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Supreme Court of India

ASHVINBHAI JAYANTILAL MODI vs RAMKARAN RAMCHANDRA SHARMA on 25 September, 2014

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C.A. No.-008131-008132 - 2014Official PDFBench Venkate Gopala Gowda, Adarsh Kumar GoelAdvocates HARESH RAICHURA
NON REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 8131-8132 OF 2014
(Arising out of SLP(C) NOS. 743-744 OF 2014)
ASHVINBHAI JAYANTILAL MODI …APPELLANT
Vs.
RAMKARAN RAMCHANDRA SHARMA & ANR. ….RESPONDENTS
J U D G M E N T

1.These appeals have been filed by the appellant

against the impugned common Judgment and order

dated 18.6.2013 passed in First Appeal No. 1064 of

2005 with First Appeal No.1555 of 2005 by the High

Court of Gujarat at Ahmedabad, wherein the High

Court dismissed First Appeal No.1064 of 2005 which

was filed by the claimant and allowed First Appeal

No.1555 of 2005 which was filed by the Insurance

Company. 2.The necessary relevant facts are stated hereunder

to appreciate the case with a view to determine

whether the appellant, Ashvinbhai Jayantilal Modi,

the father of Raj (deceased) is entitled for

relief as prayed in this appeal. 3.On 12.07.2002, Raj Ashvinbhai, the deceased was

heading to Istanpur from Uttamnagar on his two-

wheeler. While on his way, near Bhadvatnagar bus

stand, a truck bearing registration no. GQA 7215

belonging to the respondent, Ramkaran Ramchandra

Sharma crashed into the two-wheeler on which Raj was riding. Due to the force created by this

accident, Raj’s two-wheeler slid for about 25 feet

while Raj fell down and sustained grievous

injuries. Thereupon he was taken to L.G. Hospital

wherein he succumbed to his injuries. On the same

day, a panchnama was filed before the Vatva Police

Station, Ahmedabad. 4.The claimant-appellant filed a claim petition

before the Motor Accidents Claims Tribunal (in

short ‘the Tribunal’) at Ahmedabad, claiming

Rs.28,73,000/- as compensation. The Tribunal

ascertained the future income of the deceased at

Rs.18,000/- per month. 1/3rd of the monthly income

was deducted towards personal expenses. Therefore,

Rs.12,000/- per month (Rs.1,44,000/- p.a.) was

calculated for the loss of dependency to the

parents of the deceased. Since the age of the

deceased at the time of his death was 19 years, on

applying the appropriate multiplier of 16, the

total compensation towards loss of dependency was JUDGMENT

arrived at Rs.23,04,000/-. A sum of Rs.15,000/-

was awarded towards love and affection and

Rs.5,000/- towards funeral expenses and thus a

total compensation of Rs.23,24,000/- was arrived

at by the Tribunal. The Tribunal apportioned

contributory negligence at 20% on the part of the

deceased and 80% on the driver of the offending

truck and thus, after making 20% deduction

towards contributory negligence on the part of the

deceased the Tribunal awarded an amount of

Rs.18,59,200/- with interest at the rate of 9% per

annum to the appellant. 5.Being aggrieved by the judgment and award passed

by the Tribunal, the appellant preferred First

Appeal No.1064 of 2005 before the High Court for

enhancement of compensation, whereas the 2nd

respondent-Insurance Company preferred First

Appeal No.1555 of 2005 for the reduction of the

compensation awarded by the Tribunal. 6. After hearing the parties, the High Court

affirmed the future income of the deceased at Rs.18,000/- per month as determined by the

Tribunal and deducted 50% towards personal

expenses. It further held that the Tribunal had

erred in considering the age of the deceased at

the time of his death rather than the age of the

parents for determination of multiplier, since

they are the claimants in the case on hand, as per

the guidelines laid down in Sarla Verma & Ors. v.

Delhi Transport Corporation & Anr.1. Therefore, by

applying the appropriate multiplier of 13, the

High Court determined the loss of dependency at

Rs.14,04,000/- as against Rs.23,04,000/- as

considered by the Tribunal. After examining the

facts, evidence produced on record and

circumstances of the case, the High Court was of

the view that the contributory negligence on the

part of the deceased was higher than 20%, however,

it affirmed the contributory negligence as

determined by the Tribunal. Therefore, after 20%

deduction towards contributory negligence and addition towards other heads, the High Court, by

its impugned Judgment and order awarded a

compensation under all heads of Rs.11,39,200/-

with 9% interest per annum. Aggrieved by the same,

the appellant has filed these appeals.

7. It has been contended by the learned Senior

Counsel for the appellant Mr. Fakriddin that the

offending truck hit the two-wheeler from behind.

As a result, the deceased fell down and his two-

wheeler was dragged by the offending truck up to a

distance of about 25 feet. Thus, the finding of

the Tribunal as well as the High Court towards

contributory negligence of the deceased at 20% is

uncalled for. Further it was contended that the

High Court has reduced the compensation from

Rs.18,59,200/- to Rs.11,39,200/- which is contrary

to the principles laid down by this Court in

Sanobanu Nazirbhai Mirza & Ors. Vs. Ahmedabad

Municipal Transport Service2. 8.On the other hand, the learned Counsel for the

respondents contended that the High Court has

rightly reduced the compensation by deducting 50%

for personal expenses of the deceased since he was

unmarried at the time of his death and adopted a

(2013) 9 SCR 882

multiplier of 13 by considering the age of the

parents as per the guidelines laid down by this

Court in the case of Sarla Verma (supra). 9. We have heard the learned counsel for the parties.

