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Smart Summary

Structured Summary of the Opinion — Judgment by T.N. Singh, J.

Factual and Procedural Background

This opinion arises from two appeals preferred under Section 110-D of the Motor Vehicles Act, 1939: M.A. No. 48 of 1986 (the claimants seek enhancement of compensation) and M.A. No. 29 of 1986 (seeking to set aside the award in toto).

The underlying accident occurred on 3.10.1983 at about 1:30 p.m. Deceased Rameshwardayal Bajpai, employed as a daftary in the office of the Accountant General, Madhya Pradesh (Gwalior), was struck by jeep No. CPC 13 belonging to the Border Security Force, Tekanpur. He was rendered unconscious, transported in the same vehicle to the hospital and died that night. The Tribunal had awarded compensation under Section 110-A and passed an award under Section 110-B of the Act. The defence in the original proceedings contended that the vehicle was not driven rashly and negligently and that the occurrence was an inevitable accident.

Procedurally, the High Court heard the appeals: it affirmed the Tribunal’s finding of rash and negligent driving, considered enhancement of compensation, applied precedent and modified the award as set out below. The Court disposed M.A. No. 29 of 1986 (dismissed) and allowed M.A. No. 48 of 1986 to the extent indicated.

Legal Issues Presented

  1. Whether the accident was an "inevitable accident" (external human factor) or caused by rash and negligent driving of the BSF jeep.
  2. Whether the Tribunal's award for compensation should be enhanced, and if so, by what method and quantum.
  3. Whether any deduction should be made from loss of dependency on account of family pension allegedly received by the dependants.
  4. What rate of interest should be awarded on the compensation amount from the date of application until realisation.
  5. If the multiplier method or the method favouring government servants (as articulated in cited precedents) should govern assessment of compensation in the present facts.

Arguments of the Parties

Respondents / Defence (including driver and BSF)

  • Alleged that the deceased was hit by the rear part of the jeep (not the front).
  • Contended the deceased was negligent, running across the road to board a bus and did not look around.
  • Argued that there was a speed-breaker near the place of occurrence, implying the vehicle must have been moving slowly.
  • Pleaded that the accident was an "inevitable accident" and that interposition of human agency (the deceased’s conduct) caused the accident; therefore the onus lay on the driver to establish absence of rash/negligent driving.
  • Counsel (Mr. Mittal) relied on certain authorities to support the contention that the multiplier of 15 applied and that the Tribunal's method was correct (reference to State of M.P. v. Ashadevi and allied decisions).

