High CourtDivision BenchAppeal allowed; enhanced compensation of Rs. 16...

Sanobanu Nazirbhai Mirza v. Ahmedabad Municipal Transport Service

Case / Petition Number:Civil Appeal No. 8251 of 2013
Neutral Citation:[2013] 9 S.C.R. 882

Case Details & Bench

Court
High Court
Hon'ble Judges
  • G.S. Singhvi
  • V. Gopala Gowda
Judgment Date
2013-10-03
Court Decision / Holding
Appeal allowed. The Court enhanced the total compensation to Rs. 16,96,000 with interest at 7.5% from filing until payment. The distribution is 75% of the awarded amount to appellants 1–3 equally, and 25% to appellants 4–5 in equal proportion, with a portion deposited in a Nationalized Bank and disbursed by demand drafts; no costs.
Final Disposition
Appeal allowed; enhanced compensation of Rs. 16,96,000 with 7.5% interest; specific distribution among appellants; no costs.

Parties to the Case

Appellants / Petitioners

  • Sanobanu Nazirbhai Mirza and others

Respondents

  • Ahmedabad Municipal Transport Service

Legal Representation & Advocates

Counsels for Petitioners

  • • Saroj Raichura

Counsels for Respondents

  • • Kuldeep S Parihar

Case Synopsis & Summary

This is an appeal under Section 166 of the Motor Vehicles Act, 1988, by the legal representatives of Nazirbhai against a Gujarat High Court order that reduced the Motor Accident Claims Tribunal (MACP) award for a fatal road accident involving an AMTS bus in 1998. The deceased, a 25-year-old polisher, was declared dead the same day; the Tribunal originally awarded Rs. 3,51,300 with 9% interest. The High Court reduced this to Rs. 2,51,800 and directed the claimants to refund Rs. 99,500 with 9% interest. The appellants challenged the reduction, contending that the income of a skilled polisher should be higher than the II Schedule-based notional income and that the 11–12 year gap before final appellate resolution violated life rights and natural justice. The Supreme Court held that the Tribunal’s notional income of Rs. 15,000 p.a. under the II Schedule was erroneous for a skilled, self-employed youth; it proposed a monthly income of Rs. 5,000 (Rs. 60,000 p.a.) with a 50% future prospects addition, given five dependents and a life expectancy multiplier of 20. It also awarded Rs. 1,00,000 for loss of consortium and Rs. 1,00,000 for loss of care and guidance for minors, plus funeral, pain, and transport-related costs. The total compensation was fixed at Rs. 16,96,000 with 7.5% interest, and the appeal was allowed with a specific payment-distribution plan.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Section 166Motor Vehicles Act, 1988 - Section 163-A (II Schedule)Minimum Wages Act, 1948 - Section 3

Legal Doctrines & Maxims

  • Just and reasonable compensation
  • Tribunal may award more than claimed if justified by evidence (Nagappa v. Gurudaya Singh & Ors.)
  • Multiplier method for loss of dependency based on life expectancy (Susamma Thomas; S.Chandra)
  • Future prospects addition (50%) for self-employed/fixed wages under 40 (Santosh Devi; Rajesh v. Rajbir Singh)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the High Court’s 11–12 year interval before deciding the appeal violated the right to life and natural justice and the statutory rights under the Motor Vehicles Act. They contended that the Tribunal properly assessed the deceased’s status as a skilled polisher and that a higher income ought to be recognized. They urged restoration of the Tribunal’s Rs. 3,51,300 award and challenged the High Court’s order to refund Rs. 99,500 with interest. They emphasized the deceased’s age (25 years) and sought compensation for loss of fatherhood, loss of care and guidance for minor children, and for other heads as a result of a longer life expectancy, urging just and adequate compensation.

Contentions of Respondents

The respondents contended that the High Court correctly re-evaluated the award and that the Tribunal’s use of the II Schedule to Section 163-A was inappropriate. They argued that the accident occurred in 1998 and the income should reflect Rs. 15,000 per annum, consistent with the cited precedents for fatal-accident cases, and that the reduction by the High Court was justified to reflect the correct statutory framework.

