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  • provisions of Minimum Wages Act as well as Industrial Disputes Act
  • Minimum Wages Act as well as Industrial Disputes Act
  • MOTOR VEHICLES ACT
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
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  • provisions of Minimum Wages Act as well as Industrial Disputes Act
  • Minimum Wages Act as well as Industrial Disputes Act
  • MOTOR VEHICLES ACT
Smart Summary

Structured Summary of the Judgment (Arun Kumar Goel, J.)

Factual and Procedural Background

This judgment disposes of three connected appeals arising from the same motor-vehicle accident. The appeals are:

  • F.A.O No. 166 of 1988 — filed by claimants seeking enhancement of compensation;
  • F.A.O No. 178 of 1988 — filed by New India Assurance Company, Shimla, challenging a Motor Accidents Claims Tribunal award and seeking exoneration from liability;
  • F.A.O No. 170 of 1988 — also filed by New India Assurance Company challenging another award in M.A.C.T. Case No. 14-S/2 of 1988.

Two distinct sets of claim petitions are described in the opinion:

  • In F.A.O. No. 170 of 1988: Claimants (Subhadra Devi — widow; Kusum Lata, Reena Kumari, Sunil Kumar — children; Manohar Singh and Gopi — parents) claimed that Mangat Ram died in an accident on 30.8.1987 near Bagharu Nala. The vehicle (registration HPS 5891) was driven by Krishan Dutt and owned by Gian Singh; it was insured with New India Assurance. The Tribunal awarded Rs. 92,000 in total, allocated among the claimants. The insurance company appealed against that award.
  • In the matters comprising F.A.O. Nos. 166 and 178 of 1988: Giano Devi (widow) and three minor daughters (Soma, Sonu and Rita) claimed that deceased Amar Nath (a conductor-cum-driver) earned Rs. 1,500 per month plus Rs. 20 daily allowance. The Tribunal awarded Rs. 1,06,000 (Giano Devi Rs. 31,000; each daughter Rs. 25,000). The insurer appealed to be exonerated; the claimants sought enhancement.

The owner Gian Singh (examined as RW 1) gave testimony in both sets of proceedings about the employment status and wages of the deceased persons. The insurance policy (Exh. R-1) was on record.

Legal Issues Presented

  1. Whether the New India Assurance Company (the appellant insurer) is liable to pay the compensation awarded by the Motor Accidents Claims Tribunal in the respective claim petitions.
  2. Whether the deceased (Amar Nath) was employed as a conductor-cum-driver at the time of the accident and whether the wages claimed (including diet allowances) were established and should be included when assessing compensation.
  3. Whether the compensation awarded by the Tribunal (including the multiplier applied) was adequate and should be enhanced — specifically whether a multiplier of 12 was appropriate or ought to be increased (the claimants argued for 20; the Court considered 16).

Arguments of the Parties

Appellant / Insurance Company's Arguments (as recorded)

  • Counsel for the insurer (Mr. K.D. Sood) contended that the tribunal's award against the insurance company was not sustainable and sought exoneration from liability.
  • In F.A.O. No. 170 of 1988 the insurer argued that the deceased (Mangat Ram) was not employed as a labourer by the owner (contradicting the Tribunal's finding that he was a labourer) and thus challenged the basis of the award against the insurer.
  • In the set concerning Amar Nath, the insurer argued that the deceased had not been proved to be a conductor-cum-driver employed by the owner Gian Singh and therefore the insurance company was not liable to pay compensation.

Claimants' Arguments (as recorded)

  • Claimants in F.A.O. No. 166 (represented, inter alia, by Mr. Devender Ghosh) argued that the compensation awarded was inadequate and that, given the age of the deceased (39 years), a higher multiplier (around 20) should be applied to compute future loss of dependency.
  • Respondents-claimants relied on tribunal findings and on the owner Gian Singh's testimony that Amar Nath was a conductor-cum-driver and that Mangat Ram was employed as a labourer with stated wages.

