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2021 INSC 593
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  • Section 166 of the Motor Vehicles Act, 1988
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Citation Codes
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2021 INSC 593
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citation codes
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Disposition
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  • Section 166 of the Motor Vehicles Act, 1988
Smart Summary

Factual and Procedural Background

The appellants, who are the parents of the deceased Shivpal (aged about 32 years), sought enhancement of compensation arising out of a claim under Section 166 of the Motor Vehicles Act, 1988 for a fatal road accident that occurred on 27-2-2016. Shivpal, employed as a driver of a truck trailer (RJ-06-GA-6576), died when another truck trailer (RJ-14-GD-1156), driven by the 1st respondent (owned by the 2nd respondent and insured with the 3rd respondent), allegedly came on the wrong side and rammed into his vehicle within the limits of Adarsh Nagar Police Station, Ajmer.

The claim petition before the Motor Accidents Claims Tribunal, Ajmer was filed by the appellants (parents) along with the deceased’s wife (Respondent 4), minor son (Respondent 5), brother (Respondent 6), and sister (Respondent 7), claiming Rs 93,08,000 with interest at 15% p.a. By judgment dated 25-11-2017, the Tribunal held the accident occurred due to rash and negligent driving by the 1st respondent, assessed the deceased’s income at Rs 5746 p.m. (based on minimum wages), and awarded total compensation of Rs 10,99,700 with interest at 6% p.a., including consortium of Rs 40,000 to the wife and minor child, and Rs 10,000 each to the appellant parents.

Only the parents appealed to the High Court, which dismissed the appeal by the impugned judgment dated 6-7-2018 (CMA No. 1242 of 2018). The parents then approached the Supreme Court seeking enhancement.

Legal Issues Presented

  1. Whether the Tribunal and the High Court erred in assessing the deceased’s monthly income at Rs 5746 (based on minimum wages) despite oral evidence that he earned Rs 15,000 p.m. as a heavy vehicle driver.
  2. Whether, and to what extent, the absence of documentary proof of salary justified adoption of minimum wages without considering oral evidence and reasonable estimation.
  3. Whether the appellant parents could be denied compensation on the basis that they were not dependants, and whether they were entitled to parental consortium.
  4. Whether the High Court’s cryptic dismissal without considering the grounds raised warranted interference.

Arguments of the Parties

Appellants' Arguments

  • The deceased, a heavy vehicle driver, earned Rs 15,000 p.m., but the Tribunal incorrectly adopted Rs 5746 p.m. based on minimum wages.
  • The deceased’s wife (Respondent 4) deposed that he earned Rs 15,000 p.m.; this oral evidence was wrongly disregarded merely because no salary certificate was filed.
  • The Tribunal erred in holding the parents were not dependants because they lived separately.
  • The appellant parents were also entitled to compensation under the head of “loss of consortium”.

Respondent 3's Arguments (Insurer)

  • In the absence of documentary evidence proving income of Rs 15,000 p.m., the Tribunal correctly adopted Rs 5746 p.m.
  • Relying on Kirti v. Oriental Insurance Co. Ltd. (2021) 2 SCC 166, there were no grounds to interfere with the High Court’s judgment.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kirti v. Oriental Insurance Co. Ltd. (2021) 2 SCC 166 Cited by Respondent 3 to oppose interference with the High Court’s judgment. The Court held this decision did not assist the respondent given the facts of the present case and the evidence on record.
Minu Rout v. Satya Pradyumna Mohapatra (2013) 10 SCC 695 Illustrative benchmark on assessing a driver’s monthly income in the absence of strict proof (Rs 6000 p.m. for an accident dated 8-11-2004). Used as a comparator to support taking a higher, realistic income figure for a heavy vehicle driver for a 2016 accident.
Magma General Insurance Co. Ltd. v. Nanu Ram (2018) 18 SCC 130 Entitlement of parents to parental consortium. Applied to award parental consortium of Rs 40,000 each to the appellant parents.
Sarla Verma v. DTC (2009) 6 SCC 121 Principle relevant to treating parents as dependants in motor accident compensation. Applied to hold that the Tribunal’s finding that parents cannot be treated as dependants was contrary to Supreme Court precedent.

Court's Reasoning and Analysis

The Court first noted that the High Court dismissed the parents’ appeal by a cryptic order without considering the grounds raised, warranting scrutiny of the Tribunal’s approach.

