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Mrs. Maya Devi & 8 O... v. Mrs. Dhanlakshmi, Pr...
Structured Summary of the Opinion
Factual and Procedural Background
The claimants (wife and children of the deceased Kushiram) filed Motor Accident Claims Petition No. 363 of 1983 before the Motor Accident Claims Tribunal, Salem, seeking Rs. 6,00,000 as compensation for death resulting from an accident on 22.9.1982 while the deceased was travelling in a bus belonging to the 3rd respondent. The Tribunal awarded Rs. 65,000 with interest at 12% from the date of the petition, payable by respondents 1 and 2. The claimants (appellants) challenged the award in the present civil miscellaneous appeal. The opinion notes that neither the owner nor the insurer of the lorry or the Transport Corporation filed any appeal in respect of the negligence aspect; accordingly the court did not refer to the factual aspects leading to the accident beyond what was necessary for quantification of compensation.
Legal Issues Presented
- Whether the Tribunal erred in awarding only Rs. 65,000 as compensation against a claim of Rs. 6,00,000 and, if so, what is the correct quantum of compensation.
- What monthly contribution (if any) the deceased was making to the family and how that should be calculated for the purpose of pecuniary loss.
- Whether the Tribunal correctly applied a 10-year multiplier and whether that multiplier was appropriate in the facts of the case.
- Whether the continuance of the family business by the deceased's children negates or reduces the family's pecuniary loss resulting from the death.
- How the enhanced award, if any, should be apportioned among the claimants (including minors) and the conditions for payment/investment of minors' shares.
Arguments of the Parties
Appellants' Arguments
- The Tribunal grossly erred in awarding only Rs. 65,000 against a claim of Rs. 6,00,000, given the age, status and earnings of the deceased who was a businessman.
- Evidence (oral evidence of P.W.7 and documentary exhibits P-192 to P-194 and P-199 to P-201) established that the deceased earned about Rs. 5,000 per month and contributed Rs. 3,000 per month to the family; therefore the Tribunal's finding of only Rs. 500 per month as loss was erroneous.
- The Tribunal should have applied a more reasonable multiplier than 10 years (the counsel also raised that the deceased was about 40 years of age for multiplier considerations).
- The Tribunal's observation that "inasmuch as the children of the deceased are continuing the business left by his father, there could not be any loss to the family" was improper; continuance of business is immaterial to the assessment of loss caused by the deceased's death.
- Reliance was placed on precedents including Tata Engineering and Locomotive Co. Ltd. v. Vasanthi @ Anantha Lakshmi and Rukmani Devi v. Om Prakash to support the contention that continuance of business does not negate the claimants' entitlement to full compensation.
Respondent / Insurer's Arguments
- The award of the Tribunal was reasonable in view of the evidence and the fact that the family business was continued by the deceased's sons.
- Relying on M.G. Brothers Lorry Service v. S. Andalammal (1982), the insurer contended that where the business continues after the death, only 25% of the income from the business should be regarded as lost because the family continues to derive benefit from the business.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Tata Engineering and Locomotive Co. Ltd. v. Vasanthi @ Anantha Lakshmi, 1995 1 M.L.J. 388 (DB) : 1995 ACJ 1075 | Relied upon by appellants in support of higher compensation and multiplier arguments. | The court noted the reliance but expressly stated that, in view of the court's conclusion on the first issue, there was no need to refer to this judgment for deciding the appeal. |
| Rukmani Devi v. Om Prakash, 1991 A.C.J. 3 : I (1991) ACC 1 (SC) | Principle that continuation of a family or partnership business after death does not necessarily mean that claimants suffered no pecuniary loss; Supreme Court restored Tribunal's award that a High Court had reduced on the ground of continuance of business. | The court relied on this Supreme Court authority to hold that the Tribunal's fixation of only Rs. 500 per month was improper in the light of oral and documentary evidence. The precedent supported the proposition that continued enjoyment of business profits by claimants does not negate the deceased's contribution to the family and entitlement to proper compensation. |
| M.G. Brothers Lorry Service v. S. Andalammal, 1982 (Supp.) A.C.J. 408 (Madras) | Used by the insurer to support the view that where business continues after death, only a 25% loss of income may be taken as resulting from the death. | The court considered the reliance but disagreed with applying an across-the-board 25% deduction in this case, noting the evidence that the deceased earned around Rs. 5,000 per month and that the appellants' evidence supported a higher figure of contribution to family income. |
Court's Reasoning and Analysis
The court examined the oral testimony of P.W.7 (the deceased's son) and documentary evidence consisting of income-tax demand notices and payment acknowledgements (Exs. P-192 to P-194 and P-199 to P-201). Those documents recorded taxable income figures for Assessment Years 1980-81 (Rs. 61,140), 1981-82 (Rs. 51,970) and 1982-83 (Rs. 59,010), and corroborated that the deceased had been assessed to and had paid income tax.
