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Smart Summary

Structured Summary of the Opinion (J.N. Bhatt, J.)

Factual and Procedural Background

The case arises from M.A.C.P. No. 206 of 1994 before the Motor Accidents Claims Tribunal, Rajkot, in which the original claimants (heirs and legal representatives, including the widow) sought compensation of Rs. 9,28,950 under section 166 of the Motor Vehicles Act, 1988 for the death of D.T. Acharya, a retired District and Sessions Judge who died from injuries sustained in a road accident on 8.1.1994 near Panchnath Mahadev Temple, Harihar Chowk, Rajkot.

The accident was alleged to have been caused by a Gujarat State Road Transport (S.T.) bus (No. GRZ 6700). The S.T. Corporation and the driver (original opponent Nos. 1 and 2) resisted the petition, filing composite written submissions contending there was no tortious act, rashness or negligence by the bus driver.

The Tribunal, by its judgment dated 8.12.1999, held the bus driver fully responsible and awarded consolidated compensation of Rs. 6,01,300 with interest at 12% per annum. Two appeals under section 173 of the Motor Vehicles Act were filed and heard together: (i) F.A. No. 2381 of 2000 by the Gujarat State Road Transport Corporation challenging the quantum and seeking a reduction limited to Rs. 4,00,000, and (ii) First Appeal Stamp No. 1501 of 2000 by the original claimants seeking enhancement limited to Rs. 1,50,000. The Court admitted service, waived service on behalf of respondent Nos. 1–5, granted leave to delete respondent No. 6 (the bus driver), and agreed to hear on merits due to urgency and availability of records.

Legal Issues Presented

  1. Whether the Tribunal's award of Rs. 6,01,300 (with interest at 12% per annum) appropriately compensates the claimants for the death of the deceased, or whether the quantum requires reduction as contended by the S.T. Corporation (seeking a reduction of Rs. 4,00,000).
  2. Whether the Tribunal's award is inadequate and ought to be enhanced by Rs. 1,50,000 as contended by the original claimants, having regard to the deceased's status, age, pensionary benefits and prospective earnings.
  3. Ancillary to the above: the proper selection and application of the multiplier and computation of loss of dependency and other heads of compensation (medical expenses, pain and suffering, attendant charges, transport, special diet, conventional amount), given the deceased's age, service history and family longevity.

Arguments of the Parties

Appellant — Gujarat State Road Transport Corporation (and driver)

  • The Tribunal's assessment of quantum is excessive; the award should be reduced. The S.T. party sought a reduction to the extent of Rs. 4,00,000.
  • The S.T. party led viva voce evidence and relied on documents to support their contention that the Tribunal's quantification was on the higher side.
  • In their written submissions the original opponent(s) also contended there was no tortious act, rashness or negligence on the part of the bus driver (a factual defense to liability).

Respondents / Original Claimants

  • Claimants contended the Tribunal's award was grossly inadequate having regard to the deceased's status as a retired District and Sessions Judge re-employed as a Labour Court Judge, his age (about 62), pensionary benefits, and prospective earnings (including likely practice, consultancy, arbitration).
  • The claimants sought enhancement by Rs. 1,50,000 to make the compensation just and reasonable in the circumstances.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The following summarizes the court's step-by-step analysis as stated in the opinion. The Court focused primarily on quantification of damages and the proper application of principles for computing loss of dependency and other heads of compensation.

