Manusha Sreekumar & Ors. Vs United India Insurance Co. Ltd. (Supreme Court of India)
Conclusion: Hon’ble Supreme Court enhanced the compensation under Motor Vehicles Act by holding that deceased was a ‘skilled labour’ under Kerala Fair Wages Act i.e. State Act and notional income have to be determined on basis of the said Act.
Facts: The present appeal arises out of the judgment dated 23.07.2019 passed by the High Court of Kerala, in an appeal preferred by the Respondent (hereinafter, “Insurance Company”) against the award dated 26.07.2018 of the Motor Vehicle Accidents Claims Tribunal. The High Court allowed the appeal and has reduced the compensation amount of Rs. 32,39,000/ granted to the Appellants by the Tribunal to Rs. 19,70,000/. The issue involved in the instant matter primarily relates to the determination of quantum of compensation awarded under various heads by the Tribunal and the High Court.
On 21.02.2015, a person named SreeKumar died in an accident by the car which was insured by the Respondent Insurance Company. The Appellants approached the Tribunal seeking compensation for their loss under section 166 of the Motor Vehicles Act, 1988 seeking compensation of Rs. 64,15,000/ with interest. The Insurance Company confuted the claim contending that the accident occurred due to negligence of the Deceased. The amount of compensation claimed under various heads was also alleged to be excessive.
Taking into consideration the documentary evidence concerning the Deceased’s income, the Tribunal concluded that he was a skilled labourer. The Tribunal fixed the total compensation of loss of dependency along with various other heads at Rs. 32,39,000/and awarded interest at the rate of 9% per annum from the date of filing of petition till the realisation of awarded compensation.
The High Court observed that in the absence of any evidence to establish the income of the Deceased, the Tribunal had erroneously fixed his notional income at Rs. 14,000/ per month and the compensation granted by the Tribunal under the head of ‘pain and suffering’ was brought down from Rs. 30,000/ to Rs. 15,000/. The reasoning employed by the High Court for this was that except in cases wherein the death was not instantaneous, the conventional amount to be granted would be Rs. 15,000/. The High Court substantially reduced the compensation granted by the Tribunal from Rs. 32,39,000/ to Rs. 19,70,000/. The aggrieved Appellants appealed before Hon’ble Supreme Court.
The Hon’ble Supreme Court framed two issues for consideration a) Whether the High Court was right in reducing the monthly income of the Deceased from Rs. 17,500/ to 10,000/, for want of sufficient documentary evidence? (ii) Whether the High Court was right in awarding compensation under the ‘nonconventional heads’ which is impermissible as per Pranay Sethi?
The Hon’ble Supreme Court after taking some Judgments and Kerala Fair Wages Act into consideration observed that Schedule B Category III of the Kerala Fair Wages Act classifies a driver as a “Skilled worker” and it is apparent that a ‘driver’ in Kerala earned a minimum of Rs. 15,600/ in 2015. Therefore, income of the Deceased was fixed notionally at Rs. 15,600/ per month (Rs. 1,87,200/ per annum). Since the Deceased was of 32 years old at the time of his death, the multiplier applicable in the instant case would be 16, and 40% of increase for future prospects deserves to be added as the Deceased was self employed. One third of the Deceased’s income was deducted towards his personal expense as he had three dependents. Hence, the compensation payable to the Appellants under the head of loss of dependency would amount to Rs.27,95,520/ (Rs. 15,600 x 140/100x 12 x 16 x 2/3).
The second issue was not taken into consideration as the Respondent has not appealed against the impugned Judgment.
Upon adding the remaining amount granted by the High Court under different heads, the total compensation granted to the Appellant comes to 29,73,520/ (Rs.27,95,520/ + Rs. 1,78,000/).
Accordingly the appeal was partly allowed with Rs. 29,73,520/- as Compensation along with interest at the rate of 9% per annum from the date of filing of the claim petition till the date of realisation.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
