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National Insurance Company Ltd vs Chaitali Samir Parekh & Ors
2016 Latest Caselaw 2305 Bom

Citation : 2016 Latest Caselaw 2305 Bom
Judgement Date : 5 May, 2016

Bombay High Court
National Insurance Company Ltd vs Chaitali Samir Parekh & Ors on 5 May, 2016
Bench: A.S. Oka
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           IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                               
                   CIVIL APPELLATE JURISDICTION




                                                     
                     FIRST APPEAL NO.999 OF 2012
                                WITH
                 CROSS OBJECTION (ST.) NO.30505 OF 2012




                                                    
    National Insurance Company Ltd.                  ]
    12, J.T. Road, Churchgate,                       ]




                                     
    Mumbai - 400 020                                 ]
    Policy No. 04071 valid from                      ]
    15/01/2001 to 14/01/2002
                             
    (Policy of Motor Vehical No.
    MH-04-AW-8373)
                                                     ]
                                                     ]
                                                     ].. Appellant
    (Wagon-R Met E2 VXI)                             ] Orig. Opp. Party No.2.
                            
            Versus
      


    (1)     Mrs. Chaitali Samir Parekh      ]
            (Widow of the deceased)         ]
   



            Residing at 206, Manish Park]
            'A' Wing, 2nd Floor,            ]
            Parsi Panchayat Road, Pump House]
            Andheri (E), Mumbai - 400 058.  ].. Orig. Claimant





    (2)     Shri Prabhjot Singh Chandok              ]
            R/at. Flat No.2, Ground Floor,           ]
            Senham Hall Lane,                        ]
            Dr. D. D. Sathe Marg,                    ]..Orig. Owner of Sumo
            Mumbai 400 004.                          ].. Orig. Opp. Party No.1.





    (3)     Mrs. Varsha K. Advani,             ]
            R/at. Sai Anand Co.op.Hsg. Society ]
            Bunglow No.3, S.No.38,             ].. Orig. owner Wagon-R
            Valvi, Taluka Vasai, Dist.Thane    ].. Orig. Opp. Party No.2.


    (4)     The United India Insurance Co.Ltd.]
            D.O. No.14, Mehta House,3rd floor, ] .. Insurer of Orig.




    ::: Uploaded on - 05/05/2016                     ::: Downloaded on - 30/07/2016 00:59:05 :::
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            B.S. Marg, Mumbai - 400 001.                  ]     Opp. Party No.1.




                                                                                    
    (5)     Shri Chandrakant J. Parekh     ]
            (Deceased)                     ]




                                                          
            Smt.Hasumati Chandrakant Parekh]
            R/at. 301, Kumud Mansion,      ]
            Forjette Stree, Mumbai 36      ].. Respondents




                                                         
                             ......
    Mr. Rahul Mehta i/b. KMC Legal Venture, Advocate for the
    Appellant in F.A.

    Mr. Avinash M. Gokhale, Advocate for Respondent No.1 in FA and




                                         
    for Appellant in OXBST No.30505 of 2012.
                             
    Mr. Amol Gatne, Advocate for Respondent No.4 in FA.
                                  ......

                              CORAM : A.S. OKA AND
                            
                                      C.V. BHADANG, JJ.

RESERVED ON : FEBRUARY 22, 2016.

PRONOUNCED ON : MAY 5, 2016.

(As per Rule 1 of Chapter XI of the Appellate Side Rules, 1960, signed Judgment is pronounced by Shri A.S. Oka, J. at Bombay as

Shri C.V. Bhadang, J. is sitting at the Bench at Goa.)

ORAL JUDGMENT (Per. C.V. Bhadang, J.)

Samir Parekh aged 29 years met with an

unfortunate death, in a freak accident, which occurred on 26 th April,

2001 involving three vehicles.