  1. Scope of review: The Court confined itself to the quantum issue since both appeals challenged the amount awarded by the Tribunal under section 173 of the Motor Vehicles Act.
  2. Examination of evidence: The Court reviewed the Tribunal's findings (paras 9–15 of the impugned judgment) and the documentary and oral evidence placed before the Tribunal. Material factual points relied upon by the Court included:
    • The widow's evidence that the deceased had no disease and was hale and hearty (Exh. 30).
    • Longevity in the deceased's family: father died at 83 and mother at 85, indicating a higher than average family lifespan (relevant for choosing multiplier).
    • The deceased's professional background: retired District and Sessions Judge, re-employed as Principal Labour Judge at Rajkot; monthly salary at re-employment Rs. 7,850 (undisputed).
    • The deceased's intention to join legal practice upon completion of Labour Court tenure and the reasonable prospect of re-employment/assignments commonly available to retired judicial officers.
  3. Evaluation of Tribunal's computations:
    • The Tribunal assessed prospective monthly contribution at Rs. 12,000, deducted one-third to arrive at net monthly contribution Rs. 8,000; annual loss of dependency Rs. 96,000. The Tribunal applied a multiplier of 5 and awarded Rs. 4,80,000 under loss of income.
    • The Court found the award under the head of loss of income to be on the lower side given the deceased's status, family longevity and prospects of future earnings. The Court accepted the Tribunal's methodology for arriving at annual net contribution (Rs. 8,000 × 12 = Rs. 96,000) but held that the multiplier required upward revision from 5 to 6 on the particular facts of this case.
    • The Court justified increasing the multiplier to 6 by reference to the higher expected life span in the family, the deceased's status as a judge (a class believed to have higher-than-average longevity and re-employment/practice prospects), and the “special circumstances” shown by evidence.
  4. Revised calculations:

    The Court multiplied the annual loss of dependency (Rs. 96,000) by the revised multiplier (6) to arrive at Rs. 5,76,000 under the head of loss of income (replacing the Tribunal's Rs. 4,80,000). Calculation as stated in the opinion: Rs. 96,000 × 6 = Rs. 5,76,000.

  5. Other heads of compensation:
    • Medical expenses: Tribunal awarded Rs. 17,200; Court held this might be marginally increased but declined to disturb the figure and left it unchanged at Rs. 17,200.
    • Pain, shock and suffering: Tribunal awarded Rs. 50,000; Court found this acceptable given the severe injuries, operations, transfusions and 14-day hospital course, and left it unchanged.
    • Transport charges (Rs. 2,100) and special diet (Rs. 7,000): Court left these amounts undisturbed.
    • Conventional amount for loss of expectation of life: Tribunal had awarded Rs. 10,000; the Court considered this low given inflation and the need to revise conventional amounts periodically, and increased it to Rs. 20,000.
    • Attendant charges: Tribunal awarded Rs. 35,000. The Court observed that gratuitous services by family members are to be capitalised but, on facts, found Rs. 35,000 on the higher side and reduced it by Rs. 20,000 to Rs. 15,000, citing absence of specific evidence regarding distance/particulars of attendance.
  6. Aggregate result of modification: After adjusting the loss of income (increasing to Rs. 5,76,000), reducing attendant charges to Rs. 15,000, and increasing the conventional amount to Rs. 20,000 while leaving other heads unchanged, the Court recomputed the total compensation to Rs. 6,87,300.
  7. Interest: The award was modified to grant the claimants an additional amount of Rs. 86,000 with interest at the rate of 12% per annum from the date of application until payment (interest rate and period of interest as in the impugned award were preserved).
  8. Costs and directions: Both appeals were partly allowed; since both parties succeeded in part, the Court directed that the parties bear their own costs. The S.T. party was directed to deposit the full amount due under the Court's order with interest within two months. The Rs. 25,000 already deposited with the first appeal was to be transmitted immediately to the Tribunal for disbursement and investment according to directions in the impugned judgment.

Holding and Implications

APPEALS PARTLY ALLOWED.

Holding (direct effect on parties):

  • The Tribunal's award is modified. The total compensation payable to the claimants is revised to Rs. 6,87,300.
  • The modification increases the award by Rs. 86,000 relative to the Tribunal's Rs. 6,01,300, and interest remains at 12% per annum from the date of application until payment.
  • Breakdown as determined by the Court (as stated in the opinion):
    • Loss of income: Rs. 5,76,000
    • Medical expenses: Rs. 17,200
    • Pain, shock and suffering: Rs. 50,000
    • Attendant charges: Rs. 15,000
    • Transportation charges: Rs. 2,100
    • Special diet: Rs. 7,000
    • Conventional amount: Rs. 20,000
  • Both parties are to bear their own costs.
  • The S.T. party must deposit the full amount due with interest within two months; the previously deposited Rs. 25,000 is to be transmitted to the Tribunal for disbursement and investment per the impugned judgment.

