Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Arunaben And Others v. Mehmoodbhai Imamali Kaji And Others

Gujarat High Court
Jul 6, 1982
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Structured Summary of the Opinion — Motor Accident Cross-Appeals

Factual and Procedural Background

The opinion concerns two cross-appeals against a single award in a motor accident claim arising from an accident on July 7, 1977 near Tajpur on the Ahmedabad–Khedbrahma road. Two vehicles were involved: a Gujarat State Road Transport Corporation (GSRTC) passenger bus (registration GTH.5496) and a motor-truck (registration GTK.2068) owned by Ranchhodbhai Visabhai Patel. The deceased, about 30 years old and employed by GSRTC as a conductor, had alighted to assist the driver while the bus was reversing and was crushed between the reversing bus and the parked truck; he died shortly thereafter in Civil Hospital, Ahmedabad.

The deceased's widow, minor daughter, father and mother jointly filed a claim petition against the drivers and owners of both vehicles claiming Rs. 80,000. The Tribunal assessed damages (assessing damages at Rs. 51,500 in one view) but awarded a total of Rs. 22,875 (after deductions and adjustments), with interest at 6% per annum from institution of the claim and proportionate costs. The Tribunal apportioned the principal amount among the widow, minor daughter and mother, excluded the father as not an heir, and held both vehicle owners/drivers jointly and severally liable to satisfy the award.

Two appeals were filed: First Appeal No. 1587 of 1979 by the original claimants (restricted at hearing to three grounds and with a claimed amount in appeal of Rs. 30,000) and First Appeal No. 30 of 1980 by the owner of the passenger bus (claiming Rs. 22,875). The appeals were heard on restricted grounds; issues of negligence and basic liability were treated as final.

Legal Issues Presented

  1. Whether the compensation awarded by the Tribunal was just and proper, given (a) the Tribunal's deduction of Rs. 7,625 on account of the widow's post-accident employment, (b) the Tribunal's adoption of a multiplier of 10 to capitalize dependency (loss of dependency/economic loss), and (c) the amount awarded for loss of expectation of life.
  2. Whether the benefit of the Rs. 21,000 deposited by GSRTC with the Commissioner for Workmen's Compensation (in discharge of statutory liability under the Workmen's Compensation Act, 1923) should be set off against the liability of GSRTC alone, rather than being applied to reduce the award overall and thus benefiting the other joint tortfeasor (the truck owner) as well.

Arguments of the Parties

Appellants (Original Claimants) — Principal Grounds Pressed

  • The Tribunal's deduction of Rs. 7,625 from the assessed damages on account of wages earned by the widow after her employment with GSRTC was illegal and unjustified.
  • The use of a multiplier of 10 to capitalize loss of dependency/economic loss was improper and should be higher.
  • The award for loss of expectation of life should have been Rs. 5,000 instead of Rs. 3,000.