Cited Precedents (9)

Case NameCitationTreatmentExplanation
Ritaben @ Vanitaben & Anr. v. Ahmedabad Municipal Transport Service & Anr.1998 (2) GLH 670Mentioned OnlyQuoted for discussion on datum figures under Section 163-A but not adopted as controlling.
Santosh Devi v. National Insurance Co. Ltd. & Ors.2012 (3) SCR 1178 = (2012) 6 SCC 421PositiveUsed to justify 50% addition to income for future prospects in younger, self-employed cases.
Rajesh & Ors. v. Rajbir Singh2013 (6) SCALE 563PositiveCourt follows Santosh Devi reasoning; applies 50% future-prospects addition for deceased under 40.
Nagappa v. Gurudaya Singh & Ors.2002 (4) Suppl. SCR 499 = (2003) 2 SCC 274PositiveAffirms that compensation need not be limited to claimed amounts if the evidence justifies more; must be just.
Susamma Thomas (Trivendrum) & Ors.1994 (2) SCC 176PositiveFoundation for multiplier and loss-of-dependency calculations.
General Manager, Kerala State Road Transport Corporation, Trivandrum v. Susamma Thomas1994 (2) SCC 176PositiveAuthoritative discussion on multiplier to multiplicand.
Gujarat State Road Transport Corporation v. Suryakantaben D. Acharya & Ors.2001 (2) GLR 1777PositiveRaises conventional amounts in line with inflation for loss elements.
Suryakantaben D. Acharya & Ors. v. Gujarat State Road Transport Corporation2001 (2) GLR 1777PositiveUsed to determine income norms for loss calculations.
Chandra v. Pallavan Transport Corporation1994 (2) SCC 189PositiveMethodology for multiplier and life expectancy in dependency calculations.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# [2013] 9 S.C.R. 882 A # SANOBANU NAZIRBHAI MIRZA & ORS. _v._ # AHMEDABAD MUNICIPAL TRANSPORT SERVICE (Civil Appeal No. 8251 of 2013) B OCTOBER 03, 2013 # **[G.S. SINGHVI AND V. GOPALA GOWDA, JJ.]** ## _MOTOR VEHICLES ACT, 1988:_ - - - c _s. 166 Fatal motor accident Compensation Annual_ -- _income of deceased-Polisher Addition towards future_ - - _prospects Multiplier Tribunal and High Court taking_ -- _annual income of deceased at Rs. 150001- Held: Claim petition having been filed u/s. 166, taking notional income of_ 0 _deceased at Rs. 15, 0001- per annum on the basis of /Ind Schedule to s. 163-A is an erroneous approach to determine just and reasonable compensation in favour of legal representatives of the deceased who was the sole earning_ - _member of family Deceased was working as a polisher,_ E _which is a skilled job_ - _Keeping in view the evidence on record, it would be just and proper to take a sum of Rs. 50001_ - - _as monthly income of deceased Since deceased was se/femplo yed and about 25 years of age, there must be an_ - _addition of 50_ % _to his actual income There being 5_ F _dependents, 1!5th amount is to be deducted towards personal expenses_ - _Keeping in view life expectancy of deceased,_ - _multiplier of 20 must be applied Besides, Rs. 1, 00, 0001must be added towards loss of consortium and further Rs. 1,00,0001- under the head loss of care and guidance of minor_ -- _children Total compensation allowed as Rs. 16,96,0001-_ G _as detailed in the judgment_ - _Further directions with regard to payment, its apportionment amongst dependents and fixed deposits, given._ H _s. 166_ - _Fatal motor accident_ - _Compensation_ - _Tribunal_ 882 ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 883 TRANSPORT SERVICE _awarding_ Rs. _3,51,3001-_ as _total compensation_ - _High Court_ A. _reducing it to_ Rs. _2,51,5001- and directing to return_ Rs. _99,5001_ - - _to respondent with_ 9 % _interest Held: The finding of fact recorded by Tribunal in the absence of any evidence in rebuttal to show that deceased was not working_ as a _polisher and it_ is _not a skilled work, is an erroneous finding for the_ B _reason that both Tribunal and High Court have not assigned reason for not accepting the evidence on record with regard_ - _to the nature of work that was being performed by deceased_ - _State Government in exercise of its statutory power uls. 3 of Minimum Wages Act, 1948 must issue_ a _notification for fixing_ c _the wages of_ a _polisher_ -- _Even in the absence of such a notification, both Tribunal as well as High Court should have at least taken the income of deceased as Rs.40,0001- per annum as per the table provided in the /Ind Schedule to s. 163-A of M. V. Act for the purpose of determining just, fair and_ 0 _reasonable compensation under the heading loss of dependency of appellants, though said amount is applicable_ - _only to the claims under no fault liability Minimum Wages Act, 1923_ - s. _3_ - _Legislation._ _s. 166_ - _Claim petition_ - _Enhancement of compensation in appeal_ - _Held: Legal representatives of deceased are