Broader implications:

  • The opinion adjusts the quantification of damages in a fatal accident case by (a) increasing the multiplier from 5 to 6 on the specific facts (noting family longevity and the deceased's professional status and prospects), (b) revising certain heads (reducing attendant charges, increasing conventional amount) and (c) upholding other heads as assessed by the Tribunal. The Court emphasized that selection of multiplier and assessment of heads must respond to factual features such as status, life expectancy in the family and realistic prospects of future earnings.
  • The opinion does not cite or establish any new binding precedent in terms of setting a general rule beyond applying established principles to the facts of this case. Its consequences are concrete and limited to modification of the award and the directions issued for deposit and disbursement.


Note: This summary strictly reflects only the information and reasoning contained in the provided opinion text and does not add or infer facts beyond that text.

    Gujarat State Road Transport Corporation v. Suryakantaben D. Acharya And Others

    J.N Bhatt, J.:— Admit. Service of which is waived by learned advocate Mr. Bhatt on behalf of respondent Nos. 1 to 5. Leave to delete respondent No. 6 driver of the bus. In view of the peculiar facts and special circumstances and the urgency in the matters, upon joint request, we have agreed to hear and dispose of the matter on merits since record and proceedings are also available with us.

    2. In course of hearing of these appeals, our attention was drawn that the original claimants have also preferred First Appeal Stamp No. 1501 of 2000 on behalf of the original claimants in the first appeal for enhancement of compensation by learned advocate Mr. Bhatt. Therefore, upon report from the Registry, the said appeal is also ready and as no office objections are there, we called for hearing of the appeal. Therefore, learned advocate for appellant in the first appeal Mr. Desai appeared for opponents. In the circumstances, First Appeal Stamp No. 1501 of 2000 is also tagged together with the first appeal and both of them are, jointly, heard and since they arise from one and common judgment and award and also accident, upon request they are being disposed of by this common judgment by us. Obviously, both the appeals are filed invoking the aid of the provisions of section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the new Act’) and both the appellants have challenged the amount of compensation. In first appeal like that F.A No. 2381 of 2000 at the instance of the Gujarat State Road Transport Corporation, original opponent in M.A.C.P No. 206 of 1994 the appellant has challenged the quantum and restricted the challenge to the extent of Rs. 4,00,000 whereas in the second appeal at the instance of the original claimants, they have preferred the appeal for enhancement of the amount of compensation. However, in appeal it is restricted to Rs. 1,50,000. So the gist of both appeals as arising out of the amount of compensation claimed in M.A.C.P No. 206 of 1994 filed by the original claimants before the Motor Accidents Claims Tribunal, Rajkot, claiming an amount of Rs. 9,28,950 for the unfortunate and untimely death of the main breadwinner of the family, a retired Judicial Officer, one D.T Acharya, whose life was cut short at the cruel hands of the providence in a tragic road mishap. The claimants are heirs and legal representatives including the widow of the deceased D.T Acharya.

    3. The entire claim is founded upon the tortious act committed by the driver of the S.T bus bearing No. GRZ 6700 belonging to the appellant in first appeal original opponent. It has been contended that the driver of the said S.T bus was responsible for causing unfortunate road accident which occurred on 8.1.94 near Panchnath Mahadev Temple in the area of Harihar Chowk at Rajkot, the driver of the S.T bus who was in charge of the bus came with an excessive speed, driving in a rash and negligent manner and dashed against the deceased just in front of footpath when the deceased was walking without knowing that the invitation of death was in the pocket of the driver. As a result of injuries, the deceased sustained serious injuries on various parts of the body in general and on abdomen exterior and interior of the stomach area. The deceased was violently knocked down. As a result of which he fell on the tar road and sustained grievous injuries. He came to be shifted to the Government Hospital for treatment, as ill-luck could have been he breathed his last on account of serious injuries, in course of the treatment in the hospital on 14th day of the happening of the accident. Since the claimants were the dependants and the deceased was the only breadwinner in the family, there came a great tragedy on the family. The claimants, therefore, filed the aforesaid claim petition for compensation invoking the provisions of section 166 of the new Act for Rs. 9,28,950.