2 Mrs. Chaitali Samir Parekh, widow of the deceased,

filed application no.255 of 2002 before the Motor Accident Claims

Tribunal at Mumbai under section 166 of the Motor Vehicles Act,

rpa 3/23 fa-999-12_with_cross_objection-final.odt

1988 (for short, "the Act"), claiming compensation of

Rs.3,00,00,000/- (Rupees Three crores). In the said application,

apart from the owners of the two vehicles namely a Tata Sumo Jeep

bearing registration No.MH-01-S-8355 and a Wagon-R bearing

registration no. MH-04-AW-8373, the insurers of these two vehicles

were made parties. The original respondent nos.1 and 2 namely

Chandrakant Parekh (since deceased) and Smt.Hasumati Parekh,

are the parents of the deceased. The compensation was claimed

jointly and severally against the opposite party nos.1 and 2 and the

insurers.

3 It would be necessary to briefly set out the manner in

which the accident occurred. On the fateful day of 24 th April, 2001,

deceased Samir Parekh was driving his Hyundai Santro Car bearing

Registration No.MH-01-Y-2267 and was proceeding towards Mahim

causeway from Bandra. When the deceased reached near Mahim

signal at about 00.15 hrs., a Tata Sumo Jeep (No. MH-01-S-8355)

came from the opposite side, crossed the road divider and dashed

against the Santro Car driven by the deceased. In the meantime, a

Wagon-R (No. MH-04-AW-8373) came from behind the Santro Car

and rammed into the Santro Car (No.MH-01-Y-2267). As a result of

the accident, the deceased was stuck inside the car behind the

steering wheel. The deceased was removed from the car and was

rpa 4/23 fa-999-12_with_cross_objection-final.odt

admitted to the Leelavati Hospital at Bandra where he succumbed

to the injuries.

4 At the relevant time, the deceased was aged 29 years

and was dealing in the stock markets and was also said to be

engaged in export business. According to the original claimant, the

deceased was earning more than Rs.1.23 crores per year. The

deceased was enjoying good health and would have lived up to

more than 75 years, considering the longevity in the family. On

account of his untimely death, the original claimant and the

respondent nos.1 and 2 being the parents of the deceased have

suffered loss of dependency. The original claimant has also

suffered a loss of consortium. It was in these circumstances, a

claim of Rs.3,00,00,000/- (Rupees Three crores) as compensation

was made.

5 The owner as well as the insurers contested the

petition. It was contended by the opposite party no.1 that the

deceased was guilty of contributory negligence, in the occurrence

of the accident. It was contended that there was no physical road

divider on the spot and the Santro Car driven by the deceased had

drifted towards the right side (western side of the road). It was

contended that seeing the Tata Sumo Jeep coming from the

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opposite direction, the deceased lost control as a result of which

the Santro Car dashed against the Tata Sumo Jeep. Subsequently,

the Wagon-R rammed in the Tata Sumo car from behind.

6 The owner of the Wagon-R (opposite party no.2)

remained absent and the petition was proceeded ex-parte against

her.

The United India Insurance Company Limited, the

insurer of the Tata Sumo Jeep-respondent no. 4 herein contested

the petition on similar grounds as raised by the opposite party no.1.

It was specifically contended that the accident occurred due to

composite negligence of the deceased and the driver of the Wagon-

R. A contention about breach of policy condition namely, the driver

of the Tata Sumo Jeep not having a valid driving license was also

raised.

8 The National Insurance Company Limited (insurer of

the Wagon-R) contended that the accident occurred due to

negligence of the deceased. It was contended that the driver of the

Wagon-R car had no role to play in the accident.

9 On the basis of the rival pleadings, the Tribunal raised

rpa 6/23 fa-999-12_with_cross_objection-final.odt

three issues. The original applicant/claimant led evidence, in which

the original applicant examined herself apart from (AW-2) Ms.

Shobha Vaity, Rajkumar Malhotra (AW-3), Tukaram Mane (AW-4),

Shivratan Chhabaria (AW-5) and Ravindra Marchant (AW-6). She

also produced the record pertaining to investigation of the offence

by the police and the copies of the insurance policies. The opposite

parties (owners) and the insurers have not led any evidence.

