Laxmidhar Nayak and Ors. v. Jugal Kishore Behera and Ors.

# [2017) l 1 S.C.R. 242 A # LAXMIDHAR NAYAK AND ORS. v. JU GAL KISH ORE BEHERA AND ORS. (Civil Appeal No. l 9X56 of 2017) B NOVEMBER 28, 20 l 7 ## **[RANJAN GOGOi AND R. BANUMATHI, JJ.J** c D E F G _Motor Vehicles Act, 1988- Rash a11d negligent driving- Fatal accident_ - _Head-on collision between bus and truck resulting in death of pedestrian_ - _Victim-deceased aged 42 years was_ - _agricultural labourer Tribunal determined monthly income of Rs.650 taking daily income as Rs.25 and after deducting Rs.250 towards her personal expenses awarded compensation <!l Rs. 706001-_ - _High Court affirmed the award of compensation but reduced interest fivm 91Yo lo_ 7%- _Instant appeal is filed by sons and daughter of the deceased seeking enhancement of compensation_ - _Held: The wages assessed by tribunal for the daily labourer at Rs.251- per day and the_ month~v _income al Rs.650/- is loo low_ - _The reasoning of the tribunal that a lady labourer may not get engagement daily is not acceptable_ - _Deceased being a woman and mother of three children, would have also contributed her physical labour for maintenance of household and also taking rnre of her children_ - _Taking income fmm the agricultural labour work at Rs.3.0001- p.m. and Rs.1.5001- p.m. fiJr the housdwld wurk. the_ month~v _income of the deceased is fixed at Rs.4.5001- p.111. deducting /!3rd/iJr personal expenses. contribution <if deceased toward> the family is calculated at Rs.3,0001- p.m. and Rs.36,000/- p.a. -As per the second schedule to the Motor Vehicles Act, 1988, for the age groups 40-45 yea1:5_ _**inultiplier is**_ **"/** _**5**_ ·· - _**.As per**_ **Sarla Verma** _**tle1..:isio11 jUr the age groups** 41-45 years. multiplier to be adopted is "14"_ - _Therefore, the multiplier of_ "/ _2" adopted by the tribunal and the High Court is not correct-Adopting the multiplier of "/4" loss of dependency is call'llfated at Rs.5,04.0001-_ - _Also, compensation <if Rs.15.0001for loss of estate and Rs. I 5,(!001- for fi111eral expenses is awarded_ - _Thus total compensation awarded to the claimants is enhanced lo Rs.5,34,0001- payable with interest at 1/1e rate of_ 7% _p.a._ H 242 243 LAXMIDHAR NAYAK AND ORS. v. JUGAL KlSHORE BEHERA AND ORS. Partly allowing the appeal, the Court HELD: 1. PW-1 in his evidence stated that the victimdeeeased was earning Rs.35/- per day as wages out of the labour work. It is quite improbable that a labourer would be available for such a small amount of Rs.25/- per day. The reasoning of the tribunal that a lady labourer may not get engagement daily is not acceptable. Even though works like cutting of paddy and other agricultural labour may not be available on all days throughout the year, in rural areas other kinds of work arc a\'ltilablc for a labourer. Deceased even though was said to be earning only Rs.35/- per day at that time, over the years, she would have earned more. The High Court as well as the tribunal did not keep in view the contribution of the deceased· in the household work, being a labourer and also maintaining her husband, her daily income should be fixed at Rs.ISO/- per day and Rs.4,500/- per month. Deducting I/3rd for personal expenses, contribution of deceased towards the family is calculated at Rs.3,000/- per month and Rs.36,UOO/c p.a. Deceased was aged 42 years. As per the second schedule to the Motor Vehicles Act, 1988, for the age groups 40-45 years mulliplicr is "15". As per Sarla Verma decision for the age groups 41-45 years mnltiplier to be adopted is "14". Hence, the multiplier of "12" adopted may not be correct. Adopting the multiplier of "14" loss of dependency is calculated at Rs. 5,04,000/- (3,000x12xl4). Further, compensation of Rs.15,000/- for loss of estate and Rs.15,000/- for funeral expenses is awarded. Thus total compensation awarded to the claimants is enhanced to Rs.5,34,000/- payable with interest at the rate of 7% per annum. [Paras 6-9][245-D-H; 246-A-CJ _Sar/a Venn" (Smt.) and Ors. v. Delhi Transport Corporation and Anr._ (2009) 6 SCC 121 : [2009] 5 SCR 1098; _National lnsumnce Company Limited_ v. _Pranay Sethi and Ors._ 2017 (13) SCALE 12 - relied on. A B c D E F G ## Case Law Reference [2009] 5 SCR 1098 relied on Para 7 2017 (13) SCALE 12 relied on Para 8 H 244 SUPREME COURT REPORTS (2017] I l S.C.R. A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 19856. of2017. From the J udgmcnt and Order dated 27.01.2016 of the High Court of Orissa at Cuttack in MACA No. 802 of 2003. Chattamnjan Misra, Bhanu Pratap Singh, D. P. Singh Yadav, Binay B Kumar Das, Advs. for the Appellants. The Judgment of the Court was delivered by - **R. BANUMATHI, J.** l. Leave granted. 2. Appellants who are the sons and daughter of the deceased c Chanchali Nayak have filed this appeal seeking enhancement of compensation for the death of their mother in the road accident on 29.09.1991 as against compensation of Rs.70,600/- awarded by the tribunal and affirmed by the High Court ofOrissa. 