    4. The original opponent Nos. 1 and 2, the driver and the S.T Corporation jointly appeared and resisted the claim petition by filing composite written submissions at Exh. 14, inter alia, contending that there was no tortious act or rashness or negligence on the part of the driver of S.T bus involved in the accident and, therefore, they came with the contention that the claimants are not entitled to compensation.

    5. Upon assessment and analysis of the evidence led by the parties and relied on by the Tribunal, the impugned judgment came to be recorded on 8.12.1999 whereby the original claimants came to be awarded consolidated sum of Rs. 6,01,300 by way of compensation under different recognised heads with interest at the rate of 12 per cent against the claim of Rs. 9,28,950 holding that the driver of the S.T bus involved in the accident was fully accountable for the blame in causing the accident resulting into death, from the date of the application till payment. The break up of the sum of Rs. 6,01,300 is as follows:

    Loss of income Rs. 4,80,000 Medical expenses Rs. 17,200 Pain, shock and suffering Rs. 50,000 Attendant charges Rs. 35,000 Transportation charges Rs. 2,100 Special diet Rs. 7,000 Conventional amount Rs. 10,000 Total: Rs. 6,01,300

    6. Thus, the Tribunal finding that the accident was the outcome of the rashness and negligence on the part of the driver of the offending S.T bus awarded the aforesaid amount to the claimants which is challenged by both the parties by filing two appeals as stated hereinbefore.

    7. In course of submissions upon merits for final hearing the learned advocate Mr. Desai appeared for S.T bus, repeatedly and vehemently contended that the Tribunal has made the assessment on a very high side and, therefore, the amount of Rs. 4,00,000 is required to be deducted from amount of compensation awarded by the Tribunal. In support of his contention, he has taken us through necessary relevant and material documents and viva voce evidence. As against that, learned advocate appearing for the claimants' side, Mr. Bhatt has, in support of the second appeal in which enhancement of amount to the extent of Rs. 1,50,000 is claimed, also, forcefully, submitted that the impugned judgment and award is grossly inadequate in the light of the facts and circumstances of the case meaning the status, age, pensionary benefits and prospective earnings which the deceased could have earned had his life not been cut short at the cruel hands of the providence. He has, therefore, contended that the amount of Rs. 1,50,000 claimed in the second appeal by way of additional compensation would meet with the requirement of amount of compensation being just and reasonable in the circumstances of the case. It is, therefore, very clear for us the quantification of damages aspect is at large open.

    8. Before we examine the merits of the cross-appeals and counter and rival sub missions raised before us, it would be expedient to examine at this juncture the approach and evaluation of the evidence on this point made by the Tribunal while granting global sum of Rs. 6,01,300. We have, dispassionately examined the im pugned judgment and award. Relevant dis cussions in the impugned judgment insofar as quantum of damages aspect is concerned, are in para Nos. 9 to 15. The break up of the amount awarded is also highlighted in penultimate para of the impugned order which we have hereinabove placed in focus.

    9. After having given our anxious consideration to the observations and the evaluation of the evidence made by the Tribunal on the question of quantification of damages, we have no hesitation in find ing that the amount of compensation to the extent of Rs. 6,01,300 with interest at the rate of 12 per cent per annum awarded by the Tribunal is not only on the conservative side but in the facts and circumstances is very much on the lower side. The Tribunal has considered the amount of compensation under seven different heads. In order to justify the amount of compensation granted under each head, the relevant and necessary narration of the evidence is noticed by us. It would be again expedient to highlight the following material aspects which have important bearing on the determination of the amount of compensation in a death case arising out of a road accident:

    (i) The widow of the deceased, Suryakantaben D. Acharya is examined at Exh. 30 and from her evidence it becomes evident that the deceased had no disease. He was hale and hearty. He was at times attending temple of God and temple of Justice on foot.

    (ii) Father of the deceased lived for a long till the age of 83 whereas mother of the deceased lived longer than father and she died at the age of 85 years. It goes to show that the life span of the deceased family is higher and above the normal which is an important criterion in determining the number of multiplier before ascertaining the loss of dependency value to the common family fund and the original claimants. It is settled proposition of law that in a case wherein family average life span is higher than the normal life the Tribunal is obliged to consider higher and longer life span in an individual given case while selecting or determining the number of multiplier.