Appellant (Owner of the Passenger Bus / GSRTC) — Principal Ground Pressed

  • The deposit of Rs. 21,000 with the Commissioner for Workmen's Compensation (to meet GSRTC's statutory liability) should be set off against GSRTC's liability alone; joint tortfeasors (specifically the motor-truck owner) should not receive the benefit of that deduction, and GSRTC should be liable to satisfy the award disregarding that deduction to the extent of other tortfeasors' liability.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Parry v. Cleaver (1970 AC 1) At common law, proceeds of insurance and benevolence are collateral benefits and are not deductible from assessed damages; principle extended to certain pensions/benefits. The Court referenced Parry v. Cleaver as part of the settled position that certain collateral benefits are not deductible; used this line of authority as guidance for treating benefits and deductions in assessing dependency loss.
L.I.C. of India v. Naranbhai (AIR 1973 Guj 216) Followed Parry v. Cleaver in the Indian context (as cited in the opinion). The opinion notes that Parry was followed in this Indian decision — cited to show the domestic adoption of the principle.
Ahmedabad Municipal Transport Service v. Manekben (AIR 1982 Guj 27 / 22 Guj LR 575) Followed the principle in Parry v. Cleaver (as cited). Referenced as another domestic follow-up to the Parry principle; used as supporting authority for treatment of collateral benefits.
Cunningham v. Harrison (1973 1 QB 942) The Court of Appeal held that annual ex gratia payments for life by an employer were non-deductible in an action for damages. Cited to support the view that certain employer payments are not deductible from assessed damages in common law actions.
Fatal Accidents Act, 1959 (UK) — Section 2 Provided that insurance money, benefit, pension or gratuity paid as a result of death shall not be taken into account; "benefit" definition specified. The opinion refers to the 1959 Act to note legislative alteration in the UK and to explain comparative statutory approaches to excluding certain benefits from consideration in fatal accident claims.
Fatal Accidents Act, 1976 (UK) — Section 4 Substantially re-enacts the 1959 provision regarding non-accountability of certain benefits. Cited as showing continuing legislative approach in the UK relevant to assessing damages under statutes modelled on Lord Campbell's Act.
Fatal Accidents Act, 1855 — Sections 1A and/or 2 Statutory framework (Lord Campbell's Act) for fatal accident claims in the jurisdiction from which Indian statutes are modelled. The Court noted that while India has not amended its statute similar to UK changes, the UK legislative developments are useful as persuasive guidance when assessing what is "just" under Indian law.
Motor Vehicles Act, 1939 — Section 110-B Empowers the Tribunal to make an award determining "the amount of compensation which appears to it to be just." The Court relied on Section 110-B as authorising the Tribunal's discretion to make "just" awards and as permitting consideration of prevailing views in comparable jurisdictions.
Howitt v. Heads (1972 1 All ER 491) Held that no deduction should be made from damages for a widow's capacity to earn (or likely future earnings) where such earnings are not a pecuniary advantage derived from the death. The opinion relied on Howitt as the principal authority for the proposition that a widow's prospective or actual earnings taken up after the husband's death are not a deduction from dependency damages.
Goodger v. Knapman (1924 SASR 347) and Usher v. Williams (1955 60 WALR 69) Australian authorities supporting the view that a dependant's ability to earn is not a pecuniary gain resulting from the death and thus not deductible. Cited in Howitt and relied upon by this Court to reinforce the international jurisprudence that a widow's earnings are the result of her labour and not a benefit of the deceased's death.
Davies v. Whiteways (1975 QB 262) Confirms the view that potential earnings and actual earnings before trial are not to be deducted. Used to show continued acceptance in England of the principle that a dependant's own income is not a deductable benefit.
Cookson v. Knowles (1977 QB 913) Lord Denning expressed doubt in some situations where the wife had been contributing earnings before and after the death; when pre-death earnings contributed, post-death earning capacity may be relevant. The Court distinguished Cookson on its facts and held it inapplicable here because the widow in the present case was not employed before the death and thus her earnings did not previously belong to the family pool.
Kemp & Kemp, The Quantum of Damages (Vol. I, 1975) Textual commentary noting that a dependant's own income is not a benefit resulting from the death. Cited as supporting literature to the international judicial view relied upon by the Court.
Workmen's Compensation Act, 1923 Statutory basis for employer's liability and mechanism by which employer deposits (to meet statutory liability) arise. The Court held that the Rs. 21,000 deposit made by GSRTC with the Commissioner under this Act discharged statutory liability of the employer and therefore could be set off only against GSRTC's liability under the award (i.e., pro tanto reduction in GSRTC's liability alone).

Court's Reasoning and Analysis

The Court confined its examination to the restricted grounds pursued in the appeals and proceeded in two main strands: (A) assessment of quantum (including the widow's post-accident employment, multiplier and expectation of life) and (B) the effect of the Rs. 21,000 deposit by GSRTC with the Commissioner for Workmen's Compensation.

A. On the deduction for the widow's post-accident employment

  1. The Court reviewed the Tribunal's factual findings and the evidence, including the General Standing Order No. 361 of 1973 (Ex. 75) and the testimony of K. D. Bhatt (Ex. 74). The General Standing Order provides for preference in appointment of a family member of an employee who dies or is permanently disabled while in service, subject to conditions (no other earning member, registration on the live register at the Employment Exchange, requisite qualifications, suitability on merits).
  2. The Court analysed the nature of that policy/benefit and concluded that it is a qualified preference, not an unconditional or gratuitous appointment; it does not confer an unrestricted right of appointment and is available irrespective of whether the death arose from a tort for which the employer is liable.
  3. Relying on foreign authorities (Parry, Cunningham, Howitt, Goodger, Usher, Davies) and commentary (Kemp & Kemp), the Court considered the established common law approach that a dependant's own earnings derived from their labour or other collateral benefits may not be deductible when assessing loss of dependency, because such earnings are not a pecuniary advantage caused by the deceased's death but the result of the dependant's own efforts.
  4. The Court distinguished Cookson v. Knowles (where the wife had been working both before and after the death) and found it inapplicable because the widow in the instant case was not employed prior to the death.
  5. Applying these principles, the Court held that the Tribunal's deduction of Rs. 7,625 (25% of a certain assessed amount) on account of the widow's employment was unsound: the widow's earnings were the product of her own labour and not a gratuitous benefit paid by the employer as compensation for tort; there was no satisfactory evidence that the employment was a measure taken by GSRTC as an admission of liability or as a voluntary mitigation payment. Therefore the deduction was disallowed and the amount was to be added back to the award.

B. On capitalization / multiplier and loss of expectation of life

  1. The Tribunal had capitalized annual dependency of Rs. 4,800 by a multiplier of 10, arriving at Rs. 48,000 for loss of dependency. The Court reasoned that for a deceased aged about 30 (a breadwinner in his thirties), a commonly accepted factor is 15 years rather than 10; accordingly the appropriate capitalization should be Rs. 4,800 x 15 = Rs. 72,000, leading to an additional Rs. 24,000 under that head.
  2. On the loss of expectation of life, the Tribunal awarded Rs. 3,000; the Court considered the conventional/accepted award should be Rs. 5,000 given the upward revision in assessment under that head, thereby adding Rs. 2,000.