In our considered view, the deceased was 19 years

old and was pursuing his medical degree with good

marks at the time of the accident. With respect to

the future income of students pursuing

professional courses we refer to Arvind Kumar

Mishra v. New India Assurance Co. Ltd. and Anr.3,

wherein this Court held as under:-

“14. On completion of

Bachelor of Engineering

(Mechanical) from the

prestigious institute like

B.I.T., it can be reasonably

assumed that he would have

got a good job. The appellant

has stated in his evidence JUDGMENT

that in the campus interview

he was selected by Tata as

well as Reliance Industries

and was offered pay package

of Rs. 3,50,000/- per annum.

Even if that is not accepted

for want of any evidence in

support thereof, there would

not have been any difficulty

for him in getting some

(2010) 10 SCC 254

decent job in the private

sector. Had he decided to

join government service and

got selected, he would have

been put in the pay scale for

Assistant Engineer and would

have at least earned Rs.

60,000/- per annum. Wherever

he joined, he had a fair

chance of some promotion and

remote chance of some high

position. But uncertainties

of life cannot be ignored

taking relevant factors into

consideration. In our

opinion, it is fair and

reasonable to assess his

future earnings at Rs.

60,000/- per annum taking the

salary and allowances payable

to an Assistant Engineer in

public employment as the

basis….”

The Tribunal and the High Court have not taken into

proper consideration that the deceased was a JUDGMENT student of medicine at the time of the accident

while determining his future income. The courts

below have wrongly ascertained the future income of

the deceased at only Rs.18,000/- per month, which

in our view is too less for a medical graduate

these days. Therefore, the courts below have failed

in following the principles laid down by this Court

in this aspect in the above case. The deceased was

a diligent and outstanding student of medicine who

could have pursued his M.D. after his graduation

and reached greater heights. Today, medical

practice is one of the most sought after and

rewarding professions. With the tremendous increase

in demand for medical professionals, their salaries

are also on the rise. Therefore, we have no doubt

in ascertaining the future income of the deceased

at Rs.25,000/- p.m. i.e. Rs.3,00,000/- p.a.

Further, deducting 1/3rd of the annual income

towards personal expenses as per Oriental Insurance

Co. Ltd. v. Deo Patodi and Ors4, and applying the appropriate multiplier of 13, keeping in mind the

age of the parent of the deceased, as per the

guidelines laid down in Sarla Verma case (supra),

we arrive at a total loss of dependency at

Rs.26,00,000/-[(Rs.3,00,000/- minus 1/3 X

Rs.3,00,000/-)X 13]. 10.Further, the Tribunal and the High Court have

erred in not following the principles laid down by

this Court in M. Mansoor & Anr v. United India

Insurance Co. Ltd.5 in awarding a meagre sum of

just Rs.15,000/- under the heads of loss of love

and affection. Accordingly, we award Rs.1,00,000/-

to the appellant towards the same. 11.With regard to the apportionment made by the

Tribunal and the High Court, we are of the view,

after considering the facts, evidence produced on

record and circumstances of the case on hand, that

there was no negligence on the part of the

deceased. The courts below have failed to examine the facts of the case on hand with respect to the

opinion of this Court given in Juju Kuruvila &

Ors. v. Kunjujamma Mohan & Ors.6

From the evidence produced on record, the two-

wheeler of the deceased was dragged up to a stretch

2013 (12) SCALE 324

of about 20-25 feet on the road after the collision

with the offending truck. We are of the considered

view, that to be able to create this kind of

enormous effect on the two-wheeler of the deceased,

the offending truck must have been travelling at a

fairly high speed and that its driver did not have

sufficient control over his vehicle. The driver of

the offending truck should have been aware that he

was driving the heavy motor vehicle and taken

sufficient caution. We do not see any direct

evidence that shows negligence on the part of the

deceased that led to the accident. Therefore, as

per the principles laid down by this Court in the

case referred to above in this aspect, the contributory negligence apportioned by the courts

below on the part of the deceased is set aside. 12.The Tribunal and the High Court have further

failed in awarding only Rs.5,000/- towards funeral

expenses instead of Rs.25,000/- according to the

principles laid down by this Court in Rajesh &

Ors. v. Rajbir Singh & Ors.7. Hence, we award

Rs.25,000/- towards the same. 13. In the result, the appellant shall be entitled

to compensation under the following heads:

1 Loss of Rs.26,00,000/- . dependency

2 Loss of love and Rs.1,00,000/- . affection

3 Funeral expenses Rs.25,000/- .

TOTAL Rs.27,25,000/-

Thus, the total compensation payable to the

appellant by the respondent-Insurance Company will

be Rs.27,25,000/- with interest at the rate of 9%

p.a. from the date of filing of the application

till the date of payment. 14. Accordingly,JUDGMENTwe allow these appeals in awarding Rs.27,25,000/- with interest @9% p.a. The

respondent-Insurance Company shall either pay by

way of demand draft in favour of the appellant or

deposit the same with interest as awarded before

the Motor Accidents Claims Tribunal after

(2013) 9 SCC 54

deducting the amount already paid to the

appellant, if any, within six weeks from the date

of receipt of the copy of this judgment. No Costs.

New Delhi, September 25,2014