UNITED INDIA INSURANCE CO. LTD. ETC. ETC. versus PATRICA JEAN MAHAJAN AND ORS. ETC. ETC.

Citation: [2002] 3 S.C.R. 1176 · Decided: 08-07-2002 · Supreme Court of India · Bench: D.P. MOHAPATRA · Disposal: Disposed off

Cited by 4 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
UNITED INDIA INSURANCE CO. LTD. ETC. ETC. 
v . 
. PATRICA JEAN MAHAJAN AND ORS. ETC. ETC. 
JULY 8, 2002 
B 
[D.P. MOHAPATRA AND BRIJESH KUMAR, JJ.] 
Motor Vehicles Act, 1988: 
Second Schedule and Section /63A-Motor accident-Death-
C Compensation-Multiplier-Deviation from-Permissibility of-Held, 
ordinarily provisions contained in Second Schedule may be taken as a guide-
But in. case where gap of income is wide, deviation from the multiplier is 
permissible-For the purposes of fair compensation a lesser multiplier can be 
applied to a heavy amount of f!IUltiplicand. 
D 
Compensation-Deduction on accoun~ of receipts under the Insurance 
Policy and other receipts under social security system-Whether perrnissible-
H~ld, such deduction for balancing losses and gains by reason of death, to 
arrive at amount of compensation is a general rule-But the amount received 
on account of social security must have nexus or relation with the accidental 
E injury or death. 
Interest-A.ward of at the rate of I 2'Y<r-Held, in view of declining interest 
rate, interest reduced to 9%. 
Death of foreign citizen-Claim of compensation after applying a certain 
F conversion rate-In appeal plea to calculate amount of award at higher 
conversion rate-Held, higher conversion rate not permissible-The claimants 
cannot ask for more than what was claimed in the claim petition. 
Practice and Procedure-Issue not raised in Courts below-Interference 
by Supreme Court-Non-raising of the issue inferred from the observation of 
G the Court below-Held, generally such observation cannot be denied-But in 
case of vague observation, it is open to Supreme Court to ascertain the correct 
position on the basis of totality of the observations in the judgment. 
Words and Phrases : 
H 
1176 
UNITED INDIA INSURANCE CO. LTD. 1•. PATRICA JEAN MAHAJAN 
} J 77 
"Receipts from l·vhatever source "-~Meaning of· in the context of Motor A 
Vehicles Act, 1988. 
An American citizen while he was on visit to India met with an 
accident and succumbed to his injuries. His parents, his wife and his three 
children were his dependants. 
The dependants filed petitfon claiming compensation on account of 
his death. In the petition, details of income etc. had been given in Dollars 
but prayer for passing the decree was for a sum indicated in rupees, which 
was arrived at by applying Rs. 30 as conversion rate of Dollar. 
B 
Motor Accident Claims Tribunal found that death of the deceased C 
was on account of rash and negligent driving and ascertained the amount 
of compensation by applying multiplier of7, and by deducting the amount 
received by the claimants on account of social security system, Applying 
the exchange rate of rupees 30, it awarded compensation of Rs. 1.19 crores 
with interest at the rate of 12%. 
On appeal Single Judge of High Court enhanced the amount of 
compensation to Rs. 10.38 crores by using multiplier of JO and disallowed 
the deductions on account of social security system. Rate of exchange was 
applied at Rs, 47 i.e. the current rate as then prevailing. The rate of interest 
was maintained as 12°/o. 
D 
E 
In appeal, before Division Bench of High Court, the Court further 
enhanced the compensation by applying multiplier of 13 according to 
Second Schedule referable to Section 163-A of the Motor Vehicles Act, 
1988 holding that the Schedule was safe guide to arrive at the amount of 
just compensation. It disallowed the deduction on account of social security F 
system. Interest rate was maintained as 12% while the exchange rate was 
applied at Rs. 30. Thus total amount of compensation came to about Rs. 
16.12 crores. 
In appeal to this Court it was contended by insurance company that 
while assessing the amount of compensation the benefits, which have G 
accrued to the claimants by reason of death, must also be taken into 
account. The claimants contended that the question relating to rate of 
interest was not under challenge before High Court hence the same could 
· not be raised in this Court; that the factual position as recorded by Division 
Bench of High Court that the rate of interest was not in dispute before H 
1178 
SUPREME COURT REPORTS 
[2002] 3 S.C.R. 
A the Court, should not be allowed to be disputed; and that it is only the 
current exchange rate of dollar which should be allowed since the value 
of the Rupee has fallen in exchange of Dollar after the application of claim 
B 
was made and award was given. 
Disposing of the appeals, the Court 
H

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