C. On the Rs. 21,000 deposit under the Workmen's Compensation Act, 1923

  1. The Court accepted that GSRTC had deposited Rs. 21,000 with the Commissioner for Workmen's Compensation to meet its statutory liability because the death occurred in the course of employment.
  2. The Court held that this pecuniary benefit to the dependants flows from the employer's statutory liability and any credit arising on that account can be given only to the employer whose liability has been reduced pro tanto. Thus the deposit is a setoff against GSRTC's liability only.
  3. The Tribunal erred in making an overall reduction of Rs. 21,000 from the assessed damages in a manner which conferred that benefit on the other joint tortfeasor (the truck owner). The Court corrected this error, holding that the benefit must enure to GSRTC alone and not to the other joint tortfeasor.

D. Net quantitative adjustments and limitation by appeal cap

  • The Court calculated additional amounts: Rs. 7,625 (reversal of wrongful deduction) + Rs. 24,000 (increase in dependency capitalisation) + Rs. 2,000 (increase in expectation of life) = Rs. 33,625. However, because the claim in the appeal was restricted to Rs. 30,000, the Court capped the additional award at Rs. 30,000.
  • The Court apportioned the additional Rs. 30,000 between appellants Nos. 1, 2 and 4 in the proportions 44%, 44% and 12% respectively (the same broad basis used by the Tribunal which was not challenged). Directions were given on payment, fixed deposit conditions for the minor's share and the first appellant's balance, an immediate unconditional payment to the first appellant of Rs. 2,500 from her share, and directions regarding interest and costs.

Holding and Implications

Holding:

First Appeal No. 1587 of 1979: The appeal fully succeeds insofar as appellants Nos. 1, 2 and 4 (claimants) are concerned (appellant No. 3's appeal dismissed as not pressed). Appellants Nos. 1, 2 and 4 are awarded additional compensation in the aggregate sum of Rs. 30,000 (with interest at 6% per annum from the institution of the claim petition until payment/deposit), together with costs throughout. The second and third respondents (the joint tortfeasors) remain jointly and severally liable to satisfy the award. The respondents were directed to deposit the additional sum in the Tribunal within eight weeks. The additional award is apportioned among appellants Nos. 1, 2 and 4 in proportions of 44%, 44% and 12% respectively, with specified directions regarding payment to the minor and conditions for fixed deposits for the first appellant.

First Appeal No. 30 of 1980 (by the owner of the passenger bus / GSRTC): The appeal fully succeeds. The Court held that the benefit of the Rs. 21,000 deposit with the Commissioner for Workmen's Compensation enures to GSRTC alone. As between the two joint tortfeasors (GSRTC and the motor-truck owner), the liability is apportioned such that the truck owner will remain liable to satisfy the whole award and GSRTC will be liable to satisfy the award subject to credit for the Rs. 21,000 deposit (i.e., GSRTC liable for the award less Rs. 21,000). There was no order as to costs in this appeal.

Implications (direct effects and legal guidance):

  • Direct effect on parties: The claimants receive an upward adjustment of quantum (subject to the appeal cap) and specified payment directions; GSRTC receives the benefit of a statutory setoff (Rs. 21,000) against its own liability only; the truck owner cannot claim the benefit of GSRTC's Workmen's Compensation deposit and remains liable for the full award vis-à-vis the claimants.
  • On legal principles: The Court applied and endorsed the established common law approach (as reflected in foreign decisions cited) that a dependant's post-accident earnings derived from their own labour are not to be treated as a pecuniary gain resulting from the death and are generally not deductible from dependency damages. The Court also held that a deposit made by an employer under the Workmen's Compensation framework reduces only that employer's liability and cannot be used to reduce the liability of other joint tortfeasors.
  • Broader precedent: The opinion reasons with reference to foreign authorities and domestic follow-up decisions and thus provides guidance on (a) treatment of a dependant's post-accident employment when assessing dependency, and (b) the application of statutory employer deposits (Workmen's Compensation Act, 1923) as a setoff against the employer's civil liability. The decision clarifies their application in the facts of this case, as set out above.
Show all summary ...

1. These two cross-appeals are directed against the same award made in a motor accident claim case and they can be conveniently disposed of by this common judgment.

2. The accident giving rise to the claim occurred on July 7, 1977 at about 10 A. M. near village Tajpur on the Ahmedabad-Khedbrahma road. Two vehicles were involved in the accident. One of the vehicles was a passenger bus bearing registration No. GTH. 5496 owned by the Gujarat State Road Transport Corporation (second respondent in First Appeal No. 1587 of 1979). The other vehicle was a motor-truck bearing registration No. GTK. 2068 owned by one Ran-chhodbhai Visabhai Patel (third respondent in First Appeal No. 1587 of 1979). The deceased, aged about 30 at the time of the ac-cident, was an employee of the Gujarat State Road Transport Corporation and he was at the material time on actual duty as a conductor on the passenger bus. It appears that the passenger bus was required to be taken in the reverse direction at the site of the accident and that the deceased had alighted from the bus in order to assist the driver while reversing the vehicle. While the vehicle was in the reverse motion, the deceased was crushed between the vehicle and the motor-truck which was parked on the side of the road. The deceased was removed to the Civil Hospital, Ahmedabad, where he died within a few hows.