Owner's Evidence (RW 1 — Gian Singh)

  • Gian Singh stated that at the time of the accident the vehicle was driven by Krishan Dutt and that Amar Nath was working as a conductor-cum-driver.
  • He also stated that Mangat Ram had been employed to load and unload apple boxes and was paid Rs. 40 per day (i.e., worked as a labourer), and that Amar Nath received wages including diet money (stated figures are noted in the Tribunal's material).
  • The insurance company did not challenge these aspects of his evidence materially (no cross-examination directed as to these material aspects, according to the judgment).

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court addressed the appeals in common because they arose from the same accident. Its reasoning unfolded separately for the respective appeals:

F.A.O. Nos. 170 & 178 (insurance appeals against awards)

  • The Court noted the unchallenged testimony of the owner (RW 1) that the vehicle was driven by Krishan Dutt and that Amar Nath was a conductor-cum-driver, and that Mangat Ram was employed as a labourer.
  • The insurance company had also placed the insurance policy on record (Exh. R-1) and there was no dispute about the vehicle being insured with the appellant insurer.
  • The policy premium (Exh. R-1) showed premium charged for one driver, one cleaner and four coolies, which supported the presence of cover for those working on the vehicle.
  • Because the material aspects of employment and wages were proved and not effectively controverted by the insurer, the Court found no merit in the appeals brought by the insurance company and dismissed F.A.O. Nos. 170 and 178.

F.A.O. No. 166 (claimants seeking enhancement)

  • The Court examined the Tribunal's assessment of Amar Nath's income and observed that the Tribunal had taken monthly income at Rs. 1,000 and computed dependence on that basis, but had failed to include proven "diet money" of Rs. 400 per month in the assessment.
  • To clarify what constitutes "wages" for purposes of assessing compensation, the Court referred to the definitions of 'wages' in the Minimum Wages Act, 1948 and in the Industrial Disputes Act, 1947, noting that remuneration and other sums measurable in money form part of "wages" unless specifically excluded by statute.
  • Applying that approach, the Court held that the monthly wages should be taken as Rs. 1,400 (i.e., inclusive of the diet allowance that Tribunal had omitted).
  • On the issue of dependency, the Court — after giving "three units towards the personal expenses of the deceased" — arrived at a monthly dependency figure of Rs. 800 (equating to Rs. 9,600 per annum). The Court explicitly contrasted this with the Tribunal's earlier dependency figure of Rs. 715 per month (Rs. 8,580 p.a.).
  • As to the multiplier, the Court rejected the claimant's submission that a multiplier of 20 should be applied for a 39-year-old deceased. It concluded that fairness and justice in the case would be met by increasing the multiplier from 12 (used by the Tribunal) to 16. The Court noted that the multiplier accounts for future prospects and uncertainties and that guidance can be had from the Schedule to the Motor Vehicles Act.
  • On that basis the Court recalculated and modified the award: it held that appellants were entitled to Rs. 1,53,600 (presumably the product of annual dependency and multiplier — as set out in the judgment), added Rs. 6,400 as conventional damages, for a gross sum of Rs. 1,60,000 as compensation payable by the respondents (insurance/owners as applicable).
  • The Court directed payment of interest at 12% per annum from the date of filing of the petition (14.11.1987) until actual payment, and provided the distribution of the compensation among the claimants (Giano Devi and three daughters) with specified amounts for each beneficiary.
  • The Court also ordered that any amount already deposited pursuant to the earlier award or under no-fault liability should be deducted from the sum awarded, and observed that liability of the respondents is joint and several. The insurer in F.A.O. No. 166 was directed to deposit the modified award amount within eight weeks in the Registry of the Court.

Holding and Implications

Core ruling: F.A.O. Nos. 170 of 1988 and 178 of 1988 are dismissed; F.A.O. No. 166 of 1988 is allowed in part and the Tribunal's award is modified.

