Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1988 – Compensation– Income of deceased fixed considering minimum wages notification Motor Vehicles Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Motor Vehicles Act, 1988 – Compensation– Income of deceased, fixed considering minimum wages notification – Indian Evidence Act, 1872 – s. 57 – Kerala Motor Transport Workers’ Payment of Fair Wages Act, 1971 – s. 2 – Deceased met with a fatal accident in 2015 while riding his motorcycle, offending car was insured by respondent-Insurance Company – Tribunal fixed the total compensation of loss of dependency along with other heads at Rs. 32,39,000/- – High Court reduced the compensation to Rs. 19,70,000/- – On appeal, held: There exists sufficient evidence to show that the Deceased was a fish vendor-cum-driver with a valid license – No reason to doubt that he was a driver at the time of his death – In the absence of a salary certificate, the minimum wages notification along with some amount of guesswork that is not completely detached from reality shall act as a yardstick to determine the income of the deceased – Thus, judicial notice of the Kerala Fair Wages Act taken which classifies a driver as a “Skilled worker” – Reading this in conjunction with Notification prescribing minimum wages for skilled worker, that came into effect from 01.01.15 amending the Kerala Fair Wages Act, a ‘driver’ in Kerala earned a minimum of Rs. 15,600/- in 2015 – Thus, final notional income of the Deceased fixed at Rs. 15,600 /- (Rs. 1,87,200/- p.a) – Since the Deceased was 32 years old at the time of his death, the multiplier applied is 16–40% of increase for future prospects added as he was self-employed – One-third of the Deceased’s income deducted towards his personal expense as he had three dependents – Hence, the compensation payable to the appellants under the head of loss of dependency is Rs. 27,95,520/- – Upon adding the remaining amount granted by High Court under different heads, the total compensation comes to Rs. 29,73,520/-, to be paid by Insurance Company with 9% interest. Motor Vehicles Act, 1988 – s. 168 – Held: s. 168 makes it imperative to grant compensation that appears to be just – Adequate compensation is considered to be fair and equitable compensation – Courts shoulder the responsibility of deciding adequate compensation on a case-to-case basis. Motor Vehicles Act, 1988 – Just compensation – Factors to be established – Held: As laid down in Sarla Verma and Ors. v. DTC and Ors., the three factors are: (a) age of the deceased; (b) income of the deceased; and (c) the number of dependents. Motor Vehicles Act, 1988 – Compensation – Loss of dependency – Issues to be determined by Tribunal – Held: The issues that are to be determined to arrive at the loss of dependency are additions/deductions to be made for arriving at the income; the deduction to be made towards the personal living expenses of the deceased; and the multiplier to be applied with reference to the age of the deceased. Motor Vehicles Act, 1988 – Compensation under non- -conventional heads, if to be granted – Plea of Insurance Company that the High Court ought not to have granted any compensation to the appellants, under the ‘non-conventional heads’ which is impermissible as per the dictum of Supreme Court in Pranay Sethi – Held: Insurance Company chose not to file any appeal against the judgment of the High Court – Having acquiesced, the Insurance Company cannot turn around and question a paltry amount of compensation awarded under the said head – However, question of law kept open. |
Judge | Hon'ble Mr. Justice Surya Kant |
Neutral Citation | 2022 INSC 1102 |
Petitioner | Manusha Sreekumar & Ors. |
Respondent | The United India Insurance Co. Ltd. |
SCR | [2022] 18 S.C.R. 455 |
Judgement Date | 2022-10-17 |
Case Number | 7593 |
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