3. The widow, minor daughter, father and mother of the deceased jointly instituted a claim petition against the driver and owner of the passenger bus and the driver and owner of the motor-truck claiming damages in the sum of Rs. 80,000/-. The Tribunal, which tried the claim petition, awarded total compensation in the mm of Rs. 22, 875/- with interest at the rate of 6 pet? cent per annum from the date of the institution of the claim petition till realization and proportionate costs. Be it stated that though the operative part of the award does not contain a specific direction with regard to the award of interest and of costs, the Tribunal has held in para 23 of the award that me awarded amount must be paid with interest at the rate and for the period mentioned above and, in para 24, the Tribunal has held that the claim was required to be allowed in part with proportionate costs. Under the circumstances, the omission to give a specific direction with tegard to the payment of interest and costs in the operative part of the award must be regarded as inconsequential and the concerned claimants must be taken to have been held entitled to interest and costs and specified in the award. The Tribunal found that the father was not entitled to any share in the compensation as he was not "the heir of deceased". The principal amount of compensation was. therefore, apportioned between the widow, the minor daughter and mother as follows:--

Although there is an omission to give a specific direction in the operative part of the award with regard to the apportionment of the amount allowed as interest and costs on the awarded sum. each one of the persons held entitled to a share in the compensation must be held to have been declared entitled to the proportionate interest and costs on the sum apportioned to her. The Tribunal held the driver and owner of the passenger bus (Gujarat State Road Transport Corporation) and the driver and owner of the truck jointly and severally liable to satisfy the award.

4. It might be stated at this stage that on the strength of the evidence on record, the Tribunal had assessed damages at Rupees 51,500/. The loss of dependency benefit/ economic loss was computed at Rs. 48,000/-on the basis of the annual dependency of Rs. 4,800/- capitalized by the application of the multiplier of 10. To this was added a sum of Rs. 3,000/- for the loss of expectation of life and a sum of Rs. 500/- for the expenses incurred on obsequial ceremonies. However, the actual award came to be made for the lesser amount of Rs. 22, 875/- for two reasons. First, a sum of Rs. 21,000/-, which was deposited with the Commissioner for Workmen's Compensation by the Gujarat State Road Transport Corporation to meet its statutory liability arising on account of the fact that the deceased was its employee who had met with his death by an accident arising out of and in the course of his employment, was deducted from the damages assessed as aforesaid, leaving a balance of Rs. 30,500. Secondly, the Tribunal was of the view that the claimants had derived "some benefit on account of the death of the deceased" by reason of the fact that the widow of the deceased was employed after the accident by the Gujarat State Road Transport Corporation on a salary of Rs. 17/- per day. Taking into consideration the wages of the deceased and the earning capacity and actual wages of the widow, the Tribunal was of the view that "it would be proper and reasonable to slice down 25% of the abovesaid compensation of Rs. 30,500/-". A further deduction in the sum of Rs. 7,625/- was accordingly made and the actual award came to be made In the sum of Rs. 22,875/-.

5. Both, the original claimants and the ewner of the passenger bus, felt aggrieved by the award and have challenged the same to the present appeals. First Appeal No. 1587 of 1979 is instituted by the original claimants and First Appeal No. 30 of 1980 is instituted by the owner of the passenger bus. The claim in First Appeal No. 1587 of 1979 is in the sum of Rs 30,000/-, whereas in First Appeal No. 30 of 1980, the claim is in the sum of Rs. 22,875/-.

6. Though the impugned award is challenged in the respective Memos of Appeal on various grounds, all the challenges were not pressed at the hearing of the appeals. In the claimants' appeal, the challenge was confined to the following three grounds.

(1) The deduction of the sum of Rs. 7,625/-from the assessed damages by taking into consideration the wages earned by the widow as a result of the employment offered by the owner of the passenger bus is illegal and unjustified;

(2) The capitalization of the loss of dependency benefit/economic loss by adoption of the multiplier of 10 is illegal and unjustified; and (3) The award for the loss of expectation of life should have been in the sum of Rs. 5,000/- (in place and stead of Rs. 3,000/-). In the appeal of the owner of the passenger bus, the challenge was confined to only one ground, viz., that the deduction made on account of the deposit of a sum of Rs. 21,000/-with the Commissioner for Workmen's Compensation should be set off against the liability of the said appellant alone and that the joint tortfeasors and, more particularly, the owner of the motor truck, should not get the benefit of the said deduction and that he should be made liable to satisfy the award disregarding such deduction.

7. In view of the restricted challenges as aforesaid in both the appeals, it is manifest that the decision on the issue of negligence and the consequential liability of the joint tortfeasors to pay damages has become final and conclusive. Broadly speaking, only two questions fall for consideration; first, whether the compensation awarded is just and proper and, secondly, whether the benefit of deduction to the extent of Rs. 21,000/- effected from the assessed damages on account of the deposit made by the Corporation with the Commissioner for Workmen's Compensation is required to be given to the Corporation alone by setting off the same against the liability incurred by it under the award. We shall first consider the original claimants' challenge to the quantum of compensation which has been levelled under the three grounds set out above.