On income assessment, the Court found that the deceased’s possession of a heavy vehicle driving licence and his driving of a heavy vehicle on the date of accident were proved on record. Although the Tribunal used the minimum wage for skilled labour (Rs 5746 p.m.) because no salary certificate was filed, the Court held that while minimum wages may serve as a yardstick in the absence of documentary proof, they cannot be treated as an absolute measure. Some degree of “guesswork” is permissible, but it must not be detached from reality. The Court found no reason to discard the wife’s oral evidence that the deceased earned around Rs 15,000 p.m., and held that lack of documents alone did not justify adopting the lowest tier of minimum wages.

Drawing guidance from Minu Rout (where Rs 6000 p.m. was taken for a driver in a 2004 accident), and considering the 2016 date of accident, demand for drivers, and the oral evidence, the Court fixed the deceased’s income at Rs 8000 p.m. for loss of dependency. Since the deceased was about 32 years old and on a fixed salary, the Court added 40% towards future prospects and deducted one-third towards personal expenses, arriving at a monthly figure of Rs 7467. Applying the multiplier of 16, the Court computed loss of dependency compensation at Rs 14,33,664.

As Rs 10,99,700 had already been paid towards loss of dependency, the Court awarded the differential amount of Rs 3,33,964 to the appellant parents. Additionally, relying on Magma General Insurance Co. Ltd. v. Nanu Ram, the Court held the parents were entitled to parental consortium of Rs 40,000 each. It also held that the Tribunal’s conclusion that the parents were not dependants (due to living separately) was contrary to Sarla Verma v. DTC. The Court rejected the respondent’s reliance on Kirti as inapplicable on the facts and evidence.

Holding and Implications

PARTLY ALLOWED: The appeal was allowed to the extent of enhancing compensation payable to the appellant parents by awarding (i) Rs 3,33,964 as differential compensation on account of loss of dependency, and (ii) parental consortium of Rs 40,000 each, totalling Rs 4,13,964, with interest at 6% p.a. from the date of filing of the claim petition. No order as to costs was made.

The direct effect is an increase in the compensation payable to the appellant parents based on a revised, more realistic income assessment and recognition of parental consortium. The Court also corrected the Tribunal’s approach to dependency and clarified that absence of salary documents does not mandate adoption of the lowest minimum-wage figure where credible oral evidence exists; no broader implications beyond the case-specific application of cited Supreme Court precedents are stated in the opinion.

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    Chandra Chanda Chandraram And Another v. Mukesh Kumar Yadav And Others

    The Judgment of the Court was delivered by

    R. Subhash Reddy, J.— Leave granted. Unfortunate parents who lost their son aged about 32 years in the motor vehicle road accident on 27-2-2016, are before this Court claiming enhancement of compensation arising out of an application filed under Section 166 of the Motor Vehicles Act, 1988.

    2. The appellants are the parents; 4th respondent is the wife; 5th respondent is the minor son; 6th respondent is the brother; and 7th respondent is the sister of the deceased Shivpal. The appellants and Respondents 4 to 7 were the applicants in the application filed under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accidents Claims Tribunal, Ajmer, Rajasthan (for short “the Tribunal”) claiming compensation of Rs 93,08,000 with interest @ 15% p.a. The Tribunal by judgment dated 25-11-2017 has awarded the total compensation of Rs 10,99,700 with interest @ 6% p.a. The appellant parents alone have filed appeal before the High Court. The High Court by the impugned judgment dated 6-7-2018 CMA No. 1242 of 2018 dismissed the appeal. As such the appellants are before this Court.

    3. The deceased Shivpal was employed as driver on the vehicle i.e. truck trailer bearing No. RJ-06-GA-6576. When he was driving the vehicle on 27-2-2016, within the limits of Adarsh Nagar Police Station, Ajmer, the vehicle — truck trailer — bearing No. RJ-14-GD-1156, driven by the 1st respondent; belonging to the 2nd respondent; and insured with the 3rd respondent, came on the wrong side and rammed into the vehicle of the deceased resulting in the accident, as a result of which Shivpal died in the said accident.

    4. It was the case of the claimants before the Tribunal that deceased Shivpal was in possession of heavy vehicle driving licence and was earning Rs 15,000 p.m. Apart from the claim on account of loss of dependency, they also claimed compensation on all other conventional heads. The Tribunal has held that accident occurred due to rash and negligent driving of the vehicle, driven by the 1st respondent. The Tribunal by taking into account the income of the deceased at Rs 5746 p.m. has awarded a total compensation of Rs 10,99,700 inclusive of consortium of Rs 40,000 to the wife and minor child. The Tribunal had merely awarded an amount of Rs 10,000 each to the appellant parents, of the deceased.

    5. We have heard Shri Aditya Singh, learned counsel for the appellants and Shri Sahil Raveen, learned counsel for Respondent 3.

