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NATIONAL INSURANCE COMPANY LTD. versus SMT. SAROJ AND ORS.

Citation: [2009] 9 S.C.R. 81 · Decided: 12-05-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

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Judgment (excerpt)

I 
[2009] 9 S.C.R. 81 
NATIONAL INSURANCE COMPANY LTD. 
v. 
SMT. SAROJ AND ORS. 
(Civil Appeal No. 3483 of 2009) 
MAY 12, 2009 
[S.8., SINHA AND DR. MUKUNDAKAM SHARMA, JJ.] 
Motor Vehicles Act, 1988 - ss. 166 and 168 - Second 
Schedule - Vehicular accident resulting in death of a person 
A 
8 
- Compensation - Determination of - Appropriate multiplier C 
- Held:Compensation must be just -
While determining 
compensation, amount of monetary loss which had been and 
would be suffered by heirs and legal representatives of 
deceased should be considered - For such purpose, the take-
home salary of deceased, other allowance and perks which 
D . 
would have benefited the deceased's entire family and the 
prospective loss of future earnings should be borne in mind 
- On facts, where deceased was a 41 year old technician 
employed in a Multinational company earning around 
Rs. 17000 per month, Courts below were justified in adopting 
E 
a multiplier of 16 and in awarding compensation of Rs.22. 12 
lakhs though only Rs.20 lakhs was claimed as compensat~on 
- The submission that the Court should hav_e awarded only 
the sum claimed is not correct. 
, 
Rani Gupta v. United India Insurance Company & Ors. 
(2009) 5 SCALE 439; United India lnsruance Co. Ltd. v. 
Bindu & Ors. JT2009(4) SC 315; Unitedlndia Insurance Co. 
Ltd. etc. v. PatriciaJean Mahajan & Ors. (2002) 6 SCC 281; 
F 
The Managing Director, TNSTC Ltd. v. 
K.I. Bindu & 
Ors. (2005) 8 SCC 473 and Tami/N adu State Transport G 
Corporation Ltd. v. S. Rajapriya and two Ors. (2005) 6 SCC 
236; National Insurance Co. Ltd. v. Indira Srivastava& Ors. 
(2008) 2 SCC 763 and Abati Bezbaruah v. Dy. Director 
General Geological Survey of India & Anr. (2003) 3 SCC 148, 
81 
. 
H 
82 
SUPREME COURT REPORTS 
[2009] 9 $.C.R. 
/ 
A referred to. 
~ 
Mallett v. Mc Mangle 1969 (2) All ER 178, referred to. 
Case Law Reference: 
B 
(2009) 5 SCALE 439 
referred to 
Para 9 
JT 2009(4) SC 315 
referred to 
Para 12 
,;., 
1969 (2) All ER 178 
referred to 
Para 12 
(2002) 6 sec 281 
referred to 
Para 13 
c 
(2005) 8 sec 473 
referred to 
Para 13 
(2005) 6 sec 236 
referred to 
Para 13 
~
..--
(2008) 2 sec 763 
referred to 
Para 14 
D 
(2003) 3 sec 148 
referred to 
Para 15 
)..-
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
3483 of 2009. 
From the Judgment & Order dated 29.5.2007 of the High 
~ 
E 
Court of Punjab & Haryana at Chandigarh in F.A.O. No. 2041 
of 2006. 
- Dr. Meera Agarwal and Ramesh Chandra Mishra for the 
*-
._ ____ 
F 
Appellant. 
Dr. Sushil Balwada for the Respondents. 
The Judgment of the Court was delivered by 
G 
S.B. SINHA, J. 1. Leave granted. 
2. Appellant is before us aggrieved by and dissatisfied 
with a judgment and order dated 29.05.2007 passed by a 
r 
learned Single Judge of the High Court of Punjab and Haryana 
at Chandigarh in FAQ No.2041 of 2006 whereby and 
H whereunder a First Appeal preferred by the appellant herein 
.;' 
NATIONAL INSURANCE COMPANY LTD. v. SAROJ 
83 
AND ORS. [S.B. SINHA, J.] 
against a judgment and award dated 03.2.2006 passed by the 
A 
Motor Accident Claims Tribunal, Rohtak directing the appellant 
herein to pay compensation with interest to the respondent, was 
dismissed. 
3. One Joginder Singh, husband of respondent No.1 and 
8 
father of respondent Nos. 2 to 4, while riding a two wheeler met 
with an accident on 29.11.2003 as it collided with a truck. The 
said truck was insured with the appellant by its owner who is 
respondent No.5 herein. 
4. A claim petition was filed before the Motor Vehicles 
C 
Accident Claims Tribunal claiming a sum of Rs.20,00,000/-. The 
deceased was an ยทemployee of Maruti Udyog Limited and had 
been drawing a sum of Rs.16,110/- per month. The Tribuna.I 
determined his income at Rs.17,244/- per month by its award 
dated 3.2.2006. His age was determined as 41 years 10 
D 
months and 9 days. A multiplier of 16 was applied to arrive. at 
the amount of compensation at a sum of Rs.22, 12,200/-. 
5. A First Appeal preferred by the appellant has been 
dismissed by the High Court by reason of the impugned 
E 
judgment dated 29.05.2007. 
6. Dr. Meera Agarwal, learned counsel appearing on 
behalf of the appellant, would urge : 
(1) The Tribunal and consequently the High Court should 
F 
have restricted the award of compensation only to the sum 
claimed by the claimant in the claim petition. 
(2) Provisions of Schedule II attached to Section 163-A 
being applicable strictly in cases where the income of the 
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deceased d

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