Appellants / Claimants

  • Sought enhancement of compensation awarded by the Tribunal (M.A. No. 48 of 1986).
  • Contended that the driver was negligent and that eyewitnesses and the FIR supported a finding of rash and negligent driving.
  • Argued against the Tribunal's deduction on account of family pension; counsel (Mr. Jain) maintained deduction was improper because family pension was not a proved benefit accruing to the claimants in the form of advantage resulting from the death.
  • Claimed additional sources of income for the deceased (about Rs. 600/- per month from priestly work), seeking to increase the quantum; the Court rejected entertaining that claim for the reasons noted in the opinion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Prabhavati Sharma v. Brijmohan Parihar (this Court) Method of computation of compensation in case of death of a Government servant; applied guidelines laid down in Manjushri Raha. The Court held this decision "clearly applicable" and followed its approach to assess compensation for the deceased Government servant in the present case.
Kashiram Mathur v. Rajendra Singh, 1983 ACJ 152 (MP) (Full Bench) Deduction on account of family pension is not permissible unless family pension is proved to be a benefit accruing to claimants as an advantage resulting from the death. The Court relied on this principle to reject the Tribunal’s deduction of family pension where the evidence did not justify treating family pension as a benefit to be deducted.
Manjushri Raha v. B.L. Gupta, 1977 ACJ 134 (SC) Supreme Court guideline that compensation for Government servants should be assessed differently to the best advantage of claimants because of security of tenure, earning, and retirement benefits; acceptance of the method producing a fair estimate of loss of dependency (roughly half of projected emoluments after considering expenses in that case). The Court followed the same principle and applied the method to the deceased (a Government servant aged about 37), computing compensation as approximately half the emoluments projected till superannuation.
C.K. Subramania Iyer v. T. Kunhikuttan Nair, 1970 ACJ 110 (SC) Damages under the Fatal Accidents Act, 1855 are not to be given as solatium; actual pecuniary loss is to be assessed (construing Sections 1A and 2 of the Fatal Accidents Act). The Court noted that this Apex Court decision construes the measure of damages as pecuniary loss rather than solatium and observed it does not advance the defence's contention in the instant matter.
Ramesh Chandra v. Madhya Pradesh State Road Transport Corporation, 1983 ACJ 221 (MP) Decision concerned compensation claimed for an unemployed young person undergoing training. The Court observed reliance on this authority was misconceived on the facts of the present case (deceased was a Government servant).
Subhan Ali, 1984 MPWN 434 Short note decision cited by counsel. The Court regarded this decision as distinguishable on facts and did not treat it as advancing the claimant’s case.
State of M.P. v. Ashadevi, 1988 ACJ 846 (MP) Authority cited to support application of multiplier 15 by the Tribunal. The Court rejected the broad proposition that Ashadevi mandates multiplier 15 invariably for persons in their thirties/forties and explained why that reliance was misplaced in the present context.
State of M.P. v. Davi Rawat, 1986 MPLJ 534 (this Court) Recognised that two methods of assessing damages could be applied and referred to Manjushri Raha; discussed choice of multiplier taking into account factors beyond age. The Court discussed Davi Rawat's analysis and accepted that choice of multiplier must consider factors such as family size, circumstances, retirement age and longevity rather than mechanical selection based solely on age.
Madhya Pradesh State Road Transport Corporation v. Sudhakar, 1977 ACJ 290 (SC) Supreme Court decision which Davi Rawat preferred for using multiplier method (citation context in the opinion). The Court noted that Sudhakar was relied upon in prior decisions but emphasized differences in facts (government service status) when selecting method of assessment.
Prakashchand v. Chhuttan, M.A. No. 73 of 1982 (Full Bench decision dated 30.11.1990) Full Bench determination that interest at the rate of 12% per annum from the date of application till realisation is the rate to be specified under Section 110-CC of the Motor Vehicles Act. The Court followed this Full Bench ruling and modified the rate of interest in the present award to 12% per annum from the date of application until payment, with appropriate credit for earlier payments.

Court's Reasoning and Analysis

The Court proceeded in a stepwise manner, closely following evidence and legal principles expressly cited in the opinion:

  1. Burden of proof and nature of defence: The Court emphasized that where a defendant pleads the absence of rash and negligent driving and instead sets up an external human factor (inevitable accident), the onus lies on the defendant to prove that plea (citing Order 8, Rule 2 CPC and Section 103, Evidence Act as the statutory foundations for stating facts and placing burden). Because the defence's case was a positive one (inevitable accident), the defendant had to establish it.
  2. Assessment of the three defence propositions: The defence relied on three factual contentions (impact by rear of jeep; deceased running to board a bus and failing to look; presence of a speed-breaker implying slow speed). The Court found these specific facts unestablished in evidence and therefore characterized the plea of inevitable accident as a false defence that diluted the defence's onus.
  3. Credibility and evaluation of witnesses: The Court compared the evidence of two defence witnesses (DW1 the Deputy Commandant and DW2 the driver) with three independent eyewitnesses (PWs 5, 6 and 7) and the FIR (Exh. P-4) and autopsy evidence (PW 2). It found the PWs to be natural, disinterested witnesses whose testimony that the jeep hit the deceased on his back and that the jeep was driven at high speed was corroborated by FIR and medical evidence of serious injuries. By contrast, the driver’s own statements undermined the defence (e.g., DW2 admitted he could not see when the deceased dashed against the vehicle).
  4. Finding of negligence: On these evidential foundations the Court affirmed the Tribunal's conclusion that the driver drove rashly and negligently. The Court explicitly rejected the contention of inevitable accident.
  5. Method of computing compensation: The Court applied the precedential approach it had articulated in Prabhavati Sharma (which follows Supreme Court guidance in Manjushri Raha) that compensation for a deceased Government servant should be computed to the best advantage of the claimants, recognizing security of tenure and retirement benefits. Using the salary/ emoluments statement (Exh. P-6), the Court found projected emoluments till superannuation to be Rs. 2,29,492.80 and, following the cited method, fixed reasonable compensation at Rs. 1,15,000 (approximately half).
  6. Family pension deduction: The Court held that a deduction for family pension is not permissible in the absence of proof that such pension constitutes a benefit accruing to the claimants as an advantage arising from the death. The Court found the evidence (PW 3's testimony) did not warrant such a deduction and therefore disallowed it.
  7. Rejection of extra income claim: The claimants' assertion of extra income (Rs. 600/month from priestly chores) was not entertained by the Court as it conflicted with the approach mandated by the precedents for Government servants; the Court declined to accept that head of income for enhancement.
  8. Interest and payment adjustments: The Court applied the Full Bench ruling in Prakashchand v. Chhuttan to award interest at 12% per annum from the date of application till realisation (as required by Section 110-CC), modified the Tribunal award accordingly, and ordered appropriate credits for prior payments (including an initial Rs. 15,000 payment and subsequent deposit). Interest liability was to be calculated on a pro rata basis up to payment. The Court ordered deposit of the modified amount with the Tribunal within three months and directed distribution with regard to differing needs of dependants (a widow, a daughter aged 12, two minor sons and an adult son).