    (iii) The deceased came from a family of law and justice. He was a retired District and Sessions Judge. After retirement he accepted the office of Labour Court Judge at Rajkot being close to his home town Limbdi.

    (iv) The deceased was aged about 62 years at the time of the unfortunate accident. It is very tragic that he could not even complete the full tenure as a Labour Court Judge.

    (v) According to the evidence on record, the deceased upon completion of Labour Court Judge tenure, intended to join legal practice in this court since his brother advocate V.T Acharya was practising. Unfortunately, his aspiration to join the Bar in High Court and start practice turned out to be an eyewash.

    (vi) It is a matter of common understanding which is not controvertible that, ordinarily, retired judicial officers are re-employed or given some assignment. Even in this High Court to the best of our information, not less than 20 to 25 retired judicial officers are practising and reportedly, they have good practice. Therefore, the dream cherished by the deceased to be fortunate enough to join this Bar in the High Court after completion of the Labour Court Judge tenure which was to expire within 18 months have some reasonable nexus and basis.

    10. A judicial notice of fact can always be taken by us that for the clearance of backlog which is astronomical, if impracticable, various alternative disputes forums have started functioning and many more are contemplated. It is in this context not only there is a dearth of retired judicial officers but there is poignant birth of good reputed judicial officers having high order of integrity to which class the deceased belonged. Despite this stark, hard and evident reality the Tribunal while making assessment under the head of loss of future earnings, has awarded a sum of Rs. 4,80,000 which, in our opinion, is, undoubtedly, on a very lower side.

    11. It is in this context, let us see the evaluation of the evidence made by the Tribunal. The deceased who had retired as District and Sessions Judge, had joined the office of Principal Labour Judge at Rajkot on re-employment basis and his monthly salary was Rs. 7,850 about which there is no controversy. The deceased could have continued on the same post up to the age of 65 years for which there is no dispute and during that time, there obviously would have been revision upwardly in the salary, allowance and other facilities and perks. It may not, also, be disputed that he could have worked as a consultant and also, as a legal practitioner and would have earned reasonably a good amount in the initial years of his practice after retirement. He could have, also, worked as an arbitrator or umpire in resolving the disputes, amicably.

    12. Notwithstanding that the Tribunal even while taking into consideration the prospective earnings of the deceased, has considered and determined an amount of Rs. 12,000 which is deducted by ⅓rd and net contribution to the common family fund has been assessed at Rs. 8,000 per month. Obviously, therefore, the annual loss of dependency would work out to Rs. 96,000 (Rs. 8,000 × 12). The Tribunal has taken multiplier 5 which in ordinary and usual case of such nature could not be said to be unjust and unreasonable. Nonetheless the special circumstances obtainable in the present case, noticed from the evidence, the deceased would have enjoyed and lived for longer than the average life span in our country, in view of the fact that the parents lived for more than 82 years, it is in this context, multiplier 5 adopted by the Tribunal is required to be revised upwardly. The view which we are inclined to take at this juncture is very much reinforced by the decisions. It is in this context factually and legally the Tribunal ought to have adopted the minimum multiplier of 6 in the present case. Of course, it is also a common belief amongst the professional and judicial fraternity that an average life span of a Judge as a class is itself longer and higher than mat average life span in India whereas in the case of deceased still there was a higher life span since the parents of the deceased were in eighties. Even while taking conservative view in the matter multiplier of 6 ought to be adopted. In other words, one more multiple is required to be taken for reasonable and just amount of compensation.

    13. In view of the aforesaid discussion, the annual loss of dependency which is assessed by the Tribunal at Rs. 96,000 is, now, required to be multiplied by multiplier of 6. Therefore, it would work out to Rs. 96,000 × 6 = Rs. 5,76,000 under the head of value of the dependency loss incurred to the claimants on account of untimely demise of the breadwinner of the family. Therefore, under this head instead of Rs. 4,80,000, amount awarded shall stand modified to Rs. 5,76,000. Insofar as the assessment of compensation under the head of medical expenses is concerned, the Tribunal has given Rs. 17,200 in the light of the evidence. This could be raised to little higher but the discretion exercised by the Tribunal is not required to be disturbed for addition of few hundreds. Therefore, that amount shall remain unchanged.