entitled to compensation as mentioned under various heads_ -- _in the table as provided in the judgment Even though certain claims were not preferred by them, they are legally and_ -- _legitimately entitled for the said claims Accordingly, the Court awards compensation, more than what was claimed by dependants as it is the statutory duty of Tribunal and appellate court to award just and reasonable compensation to legal representatives of deceased to mitigate their hardship and agony, as they filed application u/s. 166._ E F G A youngman of 25 years was crushed under the bus belonging to the respondent. He succumbed to the injuries the same day. In a petition filed by the appellantsdependants u/s. 166 of the Motor Vehicles Act, 1988, it H 884 SUPREME COURT REPORTS [2013] 9 S.C.R. A was stated that the deceased was a polisher and was earning Rs. 4000 - 5000/- per month. However, the Tribunal took a sum of Rs. 15,000/- per annum as notional income as provided in II Schedule to s. 163-A of the Act, and awarded a total sum of Rs. 3,51,300/- with 9% interest. B On appeal by the respondent, the High Court reduced the compensation to Rs. 2,51,800/- and directed the claimants to refund Rs. 99,500/- with 9% interest to the respondent. ## Allowing the appeal, the Court C C HELD: 1.1 The approach of the Tribunal in taking notional income of the deceased at Rs.15,000/- per annum to which Rs.30,000/- was added and divided by 2, bringing it to a net yearly income of Rs.22,500/- which has been further interfered with by the High Court by taking D Rs.15,000/- as notional income on the basis of the llnd Schedule to s. 163-A of the M.V. Act, is an erroneous approach to determine just and reasonable compensation in favour of the legal representatives of the deceased who was the sole earning member of the family. E [Para 7] [892-E-G] > 1.2 It is an undisputed fact that the deceased was working as a polisher, which is a skilled job. This important aspect of the case of the appellants was not F taken into consideration by both the Tribunal as well as the High Court, thereby they have gravely erred by taking such low notional income of the deceased though there is evidence on record in support of the claim and the petition was filed u/s. 166 of the M.V. Act. Taking Rs.15,000/- per annum as the notional income and G deducting 1/5th towards personal expenses which would come to Rs.12,000/- is not only an erroneous approach of the High Court but is also vitiated in law. Both the Tribunal and the High court have not assigned any reason for not accepting the evidence on record with H regard to the nature of work that was being performed ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 885 TRANSPORT SERVICE by the deceased. The finding of fact recorded by the Tribunal in the absence of any evidence in rebuttal to show that the deceased was not working as a polisher and it is not a skilled work is also an erroneous finding. [para 7] [892-H; 893-A-C] A B 1.3 The State Government in exercise of its statutory power u/s 3 of the Minimum Wages Act, 1948 must issue a notification for fixing the wages of a polisher. Even in the absence of such a notification, both the Tribunal as well as the High Court should have at least taken the C income of the deceased as Rs.40,000/- per annum as per the table provided in the llnd Schedule to s. 163-A of the M.V. Act for the purpose of determining just, fair and reasonable compensation under the heading loss of dependency of the appellants, though the said amount is applicable only to the claims under no fault liability. If D 1/5th amount is deducted out of the said annual income the resultant multiplicand would be Rs.32,000/- per annum. [Para 7] [893-C-F] 1.4 In view of the facts of the case, it would be just E and proper for this Court to take a sum of Rs.5000/- as the monthly income of the deceased and thus, the annual income would come to Rs.60,000/-. In the recent decision in Rajesh & Ors. vs. Rajbir Singh, this Court while referring to the case of Santosh Devi has held that in the F case of self-employed persons or persons with fixed wages, in case the deceased victim was below 40 years, there must be an addition of 50% to the actual income of the deceased while computing future prospects of the deceased. Keeping in view the five dependants of the G deceased in the case on hand, 1/5th amount is to be deducted towards personal expenses. Having regard to the age of the deceased as 25, as mentioned in the post mortem report, which age is taken by both the Tribunal as well as the High Court, and keeping in mind the life H 886 SUPREME COURT REPORTS [2013] 9 S.C.R. A expectancy of the deceased, multiplier