RASMITA BISWAL & ORS. versus DIVISIONAL MANAGER, NATIONAL INSURANCE COMPANY LTD. AND ANR.

Citation: [2021] 9 S.C.R. 433 · Decided: 08-12-2021 · Supreme Court of India · Bench: S. ABDUL NAZEER · Disposal: Disposed off
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Judgment (excerpt)

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   [2021] 9 S.C.R. 433
433
RASMITA BISWAL & ORS.
v.
DIVISIONAL MANAGER, NATIONAL INSURANCE
COMPANY LTD. AND ANR.
(Civil Appeal No. 7549 of 2021)
DECEMBER 08, 2021
[S. ABDUL NAZEER AND KRISHNA MURARI, JJ.]
Motor Vehicles Act, 1988: Fatal accident – Compensation –
Victim-deceased aged 33 years died in motor accident – Evidence
on record that he was working as supervisor and his monthly salary
was Rs.15,000 – Tribunal adopted multiplier ‘16’ and after deducting
one-fourth of the income towards the personal expenses of the
deceased, awarded a total compensation of Rs.21,60,000/- towards
loss of dependency and a sum of Rs.1,00,000/- under other
conventional heads – However, High Court, without assigning any
reason modified the award of the Tribunal and awarded a
compensation of Rs.17,00,000/- – Held: As per PAN card, the age
of deceased at the time of accident was 33 years – Since it was
established that the deceased was 33 years at the time of his death
and earning Rs.15000 per month, application of multiplier of ‘16’
by the Tribunal was proper – The annual salary of the deceased
would be Rs.1,80,000/- and taking multiplied of ‘16’ becomes
Rs.28,80,000/- – In Pranay Sethi, the Constitution Bench of this Court
held that in case the deceased was self-employed or on a fixed
salary, an addition of 40% of the established income should be
awarded where the deceased was below the age of 40 years –
Therefore, after adding 40% of the income of the deceased towards
loss of future prospects, total income of the deceased comes to
Rs.40,32,000/- – One-fourth of the income i.e. 10,08,000/- deducted
towards the personal expenses of the deceased, as he left behind
three dependants – Total amount payable to the claimants towards
loss of dependency was Rs.30,24,000/-.
Motor Vehicles Act, 1988: Judicial notice – Large number of
appeals filed under s.173 are pending before the various High
Courts – In order to curtail the pendency before the High Courts
and for speedy disposal of the appeals concerning payment of
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SUPREME COURT REPORTS
[2021] 9 S.C.R.
compensation to the victims of road accident, the Department of
Justice, Ministry of Law and Justice is requested to consider
constituting ‘Motor Vehicle Appellate Tribunals’ by amending s.173
so that the appeals challenging the award of a Tribunal could be
filed before the Appellate Tribunal so constituted – To ensure access
to justice and to avoid pendency, it would also be proper to consider
setting up Benches of the Appellate Tribunal in various regional
cities, in addition to the capital city of each State as may be indicated
by the relevant High Court and no further appeal against the order
of the Appellate Tribunal be provided – The Department of Justice,
Ministry of Law and Justice is requested to examine the same.
Disposing of the appeal, the Court
HELD: 1. The deceased was working as supervisor under
PW-3. Certificate issued by PW-3 shows that the deceased was a
supervisor in the organisation of PW-3 and his salary was
Rs.15,000/- per month. PAN card of the deceased showed that
he was aged 33 years at the time of his death. Even the post-
mortem report of the deceased suggested the same. Therefore,
the Tribunal held that the deceased was aged 33 years and
multiplier ‘16’ was applied. After deducting ¼ of the income
towards the personal expenses of the deceased, the Tribunal
awarded a total compensation of Rs.21,60,000/- towards loss of
dependency and a sum of Rs.1,00,000/- under other conventional
heads. However, the High Court, without assigning any reason
whatsoever, modified the award of the Tribunal and has awarded
a compensation of Rs.17,00,000/-. Since it was established that
the deceased was 33 years at the time of his death, application of
multiplier of ‘16’ by the Tribunal was proper. The annual salary of
the deceased comes to Rs.1,80,000/- which on multiplying by ‘16’
comes to Rs.28,80,000/-. 40% of the income of the deceased has
to be added towards loss of future prospects. Thus, the total
income of the deceased is Rs.40,32,000/-. One-fourth of the
income i.e. 10,08,000/- is deducted towards the personal expenses
of the deceased, as he has left behind three dependants.
Therefore, the total amount payable to the claimants towards loss
of dependency comes to Rs.30,24,000/-. [Paras 9, 10, 11, 13, 14,
15][437-C, E-G; 438-D; 438-G-H]
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National Insurance Company Limited v. Pranay Sethi
and Others (2017) 16 SCC 680 : [2017
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