The learned Tribunal came to the conclusion that the

accident occurred on account of the negligence of the drivers of the

Tata Sumo Jeep and the Wagon-R car. The Tribunal found that this

was a case of composite negligence of the drivers of the Tata Sumo

Jeep and the Wagon-R car which was apportioned at 70% : 30%,

respectively. In so far as the quantum is concerned, the

Tribunal came to the conclusion that the monthly contribution of

the deceased out of the income from the business and as a share

speculator could be assessed at Rs.24,000/- p.m. The Tribunal

further deducted 1/3rd amount towards the personal and living

expenses of the deceased. Thus, the loss of dependency was found

to be Rs.16,000/- per month i.e. Rs.1,92,000/- p.a. Applying a

multiplier of 17, the Tribunal assessed compensation towards loss

of dependency at Rs.32,64,000/-, apart from Rs.5,000/- towards loss

of consortium to the applicant, Rs.2,000/- towards funeral expenses

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and an amount of Rs.2,500/- towards loss of estate. Thus, the

Tribunal awarded a total compensation of Rs.32,73,500/- jointly and

severally against the opposite party nos.1 and 2 and the insurer

nos.1 and 2.

As the Tribunal held that it was a case of

composite negligence, it was found that there was no need to

apportion the liability inter se between the joint tortfeasors. The

Tribunal also awarded interest at the rate of 7.5% per annum on

the amount of compensation from the date of application till

realisation. The Tribunal further directed to pay an amount of

Rs.15,73,500/- with proportionate interest to the original

applicant/widow and an amount of Rs.8,50,000/- with proportionate

interest, each to original respondent nos.1 and 2, being the parents

of the deceased.

11 Feeling aggrieved, the National Insurance Co. Ltd.

(insurer of the Wagon-R) has filed First Appeal No.999 of 2012 in

which the original applicant has filed Cross-Objection Stamp

No.30505 of 2012.

12 We have heard the learned counsel appearing for the

parties. With the assistance of the learned counsel for the parties,

we have perused the record and the impugned judgment.

rpa 8/23 fa-999-12_with_cross_objection-final.odt

13 The learned counsel for the appellant strongly urged

that having regard to the manner in which the accident has

occurred, no negligence could be attributed, to the driver of the

Wagon-R. The learned counsel has taken us through the oral

evidence led and in particular that of (AW-2) Shobha Vaity who is

the sole eye witness, examined on record, in order to submit that it

was the Tata Sumo Jeep which after mounting the road divider

came on the wrong side of the road and dashed against the Santro

Car. It was contended that thus, the fact that the Santro Car was

dashed from infront in which the deceased was stuck behind the

wheels and was required to be extricated with the help of the fire

brigade, the death of the deceased cannot be attributed to the

impact of the Wagon-R car from behind. It was also contended that

the deceased was removed from the car after about one and half

hours from the accident and the death cannot be directly

attributed, to the injuries suffered as valuable time was lost, before

the deceased could get medical aid. The learned counsel has also

referred to the panchanama in order to submit that no liability can

be fastened on the appellant in the absence of proof of any

negligence by the driver of the Wagon-R.

14 A perusal of the grounds of Appeal would show that

rpa 9/23 fa-999-12_with_cross_objection-final.odt

according to the appellant, the learned Member has erred in

apportioning the negligence to the tune of 30:70 between the driver

of the Wagon-R and Tata Sumo vehicle. The learned counsel has

taken, exception to the finding as to quantum which according to

the learned counsel is excessive.

15 The learned counsel appearing for the respondent no.4-

United India Insurance Company Limited has contended that there

was contributory negligence by the deceased in which the Santro

Car had drifted towards the right side as a result of which it dashed

against the Tata Sumo Jeep. It is contended that the Tribunal failed

to address itself on the issue of the contributory negligence by the

deceased. On behalf of respondent no.4 (United India Insurance

Company Limited) written notes of arguments have been filed on

record. It is also contended that in view of non-impleadment of the

tortfeasors i.e. the drivers of either of the vehicles and in the

absence of any evidence, the issue of apportionment of negligence

could not have been gone into. In so far as the quantum is

concerned, it is contended that there is no evidence to support the

correctness of the facts and figures as mentioned in the income tax

return (Exhibit-42). It is pointed out that in the Financial Year

2000-01 (Assessment year 2001-02), the deceased was shown to

have suffered a loss of Rs.9,61,060/- and had thus no income

rpa 10/23 fa-999-12_with_cross_objection-final.odt

available to support the family.