of 20 must be applied to the multiplicand for the purpose of quantifying loss of dependancy. Further, following the decision of this Court in Rajesh V. Rajbir Singh, Rs.1,00,000/- must be added under the head of loss of consortium and B Rs.1,00,000 under the head of loss of care and guidance for minor children. [Para 8) [893-G-H; 894-A-E] _Santosh Devi v. National Insurance_ Co. _Ltd._ & Ors. 2012 (3) SCR 1178 = (2012) 6 SCC 421; _Rajesh_ & Ors. _v. Rajbir_ C _Singh_ 2013 (6) SCALE 563; _Nagappa v. Gurudaya/ Singh_ & Ors. 2002 (4) Suppl. SCR 499 = (2003) 2 SCC 274 - relied on. 1.5 Even though certain claims were not preferred by the dependants, they are legally and legitimately entitled D for the said claims. Accordingly this Court awards the compensation, more than what was claimed by the dependants as it is the statutory duty of the Tribunal and the appellate court to award just and reasonable compensation to the legal representatives of the E deceased to mitigate their hardship and agony. Therefore, this Court has awarded just and reasonable compensation in favour of the appellants as they filed application claiming compensation u/s. 166 of the M.V. Act. Keeping in view the relevant facts and legal evidence F on record and in the absence of rebuttal evidence adduced by the respondent, this Court determines just and reasonable compensation by awarding a total sum of Rs. 16,96,000/- under various heads as detailed in the judgment, with interest@ 7.5% from the date of filing the G claim petition till the date payment is made to the appellants. [Para 9) [896-F-H; 897-A-B] _Ritaben_ @ _Vanitaben_ & _Anr._ Vs. _Ahmedabad Municipal Transport Service_ & _Anr._ 1998 (2) GLH 670 S. _Chandra_ & Ors. Vs. _Pallavan Transport Corporation_ (1994) 2 SCC 189, H _General Manager, Kera/a State Road Transport Corporation,_ ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 887 TRANSPORT SERVICE _Trivendrum Vs. Susamma Thomas_ & _Ors._ (1994) 2 SCC 176, _Gujarat State Road Transport Corporation Vs. Suryakantaben D. Acharya_ & _Ors._ 2001 (2) GLR 1777 - cited. A ## Case Law Reference: 1998 (2) GLH 670 cited para 6 8 (1994) 2 sec 189 cited para 6 (1994) 2 sec 116 cited para 6 2001 (2) GLR 1777 cited para 6 c 2012 (3) SCR 1178 relied on para 8 2013 (6) SCALE 563 relied on para 8 2002 (4) Suppl. SCR 499 relied on para 8 D CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8251 of 2013. From the Judgment and Order dated 11.01.2012 of the High Court of Gujarat at Ahmedabad in First Appeal No. 1549 of 2002. E . Saroj Raichura for the Appellants. Kuldeep S Parihar for the Respondent. The Judgment of the Court was delivered by F V. GOPALA GOWDA, J. 1. Leave granted. 2. The legal representatives of the deceased Nazirbhai who died in a road accident on 30th May, 1998 were aggrieved G by the judgment and order dated 11.01.2012 of the High Court of Gujarat at Ahmadabad in First Appeal No. 1549 of 2002 wherein the High Court had partly allowed the appeal of the respondent and reduced the compensation awarded in favour of the claimants by the Motor Accident Claims Tribunal (in short H 888 SUPREME COURT REPORTS [2013] 9 S.C.R. A 'the Tribunal') at Ahmedabad in MACP No. 563 of 1998 dated 23.10.2001 from Rs.3,51,300/- to Rs.2,51,800/- with a direction to the appellants-claimants to refund the excess amount of Rs.99,500/- along with the interest at the rate of 9% per annum. The appellants-claimants have filed this appeal urging certain B grounds and prayed for setting aside the impugned judgment and award passed by the High Court. > 3. The brief facts of this case are stated below to appreciate the rival claims of the parties: C C On 30.05.1998, the deceased Nazirbhai was going on his bicycle to his contract work of polishing at about 10.30 a.m. at the house of one Rashidbhai Pathan in Haranwali Pole. While he was waiting for other labourers at Kalidas Mill Kachha cross road with a bicycle, at about 10.45 a.m., one Ahmedabad D Municipal Transport Service (AMTS) bus bearing registration No. GJ-1-TT-8337 came with high speed in a rash and negligent manner in the one-way and hit him with its front portion and knocked him down and caused bodily injuries. He was crushed under the wheel of his bicycle and later succumbed to E his injuries at 6.00 p.m on the same day. The legal heirs of the deceased - his widow, his minor children and his parents filed a claim petition before the Tribunal for awarding just and reasonable compensation wherein the Tribunal awarded a sum of Rs. 3 ,51,300/- along with interest @ 9% per annum 'from the F date of application till realization. The respondent aggrieved by the judgment and award of the Tribunal