Direct effect on the parties (as ordered by the Court):

  • Total modified compensation for the appellants in F.A.O. No. 166 is fixed at Rs. 1,60,000 (Rs. 1,53,600 as modified award plus Rs. 6,400 conventional damages).
  • Interest at 12% per annum is payable from 14.11.1987 until actual payment.
  • Apportioned payments (as directed in the judgment): Giano Devi — Rs. 46,000; Soma — Rs. 38,000; Sonu — Rs. 38,000; Rita — Rs. 38,000.
  • Any amount already deposited under the Tribunal's award or no-fault liability shall be deducted from the amounts awarded.
  • Liability of the respondents is joint and several; the insurer in F.A.O. No. 166 is directed to deposit the amount in the Registry within eight weeks.
  • Costs: appellants in F.A.O. No. 166 awarded costs of Rs. 1,000; respondent Nos. 1 to 6 in F.A.O. No. 170 awarded costs of Rs. 1,000.

Broader implications: The judgment clarifies that amounts such as diet money, when proved, ought to be treated as part of "wages" for the purpose of computing dependency in motor-accident claims, using definitions from labour statutes as a guide. The opinion did not cite or establish any authoritative new precedent beyond the decision in these appeals; the ruling is tailored to the facts and evidence (including owner testimony and the recorded insurance policy).

Order: The court concludes with the direction "Orders accordingly" implementing the modifications and dismissals described above.

    Giano Devi And Others v. Gian Singh And Another

    Arun Kumar Goel, J.:— We propose to dispose of these three appeals by a common judgment as they have arisen out of the same accident. F.A.O No. 166 of 1988 has been filed by the claimants for enhancement, whereas F.A.O No. 178 of 1988 has been filed by the New India Assurance Company, Shimla against the award passed by the Motor Accidents Claims Tribunal (2), Shimla on the plea that it is not liable for payment of compensation awarded under the said award. F.A.O No. 170 of 1988 has also been filed by the New India Assurance Co. Ltd. against the award passed by the aforesaid Motor Accidents Claims Tribunal (2), Shimla in M.A.C.T Case No. 14-S/2 of 1988.

    2. Brief facts of these appeals need to be given in order to properly appreciate the submissions made on behalf of the parties.

    F.A.O No. 170 of 1988.

    3. In this case a claim petition came to be filed by Subhadra Devi widow, Kusum Lata, Reena Kumari, minor daughters, Sunil Kumar, minor son, Manohar Singh and Gopi, parents respectively of the late Mangat Ram, who according to these claimants had died in a motor vehicle accident which was the result of rash and negligent driving on the part of the driver. This motor accident had taken place on 30.8.1987 at 7.30 p.m near Bagharu Nala in the jurisdiction of police station Theog. Vehicle at the time of accident was being driven by Krishan Dutt, late driver of vehicle bearing registration No. HPS 5891 belonging to Gian Singh respondent. It is not in dispute that this vehicle stood insured with appellant insurance company. F.I.R in this case was registered, copy whereof has been proved on record vide Exh. PA and copy of post-mortem report of deceased Mangat Ram has also been proved on record as Exh. PB. Insurance company placed reliance on a copy of insurance policy Exh. R-1, even otherwise there is no dispute between the parties regarding the vehicle being insured with the appellant insurance company. After completion of the trial, the Tribunal below has passed award in the sum of Rs. 92,000 in all and has apportioned this amount in favour of respondent Nos. 1 to 6, claimants, namely, Rs. 22,000/- to the widow, Rs. 20,000/- each to two daughters and one son of the deceased and Rs. 5,000/- to each of the parents. This award of the Tribunal below has been questioned by the insurance company in the present appeal.

    4. Mr. K.D Sood, learned counsel for the appellant submitted that the award passed against his client is not sustainable and he made a feeble attempt to further rake up the question that the deceased was not engaged as a labourer by the owner as held by the Tribunal below and thus he has further attempted to urge that the award against his client is liable to be set aside. All these contentions were controverted by Mr. Ashok Sharma, the learned counsel appearing for respondent Nos. 1 to 6.

