Case Law Details
S. Vasanthi Vs Adhiparasakthi Engg. College (Supreme Court of India)
Conclusion: In present case, the Hon’ble Supreme Court enhanced the compensation under Motor Vehicles Act, 1988 by observing that the income of people of the similar status as of deceased have to be taken into consideration.
Facts: In present facts of the case, the Judgment and Order dated 31st January, 2020, passed by the High Court of Judicature at Madras was challenged.
On 22nd May, 2010, an accident took place wherein death of the son of Appellants was caused by the bus owned by the Respondent. The appellants herein, filed a claim petition before the Motor Accident Claims Tribunal under Section 166 of the Motor Vehicles Act, 1988, being for grant of compensation to the tune of Rs. 30,00,000/ with interest, on account of the death of their son. The Tribunal, noted that the deceased at the time of the accident, was 23 years of age and a student in the 2nd of the MBA course passed an award amounting to Rs. 7,48,052/ as compensation with interest at the rate of 7.5% per annum from the date of the petition till the date of realization. Pertinently, the Tribunal fixed the notional monthly income of the deceased at Rs. 7,000/ per month, since he was not earning any salary at the time of the accident. The appellants approached Hon’ble High Court wherein the notional income was enhanced to a sum of Rs. 10,000/ per month. Thus, the High Court enhanced the compensation from Rs. 7,48,052/ to Rs. 16,27,000/. Within that amount, the High Court also enhanced the amount of loss of dependency, loss of love and affection as well as funeral expenses, and further granted an amount of Rs. 15,000/ as loss of estate.
The Hon’ble Supreme Court observed that a perusal of the affidavit filed by appellant No. 1 before the Tribunal would reveal that two of appellant son’s classmates were gainfully employed with wellknown companies in India and were drawing monthly income of Rs. 39,869/ and Rs. 44,588/respectively. It was also observed that neither the Tribunal nor the High Court has adverted to these averments made by appellant No. 1. Further, it was observed that had the deceased not met with the unfortunate accident, he would have surely drawn a salary equivalent to that of his classmates or at least an amount near the said amount. Further, it was observed that the compensation to be paid on account of the death of deceased ought to be worked out by enhancing his monthly income to Rs. 30,000/. But in view of paragraphs (31) and (32) of the judgment in the case of Sarla Varma (Smt.) and Others v. Delhi Transport Corporation and Another (2009) 6 SCC 121, as upheld by a Constitution Bench decision in the case of National Insurance Company Limited v. Pranay Sethi and Others, (2017) 16 SCC 680, 50% of the amount would have to be deducted as personal and living expenses. Therefore, insofar as the loss of onsortium is concerned, an amount of Rs. 40,000/ will have to be awarded. The compensation was reassessed to Rs. 29,84,000/- along with interest at the rate of 7.5% per annum.
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