filed an appeal in the High Court urging for reduction of compensation awarded in favour of the claimants on the ground that the Tribunal has committed an error on facts and in law in assessing the income G of the deceased on the basis of the llnd schedule to Section 163-A of the Motor Vehicles Act, 1988 (in short the M.V. Act) and that the accident being of the year 1998, income should have been assessed as Rs.15,000/- per annum. The High Court partly allowed the appeal of the respondent and reduced the H compensation to Rs.2,51,800/- and ordered that the excess ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 889 TRANSPORT SERVICE [V. GOPALA GOWDA, J.] amount of Rs.99,500/- shall be returned to the respondent A along with interest @ 9% per annum. Being aggrieved by this judgment and award passed by the High Court, the legal representatives of the deceased filed this civil appeal urging various grounds and legal contentions and requested this Court to set aside the impugned judgment and award and further, B award just and reasonable compensation by modifying the judgment of the Tribunal. 4. It is urged by the learned counsel for the appellants, Ms. Saroj Raichura, that the Gujarat High Court in exercise of its C appellate jurisdiction has modified the judgment and award passed by the Tribunal after a long lapse of 11-12 years, which is in violation of the right to life and natural justice and statutory rights of the appellants under the provisions of the M.V.Act. Another ground urged is that the High Court was not right in holding that the compensation awarded by the learned D Members of the Tribunal is excessive and consequently, the direction issued to the appellants to refund an amount of Rs.99,500/- along with an interest of 9% interest after long lapse of 11 years is wholly unsustainable in law. It is submitted that at the time of death the deceased was aged 25 years and E was hale and hearty and would have lived long, had he not met with the accident. Prior to the accident, he was engaged in the work of polishing and colouring and was earning Rs.4,000/- to Rs.5,000/- per month and he was good at his work and would have progressed in the future. It is urged that since the appellant F No.3 was born after the death of the deceased, compensation under the head of loss of fatherhood should also be awarded. The further legal contention urged is that the High Court interfered with the judgment and award by reducing the compensation after 11 long years even though the Tribunal after G proper appreciation of facts and legal evidence on record has rightly awarded the compensation. The same should not have been interfered with by the High Court in the exercise of its appellate jurisdiction. Therefore, the appellants have approached this Court to set aside the impugned judgment and H D E F H 890 SUPREME COURT REPORTS [2013] 9 S.C.R. A order of the High Court and prayed to pass an order awarding just and reasonable compensation. 5. We have carefully examined the correctness of the impugned judgment and award passed by the High Court of B Gujarat in exercise of its appellate jurisdiction with a view to find out whether the interference of the High Court with the quantum of compensation awarded by the Tribunal in its judgment is legal, valid and justified and further, as to what amount the claimants are entitled to. We have also perused the C judgment passed by the Tribunal on the basis of pleadings and evidence on record wherein it has recorded the categorical finding of fact holding that the deceased sustained bodily injuries in a road traffic accident on 30.05.1998 at about 10.30 a.m. while he was going to attend his contract work of polishing at the house of one Rashidbhai Pathan in Haranwali Pole. D While he was waiting for the other labourers at Kalidas Mill Kachha cross road with a bicycle, at that point of time at about 10.45 a.m. one AMTS bus bearing registration No. GJ-1-TT8337 came at high speed in a rash and negligent manner in the one-way and hit him with its front portion and knocked him E down and caused grievous bodily injuries. He was crushed under the wheel of his bicycle and later succumbed to the injuries at 6.00 p.m. The finding is recorded by the Tribunal on the basis of legal evidence on record and held that the accident occurred on account of rash and negligent driving of the F offending vehicle by its driver and the deceased sustained injuries and succumbed to them on the evening of the same day. The above said finding of fact has not been set aside by the appellate authority in exercise of its appellate jurisdiction. G 6. The Tribunal has taken a sum of Rs. 15,000/- per annum as provided in the llnd schedule to Section 163-A of the M.V. Act as notional income on the basis of ratio laid down by the Gujarat High Court in the case of _Ritaben_ @ _Vanitaben_ & _Anr. Vs. Ahmedabad Municipal Transport Service_ & _Anr.