Holding and Implications

Holding: M.A. No. 29 of 1986 is dismissed; M.A. No. 48 of 1986 is allowed in part by modifying the award.

Direct consequences and orders pronounced:

  • The Tribunal's finding that the jeep was driven rashly and negligently is affirmed; the plea of inevitable accident is rejected.
  • The claimants are held entitled to enhanced compensation of Rs. 1,15,000/- for death of Rameshwardayal Bajpai (computed by applying the precedential method for Government servants based on projected emoluments till superannuation).
  • Interest is awarded at the rate of 12% per annum from the date of application until payment; credit shall be given for amounts already paid (including an initial payment of Rs. 15,000 and deposits made with the Tribunal). Interest liability is to be computed on a pro rata basis until the dates of respective payments.
  • The modified award amount shall be deposited with the Tribunal within three months and disbursed with regard to the needs and circumstances of the widow and children (one daughter aged 12, two minor sons, and an adult son).
  • Parties are to bear their own costs in this Court.

Implications regarding precedent: The Court applied existing precedents (including Supreme Court and Full Bench authorities) to the facts; the judgment applies those precedents to modify the compensatory award but does not purport to create a new legal principle beyond the application of those authorities.

    Union Of India v. Vijay Sundari

    JUDGMENT T.N. Singh, J.

    1. The appeal and the cross-appeal are preferred under Section 110-D, Motor Vehicles Act, 1939, (for short 'the Act'). In their appeal (M.A. No. 48 of 1986), the claimants have prayed for enhancement of the compensation, while in the other appeal (M.A. No. 29 of 1986), the prayer is for setting aside the award in toto.

    2. Deceased Rameshwardayal Bajpai, a daftary in the office of the Accountant General, Madhya Pradesh, at Gwalior, was admittedly hit by jeep No. CPC 13, belonging to the Border Security Force, Tekanpur. The accident book place on 3.10.1983 at around 1.30 p.m. and in an unconscious state, the deceased was removed from place of occurrence to the hospital where, on the same date, in the night, he breathed his last. He was carried to the hospital in the same vehicle which had caused the accident and the defence is that the vehicle was not driven rashly and negligently.

    3. Two questions mainly, evidently, arise for decision in these two appeals. We would examine first, therefore, the defence and evidence that has come on record in that regard. It appears that on three main props, the defence was erected, but in our view, claimants' case is proved aliunde to sustain the finding and conclusion of the Tribunal that the vehicle was driven rashly and negligently at the time of the accident. False defence results evidently in dilution of the onus of the claimants. Indeed, when the case pleaded is that the driver was not guilty of rash and negligent driving and interposition of human agency resulted in the inevitable accident, onus would lie on the driver to establish the stand taken. Because, when due to an active God, any inevitable happens, the position is different. When it is not possible for a driver to prevent the accident by the exercise of ordinary care, caution and skill, it may be a case of an inevitable accident and it shall be open to him to plead that the cause of the accident was not absence of those, but of external human factor such as the negligence of the victim.