16 The learned counsel for the original applicant/cross

objector has supported the finding of the learned Tribunal on the

point of composite negligence. It is submitted that in the manner in

which the accident occurred, no contributory negligence could be

attributed to the deceased. Reliance is placed on the decision of

the Hon'ble Apex Court in the case of Khenyei Vs. The New India

Assurance Company and Others1, in order to submit that in a

case of composite negligence the inter se liability of joint

tortfeasors need not be worked out, separately. It is submitted that

in any event, it is a matter inter se between the joint tortfeasors

and insofar as the claimant is concerned, the joint tortfeasors can

always be called upon to pay the compensation by way of a joint

and several liability. The learned counsel has also placed reliance

on the decision of the Hon'ble Apex Court in the case of Municipal

Corporation of Greater Bombay Vs. Laxmam Iyer & Anr. 2 and

on the point of interest, the decision in the case of Jitendra

Khimshankar Trivedi & Ors. Vs. Kasam Daud Kumbhar &

Ors.3

1 (2015) 9 SCC 273;

2 (2003) 8 SCC 731;

3 (2015) 4 SCC 237;

rpa 11/23 fa-999-12_with_cross_objection-final.odt

17 As regards quantum of compensation is concerned, the

learned counsel has placed heavy reliance on the income tax return

for the assessment year 2001-02 (FY 1999-2000) which shows that

the deceased had a business income to the tune of Rs.1,21,00,000/-

and had paid an advance tax on 14 th March, 2000 to the tune of

Rs.20,00,000/-. It is submitted that the said return was filed prior

to the death and thus would have great probative value in

determining the income of the deceased. The learned counsel has

taken exception to the manner in which the learned Tribunal has

arrived at the income of Rs.24,000/- per month by drawing an

average. He, therefore, submitted that the compensation needs to

be appropriately enhanced.

18 The learned counsel appearing for the cross-objector as

also the respondent no.4 (United India Insurance Company limited)

has taken us through a letter dated 22nd July, 2008 from the Income

Tax Officer, Mumbai which shows that in the Assessment Year 2001-

2002 (FY 2000-01), which was filed on 24 th September, 2001, the

deceased had declared a loss of Rs.9,61,060/-. It is contented that

thus the income tax return can not form a basis to arrive at the

income as claimed on behalf of the applicant. It was also pointed

out that in the earlier Income Tax Return for the Assessment Year

2000-01, the deceased had earned capital gains which cannot be a

rpa 12/23 fa-999-12_with_cross_objection-final.odt

regular feature and a source of regular income.

19 We have given our anxious consideration to the rival

circumstances and submissions made. At the outset, it may be

mentioned that the occurrence of the accident, the involvement of

the three vehicles therein and the coverage of insurance of the Tata

Sumo Jeep and the Wagon-R and the death of Samir Parekh in the

accident is not in dispute. It would be first necessary to deal with

the question of negligence, both composite and/or contributory, if

any. In this regard, it would be appropriate to make a reference to

the evidence of Mrs. Shobha Vaity (AW-2). She has stated that

Mahim Sagar Sanidhya Rahiwasi Sangh is on Mahim Causeway.

The distance between her house and the road is about 20 feet. The

accident took place around midnight when she was returning from

using the common toilet and was standing near the road when one

Tata Sumo Jeep was proceeding from Dadar side to Bandra side.

The Tata Sumo Jeep mounted the divider, came on the wrong side of

the road and dashed against the Santro Car. On her raising shouts,

people gathered there. She also claimed that two vehicles which

came from Bandra side dashed against the Santro Car. She

specifically stated that the accident took place on the part of the

road which was leading from Bandra to Dadar. The road divider

was not much high. The road divider consisted of blocks. The Sumo

rpa 13/23 fa-999-12_with_cross_objection-final.odt

Car was completely damaged.