[1 ]_ wherein H 1. 1998 (2) GLH 670. ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 891 TRANSPORT SERVICE [V. GOPALA GOWDA, J.] it has held that a datum figure is required to be taken into A consideration for compensation in fatal cases. The same was applied to the case on hand by the Tribunal and further Rs.30,000/- was added to this figure which was then divided by 2 such that the net yearly income comes to Rs.22,500/- out of which 1/3rd amount was deducted towards personal B expenses and maintenance of the deceased and thus the net awardable dependency was calculated at Rs.15,000/- per annum. The case of _S.Chandra_ & _Ors. Vs. Pallavan Transport Corporation[2] ,_ of this Court has also been referred to regarding the average life expectancy, wherein this Court has taken 20 c as multiplier in case of the deceased aged 42 years. Adverting to the case of _General Manager, Kera/a State Road Transport Corporation, Trivendrum Vs. Susamma Thomas_ & _Ors.[3] ,_ this Court discussed the method to be followed to determine the multiplier to the multiplicand and taken multiplier of 12 in a case 0 where the deceased was aged 39 years. However, the Tribunal after referring to S. _Chandra's_ case (supra) preferred to rely on the same for taking multiplier of 20 in the case of the deceased at the time of death as he was aged about 25 years as reflected in the post mortem report. Therefore, the future economic loss awardable to the appellants was calculated at E Rs.3,00,000/-. Thereafter, following the decision in the case of _Gujarat State Road Transport Corporation Vs. Suryakantaben D. Acharya_ & _Ors.[4] ,_ wherein the Gujarat High Court ruled that the conventional amount was required to be raised to Rs.20,000/- from Rs.10,000/- having regard to the rise in prices F and higher rate of inflation which is a common phenomenon in Indian economy, the Tribunal awarded a sum of Rs.20,000/towards loss of expectancy of life and Rs.500/- towards medical expenses. Since no evidence was produced before the Tribunal by the appellants to sustain the medical claim and attendant G charges of Rs.2000/- therefore, the Tribunal has held that the > 3. (1994) 2 sec 176. 4. 2001 (2) GLR 1777. 2. (1994) 2 sec 189. H ## 892 SUPREME COURT REPORTS ## [2013] 9 S.C.R. - A claim was on the higher side and it has awarded a sum of Rs.500/- towards attendant charges. Further, Rs.300/- was awarded towards transportation charges since the appellants have not adduced evidence to show that Rs.2000/- was spent towards transportation of the dead body. The award has been - B interfered with by the High Court in the impugned judgment and the compensation was reduced to Rs.2,51,000/- taking only notional income of Rs.15,000/- per annum as provided in the llnd Schedule to Section 163-A of the M.V. Act and deducted 1/5th amount towards personal expenses. The dependency - c benefit is taken to Rs.12,000/- per annum and 18 multiplier was applied and awarded a sum of Rs.2, 16,000 and another Rs.10,000/- was awarded towards loss of consortium, Rs.10,000/- towards loss to estate, Rs.5000/- towards funeral expenses, Rs.5,000/- towards pain, shock and suffering, Rs.500/- towards attendant charges and Rs.300/- towards - 0 transportation charges. The total compensation of Rs. 2,51,800/- was awarded by the High Court by modifying the judgment and award of the Tribunal which has awarded a compensation of Rs.3,51,300/- and further the High Court - E directed the appellants to refund an excess amount of Rs.99,500/- with interest at the rate of 9% per annum to the respondent. The same was rightly challenged by the appellants before this Court by filing this appeal urging various grounds. 7. In our considered view, the approach of both the - F Tribunal as well as the High Court in taking notional income of the deceased at Rs.15,000/- per annum to which Rs.30,000/was added and divided by 2 bringing it to a net yearly income of Rs.22,500/-which has been interfered with by the High Court by taking Rs.15,000/- as notional income on the basis of the - G llnd Schedule to the Section 163-A of the M.V. Act is an erroneous approach to determine just and reasonable compensation in favour of the legal representatives of the deceased who was the sole earning member of the family. It is an undisputed fact that the deceased was working as a - H ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 893 TRANSPORT SERVICE [V. GOPALA GOWDA, J.] polisher, which