KIRTI & ANR. ETC. versus ORIENTAL INSURANCE COMPANY LTD.

Citation: [2021] 1 S.C.R. 989 · Decided: 05-01-2021 · Supreme Court of India · Bench: N.V. RAMANA · Disposal: Case Partly allowed

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Judgment (excerpt)

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   [2021] 1 S.C.R. 989
989
KIRTI & ANR. ETC.
v.
ORIENTAL INSURANCE COMPANY LTD.
(Civil Appeal Nos.19-20 of 2021)
JANUARY 05, 2021
[N.V. RAMANA, S. ABDUL NAZEER
AND SURYA KANT, JJ.]
Motor Vehicles Act, 1988: Claims and legal liabilities
crystallise at the time of accident itself – Any changes post thereto,
ought not to ordinarily affect pending proceedings – Just like how
claimants cannot rely upon subsequent increases in minimum wages,
the insurer too cannot seek benefit of the subsequent death of a
dependent during the pendency of legal proceedings – Similarly,
any concession in law made in this regard by either counsel would
not bind the parties.
Concession in law: Permissibility, extent of – Held: Advocates
cannot throw away legal rights or enter into arrangements contrary
to law – Motor Vehicles Act, 1988.
Motor Vehicles Act, 1988: Assessment of income in the absence
of evidence – Held: In the instant case, although it is correct that
the claimants were unable to produce any document evidencing
victim-husband’s income, nor they established his employment as a
teacher; but that would not justify adoption of the lowest-tier of
minimum wage while computing his income – From the statement of
witnesses, documentary evidence-on-record and circumstances of
the accident, it is apparent that victim was comparatively more
educationally qualified and skilled – Further, he maintained a
reasonable standard of living for his family as evidenced by his use
of a motorcycle for commuting – Preserving theexisting standard of
living of a deceased’s family is a fundamental endeavour of motor
accident compensation law – Thus, the minimum wage of Rs 6197
as applicable to skilled workers applied in his case.
Motor Vehicles Act, 1988: Future prospects – In case the
deceased was self-employed or on a fixed salary, an addition of
40% of the established income should be the warrant where the
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SUPREME COURT REPORTS
[2021] 1 S.C.R.
deceased was below the age of 40 years – An addition of 25%
where the deceased was between the age of 40 to 50 years and
10% where the deceased was between the age of 50 to 60 years
should be regarded as the necessary method of computation – The
established income means the income minus the tax component –
The argument that no future prospects ought to be allowed for those
with notional income, is both incorrect in law and without merit
considering the constant inflation-induced increase in wages.
Motor Vehicles Act, 1988: Calculation of notional income for
homemakers and the grant of future prospects with respect to them,
for the purposes of grant of compensation – Determining factors,
discussed. (Per N.V. Ramana, J – Supplementing)
Partly allowing the appeals, the Court
HELD:
Per SURYA KANT, J.:
1. It cannot be disputed that at the time of death, there in
fact were four dependents of the deceased and not three. The
subsequent death of the deceased’s dependent mother ought not
to be a reason for reduction of motor accident compensation.
Claims and legal liabilities crystallise at the time of the accident
itself, and changes post thereto ought not to ordinarily affect
pending proceedings. Just like how appellant-claimants cannot
rely upon subsequent increases in minimum wages, the
respondent-insurer too cannot seek benefit of the subsequent
death of a dependent during the pendency of legal proceedings.
Similarly, any concession in law made in this regard by either
counsel would not bind the parties, as it is legally settled that
advocates cannot throw-away legal rights or enter into
arrangements contrary to law. [Para 10][998-G; 999-A-B]
2.1 Any compensation awarded by a Court ought to be just,
reasonable and consequently must undoubtedly be guided by
principles of fairness, equity, and good conscience. Not only did
the family of the deceased consist of septuagenarian parents, but
there were also two toddler-girls, aged merely 3 and 4 years;
each of whom requires exceptional care and expenditure till they
reach the stage of self-dependency. Tragically, in addition to the
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married couple, the negligence of the driver also extinguished
the life of the family’s third child who was a foetus in victim-lady’s
womb at the time of the accident. Thus, the appropriate deduction
for personal expenses for both victims (couple) ought to be 1/4th
only, and not 1/3rd as applied by the Tribunal and the High Court,
more so when there were four family members dependent on th

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