8. The deceased, as earlier stated, was an employee of the Corporation. K. D. Bhatt, Assistant Legal Adviser of the Corporation, was examined as a witness. His deposition is at Ex. 74. He deposed that it was the policy of the Corporation that when any employee died or became permanently disabled while in service and if there was no other earning member in his family, one of the members of the family of such employee was given direct appointment in a suitable post. In support of his version, the witness relied upon a copy of the General Standing Order No. 361 of 1973 issued on June 18, 1973, Ex. 75, to which it would be convenient to refer at this stage.

9. The General Standing Order bears the following caption :

"To consider absorption of son/daughter of an employee when he retires from the services of the Corporation."

The text of the General Standing Order mentions at the outset that in all the Units of the Gujarat State Road Transport Corporation, recruitment to the posts in ClassIII and IV categories was being made by issuing an advertisement or by procuring names of qualified candidates from the Employment Exchanges. Reference is next made to the Resolution of the Corporation passed on Dec. 14, 1972 which provided for the appointment of a member of the family of a retired employee under certain circumstances. Then follows the underquoted passage which is material :--

"Similarly, if an employee of the Corporation dies or becomes permanently disabled while in service and there is no other earning member in the family, one member of his/her family can directly apply for a suitable post in S. T., when names for such vacancy are called for from the Employment Exchange, subject to the condition that his/ her name is registered in the Employment Exchange and is on the Live Register in the Employment Exchange. Such applicant will be given preference and the Appointing Authority will be competent to appoint him/her straightway in an existing vacancy in Class III and IV posts, subject to the condition that the applicant possesses the required qualifications etc., for the post and is otherwise suitable on merits. Such cases will be placed for post facto approval before the Selection Committee concerned."
The extracted portion of the General Standing Order makes it clear that if an employee of the Gujarat State Road Transport Corporation died or became permanently disabled while in service, one member of the family of sucb employee could directly apply for a suitable post when names for filling the vacancy in such post are called for from the Employment Exchange, subject to the conditions that:--

(1) there is no other earning member in the family, and (2) the name of such member of the family is registered in the Employment Exchange and it continues to be on the live register.

If and when such an application is received, the appointing authority would be competent to give a preference to the applicant and to appoint him/her straightway in an existing vacancy in a Class III or IV post, subject to the conditions that :

(1) the applicant possessed the requisite qualifications, and (2) he/she was otherwise suitable on merits.

10. It would thus appear that the benefit intended to be conferred under the General Standing Order is qualified or limited in character and that it does not confer an unrestricted right of appointment upon a member of the family of an employee dying or becoming permanently disabled while in service. In substance and reality, it only provides for a preference being given in the matter of appointment to a Class III or IV post to such a family member (in case there is no other earning family member) if be fulfils the requisite conditions, namely, if he possesses the requisite qualifications and is otherwise found suitable on merits. Besides, such benefit is extended irrespective of whether the death or disablement of the employee is the result of the tortious act for which the employer is directly or vicariously liable.

11. Reverting now to the evidence of witness Bhatt, he testified that the widow of the deceased (the first appellant) had made an application on or about May 4, 1978 seeking employment on the ground that there was no other earning member in the family. On a consideration of the said application, she was offered employment as a special case. At the time of the trial, the widow was working as a clerk at the Dehgam Depot of the Corporation. She had still not completed the requisite period of 180 days and, therefore, she was employed as a daily rated workman. The witness deposed that after the expiry of the period of 180 days, the widow would be employed as a regular employee. The wages of the widow at the time of the trial were Rs. 378-80 per month, after making a deduction to the extent of Rs. 44-80 for insurance. The witness further deposed that the widow was appointed on a post which was higher than the post of a conductor. Her pay scale was higher than that of her deceased husband. Under cross-examination, the witness stated that the widow was absorbed in service on Aug. 18, 1978 and that the deceased could have been given appointment on a post in the same pay scale provided he could have passed the departmental examination.

12. The first appellant, in the course of her deposition at Ext. 55, stated that she was working as a temporary clerk at Dehgam bus depot of the Corporation on daily wages. Her wages at the time of the trial were Rs. 17/- per day. She was offered employment for all the days of the month excluding Sundays and public holidays. She denied the suggestion that she was offered employment because her husband had expired while on duty.

13. The main question, which falls for consideration against the background of the aforesaid evidence, is whether the Tribunal acted in accordance with law in taking into consideration the wages earned by the first appellant and in effecting a deduction to the extent of 25% and in the sum of Rs. 7,625/-from the amount of compensation assessed as payable.