    F.A.O No. 166 of 1988 &

    F.A.O No. 178 of 1988.

    5. In this case Giano Devi widow and three minor daughters, namely, Soma, Sonu and Rita of late Amar Nath filed a claim petition on the basis that deceased Amar Nath was working as a conductor-cum-driver with the respondent at the time of accident and was getting Rs. 1,500/- p.m as salary besides Rs. 20/- as daily allowance. By means of an award dated 26.8.1988, compensation in the sum of Rs. 1,06,000/- was awarded in favour of respondents-claimants, viz., Giano Devi Rs. 31,000/- and three minor daughters Rs. 25,000/- each.

    6. As noted above, the insurance company has filed F.A.O No. 170 of 1988 for exonerating it from payment of this amount, whereas respondents-claimants have filed F.A.O No. 166 of 1988 for enhancement of compensation as according to them the sum awarded is inadequate. Mr. Devender Ghosh appeared in support of F.A.O No. 166 of 1988 and pointed out that looking to the age of the deceased at the time of accident, multiplier of 12 is on the lower side which according to him should have been somewhere in the range of 20 and thus he prayed for enhancement of compensation. On the other hand, Mr. K.D Sood urged in both these appeals that deceased had not been proved to be the conductor-cum-driver or working as a conductor at the time of accident employed by the owner Gian Singh. Thus according to him appellant insurance company is not liable for the payment of compensation and has prayed for exonerating his client from payment of this amount.

    7. In both the claim petitions, i.e, one filed by Giano Devi and the other by Subhadra Devi, the owner Gian Singh appeared as RW 1 who has categorically stated that vehicle at the time of accident was being driven by late Krishan Dutt driver while Amar Nath was working as a conductor-cum-driver. He has further stated that Mangat Ram had been employed by him to load and unload the apple boxes at the time of accident and was working as labourer and for this purpose was paying Rs. 40/- per day to the said deceased. This evidence of the owner has not been questioned by the appellant insurance company on this material aspect of the case. In these circumstances, arguments raised on behalf of the insurance company in this appeal that the deceased Amar Nath was not working as conductor at the time of accident or Mangat Ram had not been employed as a labourer on the truck at the time of accident are raised simply to be rejected.

    8. In this context, it may be appropriate to point out that as per insurance policy, Exh. R-1 premium of Rs. 48/- had been charged in respect of one driver, one cleaner and four coolies. In view of the matter, it is evident that there is no merit in the appeals filed by the insurance company, i.e, F.A.O No. 170 of 1988 and F.A.O No. 178 of 1988, which are dismissed accordingly.

    9. Now the question that remains to be determined is whether the respondents-claimants who have filed F.A.O No. 166 of 1988 are entitled to any relief in their appeal or not. In this context, it may be appropriate to notice that it has come in the statement of RW 1 Gian Singh owner of the vehicle that deceased Amar Nath was working as conductor-cum-driver. There is otherwise enough material to show that at the time of the accident he was working as conductor because the vehicle in question was being driven by Krishan Dutt since deceased and there is no rebuttal of this evidence of the owner nor any cross-examination was directed on this material aspect of the case as well as regarding the wages of the deceased being Rs. 1,000/- p.m besides Rs. 400/- p.m as diet money being paid by the owner to the deceased. The Tribunal below has taken the income at Rs. 1,000/- p.m and after following the well-known and recognised unit system has taken the dependence of the appellants at Rs. 715/- p.m or say at Rs. 8,580/- p.a and by applying the multiplier of 12 has held the compensation payable at Rs. 1,02,960/- and by adding a sum of Rs. 3,040/- on account of love, affection, mental shock and agony has awarded Rs. 1,06,000/-. While doing so, the Tribunal below has not taken into account the amount of diet money of Rs. 400/- p.m that has been proved to be earned by the deceased. This approach of the Tribunal below while assessing the wages was not correct.