The Tribunal had fixed a notional monthly loss of Rs. 500 and applied a 10-year multiplier to arrive at Rs. 60,000 as pecuniary loss (after deduction). The court found the Tribunal's figure of Rs. 500 per month to be inappropriate in the face of the evidence showing a substantially higher income and contribution. The court invoked the Supreme Court decision in Rukmani Devi v. Om Prakash to reject the Tribunal's and the High Court's approach of reducing awards merely because the family continued the business; continuance of the business is not determinative of whether pecuniary loss arose.
The insurer's submission that only 25% of income should be taken as lost because the business continued (relying on M.G. Brothers) was considered but rejected. The court concluded that the evidence supported a quantification of the deceased's monthly contribution to his family at Rs. 2,000 (even though P.W.7 had deposed to larger sums). The annual contribution was therefore fixed at Rs. 24,000.
Applying a multiplier of 10 (the court found 10 to be an appropriate and reasonable multiplier for a deceased aged 48 years), the court computed pecuniary loss at Rs. 2,40,000. Because the multiplier was judged reasonable and most claimants were minors, the court declined to make any deduction for uncertainty of life or for lump-sum payment. The Tribunal's separately awarded sums (Rs. 5,000 for loss of consortium and Rs. 3,000 each for love and affection for five minors, totalling Rs. 15,000) were accepted and added to the pecuniary loss to arrive at total compensation of Rs. 2,60,000.
The court also clarified apportionment among claimants because the Tribunal's order had some confusion. It set out specific shares for the first claimant (widow), major claimants and minor claimants, and directed that minors' shares on deposit of the enhanced compensation be invested in a Nationalised Bank until majority, with the mother entitled to draw accrued interest periodically. The liability to pay the enhanced award was fixed on respondents 1 and 2; any amount already deposited by the Insurance Company was to be deducted from the enhanced award before payment.
Holding and Implications
Holding: The appeal was allowed in part. The Tribunal's award of Rs. 65,000 was enhanced to Rs. 2,60,000, with interest at 12% from the date of petition (22.3.1983). The award was modified as to apportionment among the claimants, and directions were given regarding investment of minors' shares and deduction of amounts already deposited by the insurer. No order as to costs was made.
Implications:
- Direct effect on the parties: The claimants receive an enhanced compensation of Rs. 2,60,000 with interest; specified apportionment among the widow, major children and five minor children; minors' shares to be invested in a Nationalised Bank until majority with mother permitted to withdraw interest.
- Liability: Respondents 1 and 2 are held liable to pay the enhanced award, subject to deduction of amounts already deposited by the Insurance Company.
- Precedential effect: The opinion applied established principles (including the Supreme Court's decision in Rukmani Devi v. Om Prakash) to hold that continuance of business by survivors does not automatically eliminate pecuniary loss. The court did not state that it was laying down any new legal principle beyond application of existing authorities; the modification of the award is confined to the facts and evidence of this case.
This summary is based exclusively on the content of the provided opinion and does not add information not present in that text.
1. Claimants are the appellants in the above appeal. The wife and children of the deceased Kushiram, who died in an accident that took place on 22.9.1982, have filed M.C.O.P.No. 363 of 83 on the file of Motor Accident Claims Tribunal, Salem, claiming a compensation of Rs. 6,00,000/-. Inasmuch as neither the owner nor the insurer of the lorry or the Transport Corporation, namely, Cheran Transport Corporation Ltd., Coimbatore, filed any appeal in respect of the negligence aspect against the award passed in M.C.O.P. No. 363 of 83, we are not referring any of the factual aspects leading to the accident.