14. It is true that while assessing damages for the financial loss arising out of the death resulting from an accident, one of the deductions which is required to be made is in respect of the pecuniary benefit, if any, received by the dependants/heirs in consequence of the death. The first question which must be considered in such a case is: What are the sums, if any, which the dependants/heirs, in fact, received as a result of the accident but which they would not have received if there had been no accident. The second question is whether such sums, if any, or some of them are required to be deducted in law while assessing the compensation. Even prior to the decision of the House of Lords in Parry v. Cleaver, 1970 AC 1, which has been followed in our Court (see L. I. C. of India v. Naranbhai, 1973 Acc CJ 226 : (AIR 1973 Guj 216) and Ahmedabad Municipal Transport Service v. Manekben, (1981) 22 Guj LR 575 : (AIR 1982 Guj 27)), it was the settled legal position at the common law that in two large classes of cases such sums are to be disregarded -- the proceeds of insurance and sums coming by reason of benevolence. Those are considered to be collateral benefits which could not be deducted from the assessed damages because in one cass, the benefit was bought by the deceased by bis own money under a contract with the insurer and in the other it was derived from the benevolence of friends or relations or of the public at large. In Parry v. Cleaver, the principle was extended and applied to the case of disablement or ill-health pension payable by the employee to an employee who was compulsorily retired on account of accident injury. It was held that such pension, whether discretionary or payable as of right and whether contributory or non-contributory, did not have to be taken into account against the last salary but will be deductible only from the last retirement pension. In Cunningham v. Harrison, (1973) 1 QB 942, the annual ex gratia payments for life made by the employer to the injured plaintiff were held by the Court of Appeal to be non-deductible in an action for damages at the common law.

15. It would be relevant to mention, however, that these types of receipts were not disregarded in the United Kingdom in dealing with damages under the Fatal Accidents Act, 1876 (Lord Campbell's Act) until the law was altered by the Fatal Accidents Act, 1959 which provided in Section 2 that any insurance money, benefit, pension or gratuity which has been or will or may be paid as a result of the death shall not be taken into account, "Benefit" was defined as meaning benefit under the National Insurance Acts and payment by a friendly society or trade union. Section 4 of the Fatal Accidents Act, 1976 substantially re-enacts this provision.

16. In assessing damages in personal injury cases or cases instituied under the Fatal Accidents Act, 1855 (which is modelled on Lord Campbell's Act), it would be worthwhile for us to take note of the advancement made in this field in the United Kingdom as a result of the liberal judicial approach and progressive legislative policy. In our country, no statutory provision regulates the deduction of benefits in assessing damages in both the categories of cases. Under the circumstances, the general principles laid down by the English Courts in that behalf in the common law actions would furnish useful guidance in personal injury cases. In fatal accident cases, where the claim for damages is under Section 1A and/or Section 2 of the Fatal Accidents Act, 1855, though the law has not been amended so as to incorporate therein the legislative advancement made in the United Kingdom, the progressive public policy as reflected in the legislative alterations made in the country from which the statute has been adopted must largely enter into our consideration, especially because Section 110-B of the Motor Vehicles Act, 1939 empowers the Tribunal to "make an award determining the amount of compensation which appears to it to be just" and what is "just" may be legitimately judged in the light of the prevailing view in the same field in the filial though foreign jurisdiction.

17. Another question which sometimes arises is whether in determining the extent of the pecuniary loss, any deduction is required to be made for the potential earning capacity of the widow or her actual earnings derived from an occupation or employment taken up or resumed after the death. The question directly arose for consideration in Howitt v. Heads, (1972) 1 All ER 491. It was a case in which an action for damages was brought by the widow, aged 20, for the benefit of herself and her infant son on the death of her husband which occurred as a result of a road accident within three weeks of the marriage. The widow was employed before her marriage and she had continued working even after the marriage and was actually working at the time of the accident and for a few months thereafter till she delivered a posthumous child. The evidence at the trial showed that in all likelihood the widow would resume employment at some stage when it became convenient for her to make suitable arrangements for her son. Cumming-Pruce, J., who decided the case, held that no deduction in respect of the widow's capacity to earn was required to be made, although he was satisfied as a matter of probability that she would fairly soon be obtaining a significant degree of financial independence. In taking that view, the learned Judge relied upon two decisions of the High Court of Australia (Goodger v. Knapman, (1924) SASR 347 and Usher v. Williams, (1955) 60 WALR 69). The argument in Goodger's case was that a reduction for the widow's prospective earnings was required to be made by reason of her being relieved from the heavier part of her domestic duties and thereby set free to go out and earn something on her own account. The argument was rejected with the following observation :

"I do not accede to the suggestion, as I am unable to see how liberty to work can reasonably be brought within the description of a pecuniary advantage she has derived from the death of her husband. Any money she might earn would be the result of her labour, not of his death."

In Usher's case, a similar argument with regard to deduction was made by propounding the theory that the husband's death had released a flood of earning capacity. The theory was rejected with the following observations :

"In my opinion the plaintiff's ability to earn is not a gain resulting from the death of her husband ..... The widow's ability to work was always there and she could perhaps, as women do, particularly in professions, have preferred to work after marriage. The same argument that is put forward for The defendants could be applied to any woman who goes out to work through necessity to support herself and her children following her husband's death and if it can be applied to the widow there is no reason why it should not be used to diminish or extinguish the children's claims in a case where, by her efforts, she is able to support them as well as her husband did in his lifetime ..... I therefore hold that the widow's earning capacity is not to be taken into account in diminution of damages."