    4. In the instant case, the defence alleged three specific facts as constituting the external human factor which resulted in the accident: that the deceased was hit not by the front part of the vehicle, but by its rear part; that the deceased was negligent because he was running across the road to board a bus and he did not care to look around; and that there was a speed-breaker little ahead of the place of occurrence and, therefore; it had to be presumed that the vehicle was driven slowly. However, in evidence those facts are not established and it can be justifiably held that false plea of the occurrence being an 'inevitable accident' was set up. In the joint written statement filed, it was specifically pleaded that there was a bus standing in from to of A.G.'s Office and embarkation and disembarkation of passengers from that vehicle was going on. At that time, the deceased, it is alleged, was running hurriedly across the road to board the bus and he did not look to his right to the oncoming jeep and dashed against the middle portion of the jeep, being unable to stop himself. The driver immediately applied brakes and stopped the jeep. This plea, in evidence, was embellished and bolstered. Order 8, Rule 2, Civil Procedure Code contemplates that in regard to any 'ground of defence', the defendant must state the necessary facts and Section 103, Evidence Act rests burden of proof of the facts so alleged on the defendant. Indeed, principles underlying these statutory provisions are of universal application to all civil litigations.

    5. The driver examined himself as DW 2 besides the Deputy Commandant of BSF, who deposed as DW 1 and stated that he was one of the occupants of the jeep at the time of accident. While DW 1 deposed that the deceased dashed against one side of the bonnet (front portion) of the jeep in the middle DW 2 admitted in his cross-examination that he could not see when the deceased dashed against his vehicle. In his examination-in-chief, he stated that he saw on man dashing against the right side of the vehicle and when he stopped the vehicle, he saw a man lying on the road on the backside. PWs 5, 6 and 7 had witnessed the occurrence and they have been believed by the Tribunal. Exh. P-4, the F.I.R., which PW 5 lodged immediately after the occurrence, contains a clear statement that the jeep was driven negligently by DW 2. It came at a high speed and hit daftary Ramesh-wardayal Bajpai at his backside who sustained serious injuries on his head and leg. This statement is corroborated by Autopsy Surgeon, PW 2, who deposed to fractures of bones of the left leg and arm of the deceased and also of parietal bone of his head. Several and serious injuries to which PW 2 deposed, indubitably suggest that the impact on the person of the deceased, during the accident, was serious. Although they have belied the version of DWs 1 and 2, we have seen no reason to disbelieve them and we agree with the Tribunal that they were natural witnesses and were disinterested persons, unlike the two DWs.

    6. PW 5 stated that the jeep hit the deceased on his back and in the same vein, more categorically, PW 6 deposed that the jeep came from the backside and hit the deceased. Defence suggested categorically to PW 7 that the deceased had dashed against the jeep at the backside, which the witness denied. He also stated clearly that the jeep had dashed the deceased on his back. PW 7 was a Senior Auditor in the A.G. 's Office who naturally knew the deceased and his version is that it was lunch-break when the accident took place. He was in the roadside tea stall, adjacent to the gate of A.G. 's Office where he was taking tea when deceased Bajpai had also come there and had told him that he was going to buy banana from the vendor, who was standing on the other side of the road. Although DWs 1 and 2 both deposed that horn was blown, but the defence did not have the courage to put that question to any of the PWs. Indeed, driver, DW 2, discredited himself by stating, as noted earlier, that he had not seen the deceased dashing against the vehicle. All the three PWs deposed corroboratively, clearly and categorically that the jeep was driven rashly and indeed, the defence did not care to put to them that there being a speed-breaker ahead, the vehicle could not have been driven at high speed. The only reasonable conclusion on evidence to be reached is that the driver was negligent and he did not care to look around and follow the rule of the road in that regard in order to discharge his duty to the predestrains. He was driving unmindful of the fact that there was a bus standing ahead and that there was pedestrian traffic on the road which, as PWs have deposed, was natural in lunch-time in front of a Government office with huge establishment.