There is nothing much in the cross-examination of this

witness, except she was confronted with the portion in the FIR in

which this witness expressed her inability to explain as to why it is

mentioned in the FIR that she saw the spot of the incident after

hearing the sound of impact. It is trite that standard of proof

required to prove negligence in a claims petition, is not as high as

is required in a criminal case. In a case of the present nature,

negligence can be proved on the basis of preponderance of

probability. It is (AW-2) Shobha Vaity who had lodged the FIR on

the basis of which an offence was registered. She appears to be a

natural witness who explained the manner in which the accident

had occurred. Her evidence is substantially corroborated in

material particulars by the FIR.

20 (AW-4) API Tukaram Mane had investigated the offence

being Crime No.129 of 2001, PS Mahim. He has stated that Shobha

Vaity was the informant of the accident which involved three

vehicles. He further stated that the Tata Sumo vehicle had crossed

the divider and had entered into the traffic flow coming from

Mahim. The Wagon-R which was following the Santro Car dashed

against its rear side. He further stated that the Santro Car got

rpa 14/23 fa-999-12_with_cross_objection-final.odt

sandwiched between the Sumo and Wagon-R. The injured who was

the driver of the Santro Car was taken to the Leelavati hospital

which took about one hour where the driver of the Santro Car was

declared dead. The evidence of this witness has not at all been

challenged. The spot panchanama would further substantiate the

evidence of (AW-2) Shobha Vaity. The spot panchanama shows that

the road on either side is 80 feet in width. The Tata Sumo Jeep

was found to have crossed the road divider and entered the traffic

flow coming towards Mahim. Front portion of the Santro Car was

found to be entirely damaged in which the front portion including

radiator, bonnet and engine were pushed till driver's seat. It can,

thus, clearly be seen that the accident was triggered on account of

the Tata Sumo Jeep crossing the road divider and ramming into the

Santro Car from infront. It is true that the Wagon-R car was

coming from behind and it is possible that on account of the sudden

occurrence of the impact between the Tata Sumo Jeep and the

Santro Car, the Wagon-R dashed the Santro Car from behind.

However, it is necessary to note that a driver of any vehicle is

expected to take due care and caution while driving the vehicle on

a public road. Even assuming that the driver of the Wagon-R would

have abruptly found the Santro infront being rammed by the Tata

Sumo, the fact remains that the driver of the Santro Car failed to

avert the impact from behind. We further find from the evidence of

rpa 15/23 fa-999-12_with_cross_objection-final.odt

(AW-2) Shobha Vaity that the Santro Car had not drifted towards

the right, as claimed. Thus, no contributory negligence can be

attributed to the deceased. It is not possible in such cases to decide

the issue of negligence on mathematical precision. The Court is

required to take a pragmatic view of the broad possibilities of the

case, in consonance with the evidence on record. Having perused

the record and the impugned judgment, we are not inclined to

interfere with the finding of the learned Tribunal holding that the

accident was caused due to the composite negligence of the driver

of the Tata Sumo Jeep and the Wagon-R car as also the

apportionment of the negligence as 70:30 percent, respectively. We,

accordingly affirm the said finding.

21 There is a distinction between composite negligence

and contributory negligence. The Hon'ble Apex Court in the case of

Khenyei Vs. The New India Assurance Co. Ltd. and Ors

(Supra) has inter-alia held in paragraph 15 of the Judgment as

under:

"15. There is a difference between contributory and composite negligence. In the case of contributory negligence, a person who has himself contributed to the accident cannot claim compensation for the injuries sustained by him in the accident to the extent of his own negligence; whereas in the case of composite

rpa 16/23 fa-999-12_with_cross_objection-final.odt

negligence, a person who has suffered has not

contributed to the accident but due to the outcome of combination of negligence of two or more other

persons. This Court in T.O. Anthony v. Karvarnan has held that in case of contributory negligence, the injured need not establish the extent of responsibility

of each wrongdoer separately, nor is it necessary for the court to determine the extent of liability of each wrongdoer separately, nor is it necessary for the court

to determine th extent of liability of each wrongdoers

separately. It is only in the case of contributory negligence that the injured himself has contributed by his negligence in the accident."

Thus, in view of the fact that this is a case of composite

negligence, it is not necessary to apportion the liability inter se

between the joint tortfeasors. In so far as the applicant and the

original respondent no. 2-Smt. Hasumati Parekh are concerned, the

opponents/insurers would be jointly and severally liable to pay the

compensation.

