Citation : 2021 Latest Caselaw 3975 Jhar
Judgement Date : 25 October, 2021
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M.A. No. 351 of 2020
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1. Priyanka kumari
2. Kalyani Devi
3. Vivek Kumar
4. Vidiya Kumari ...Appellant(s).
Versus
1. Dev Narayan Saha
2. Naresh Prasad Mahto
3. Divisional Manager, The Oriental Insurance Company Ltd. Bokaro Steel City ... Respondent(s) CORAM : HON'BLE MR. JUSTICE ANANDA SEN.
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For the Appellant(s) : Mr. Rishikesh Giri, Advocate.
For the Respondent : Mr. G.C. Jha, Advocate
05/25.10.2021: Heard Mr. Rishikesh Giri learned counsel for the appellant and Mr. G.C. Jha,
counsel appearing on behalf of the Insurance Company.
2. This appeal has been filed under Section 173 of the Motor Vehicle Act can
be disposed of at this stage itself without calling for the lower court record in view
of the nature of argument which has been advanced by the appellants and the
respondents. By filing this appeal the claimants have prayed to enhance the
compensation amount, granted under Section 166 of the Motor Vehicle Act. The
claimants are the wife, mother and 2 minor children of the deceased.
3. The deceased, on 22.12.2018 was returning to his home by a motorcycle
and when he reached Jodhadih More, Bokaro, he received a phone call. He
stopped the motorcycle and in the meantime a trailor bearing registration no. PB
13X 8755(offending vehicle) came and dashed the deceased, resulting in grievous
injuries. When he was brought to the hospital he was declared dead. Chas P.S.
Case No. 287 of 2018 was registered against the driver of the offending vehicle
i.e. the trailor. After conclusion of the investigation charge sheet was submitted
under Section 279/304(A) against the driver of the offending vehicle.
4. The claimants filed an application claiming compensation on account of death of the deceased which arose out of a motor vehicle accident. It is the case
of the claimants that the deceased was a mason and was earning Rs. 13,000/- per
month. They also submit that the offending vehicle was duly insured with the
Oriental Insurance Company Ltd., and the said insurance was valid during the time
of the accident. They claimed that the offending vehicle was being driven in a rash
and negligent manner, thus accident occurred, resulting in the death of deceased.
The claimants claimed that they are entitled to receive compensation under the
Motor Vehicle Act.
5. The owner of the vehicle appeared and filed a written statement / show
cause claiming that the vehicle was duly insured by the Oriental Insurance
Company Ltd. and the vehicle had all valid documents including national permit
for goods carriage and the driver also had valid driving license. It is the case of the
owner that since there was no violation of the terms and condition of the policy, it
is the Insurance Company who had to indemnify the owner and pay the amount
so assessed by way of compensation.
6. The Oriental Insurance Company also filed their show cause wherein they
had raised a plea that the vehicle which dashed the deceased was being driven
by a person who did not have any valid driving license to drive the same. They
admitted that the vehicle was duly insured by them. A general plea was taken by
them to the effect that the vehicle did not have proper documents to ply on road
nor the driver had proper driving license.
7. After completion of the pleadings the Court framed several issues. The issue
no.3 was in relation to whether the driver of the offending vehicle had a valid driving
license or not and issue no. 5 was to the effect that who is the authority liable to
pay compensation.
8. Two witnesses were adduced on behalf of the claimants. C.W. No. 1 is
Madan Monan who happens to be the employer of the deceased and C.W. No. 2
is one of the claimants who happens to be the wife of the deceased. The
employment certificate, copy of the FIR and copy of charge sheet was marked as
Exhibit 1,2, and 3 respectively. Some documents were taken into evidence and marked for the purpose of identification. Those are the photo copy of registration
certificate of the vehicle, the Insurance paper of the offending vehicle, the Adhar
Card of the deceased, photocopy of the registration certificate, pollution certificate
and permit of the offending vehicle. Photocopy of the post mortem report of the
deceased was also marked for identification. The Insurance Company has also
brought some document and exhibited the same. Exhibit A is the original driving
license verification report by the investigator. Exhibit B is the original driving license
verification report obtained online by the investigator of OP. Exhibit C is the original
challan for obtaining the driving license particulars.
