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M/S Bihari Lal Shannu Ram v. Sh. Bihari Lal Wadhwa And Another .

Punjab & Haryana High Court
Aug 30, 1990
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Factual and Procedural Background

This civil revision arose after a Single Judge hearing was referred to a larger Bench. The petitioner, M/s Bihari Lal Shannu Ram, held a money decree for Rs. 5,145.30 against respondents Bihari Lal and Nand Lal. Bihari Lal died in an accident. His legal representatives filed a claim under the Motor Vehicles Act and the Motor Accidents Claims Tribunal awarded Rs. 1,06,140 to his legal heirs by an award dated 21 October 1988. In execution proceedings initiated by the decree-holder (petitioner), the decretal amount of Rs. 5,145.30 was attached out of the compensation award. The legal representatives of the deceased objected to that attachment; the learned Tribunal sustained the objection and held the compensation could not be attached. The petitioner challenged that decision by filing the present revision petition.

Legal Issues Presented

  1. Whether the amount of compensation awarded in favour of the legal representatives of a person who dies in an accident is part of the deceased's estate and, if so, whether it can be attached in execution of a decree against the deceased.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended that the compensation awarded to the legal representatives is attachable in execution of a decree against the deceased. The petitioner relied on a Division Bench judgment in Joti Ram v. Chaman Lal (1984 86 PLR 723) in support of this contention.

Legal Representatives' Arguments

  • The legal representatives (respondents) argued that the compensation awarded by the Motor Accidents Claims Tribunal to them could not be attached in execution of a decree against the deceased. The Tribunal agreed with this position and refused attachment.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Janki alias Pattammal v. Prabath Finance by partner R. Prabhakaran. 1986 1 A.C.J 306. Held that compensation in the hands of the legal heirs of a deceased is not attachable in execution of a decree against the deceased. The court expressed respectful agreement with this Madras High Court decision and applied its principle to hold that compensation payable to legal heirs is not part of the deceased's estate and is not attachable.
Joti Ram v. Chaman Lal. 1984 86 PLR 723. Considered the survival of actions for personal injuries and, applying provisions of S 306 of the Indian Succession Act, held that personal injury actions abate on death but claims relating to loss to the estate survive to the legal representatives. The court examined this Division Bench decision and distinguished it from the present case, concluding that the specific point in the current petition was not decided in Joti Ram and that Joti Ram does not support the petitioner's contention that the compensation awarded to heirs is attachable as estate.

Court's Reasoning and Analysis

The court focused on whether the compensation awarded to the legal representatives qualifies as part of the deceased's estate. It set out the criteria for a property to be considered estate of the deceased:

  • The property must be in existence at any time before the death of the deceased;
  • The deceased must have a beneficial interest, whether in praesenti or contingent, in the property;
  • The deceased must be in possession and control (actual, constructive or beneficial) of the property;
  • The deceased must have power to dispose of such property.

Applying these criteria, the court reasoned that the compensation awarded by the Tribunal is payable to the deceased's heirs solely on account of his death and is given to compensate the heirs for the loss suffered by them. It is not an asset that existed prior to the deceased's death, nor was it subject to the deceased's beneficial interest, possession, control or power of disposal prior to death. Therefore, the compensation cannot be considered part of the deceased's estate and is not attachable by a decree-holder in execution proceedings.

The court also analyzed the petitioner's reliance on Joti Ram v. Chaman Lal and observed that Joti Ram addressed survival of personal injury claims and carved out that claims pertaining to loss to the injured person's estate survive. The court found that the specific question in the present petition was not decided in Joti Ram and that the decision there did not assist the petitioner. The court accepted the view in Janki's case (Madras High Court) and applied it to the present facts.

Holding and Implications

Holding: The compensation awarded to the legal representatives of a deceased person is not part of the deceased's estate and therefore is not attachable in execution of a decree against the deceased.

Implications:

  • Direct effect: The revision petition was dismissed and the Tribunal's decision refusing attachment of the compensation was upheld. The petition failed and was dismissed with no order as to costs.
  • Broader implications: The court followed the principle in Janki's case and distinguished Joti Ram; the opinion does not purport to establish a new legal principle beyond its application to the facts of this case.
Show all summary ...

