LexSEBASTIANI LAKRA & ORS. versus NATIONAL INSURANCE COMPANY LTD. & ANR.
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SEBASTIANI LAKRA & ORS.
v.
NATIONAL INSURANCE COMPANY LTD. & ANR.
(Civil Appeal Nos. 10588-10589 of 2018)
OCTOBER 12, 2018
[MADAN B. LOKUR, S. ABDUL NAZEER AND
DEEPAK GUPTA, JJ.]
Motor Vehicles Act, 1988:
s. 168 – Fatal accident – Claim for compensation – Income
of deceased Rs. 58,565/- p.m – Tribunal for the purpose of
compensation assessed the monthly income of deceased at Rs.
50,000/- p.m – Deducting 1/3 for his personal expenses, and
applying multiplier of 11assessed the compensation at
Rs. 40,00,000/- for loss of income and Rs. 90,000/- towards other
heads – Thus, awarded total compensation at Rs. 40,90,000/- – On
appeal of insurance company plea that payment of sum of
Rs. 50,082/- p.m. to the claimants under employees Family Benefit
Scheme should be deducted while computing compensation towards
loss of income – High Court reduced the compensation amount to
Rs. 36,00,000/- – On appeal, held: Deductions cannot be allowed
from the amount of compensation either on account of insurance,
or on account of pensionary benefits or gratuity or grant of
employment to a kin of the deceased – Deduction can be ordered
only where the tort-feasor satisfies the court that the amount has
accrued to the claimants only on account of death of the deceased
in a motor vehicle accident and not where the amount accrues as a
result of contract or act which the deceased performed in his life-
time – In the facts of the case amount received under the Scheme
cannot be deducted – However, since the claimants are getting quite
an advantage, they are not entitled to claim another amount @ 15%
by way of future prospects – Amount under the Scheme more than
offsets the loss of future prospects – Taking the last drawn income
as Rs. 58,565/- compensation amount is enhanced to
Rs. 50,00,000/- with interest @ 9% p.a. from the date of filing of
the petition till the payment of the amount.
[2018] 13 S.C.R. 1053
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SUPREME COURT REPORTS
[2018] 13 S.C.R.
Judgments:
Reasons of judgments – Need for – Held: Reasons are the
heart and soul of any judicial pronouncement – No judicial
pronouncement is complete without reasons.
Allowing the appeals, the Court
HELD: 1. The High Court, without giving any reasons, has
reduced the compensation by almost Rs.5,00,000/-. Reasons are
the heart and soul of any judicial pronouncement. No judicial
order is complete without reasons and it is expected that every
court which passes an order, should give reasons for the same.
[Para 3][1058-D]
2.1 Section 168 of the Motor Vehicles Act, 1988 mandates
that “just compensation” should be paid to the claimants. Any
method of calculation of compensation which does not result in
the award of ‘just compensation’ would not be in accordance with
the Act. The word “just” is of a very wide amplitude. The Courts
must interpret the word in a manner which meets the object of
the Act, which is to give adequate and just compensation to the
dependents of the deceased. Compensation can be paid only
once and not time and again. [Para 5][1059-A-B]
2.2 The law is well settled that deductions cannot be allowed
from the amount of compensation either on account of insurance,
or on account of pensionary benefits or gratuity or grant of
employment to a kin of the deceased. The main reason is that all
these amounts are earned by the deceased on account of
contractual relations entered into by him with others. It cannot
be said that these amounts accrued to the dependents or the
legal heirs of the deceased on account of his death in a motor
vehicle accident. The claimants/dependents are entitled to ‘just
compensation’ under the Motor Vehicles Act as a result of the
death of the deceased in a motor vehicle accident. Therefore,
the natural corollary is that the advantage which accrues to the
estate of the deceased or to his dependents as a result of some
contract or act which the deceased performed in his life time
cannot be said to be the outcome or result of the death of the
deceased even though these amounts may go into the hands of
the dependents only after his death. [Para 12][1063-E-H]
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2.3 As far as any amount paid under any insurance policy is
concerned whatever is added to the estate of the deceased or his
dependents is not because of the death of the deceased but
because of the contract entered into between the deceased and
the insurance company from where he took out the Excerpt shown. Read the full judgment & AI analysis in Lexace.