    10. No doubt under the provisions of Motor Vehicles Act the wages have not been defined but a cue can he had from the definition of wages under the provisions of Minimum Wages Act as well as Industrial Disputes Act so as to ascertain what is included within the term wages. For ready reference definition of wages under the Minimum Wages Act as well as Industrial Disputes Act is reproduced here-in-below:

    Minimum Wages Act, 1948

    “2 (h) ‘wages’ means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, (and includes house rent allowance), but does not include—

    (i) the value of—

    (a) any house-accommodation, supply of light, water, medical attendance; or

    (b) any other amenity or any service excluded by general or special order of the appropriate Government;

    (ii) Any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance;

    (iii) any travelling allowance or the value of any travelling concession;

    (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or

    (v) any gratuity payable on discharge;

    xxxxxxxxx”

    Industrial Disputes Act, 1947

    “2 (rr) ‘wages’ means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to a workman in respect of his employment, or of work done in such employment, and includes—

    (i) such allowances (including dearness allowance) as the workman is for the time being entitled to;

    (ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;

    (iii) any travelling concession;

    (iv) any commission payable on the promotion of sales or business or both;

    but does not include—

    (a) any bonus;

    (b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force;

    (c) any gratuity payable on the termination of his service;1’

    11. Now for the purpose of ascertaining the wages of the deceased as well as with the help of the aforesaid definitions, it can be safely held that not only the actual wages but the other sums which can be measured in terms of money also form a part of the wages. Applying this test to the facts of the present case, the monthly wages of the deceased would come to Rs. 1,400/-. Giving three units towards the personal expenses of the deceased the dependence of the appellants-claimants comes to Rs. 800/- p.m or say Rs. 9,600/- p.a

    12. Now remains the question as to what should be the multiplier in the present case. We are not in agreement with the submissions made on behalf of the appellants that a multiplier of 20 should be applied keeping in view the age of the deceased at the time of accident was 39 years. In any event, we feel that in the present case interest of justice would be met if the multiplier is enhanced from 12 to 16. Needless to point out that so far as multiplier is concerned, it takes care of so many factors, viz., chances of future improvement in service and uncertainties of life. Some guidance in this behalf can also be had from the Schedule added to the Motor Vehicles Act, 1988 as amended up to date. Therefore on this basis also we feel that the award made by the Tribunal below needs to be modified. As a result of the aforesaid discussion, the impugned award is modified and it is held that appellants are entitled to a sum of Rs. 1,53,600/- as aforesaid. To this a sum of Rs. 6,400/- be added as conventional damages, thus in all a sum of Rs. 1,60,000/- is the compensation payable by the respondents. In addition to this appellants are also entitled to interest at the rate of 12 per cent per annum from the date of filing of the petition, i.e, 14.11.87 till the date of actual payment and they would share this amount as under:

    (1) Giano Devi Rs. 46,000/- (2) Soma Rs. 38,000/- (3) Sonu Rs. 38,000/- (4) Rita Rs. 38,000/-

    13. Besides this, they would be entitled to proportionate interest on this amount. Any amount deposited pursuant to the award passed by the Tribunal below or paid/deposited under no fault liability shall be liable to be deducted out of this amount. Liability of the respondents is joint and several and respondent No. 2, insurance company in F.A.O No. 166 of 1988 is directed to deposit the amount in terms of this award within a period of eight weeks from today in the Registry of this court. The appellants in F.A.O No. 166 of 1988 are entitled to their costs quantified at Rs. 1,000/- and respondent Nos. 1 to 6 in F.A.O No. 170 of 1988 are also held entitled to their costs quantified at Rs. 1,000.

    14. Orders accordingly.

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    Comments

    Giano Devi And Others v. Gian Singh And Another
    (Apr 24, 1997)