2. As stated above, the wife and children of the deceased Kushiram filed claim for Rs. 6,00,000/- before the Motor Accident Claims Tribunal, Salem. According to them, the deceased was aged about 48 years at the time of the accident and he was doing textile business earning Rs. 5,000/- per month. In order to prove income and compensation, the third claimant in M.C.O.P. No. 363 of 83 was examined as P.W. 7. He is none else than the son of the deceased Kushiram. They also marked income-tax demand notices and payment of income-tax prior to the death of Kushiram. On the basis of the oral evidence of P.W. 7 and in the light of the documents produced, by applying 10 years multiplier, the Tribunal fixed a sum of Rs. 60,000/- towards monetary loss from which it deducted 1/4th towards lump-sum payment and uncertainty of life. After adding a sum of Rs. 5,000/- towards loss of consortium to the first claimants and Rs. 3,000/- to each of the minor children towards loss of love and affection due to the death of their father, ultimately the Tribunal passed an award for Rs. 65,000/- with interest at 12 percent from the date of the petition in favour of the claimants and payable by respondents 1 & 2. Against the disallowed claim, the claimants have now filed the present appeal before this Court.
3. Learned Counsel appearing for the appellants contended that the Tribunal grossly erred in awarding a paltry sum of Rs. 65,000/- as compensation as against the claim of Rs. 6,00,000/- made by the claimants, considering the age, status and earnings of the deceased business man. He also contended that in the light of Exs. P-192 to 194 and P-199 to 201, the Tribunal committed an error in holding that the claimants are entitled only a sum of Rs. 500/- per month due to the death of the deceased. The other contention of the learned Counsel for the appellants is that the Tribunal went wrong in holding that inasmuch as the children of the deceased are continuing the business even after the death of their father, they had not lost anything due to the death of their father. He also raised an objection that the deceased was aged about 40, the application of 10 years multiplier is very low and ought to have applied reasonable multiplier for fixing the compensation. With these points he relied upon a decision in Tata Engineering and Locomotive Co. Ltd. v. Vasanthi @ Anantha Lakshmi 1995 1 M.L.J. 388 (DB) : 1995 ACJ 1075, and in Rukmani Devi v. Om Prakash (1991) ACJ 3 : I (1991) ACC 1 (SC). On the other hand, the learned Counsellor the second respondent, insurer contended that in the light of the evidence available on record and in view of the fact that the family business is being continued by the sons of the deceased Kushiram, the award of the Tribunal is quite reasonable. He also relied on the judgment of this Court reported in the case of M.G. Brothers Lorry Service v. S. Andalammal 1982 (Supp.) A.C.J. 408 Madras.
4. We have carefully considered that arguments of both the Counsel. Against the claim of Rs. 6,00,000/- the Tribunal has awarded only Rs. 65,000/. It is to be seen that first claimant is a widow (second wife of the deceased) and other claimants, namely, claimants 2 to 9 are children of the deceased, out of which five are minors. While travelling in the bus belonging to the 3rd respondent herein, the deceased Kushiram met with an accident. In order to prove compensation, the third claimant, namely, Rajkumar, the son of the deceased was examined as P.W. 7. He deposed before the Tribunal that his father was aged about 48 years at the time of the accident and he was doing textile business. It is his evidence that his father was earning Rs. 5,000/- per month from the said business and he was contributing Rs. 3,000/- per month to the family. He also deposed that his deceased father was assessed to income-tax. Exs. P-192 to P-194 were tax demand notices sent by the income-tax department for the Assessment Years 1980-81,1981-82 and 1982-83. In the said notices of demand .under Section 156 of the Income-tax Act, 1961, the total income of the deceased K. Kushiram and the tax payable have also been mentioned. Ex. P-192 relates to assessment year 1980-81, wherein it is mentioned as Rs. 61,140/- as taxable income and a sum of Rs. 1,716/ - has to be paid towards tax. Likewise Ex. P-193 relates to Assessment Year 1981-82 wherein it is mentioned the total income as Rs. 51,970/- and a sum of Rs. 4618/- has to be paid as tax for the said year. Likewise, Ex. P-194 relates to Assessment Year 1982-83, wherein the total income is mentioned as Rs. 59,010/-. Exs. P-199 to P-201 are acknowledgements sent by the income-tax department for receipt of payment of tax by the deceased Kushiram. In the light of the documents relating to assessment and payment of tax prior to the death of the deceased Kushiram, the learned Counsel for the appellants contended that the deceased was earning not less than Rs. 5,000/- per month out of which he was contributing Rs. 3,000/- to his family. He also attacked the observation of the Tribunal.