9. The Tribunal after considering the oral and documentary evidence on
record, held that at the time of accident, the driver of the offending vehicle had a
valid driving license to drive the same. The Tribunal also held that the offending
vehicle was duly insured with the Oriental Insurance Company Ltd. It was also
concluded that the offending vehicle i.e. trailor which was insured with the Oriental
Insurance Company Ltd. was being driven in a rash and negligent manner. The
Tribunal after considering the same did not find any violation of the condition of
policy and thus directed the Insurance company to pay an amount of Rs.
10,24,720/- by way of compensation to the claimants.
10. The claimants are aggrieved by the quantum of compensation and has thus
preferred this appeal. There is no appeal by the Insurance Company against the
award.
11. Learned counsel appearing on behalf of the claimants submits that the
documents suggest that the deceased was getting Rs. 13,000/- per month as
salary for working 26 days in a month. He submits that the Tribunal did not accept
the said documents and has rather considered the income of the deceased to be
Rs. 8,000/- per month, but while computing the compensation had erroneously
taken the income of the deceased to be Rs. 6240 per month. He submits that
aforesaid error has cropped up at the time of calculating the compensation. He
submits that when the Tribunal had assessed and finalized the income of the
deceased as Rs.8,000/- per month then the computation should have been on the basis of Rs. 8,000/- per month and not on Rs. 6240/-. He further submits that
during assessment of compensation future prospect of the deceased has also not
been considered. He submits that in view of the Judgment passed by the Hon'ble
Supreme Court in the Case of National Insurance Company Ltd. Versus
Pranay Sethi and others reported in (2017) 16 SCC 680, future prospect of the
deceased should have been considered and in this case since the deceased was
aged about 27 years, 40% enhancement should have been granted. These are
the only two grounds advanced by the counsel for the appellants while challenging
the quantum and no other ground has been taken by them. During the course of
argument he fairly admits that the Tribunal has rightly applied the multiplier of 17
and has rightly deducted 1/4th on account of personal expenses. He also submits
that the age of the deceased has also been correctly ascertained and the amount
awarded under Conventional head is also correct. He only prays that the amount
of compensation be reassessed taking into consideration the income as assessed
by Court at Rs. 8,000/- per month and grant compensation under the head of
future prospect. During course of argument he also admits that the Insurance
Company had already satisfied the amount and paid the amount of compensation
so awarded.
12. Mr. G.C. Jha, learned counsel appearing on behalf of the Insurance
Company submits that the Tribunal has wrongly held that there was no violation of
the policy. He submits that though the Insurance Company has provided the
document i.e. the service report to suggest that the vehicle was being driven at the
relevant time by a person having license but he was not qualified to drive a goods
transport vehicle, the court overruled the same and has held that the driver had
valid driving license to drive the said offending vehicle. He submits that the Court
in the impugned Judgment has held that the Court has verified the said license of
the driver and got photocopy of the details, but from where the Court had got that
has not been mentioned. He submits that it was beyond the jurisdiction of the Court
to get the driving license verified. He submits that since there is a violation of the
terms and condition of the policy, the Insurance Company could not have been saddled with the liability to pay the entire amount of compensation. He submits
that in fact the Tribunal should have given the right of recover the aforesaid amount
from the owner of the vehicle and by not doing so Tribunal has committed grave
error. On the question of quantum. Mr. G.C. Jha, learned counsel submits that the
Tribunal has disbelieved the certificate of salary issued by the employer and had
considered the deceased to be a semi-skilled labourer and thus have assessed
the income to be Rs. 6240 per month. He submits that so far as the future prospect
is concerned, the judgment delivered by the Hon'ble Supreme Court of India in the
case of Pranay Sethi (supra) will govern this case.