    14. Under the head of pain, shock and suffering, undergone by the deceased during the extensive treatment, various surgical operations, blood transfusion, shifting from one hospital to another hospital, during the spell of 14 days on account of serious injuries on various parts of the body and particularly, head and abdomen injuries which were gross injuries must have caused tremendous amount of pain, which could not have less than excruciating pain, though little more amount could have been awarded depending upon the assessment and evaluation, but we deem it not necessary since the amount of Rs. 50,000 is awarded under this head.

    15. The award of Rs. 2,100 towards transport charges and Rs. 7,000 under the head of special diet awarded by the Tribunal are not required to be disturbed in the light of the facts of the case. However, amount of Rs. 10,000 under the head of conventional amount for loss of expectation of life is, in our opinion, on a lower side. It is a matter of knowledge that the conventional amount for loss of expectation of life is required to be revised periodically, in tune of the rise in price and high rate of inflation which is very common in our economy. Therefore, this amount of Rs. 10,000 awarded by the Tribunal is required to be enhanced to Rs. 20,000.

    16. Under the head of attendants' charges the Tribunal has awarded a sum of Rs. 35,000. It is true that the treatment was extensive for serious injuries and injured when counting minutes, no family member would meet an opportunity of rather than services. It is also clear from the evidence that one after the other two to three family members round the clock attended on the deceased in course of the treatment. Obviously, the family members would not charge from a close relative and that too in such a situation. However, it is settled proposition of law that the members of the family who have to attend the injured during the course of treatment are undoubtedly rendering the services gratuitously and because of natural love and affection they may not claim any monetary compensation or charges but that does not mean tortfeasor should be allowed to enjoy that benefit. It is a well established doctrine in realm of the law talked that the gratuitous services rendered even by the spouse are required to be capitalised and recovered from the tortfeasors. However, bearing in mind the facts and circumstances, amount of Rs. 35,000 awarded by the Tribunal under the head of attendant charges appears to be on a higher side. In absence of any specific evidence as to from which part of the area or the State they had to attend the deceased during the course of treatment, in the present case, amount of Rs. 35,000 is required to be reduced by Rs. 20,000 and, therefore, in our opinion, an amount of Rs. 15,000 under this head would be just and reasonable.

    17. After having taken into, consideration the entire testimonial collection, the documentary evidence, relevant proposition of law, material principle of law of Tort, the peculiar facts about the age and avocation, longer life span professed in the family of the deceased, we are of the opinion that the claimants are entitled to a sum of Rs. 6,87,300, the break up of which is as follows:

    Loss of income Rs. 5,76,000 Medical expenses Rs. 17,200 Pain, shock and suffering Rs. 50,000 Attendant charges Rs. 15,000 Transportation charges Rs. 2,100 Special diet Rs. 7,000 Conventional amount Rs. 20,000 Total: Rs. 6,87,300

    18. In other words, the claimants are entitled to additional amount of Rs. 86,000 with interest at the rate of 12 per cent per annum from the date of application till the date of payment.

    19. In the result, both parties' appeals succeed. Therefore, the appeals are partly allowed. The impugned judgment and award shall stand modified to that extent. Since both parties are successful parties, we leave the parties to bear their own costs. Office is directed to send back immediately record and proceedings which we had called for the purpose of examining the merits of both the appeals.

    20. Before parting, we may state that the S.T party is directed to deposit the full amount due and payable under our order with interest within a period of two months. The amount of Rs. 25,000 deposited along with the first appeal by the S.T party before this court shall be transmitted, immediately, to the Tribunal concerned for being disbursed. The amount that may be deposited before the Tribunal shall be disbursed and invested in terms of the directions contained in the impugned judgment and award. In the result, the appeals are partly allowed.

    21. Appeals partly allowed.

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    Gujarat State Road Transport Corporation v. Suryakantaben D. Acharya And Others
    (Oct 12, 2000)