    6. Mainly it is contended by the learned counsel for the appellants that though the deceased was earning Rs 15,000 per month, being a heavy vehicle driver, the Tribunal has awarded compensation on account of loss of dependency by taking the income of the deceased at Rs 5746 per month. It is submitted that wife of the deceased i.e. Respondent 4 has clearly stated in her deposition that the deceased was earning Rs 15,000 per month. It is submitted that in spite of such evidence on record the Tribunal has committed error in taking the income of the deceased at Rs 5746 as per the minimum wage notified to the skilled labour. Further it is submitted that the Tribunal has committed error in recording a finding that the appellants are not dependants as they were living separately. Lastly, it is submitted that appellants are also entitled to compensation under the head of “loss of consortium”.

    7. The learned counsel appearing for the 3rd respondent has submitted that in absence of any documentary evidence on record to show the salary of the deceased at Rs 15,000 per month the Tribunal has correctly taken into account the monthly earnings of the deceased at Rs 5746. By relying on a judgment of this Court in Kirti v. Oriental Insurance Co. Ltd. (2021) 2 SCC 166, the learned counsel has submitted that there are no grounds to interfere with the impugned judgment CMA No. 1242 of 2018 of the High Court.

    8. Having heard the learned counsel on both sides, we have perused the impugned order CMA No. 1242 of 2018 and other material placed on record. At the outset, we may note that the High Court by a cryptic order dismissed the appeal preferred by the appellants without considering the various grounds raised in the appeal.

    9. It is the specific case of the claimants that the deceased was possessing heavy vehicle driving licence and was earning Rs 15,000 per month. Possessing such licence and driving of heavy vehicle on the date of accident is proved from the evidence on record. Though the wife of the deceased has categorically deposed as AW 1 that her husband Shivpal was earning Rs 15,000 per month, same was not considered only on the ground that salary certificate was not filed. The Tribunal has fixed the monthly income of the deceased by adopting minimum wage notified for the skilled labour in the year 2016. In absence of salary certificate the minimum wage notification can be a yardstick but at the same time cannot be an absolute one to fix the income of the deceased. In absence of documentary evidence on record some amount of guesswork is required to be done. But at the same time the guesswork for assessing the income of the deceased should not be totally detached from reality. Merely because the claimants were unable to produce documentary evidence to show the monthly income of Shivpal, same does not justify adoption of lowest tier of minimum wage while computing the income. There is no reason to discard the oral evidence of the wife of the deceased who has deposed that late Shivpal was earning around Rs 15,000 per month.

    10. In Minu Rout v. Satya Pradyumna Mohapatra (2013) 10 SCC 695 this Court while dealing with the claim relating to an accident which occurred on 8-11-2004 has taken the salary of the driver of light motor vehicle at Rs 6000 per month. In this case the accident was on 27-2-2016 and it is clearly proved that the deceased was in possession of heavy vehicle driving licence and was driving such vehicle on the day of accident. Keeping in mind the enormous growth of vehicle population and demand for good drivers and by considering oral evidence on record we may take the income of the deceased at Rs 8000 per month for the purpose of loss of dependency. Deceased was aged about 32 years on the date of the accident and as he was on fixed salary, 40% enhancement is to be made towards loss of future prospects. At the same time deduction of one-third is to be made from the income of the deceased towards his personal expenses. Accordingly, the income of the deceased can be arrived at Rs 7467 per month. By applying the multiplier of ‘16’ the claimants are entitled for compensation of Rs 14,33,664.

    11. As an amount of Rs 10,99,700 is already paid towards the loss of dependency the appellant parents are entitled for differential compensation of Rs 3,33,964. Further in view of the judgment of this Court in Magma General Insurance Co. Ltd. v. Nanu Ram (2018) 18 SCC 130 the appellants are also entitled for parental consortium of Rs 40,000 each. The finding of the Tribunal that parents cannot be treated as dependants runs contrary to the judgment of this Court in Sarla Verma v. DTC (2009) 6 SCC 121. The judgment in Kirti v. Oriental Insurance Co. Ltd. (2021) 2 SCC 166 relied on by the counsel for the respondent would not render any assistance in support of his case having regard to facts of the case and the evidence on record.

    12. For the aforesaid reasons this appeal is allowed and appellants are entitled for further compensation amount of Rs 3,33,964 on account of loss of dependency and consortium amount of Rs 40,000 each. Thus total compensation payable to the appellants is fixed at Rs 4,13,964 with interest @ 6% p.a. from the date of filing of claim petition.

    13. For the aforesaid reasons the appeal is partly allowed, with no order as to costs.

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    Chandra Chanda Chandraram And Another v. Mukesh Kumar Yadav And Others
    (Oct 1, 2021)