3. Mother of appcllants-Chanchali Nayak was working as an D agricultural labourer. On the date ofaccidcnt - 29.09.199 l at about 8.00 a.m., Chanchali Nayak was proceeding on the left side of the road alongwith some other labourers. At that time, due to head-on-collision between two vehicles-bus (bearing No.OSF 5157) and truck (bearing No.OAC 495'). the bus swerved to the extreme left side of the road and ran over Chaochali Nayak and she succumbed to injuries. In the claim E petition filed by the claimants, the tribunal held that the accident was due to rash and negligent driving of both the vehicles. 4. So far as the compensation is concerned, the tribunal has taken the monthly income of the deceased at Rs.650/- per month and after deducting an amount of Rs.250/- towards her personal expenses, F assessed the contribution to the family at Rs.400/- per month. Deceased was aged 42 years and the tribunal adopted multiplier of" 12" and awarded compensation of Rs.57.600/- for the loss of dependency and adding conventional damages, tribunal has awarded total compensation of Rs. 70,600/-. The respondents No. I and 2 - owners of the bus and the - G truck were held liable to pay the compensation to the claimants at 50% each alongwith interest at the rate of 9% per annum. Pointing out that the claimants have not produced the insurance policies of the vehicles, the tribunal held that the insurance company is not liable to indemnify the compensation. However, it is seen from the judgment of the High Court that the insurance company has been satisfied with the award. - H 245 LAXMIDHAR NAYAK AND ORS. v. JUGAL KISHORE BEHERA AND ORS. [R. BANUMATHJ, J.] On appeal to the High Court by the claimants, the High Court affirmed the quantum of compensation ofRs.70,600/- awarded to the claimants but reduced the rate of interest from 9% to 7%. So far as the liability of the insurance company is concerned, the High Court held that the insurance company-respondent No.3 having paid the compensation to the claimants cannot avoid its liability to pay the compensation amount. Being dissatisfied with the quantum of compensation, the appellants have filed this appeal. 5. We have heard the learned counsel for the appellants. Respondent No.2 and insurance company-respondent No.3 have not entered their appearance. We have perused the impugned j udgmcnt and the materials placed on record. 6. PW-! in his evidence stated that Chanchali Nayak was earning Rs.35/- per day as wages out of the labour work. Deceased Chanchali Nayak was an agricultural labourer. The tribunal has taken her income at the rate ofRs.25/-per day and assessed the monthly income at Rs.650/ - per month. It is quite improbable that a labourer would be available for such a small amount ofRs.25/- per day. The wages fixed by the tribunal for the daily labourer at Rs.25/- per day and the monthly income at Rs.650/- is too low. The reasoning of the tribunal that a lady labourer may not get engagement daily is not acceptable. Even though works like cutting of paddy and other agricultural Jabour may not be available on all days throughout the year, in rural areas other kinds of work arc available for a labourer. Deceased Chanchali Nayak even though was said to be earning only Rs.35/- per day at that time, over the years, she would have earned more. In our view, deceased Chanchali Na yak. being a woman and mother of three children, would have also contributed her physical labour for maintenance ofhousehold and also taking care of her children. The High Court as well as the tribunal did not keep in view the contribution of the deceased in the household work, being a labourer and also maintaining her husband, her daily income should be fixed at Rs.150/per day and Rs.4,500/- per month., 7. Taking income from the agricultural Jabour work at Rs.3,000/per month and Rs.1,500/- per month for the household work, the monthly income of the deceased is fixed at Rs.4,500/- per month deducting 1/3"' for personal expenses, contribution of deceased towards the family is calculated at Rs.3,000/- per month and Rs.36.000/- per annum. Deceased Chanchali Na yak was aged 42 years. As per the second schedule to the A B c D E F G H 246 [2017] I l S.C.R. SUPREME COURT REPORTS A Motor Vehicles Act, 1988, for the age groups 40-45 years multiplier is '.' 15". As per _Sar/a Verma (Smt.) and Others v. Delhi Transport Corporation and Another_ (2009) 6 SCC l 2 l, for the age groups 41-45 years multiplier to be adopted is" l 4". Therefore, the multiplier of" I 2" adopted by the tribunal and the High Court may not be correct. Hence, the multiplierof" 12" adopted may not be correct. Adopting the multiplier B of" 14" Joss ofdcpcndcncy is calculated at Rs.5,04,000/-(3,000xl2xl4). c 8. As per the tkcision of the Constitution Bcnch in _National l11sura11ce Company Li111i1ed_ 1: _Pranav Set/1i and Others_ 2017 (13) SCALE l 2. compensation of Rs.15,000/- for loss ofrstate and Rs.15,0001 - for funeral expenses is awarded. Thus total compensation awarded to the claimants is enhanced to Rs.5.34,000/- payable with interest at the rate of 7'Vo per annum. 9. The impugned judgment is modified and the compensation payable to the claimants is enhanced to Rs.5,34.000/-. The enhanced compensation is payabk with interest at the rate of7% per annum from D 27.01.2016 (the date of judgment of the High Court) and this appeal is pm1ly allowed. Respondents No. l to 3 are jointly and severally liable to pay the cnlrnnccd compensation with interest. **Appc:al partly allowt'd.** **Dc:vika Gujral**