22 This takes us to the issue of quantum. The cross-

objector who is the original applicant mainly relies upon the income

tax return (Exhibit-42) for the financial year 1999-2000 (AY 2000-

01). Indisputably the said income tax return is filed prior to the

date of accident which is 26th April, 2001. However, in our opinion

rpa 17/23 fa-999-12_with_cross_objection-final.odt

that alone may not be decisive, although in a given case it is a

material circumstance to be reckoned. The applicant has stated in

her evidence that the deceased belonged to an affluent family and

they lived a lavish life. She stated that she along with the deceased

and his parents were staying at a house at Altamount Road,

Mumbai while the brother of the deceased was staying separately

at Nepeansea Road, Mumbai. The applicant further stated that they

had four motor vehicles including one Honda City which was for the

exclusive use of the applicant. She has stated that the income of

the deceased for the financial year 1999-2000 on the basis of the

ITR at Exhibit-42 was declared at Rs.1,23,12,140/- and the

deceased had paid an advance tax of Rs.20,00,000/-. She has

further stated that the deceased was dealing in stocks and had also

a proprietory export business, under the name and style as Chaitali

Exports.

23 We first propose to deal with the evidence about the

income tax return. (AW-3) Rajkumar Malhotra is the inspector from

the income tax department. He states that the income tax return

for the assessment year 2000-01 is not traceable in the office. (AW-

5) Shivratan Chhabria is stated to be a common friend of the

deceased and used to help him in filing his income tax return. This

witness claimed that he had filed the tax return at Exhibit-42. He,

rpa 18/23 fa-999-12_with_cross_objection-final.odt

however, stated that he is not the Chartered Accountant of the

deceased. He further stated that except his bare words there is no

evidence to show that the facts and figures as mentioned in Exhibit-

42 are correct. He claimed that the facts and figures in the return

are mentioned on the basis of audited accounts given by the

deceased. He further stated that he was not aware whether the

deceased had that much income in the earlier years.

At this stage, it is necessary to mention that the copy of

the Income Tax Return (Exhibit-42) is not accompanied by any

profit and loss account and/or a balance sheet. As noticed earlier,

(AW-3) Rajkumar Malhotra who is the inspector of income tax states

that the return for the assessment year 2000-01 is not traceable in

the office. (AW-6) Ravindra Merchant is the father of the applicant

Chaitali. He cannot be said to have any personal knowledge about

the contents of the Income Tax Return except that this witness has

approached the brother of the deceased who had agreed to help in

the matter. He further claims that he had obtained the original

income tax return acknowledgment from the Chartered Accountant

of the deceased. What is significant is a letter dated 22 nd July, 2008

from the Income Tax office Mumbai. It appears from the paper

book (which was submitted by the applicant) that a summons was

sought to be issued at the instance of the applicant and in

rpa 19/23 fa-999-12_with_cross_objection-final.odt

pursuance thereof the said letter was sent by the income tax

authorities. The said letter would make it clear that as per the

computer data, the return for the year 2001-02 of the deceased was

filed on 24th September, 2001 declaring a loss of Rs.9,61,060/-. The

said letter also states that the old record pertaining to the year

2000-01 was weeded out. However, no return of income was filed

in the concerned Income Tax Office as per the computer data for

the said year. It further appears that as per the computer record,

the PAN number of the deceased was shown as ACJPP 3155G while

in the tax return Exhibit-42, it is AAGPP 2148A.