This view bas continued to be accepted in England not only for potential earnings but also for actual earnings before the trial (see Davies v. Whiteways, (1975) QB 262 at page 272). It is true that in the Court of Appeal's decision in Ccokson v. Knowles, (1977) QB 913, Lord Denning, speaking for the Court, has thrown some doubt on this position by saying that while it may be argued that the widow, who was not employed at the time of the accident, is not bound to go out to work so as to reduce the award, "we are not so sure about this". It must he remembered, however, that Cookson v. Knowles was a case where the wife had been working before as well as after the death for some time so that her earnings were already contributing to the family pod. It is in view of those facts that Lord Denning held that the dependents were not deprived of the contribution provided by the wife and that, therefore, her prospects of going out to work and earning money could not be disregarded. In terms, it was held :

"But, when her earnings before his death come into the family pool so also her earning capacity after his death roust be taken into account."

18. It appears that as in the United Kingdom and Australia, sc in New Zealand, the view prevails that the dependant's own income is not relevant because such income is not a benefit in consequence of the death but a consequence of the dependant's own work or investment (see Kemp & Kemp, The Quantum of Damages, Vol. 1, 1975 Edition, page 366).

19. No decision of an Indian Court having a bearing on the point under consid-eration has been brought to our notice, but having regard to the view which prevails in foreign countries in similar jurisdiction, the proper principle to apply would appear to be that in determining the pecuniary loss to the dependants, no deduction should be made for the earning capacity or the actual earnings of the widow arising from her gainful employment taken up after the accidental death of her husband, because such income. is not a benefit in consequence of the death but is the result of her own labour.

20. Viewed against the aforesaid background, the deduction to the extent of 25% made by the Tribunal in the instant case from the assessed damages on the ground that the widow had received some benefit on account of the death of the deceased by procuring employment in the Corporation must be held to be unwarranted in law. Be it noted in this connection that the widow here was not working for gam before the death of her husband. She took up the employment only after . his accidental death. The question, therefore, of her earnings coming into the family pool and contributing towards her own maintenance and that of the other dependants prior to the husband's death does not arise. The situation is thus not akin to that which obtained in Cookson v. Knowles (1977 QB 913) and no deduction can be made even on that ground, assuming without deciding that the earning in such a case would be deductible.

21. True it is that an attempt was made on behalf of the Corporation to establish that the appointment was offered to the widow as a "special case", presumably with a view to urging that the Corporation, conscious as it was of being a tortfeasor. wanted to make up to the dependants the loss which it had caused them. The effort, in other words, appeared to be to persuade the Court that the widow's earnings now used to support her and the other dependants should be taken into account, as the "benefit" or "gains" resulting from the death of the deceased on the basis that they were in the nature of payments voluntarily made by a tortfeasor in an attempt to mitigate the damage caused by him. It is not possible to agree with this line of reasoning. In the first place, as earlier pointed out, the earnings of the widow were the result of her own labour. They were not in the nature of a gratuitous payment made by an employer, who is liable in tort for the death of an employee, to the widow of such an employee. In the next place, there is no evidence to suggest that the widow was offered the employment by the Corporation because it was conscious of being vicariously liable for the tortjous act resulting in the death of the deceased. The evidence, on the contrary, points in the other direction inasmuch as there has been a persistent attempt to deny any liability for the accidental death. In the last place, the General Standing Order, Ext. 75, which records the policy decision covering employees of the Corporation dying or becoming permanently disabled while in service, is of general application. In other words, the benefit of employment under the said policy decision is available irrespective of whether the death or disablement of an employee is the direct result of the tortiOus act of the Corporation or any one or more of its employees. Besides, all that the General Standing Order does is to give a preference in the matter of appointment to a Class III or IV post if the candidate possesses the requisite qualifications and is otherwise found suitable on merits. Under these circumstances, it is impossible to equate the appointment of the widow as a measure consciously taken with the end in view of making up to the dependants the loss occasioned on account of the tortious act for which the Corporation was vicariously liable.

22. For the foregoing reasons, we are of the view that the deduction of the sum of Rs. 7,625/- from the assessed damages effected by the Tribunal on the ground that the claimants had derived some benefit on account of the death of the deceased by reason of the fact that the widow of the deceased was employed after the accident by the Corporation requires to be disallowed and that the sum deducted accordingly will have to be added back to the damages awarded by the Tribunal.

23. The deceased was aged 30 when he met with his unfortunate death. He was the bread-winner of the family. Under those circumstances, the Tribunal could not have legitimately adopted the multiplier of 10 for the purpose of capitalizing the loss of dependency benefit/economic loss. In the case of persons who are in thirties, it is a common practice to adopt the purchase factor of 15 years. Under the circumstances, the damages under the said head ought to have been assessed at Rs. 72,000/- (Rupees 4,800 X 15 = Rs. 72,000/-) in place and stead of Rs. 48,000/- (Rs. 4,800 X 10 = Rs. 48.000/-). The sum of Rs, 24.000/-would, therefore, be awardable as additional damages for the loss of dependency benefit/ economic loss.