13. On the argument advanced by Mr. G.C. Jha, learned counsel appearing on
behalf of the respondent, Insurance Company to substantiate that there are
sufficient materials on the record to grant right of recovery is concerned, this Court
is of the opinion that in an appeal filed by the appellants for enhancement of
amount of compensation the aforesaid ground cannot be considered. If the
Insurance Company is aggrieved by any finding made in the Judgment which was
against the Insurance company, and wanted the liability to be shifted, they should
have filed a separate appeal. In this case there is nothing on record to suggest
that any separate appeal has been filed rather from the statement of the
appellant/claimants it is clear that the insurance company has satisfied the award
meaning thereby they are accepting the finding arrived at by the Tribunal, including
the finding that there is no violation of the condition of the policy and the driver had
valid license to drive offending vehicle.
14. On the question of the salary of the deceased, I find that there is a certificate
showing that the deceased was being paid Rs. 13,000/- per month by his employer.
The Tribunal did not accept the said certificate on the valid ground that the
employer had failed to substantiate as to how the amount was paid and in what
mode. The Tribunal thereafter concluded that since the deceased was mason he
can be treated to be a semi-skilled labourer and Rs. 240 per day can be his daily
wages. The Tribunal thereafter calculated the salary of the deceased for 26 days
to be Rs. 6240/- on basis of notification of 2015, but thereafter went on to hold that since the accident had taken place on 2018 the income of the deceased can be
taken to be Rs. 8,000/- per month for the purpose of calculation of compensation.
Thus, from the award I find that the Court below has fixed the income of the
deceased to be Rs. 8,000/- per month. Thereafter, the Tribunal went on to compute
the amount of compensation. While making such calculation the court did not take
the income of the deceased as Rs. 8,000/- but calculated compensation on Rs.
6240 per month as income. I find that the court below has committed an error in
calculation which is not in consonance with the finding of the Tribunal, wherein the
tribunal has assessed the income of the deceased to be Rs. 8,000/- per month.
Thus the entire compensation should have been calculated on the income of the
deceased which is assessed by the Tribunal as Rs. 8,000/- per month. Further
while going through the award I find that the concept of enhancement on account
of future prospect which is enumerated in the judgment of the Hon'ble Supreme
Court of India in the case of Pranay Sethi (supra) has not been applied in this
case, though in this instant case the judgment has been delivered after
pronouncement of the judgment in the Hon'ble Supreme Court in the case of
Pranay Sethi (supra). The Hon'ble Supreme Court in the case of Pranay Sethi
(supra) clearly held that the heirs of self-employed person are also entitled to
receive compensation under the head of "future prospect". After applying the
judgment of the Hon'ble Supreme Court, I find that as the deceased was in the
age group of 26 to 30 (which is the admitted fact), 40 % enhancement should be
awarded to the claimants. Thus, I hold that the compensation amount also needs
to be enhanced by 40 per cent.
15. Considering what has been held above the amount of compensation can be
recalculated as follows:-
Rs. 8000x12= Rs. 96000(annual income)
Rs. 96000x17(multiplier)= Rs. 16,32,000/-
Rs. 16,32,000 - 1/4th (Deduction) = Rs.12,24,000/-
Rs.12,24,000 + 40%(Future Prospect)=Rs. 17,13,600/-
Rs. 17,13,600 + Rs. 70,000/-(conventional head)= Rs. 17,83,600/-
Thus as per fresh calculation, the appellants are entitled to receive Rs.
17,83,600/-, which is a fair compensation.
16. Out of the enhanced amount, as admitted by the claimants Rs. 10,24,720
has already been paid. Thus the balance amount comes to Rs. 7,58,880/-
17. Thus the claimants are entitled to an additional amount of Rs. 7,58,880/-
The aforesaid amount will carry an interest of Rs. 7 % per annum from 10.01.2020,
till amount is paid by the Insurance Company to the claimants.
18. Out of the enhanced amount, One lakh seventy five thousand should be
paid to the mother of the deceased and the balance be paid to the wife and her
children, out of which two lakh rupees each be deposited in the name of minor
children of the deceased and the rest be paid to the wife of the deceased.
19. With the aforesaid observation and direction this appeal stands allowed.
Rajnish/c.p.2 (ANANDA SEN, J.)
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