24 It is trite that unlike a salaried person the income in a

business or a profession would fluctuate to a certain extent. This

would be more so in respect of business/profession which are

susceptible to volatility. The business of dealing in stocks as also

the export business in which the deceased was said to be engaged

are susceptible to a certain amount of volatility and for all these

reasons, we are unable to place implicit reliance on the Income Tax

Return Exhibit-42 particularly in view of the discrepancy in the PAN

number as also the letter dated 22nd July, 2008 which shows that for

the accounting year 2001-02, a loss of Rs.9,61,060/- was declared

by the deceased. In order to place reliance on the income tax

return it has to be consistently shown that for a reasonable period,

rpa 20/23 fa-999-12_with_cross_objection-final.odt

the income as claimed, was infact earned by the deceased. We are,

therefore, not inclined to place reliance on the Income Tax Return

(Exhibit-42). The Tribunal after having discarded the evidence in

the form of Income Tax Return has then proceeded to assess the

income at Rs.24,000/- per month. It may be mentioned that in the

matter of assessment of compensation, particularly in absence of

any acceptable evidence, a reasonable guess work is necessary, if

not inevitable. The question is whether the income as reckoned at

the rate of Rs.24,000/- per month would be reasonable. It may be

mentioned that Section 166 of the Act envisages determination of

"just compensation", by the Tribunal. Thus, the compensation

should neither be meager nor excessive, so as to lead to enrichment

at the cost of the accident.

25 Going back to the evidence of (AW-1) Chaitali Parekh,

we find that it was brought on record and in fact in the cross-

examination, that the deceased was paying Rs.40,000/- per month

to the applicant for expenses. Considering the overall

circumstances and the evidence on record, we find that the income

as reckoned by the learned Tribunal at the rate of Rs.24,000/- per

month would be on the lower side. We are inclined to reckon the

income of the deceased at Rs.50,000/- per month. The Hon'ble

Apex Court in the case of Sarla Verma & Ors. Vs. Delhi

rpa 21/23 fa-999-12_with_cross_objection-final.odt

Transport Corporation & Anr.4, has inter-alia held that the

deduction towards the personal and living expenses where the

deceased was married and the dependents are 2 to 3 can be

reckoned as 1/3rd. We propose to deduct Rs.17,000/- towards the

personal and living expenses of the deceased. Thus, the loss of

dependency would be Rs.50,000/- less Rs.17,000/- which comes to

Rs.33,000/- per month i.e. Rs.3,96,000/- p.a. Considering the age of

the deceased as also the applicant, and the multiplier as set out in

the decision in the case of Sarla Verma & Ors. Vs. Delhi

Transport Corporation & Anr. (Supra), the Tribunal has rightly

employed the multiplier of 17. Thus, the compensation would be

Rs. 3,96,000/- x 17 = Rs.67,32,000/-. We are inclined to grant

Rs.15,000/- towards funeral expenses and another Rs.50,000/-

towards loss of consortium to the applicant and the loss of estate.

Thus, the total compensation would be Rs.67,97,000/-.

26 The learned counsel appearing for the applicant has

placed reliance on the decision of the Apex Court in the case of

Jitendra Khimshankar Trivedi & Ors. Vs. Kasam Daud

Kumbhar & Ors. (Supra), in order to submit that the Hon'ble

Apex Court has granted interest at the rate of 9% per annum.

Considering the prevailing rate of interest, we are inclined to

4 2009 ACJ 1298

rpa 22/23 fa-999-12_with_cross_objection-final.odt

modify the interest to 9% p.a. from the date of application till

realisation. We further hold that the applicant and the original

respondent no.2-Smt.Hasumati Parekh shall be entitled to 50% of

the compensation each along with proportionate interest. The

learned Member of the Tribunal shall pass appropriate order as

regards the investments/ distribution of the amounts payable to the

original applicant and the original respondent no.2. Consequently,

we proceed to pass the following order:

:: O R D E R ::

            (i)      First     Appeal   No.999       of     2012,       is    hereby
      


            dismissed;
   



            (ii)     Cross-objection Stamp No.30505 of 2012 is





partly allowed. The amount of compensation awarded

is enhanced to Rs.67,97,000/-;

(iii) The amount of compensation shall carry interest

at the rate of 9% per annum, from the date of

application, till realisation;

(iv) The additional amount shall be deposited by the

rpa 23/23 fa-999-12_with_cross_objection-final.odt

concerned Respondents with the Tribunal within four

months from today;

(v) The original applicant Chaitali and the original

respondent no. 2-Smt. Hasumati Parekh, shall be

entitled to 50% of the compensation each, along with

proportionate interest. The Tribunal shall pass

appropriate order of investments/disbursement after

hearing the parties;

(vi) In the circumstances, there shall be no order as

to costs;

            (C. V. BHADANG, J.)                                   (A.S. OKA, J.)







 

 
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