24. The conventional award for the loss of expectation of life should have been in the sum of Rs. 5,000/- and not Rs. 3,000/-. since there has been an upward revision in the assessment of damages under the said head.

25. On the basis of the foregoing discussion, appellants Nos. 1, 2 and 4 in First Appeal No. 1587 of 1979 are held entitled to the following additional compensation under different heads :--

Rs. 7,625-00 ... Addition back of the wrongful deduction effect-

ed by the Tribunal.

Rs. 24,000-00 ... Loss of dependency bene-

fit/economic loss.

Rs. 2,000-00 ... Loss of expectation of life.

_____________ Rs. 33,625-00 _____________ However, the claim in appeal having been restricted to Rs. 30,000/-, the actual additional award will be in the sum of Rupees 30,000/- only. The amount of additional compensation awarded accordingly wilt be apportioned between appellants Nos. 1, 2 and 4 in the proportion of 44%, 44% and 12% respectively which broadly is the basis adopted by the Tribunal for apportioning the amount awarded by it between those appellants. It may be clarified that the basis of the Tribunal's apportionment has not been challenged before us in the appeal.

26. Turning now to the appeal presented by the owner of the passenger bus, the submission made before us is wholly justified. The deposit of the sum of Rs. 21,000/- has been made by the said appellant with the Commissioner for Workmen's Compensation in the discharge of the liability under the Workmen's Compensation Act, 1923 incurred by it because the accident arose out of and in the course of the employment of the deceased. The said sum, therefore, can be set off only against the damages which the said appellant is liable to pay under the impugned award. The pecuniary benefit accordingly derived by the dependants/heirs flows out of the statutory liability of the employer and while effecting deduction on that count, corresponding credit can only be given to the employer whose liability to satisfy the award must be held to have been reduced pro tanto. The Tribunal was, therefore, in error in making an overall reduction to the extent of Rs. 21,000/- in the damages awarded by it and, in the process, in giving the benefit of reduction also to the joint tort-feasor namely, the owner of the motortruck. The award of the Tribunal in this regard will, therefore, require suitable modification.

27. As a result of the foregoing discussion, we pass the following order in these two appeals:--

First Appeal No. 1587 of 1979 The appeal fully succeeds, so far as appellants Nos. 1, 2 and 4 are concerned, but it is dismissed qua appellant No. 3 as it is not pressed. Appellants Nos. 1, 2 and 4 are held entitled to additional compensation in the sum of Rs. 30,000/- together with interest at the rate of 6% per annum from the date of the institution of the claim petition till deposit/payment, with costs throughout. The second and third respondents are held jointly and severally liable to satisfy the award. The respondents will deposit the said sum in the Tribunal within eight weeks from today. The additional compensation which has been awarded hereunder is apportioned between appellants Nos. 1, 2 and 4 in the proportion of 44%, 44% and 12% , respectively. The Tribunal will work out the actual amount falling to the share of each appellant on the basis of such apportionment and pay to each of such appellant the amount falling to her share together with proportionate interest and costs. So far as the minor second appellant is concerned, the total amount falling to her share will be paid to the first appellant on the condition that such amount will be deposited in a fixed deposit with a nationalised bank for a period of 15 years or till the minor attains majority, whichever is later, and subject to the further conditions that the fixed deposit receipt will not be encashed before the due date of maturity nor any loan will be raised against the same during the currency of the fixed deposit, save and except with the permission of the Tribunal. The interest accruing due on the fixed depo- sit periodically will be payable to the first appellant directly to be utilized by her for the maintenance of the minor. So far as the first appellant is concerned, a sum of Rs. 2,500/- will be unconditionally paid to her out of the total amount falling to her share. The balance amount will be paid to her on the condition that such amount will be deposited in a fixed deposit with a nationalised bank for a period of 15 years and subject to the further conditions that the fixed deposit receipt will not be encashed before the due date of maturity nor any loan will be raised against the same during the currency of the fixed deposit, save and except with the pennission of the Tribunal. The interest accruing due on the fixed deposit periodically will be payable to the first appellant directly. The Tribunal will ensure that these conditions imposed in the cases of the first and second appellants are duly complied with by the first appellant. The entire amount falling to the share of the fourth appellant will be paid to her unconditionally. There will be no order as to the costs of the appeal, so far ai the third appellant is concerned.

First Appeal No. 30 of 1980:

The appeal fully succeeds. The benefit of deduction effected on account of the deposit of the sum of Rs. 21,000/- with the Commissioner for Workmen's Compensation enures in favour of the appellant alone. Therefore, as between the two joint tort-feasors, namely, the appellant and respondent No. 6, the liability to satisfy the total award made in favour of respondents Nos. 1, 2 and 4 stands apportioned in such a manner thai whereas the sixth respondent will be liable to satisfy the whole award, the appellant will be liable to satisfy the full award less the sum of Rs. 21,000/-. There will be no order as to the costs of this appeal.