along with accrued interest thereon, after deducting just and fair compensation of Rs.12,18,700/- along with accrued interest thereon, the learned Tribunal is directed to refund the amount Rs.3,77,300/- with accrued interest to the appellant - insurance company forthwith.
8.4 If any amount is paid excess than the amount of Rs.12,18,700/- to the claimant, it shall not be recovered from the claimant.
8.5 While making the payment, the Tribunal shall deduct the courts fees, if not paid, in accordance with rules/law.
8.6 Record and proceedings be sent back to the concerned Tribunal, forthwith.
(J. C. DOSHI,J) SHEKHAR P. BARVE Page 6 of 6 Uploaded by SHEKHAR P. BARVE(HC00200) on Fri Jan 31 2025 Downloaded on : Sat Feb 01 04:48:58 IST 2025