LexSANTOSH DEVI versus NATIONAL INSURANCE COMPANY LTD. AND OTHERS
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A B c [2012] 3 S.C.R. 1178 SANTOSH DEVI v. NATIONAL INSURANCE COMPANY LTD. AND OTHERS (Civil Appeal No. 3723 of 2012) APRIL 23, 2012 [G.S. SINGHVI AND SUDHANSU JYOTI MUKHOPADHAYA, JJ.] Motor Vehicles Act, 1988: s.166 - Motor accident - Death of a self employed person aged 4q years - Claim petition - Dependents including 2 unemployed major sons - Benefit of increment in annual income - Deductions towards personal expenses 0 - Multiplier - Held: Keeping in view the challenges posed by high cost of living, the formula of 30% increase in the total income also deserves to be applied for calculating the amount of compensation of a self-employed person or a person engaged on fixed salary, who dies in a motor accident - Ordinarily, deductions towards personal expenses of such a E person earning Rs. 15001- per month and the family consisting of 5 persons, should be 10% from his monthly income - It cannot be said that in the absence of any source of sustenance, the two major sons were not dependent on the deceased - High Court rightly applied the multiplier of 14 - F Claimant also held entitled to charges for transportation of the dead body, funeral expenses and towards loss of consortium - Compensation enhanced accordingly with 7% interest on enhanced amount from the date of application - Precedent - Judicial notice. G H Precedent: Compensation - Held: The judgments which have bearing on socio-economic conditions of citizens and issues 1178 SANTOSH DEVI v. NATIONAL INSURANCE 1179 COMPANY LTD. relating to compensation payable to victims of motor A accidents, those who are deprived of their lands and in similar matters need to be frequently revisited keeping in view the fast changing social values and price rise - The victims or their dependents should be awarded just compensation - Social justice. B The appellant's husband, who was aged about 45 years and running a dairy as also doing agriculture, died in a car accident. The Tribunal held that the accident was caused by rash and negligent driving of the car by 'VS', who also died in the said accident. It assumed the C monthly income of the deceased as Rs.15001- and deducted Rs.5001- towards personal expenses of the deceased and applying the multiplier of 11, awarded Rs.1,32,0001- as compensation with 12% interest from the date of application. The Tribunal also held that two major D sons of the deceased could not be treated as dependents. The High Court relying upon Sar/a Verma's1 case, applied the multiplier of 14 and enhanced the compensation to Rs. 1,77,500/- with 7% interest on the enhanced compensation from the date of the appeal. E In the instant appeal by the claimant, it was contended for the appellant that the High Court erred in not giving the benefit of 30 per cent increase in the income of the deceased. It was also contended that a deduction of 1/3rd of monthly income towards personal expenses of the deceased was totally disproportionate to the size of the family. Allowing the· appeal, the Court HELD: 1.1. Although, the legal jurisprudence developed in the country in last five decades is somewhat precedent-centric, the judgments which have F G 1. Sarla Verma v. Delhi Transport Corporation 2009 (5) SCR 1098.. H 1180 SUPREME:. COURT REPORTS [2012] 3 S.C.R. A bearing on socio-economic conditions of the citizens and issues relating to compensation payable to the victims of motor accidents, those who are deprived of their land and similar matters need to be frequently revisited keeping in view the fast changing societal values, the effect of 8 globalisation on the economy of the nation and their impact on the life of the people. The victims of the road accidents and/or their family members should be awarded just compensation. [para 11-12) [1185-E-F, HJ RK. Malik v. Kiran Pal 2009 (10) SCR 87 = (2009) 14 C SCC 1; M. S. Grewal v. Deep Chand Sood 2001 (2) Suppl. SCR 156 = (2001) 8 SCC 151, La ta Wadhwa v. State of Bihar 2001 (1) Suppl. SCR 578 = (2001) 8 SCC 197, Kera/a SRTC v. Susamma Thomas (1994) 2 SCC 176, Sar/a Dixit v. Ba/want Yadav (1996) 3 SCC 179; and UP. SRTC D v. Trilok Chandra 1996 (2) Suppl. SCR 443 = (1996) 4 SCC 362 - referred to. Nance v. British Columbia Electric Railway Co. Ltd. 1951 AC 601, Davies v. Powell Duffryn Associated Collieries Ltd. E 1942 AC 601 - referred to. 1.2. It will be na'ive to say that the wages or total emoluments/income of a person w
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