is a skilled job. This important aspect of the case A of the appellants was not taken into consideration by both the Tribunal as well as the High Court, thereby they have gravely erred by taking such low notional income of the deceased though there is evidence on record and the claim petition was filed under Section 166 of the M.V. Act. The High Court taking B Rs.15,000/- per annum as the notional income and deducting 1/Sth towards personal expenses which would come to Rs.12,000/- is not only an erroneous approach of the High Court but is also vitiated in law. The finding of fact recorded by the Tribunal in the absence of any rebuttal evidence to show that c the deceased was not working as a polisher and it is not a skilled work is also an erroneous finding for the reason that both the Tribunal and the High court have not assigned reason for not accepting the evidence on record with regard to the nature of work that was being performed by the deceased. The State 0 Government in exercise of its statutory power under Section 3 of the Minimum Wages Act, 1948 must issue a notification for fixing the wages of a polisher. Even in the absence of such a notification, both the Tribunal as well as the High Court should have at least taken the income of the deceased as Rs. E 40,000/- per annum as per the table provided in the llnd Schedule to Section 163-A of the M.V. Act for the purpose of determining just, fair and reasonable compensation under the heading loss of dependency of the appellants, though the said amount is applicable only to the claims under no fault liability. If 1/Sth amount is deducted out of the above annual income the F resultant multiplicand would be Rs.32,000/- per annum. Both the Tribunal and the High Court should have proceeded on the aforesaid basis and determined the compensation under the heading loss of dependency of the appellants. G 8. In view of the aforesaid fact, we have to hold that it would be just and proper for this Court to take a sum of Rs.5000/- as the monthly income of the deceased having regard to the nature of job that the deceased was performing as a polisher, which H ## 894 SUPREME COURT REPORTS [2013] 9 S.C.R. - A is a skilled job, wherein the annual income would come to Rs.60,000/-. This Court in judgment of _Santosh Devi v. National Insurance_ Co. _Ltd._ & _Ors._[5] , has held that an addition of 30% increase must be applied for increase in total income of the deceased over a period of time if he had been alive. Further, - B in the recent decision in _Rajesh_ & _Ors. v. Rajbir Singh[6] ,_ this Court while referring to the case of _Santosh Devi_ (supra) held that in the case of self-employed persons or persons with fixed wages, in case the deceased victim was below 40 years, there must be an addition of 50% to the actual income of the - c deceased while computing future prospects of the deceased. Keeping in view the five dependants of the deceased in the case on hand, 1/5th amount is to be deducted towards personal expenses. Having regard to the age of the deceased as 25, as mentioned in the post mortem report, which age is taken - by both the Tribunal as well as the High Court, and keeping in - 0 mind the life expectancy of the deceased, multiplier of 20 must be applied to the multiplicand for the purpose of quantifying loss of dependancy. Further, following the decision of this Court in _Rajesh v. Rajbir Singh_ (supra), Rs.1,00,000/- must be added under the head of loss of consortium and Rs.1,00,000 under - E the head of loss of care and guidance for minor children. Further, it was held by this Court in the case referred to supra that Rs.25,000/- must be awarded for funeral expenses as this Court has made observations in the case referred to supra that the tribunals have been frugal in awarding the compensation - F under the head 'funeral expenses' and hence, we award Rs.25,000 under the head of funeral expenses to the claimants/ legal representatives. Hence, the total compensation has to be assessed under G the various heads as follows: 5. c2012) 6 sec 421. - H 6. 2013 (6) SCALE 563 ## SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 895 TRANSPORT SERVICE [V. GOPALA GOWDA, J.] |TRANSPORT|TRANSPORTSERVICE[V.GOPALA GOWDA,|GOPALA GOWDA,GOWDA,J.]| |---|---|---| |**SINo.**|**HEADS**|**CALCULATIONS**| |(i)|Income|**Rs.5,000/- p.m.**| |(ii)|50%ofabove to be added as [Rs.5,000+Rs.2,500]<br>future prospects|above to be added as [Rs.5,000+Rs.2,500]<br>**=Rs.7,500/- p.m.**| |(iii)|1 /5thof(ii)to be deducted as [Rs.7,500-Rs.1,500/-]<br>personal expensesofthe<br>deceased|to be deducted as [Rs.7,500-Rs.1,500/-]<br>**=Rs.15,000/- p.m.