"Inasmuch as the children of the deceased are continuing the business left by his father, there could not be any loss to the family"as improper. According to the Counsel, we have to assess a quantum of loss due to the death of the person, namely, Kushiram and the continuance of business by the children and getting sizeable income from the business is immaterial, for which he pressed into service the judgment of the Supreme Court reported in 1991 A.C.J. 3 : I (1991) ACC 1 (SC) Rukmani Devi v. Om Prakash. Though only the summary of the case has been reported, the fact remains in an identical circumstance, the High Court in that case found that the partnership business is being carried on and the claimants are deriving benefits from that business even after the death, they have not been put to any pecuniary loss. On that reasoning the High Court reduced that compensation from Rs. 1,25,000/- to Rs. 48,600/-. Disagreeing with the views expressed by the High Court, the Apex Court in the judgment referred above, set aside the order the High Court and restored the order of the Tribunal in toto and affirmed the award of Rs. 1,25,000/- as compensation to the claimants. In this case, inspite of the oral evidence of P.W. 7 and Exs. P-192 to P-194 and P-199 to P-201, the Tribunal fixed a notional amount of Rs. 500/- P.M. as probable loss to the family and applied 10 years multiplier and fixed Rs. 60,000/-. In the light of the oral and documentary evidence referred by us and in view of the decision of the Apex Court, referred above, the amount of Rs. 500/-fixed by the Tribunal is improper. For this the learned Counsel for the Insurance Company relying upon a judgment of this Court in the case of M.G. Brothers Lorry Service v. S. Andalammal 1982 ACJ (Supp.) 408 contended that inasmuch as the business is being continued even after the death of the deceased by the children, it can be taken only that there is a loss of 25 percent of the income from the business resulting from the death of the deceased. We are unable to agree with the arguments of the learned Counsel for the respondent for the simple reason that there is ample evidence to show that the deceased was earning around Rs. 5,000/- per month as borne out from the evidence of P.W. 7 and the documents referred by us earlier. In view of our conclusion of the first issue, there is no need to refer the judgment reported in 19951 M.L.J. 388 : 1995 ACJ 1075.
5. In the light of the above discussions, we can safely fix that the deceased could have contributed a sum of Rs. 2,000/- per month from and out of the business to his family. If we calculate, the annual contribution comes to Rs. 24,000/-. Considering the age of the deceased as 48 years at the time of the accident, the proper multiplier would be 10. In this way, the total contribution of the deceased for 10 years comes to Rs. 2,40,000/-. Since we have applied and adopted reasonable multiplier, namely, 10 years only and most of the claimants being minors, we are of the view that no deduction is necessary towards uncertainty of life and for lump-sum payment. Hence, the total pecuniary loss to the family is fixed as Rs. 2,40,000/-. The Tribunal has already awarded a sum of Rs. 5,000/- towards loss of consortium to the first claimants and Rs. 15,000/- towards loss of love and affection for five minor children. If we add all these amounts, the total compensation comes to Rs. 2,60,000/-, which is reasonable fair and adequate compensation. The claimants are also entitled to interest at 12 per cent for the award amount of Rs. 2,60,000/- fixed above from the date of petition i.e., 22.3.1983. As per the findings on the negligence aspect the respondents 1 and 2 herein alone are liable to deposit the award amount. As stated by the Tribunal, the claimants 1, 3 to 9 alone are entitled to compensation. Since there is some confusion in the order of the Tribunal regarding apportionment, we hereby modify and fix the share of the claimants in the following manner :
(a) The 1st claimant is entitled Rs. 35,000/- (Rs. 30,000/- towards pecuniary loss and Rs. 5,000/- for loss of consortium).
(b) Major claimants 3 and 4 each entitled to Rs. 30,000/-.
(c) Minor claimants 5 to 9 (totally 5 persons) each entitled to Rs. 33,000/-(Rs. 30,000 towards pecuniary loss + Rs. 3,000/- for love and affection).
On deposit of the enhancemed compensation, the minors' shares have to be invested in a Nationalised Bank till they attain majority and the 1st claimant i.e., mother is permitted to draw accrued interest periodically).
6. For the above reasons, we enhance the compensation award of Rs. 65,000/- to Rs. 2,60,000/- with interest at 12 percent from the date of petition i.e., 22.3.1983. The amount already deposited by the Insurance Company has to be deducted while depositing the enhanced compensation. To this extent, the Civil Miscellaneous Appeal is allowed in part and the award of the Tribunal is modified as indicated above. No order as to costs.
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