    7. For reasons aforesaid, we find that there is no merit in the contention of Mr. Mittal that it was a case of 'inevitable accident' and not one of rash and negligent driving of the offending vehicle. We affirm the finding and conclusion of the Tribunal that the vehicle was driven rashly and negligently and for the death of deceased Rameshwardayal Bajpai, the claimants were entitled to compensation as contemplated under Section 110-A of the Act, and therefore, the award passed by the Tribunal in that regard under Section 110-B is not without jurisdiction.

    8. Now, the question of enhancement. On that, we cannot have another option today as we find that our decision in Prabhavati Sharma v. Brijmohan Parihar , is clearly applicable to the facts of the instant case. True, Tribunal followed a different method and applied the multiplier of 15 in assessing the compensation. Claimants counsel, Mr. Jain, was contended that even that is not done properly. PW 3, Section Officer in A.G.'s Office, proved income certificate, Exh. P-3, and the pay and allowances statement, Exh. P-6, but he wrongly deposed that at his death, the deceased was drawing gross salary of Rs. 665.70. That figures the Tribunal accepted in computing the compensation. As per Exh. P-3, the figure is Rs. 693.80 and according to Exh. P-6, in October 1983, the deceased was entitled to gross salary of Rs. 712.50. The fact also is that in applying the multiplier and reckoning the annual loss of the claimants at Rs. 3,600/-, the Tribunal took into consideration the factor that deceased's widow was receiving family pension of Rs. 150/- per month. It is rightly contended, therefore, that this Court's decision in Kashiram Mathur v. Rajendra Singh 1983 ACJ 152 (MP), rendered by the Full Bench and our decision in Prabhavati Sharma's case, (supra), do not permit that, counsel is very correct because we had observed, deduction on account of family pension is not permissible if that is not "proved as a benefit accruing to the claimants in the form of advantage resulting from the death". In the instant case, PW 3' s evidence gave no scope to the Tribunal to regard family pension as a valid deduction because he clearly and categorically deposed that if the deceased was alive, he could have received salary, allowances etc. payable therewith besides pension, which was now being given to his family.

    9. Following supreme guidelines Laid down in Summit Court's decision in Manjushri Raha v. B.L. Gupta 1977 ACJ 134 (SC), we took the view in Prabhavati Sharma's case, (supra), that the proper method of computation of compensation in case of death of a Government servant is one that their Lordships indicated because "Government servants enjoy security of tenure, earning and health-care for longevity besides retirement benefits" mat, therefore, "in their case compensation has to be assessed differently to the best advantage of the claimants". There was striking resemblance, which we noticed, Prabhavati Sharma's case, (supra), with that of Manjushri Raha's case, (supra) and surprisingly, that we notice here also. Not only in all three cases, the deceased was a Government servant, but all the three persons were in the age group of 37 years at the time of their death. Taking into consideration the salary statement in Manjushri Raha's case (supra), their Lordships held that a fair estimate of loss of dependency and loss of company which she and her children suffered could not be less than half the amount disclosed in the statement after taking into consideration all expenses. That statement disclosed emoluments, which the deceased would have received till his superannuation reckoning promotions and increments in salary etc. during the course of his service. In the instant case, according to Exh. P-6, we find that till his superannuation, the deceased, if alive, would have received Rs. 2,29,492.80. We would, therefore, hold that the reasonable compensation to which the claimants are entitled on account of death of Rameshwardayal Bajpai is Rs. 1,15.000/-. In the impugned award, for loss of dependency Rs. 54,000/- and for loss of company and mental suffering, Rs. 7,000/- is specified as compensation payable to the claimants together with interest at the rate of 10 per cent per annum from the date of application. On the other hand, claimants have put their entitlement at Rs. 5,36,832/- on the basis of pleading and evidence that the deceased had extra income of Rs. 600/- per month, derived from priestly chores and preparing horoscopes. We do not think if we would be justified in entertaining that Claim ignoring the supreme mandate and the proper guideline applicable to the case of claimants as deceased was a Government servant who is not expected to carry on other profession or vocation.