**| |(iv)|Compensation after multiplier [Rs.6,000/-x12x20]<br>of20 is applied|Compensation after multiplier [Rs.6,000/-x12x20]<br>**=Rs.14,40,000/-**| |(v)|Lossofconsortium|**Rs.1,00,000/-**| |(vi)|Lossofcare and guidance for<br>minor children|care and guidance for<br>**Rs.1,00,000/-**| |(vii)|Funeral and obsequies<br>expenses|**Rs.25,000/-**| |(ix)|Pain, loss and suffering|**Rs.25,000/-**| |(x)|Medical expenses|**Rs.3,000/-**| |(xi)|Attendant charges and<br>transportation expenses|**Rs.3,000/-**| |**TOTALCOMPENSATIONAWARDED**<br>**Rs. 16,96,000/-**||| The amount of Rs.16,96,000/- as calculated above, under the various heads of losses, should be awarded in favour of appellants-claimants, though there is no specific mention G regarding enhancing of compensation as in the appeal it has been basically requested by the appellants to set aside the judgment and order passed by the High Court in the appeal filed by the respondent. We must follow the legal principles of _Nagappa Vs. Gurudaya/ Singh_ & _Ors.[7 ]_ at para 7, wherein with respect to the provisions of the M.V. Act, this Court has H ' [2013] 9 S.C.R. ## 896 SUPREME COURT REPORTS ## A observed as under: 8 c D E "There is no restriction that compensation could be awarded only up to the amount claimed by the claimant. In an appropriate case, where from the evidence brought on record if the Tribunal/court considers that the claimant is entitled to get more compensation than claimed, the Tribunal .may pass such award. The only embargo is - it should be "just" compensation, that is to say, it should be neither arbitrary, fanciful nor unjustifiable from the evidence. This would be clear by reference to the relevant provisions of the MV Act. Section 166 provides that an application for compensation arising out of an accident involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both, could be made (a) by the person who has sustained the injury; or (b) by the owner of the property; or (c) where death has resulted from the accident, by all or any of the legal representatives of the deceased; or (d) by any agent duly authorised by the person injured or all or any of the legal representatives of the deceased, as the case may be." 9. In view of the aforesaid decision of this Court, we are of the view that the legal representatives of the deceased are entitled to the compensation as mentioned under the various F heads in the table as provided above in this judgment even though certain claims were not preferred by them as we are of the view that they are legally and legitimately entitled for the said claims. Accordingly we award the compensation, more than what was claimed by them as it is the statutory duty of the G Tribunal and the appellate court to award just and reasonable compensation to the legal representatives of the deceased to mitigate their hardship and agony as held by this Court in a catena of cases. Therefore, this Court has awarded just and reasonable compensation in favour of the appellants as they H filed application claiming compensation under Section 166 of SANOBANU NAZIRBHAI MIRZA _v._ AHMEDABAD MUNICIPAL 897 TRANSPORT SERVICE [V. GOPALA GOWDA, J.] the M.V. Act. Keeping in view the aforesaid relevant facts and legal evidence on record and in the absence of rebuttal evidence adduced by the respondent, we determine just and reasonable compensation by awarding a total sum of Rs. 16,96,000/- with interest @ 7.5% from the date of filing the claim petition till the date payment is made to the appellants. 10. Accordingly, the appeal is allowed on the above said terms. The respondent is directed to pay the enhanced compensation in this appeal with interest awarded, in favour of the appellants in the following ratio. 75% of the awarded amount shall be paid equally in favour of appellant Nos. 1 to 3 and the remaining 25% must be in the name of appellant Nos. 4 and 5 in equal proportion with proportionate interest. Out of the 75%, each of appellant Nos. 1 to 3 will get 25% and further, 10% of the share of appellant No.2 and 10% of the share of appellant No.3 must be deposited with proportional interest payable to each one of them in any Nationalized Bank of their choice and the rest 15% of each of their award amounts, with proportionate interest to be paid to them. The appellant Nos. 2 and 3 are at liberty to move the Tribunal to release the money so deposited for their welfare and developmental purpose. The above said direction regarding the payment and deposit shall be made within six weeks by depositing it in the Bank and disburse the amount by way of demand draft drawn in the name of each one of them as directed above. There will be no order as to costs. Appeal allowed. R.P. A B C D E F