R.S Mongia, J.:— This Civil Revision was heard by learned Single Judge and was referred for a decision by a larger Bench and that is how we are seized of the matter.

2. The question to be decided in this petition is whether the amount of compensation awarded in favour of legal representatives of a person, who dies in an accident, could be attached in execution of the decree against the deceased.

3. Briefly, the facts of the case are that petitioner M/s Bihari Lal Shannu Ram obtained a money decree for Rs. 5,145.30 against Bihari Lal and Nand Lal, respondents. The said Bihari Lal died in an accident. His legal representatives filed an application or compensation under the Motor Vehicles Act. The Motor Accidents Claims Tribunal awarded a sum of Rs. 1,06,140/- as compensation to the legal heirs of Bihari Lal, vide award dated 21st October, 1988. In the execution application filed by the decree holder M/s Bihari Lal Shannu Ram decretal amount of Rs. 5,145.30 was attached. The legal representatives of the deceased judgment debtor Behari Lal raised an objection that the said amount of compensation could not be attached in execution of a decree against deceased Bihari Lal. The learned Tribunal held that the said amount could not be attached. Dissatisfied with that judgment, the petitioner had tiled the present revision petition.

4. The question to be determined is as to whether the compensation to the legit representatives which is awarded by the Tribunal on the death of a person, can be said to be the estate of the deceased. If the compensation awarded to the legal representatives is estate or asset of the deceased, then certainly it can be attached by a decree-holder for satisfaction of the decree against the deceased, but if it is not so, then the compensation cannot be attached.

5. The compensation in the hands of the legal-representatives is not the estate of the asset of the deceased. It is something given by way of compensating to the legal representatives because of the loss etc. suffered by them on account of the death of the deceased, “In order to hold that a particular property belonged to the estate of the deceased, it must be seen: (a) that the property must be in existence at any time before the death of the deceased; (b) the deceased must have a beneficial interest, be it in praesenti or contingent, in the property; (c) the deceased must be in possession and control, be it actual, constructive or beneficial, of the property and (d) the deceased must have power to dispose of such property. The amount of compensation awarded by the Tribunal is payable to deceased's heirs only and on account of his death. The said amount cannot be said to have been a part of the estate of the deceased, and is rot attachable as the asset of the deceased in the hands of the legal representatives. A similar point had arisen before the Madras High Court in Janki alias Pattammal v. Prabath Finance by partner R. Prabhakaran . 1986 1 A.C.J 306., and it was held that the compensation in hands of the legal heirs of the deceased is not attachable in execution of a decree against the deceased.

6. The learned counsel for the petitioner relied upon a Division Bench judgment of this Court in Joti Ram v. Chaman Lal . 1984 86 PLR 723., to contend that the compensation in the hands of the legal-representatives of the deceased is liable to be attached in execution of a decree against the deceased. After going through the judgment, we find that the point to be decided in this revision petition was not before the Division Bench in Joti Ram's case (supra). What had happened in that case was that one Kaviraj Ram Singh had sustained injuries in an accident and he filed a claim petition before the Accident Claims Tribunal for compensation for the bodily injuries which he had received in the accident. Unfortunately, during the trial, he died and his legal representatives moved an application for being impleaded as claimants. That application was opposed on the ground that the cause of action being personal to the deceased did not survive after his death. This plea was upheld by the Tribunal and the claim petition was dismissed. The Division Bench while considering the provisions of S 306 of the Indian Succession Act, held that action for personal injuries, short of causing death, abates with the death of the deceased or the injuries and does not survive to the legal heirs. However, the Bench held that if an action is initiated by an injured person for compensation in respect of items which involve loss to his property, to that extent the right to sue would survive to the legal representatives when he dies during the pendency of an action. Therefore the claim of damage on account of loss to the estate of the injured would not abate on his death. As stated above, Joti Ram's case (supra) is of no assistance to the learned counsel for the petitioner.

7. We are in respectful agreement with the view taken by the Madras High Court in Janki's case (supra) and hold that the compensation in the hands of the legal heirs of the deceased is not an estate of of the deceased, and, therefore, cannot be attached by a decree-holder in execution of a decree against the deceased.

8. Conseqently, the revision petition fails and is dismissed. However, there will be no order as to costs.

Sd/- J.V Gupta, C.J

R.M.S
Petition dismissed.