    10. Some case law. Mr. Mittal cited, to which attention must be paid. In Ramesh Chandra v. Madhya Pradesh State Road Trans. Corporation 1983 ACJ 221 (MP), compensation was Claimed for an unemployed boy aged 19 years who was undergoing training as a fitter. Reliance on that is evidently misconceived. C.K. Subramania Iyer v. T. Kunhikuttan Nair 1970 ACJ 110 (SC). Is an Apex Court's decision. Parents had claimed compensation for the death of 8 years old son. Construing the provisions of Sections 1A and 2 of the Fatal Accidents Act, 1855, their Lordships observed that damages thereunder are not to be given as a solatium and actual pecuniary loss had to be assessed. That decision certainly does not advance counsel's contention. The short noted decision in Subhan Ali 1984 MPWN 434, is also distinguishable on facts.

    11. Although Mr. Mittal also relied on State of M.P. v. Ashadevi 1988 ACJ 846 (MP), to submit that correct multiplier of 15 was applied by the Tribunal, the contention of Mr. Jain, as noticed earlier, was that annual loss of dependency was wrongly fixed by the Tribunal at Rs. 3,600/-. It is necessary, however, to point out that even when multiplier method is used in computing compensation, deceased's age is not the sole factor and we have failed to appreciate Mr. Mittal s contention that Ashadevi's case (supra) lays down the law that when deceased is in the age group of thirties and forties, the multiplier to be selected must in variably be 15. The court, in Ashadevi's case (supra), relied on another D.B. decision of this Court in State of M.P. v. Davi Rawat 1986 MPLJ 534, for following the multiplier method and as such reference to Davi Rawat's case (supra), is imperative. G.P. Singh, C.J., speaking for the court in Davi Rawat' s case (supra), recognised the position that the two methods of assessing damages could be applied and referred in that connection to Majushri Raha's case 1977 ACJ 134 (SC). However, he preferred to follow another decision of the Supreme Court in Madhya Pradesh State Road Trans. Corporation v. Sudhakar 1977 ACJ 290 (SC), without stating reasons for doing so. The fact that deceased in Manjushri Raha,s case (supra) was a Government servant while in Sudhakar's case (supra), she was not so and Claim was not preferred on that basis, escaped the notice of the court in Davi Rawat's case (supra). Otherwise, perhaps, multiplier method would not have been followed as deceased in David Rawat' s case (supra) was a Government servant. In any case, the court observed in Davi Rawat's case (supra) that in choosing the multiplier, such other factors also are taken into consideration, namely, the size and circumstances of deceased's family dependent on him at the time of his death, besides his retirement age and longevity.

    12. In the premises aforesaid, we are of the view that the claimants are entitled to enhanced compensation and award has to be modified in that regard. Indeed, they are also entitled to higher rate of interest because his court's Full Bench, recently in Prakashchand v. Chhuttan M.A. No. 73 of 1982; decided on 30.11.1990, has decided that interest at the rate of 12 percent per annum from the date of application till the date of realisation is die interest which is to be specified in terms of section 110-cc of me act. The impugned award is accordingly modified. Claimants are held entitled to Rs. 1,15,000/- as compensation and interest at the rate of 12 per cent per annum from the date of application till payment. However, in regard to interest and also payment made pursuant to the award, due credit shall be given. Mr. Mittal submitted that in the first instance, Rs. 15,000/- was paid and then full payment due under the award has been deposited with the Tribunal. Accordingly, liability of interest to be suffered by the respondents shall be on Pro rota basis till the date of payment made under the award, from the date of application. Within three months, the payment due under the award, as modified herein, shall be deposited with the Tribunal. Steps shall be taken for disbursing that amount keeping in view the needs of the different dependants/claimants. Besides a widow, the deceased left surviving him a daughter, aged 12 years and two minor sons and an adult son. In disbursing the amount, distribution shall be made to suit the needs and circumstances of the different claimants/ dependants.

    13. In the result, M.A. No. 29 of 1986 fails and is dismissed. The connected M.A. No. 48 of 1986 succeeds and is allowed to the extent indicated above. However, parties are left to bear their own costs in this Court

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    Union Of India v. Vijay Sundari
    (Feb 8, 1991)