B. SANGEETHA & ANR.versusOMR TRAVEL ACCESS PVT. LTD. & ANR.
- Citation
- 2020 INSC 416
- Decided
- 5 June 2020
- Disposal
- Appeal(s) allowed
Holding
The Supreme Court held that the salary certificate showing a monthly income of Rs 23,419 is the correct figure and, applying a multiplier of 17 and a standard addition of Rs 70,000, the compensation must be Rs 45.29 lakhs with interest at 9% per annum.
Summary
The deceased was killed in a motor accident on 21 June 2012. The Motor Accident Claims Tribunal initially awarded compensation based on a monthly income of Rs 9,000, which the Madras High Court enhanced to Rs 33,07,000 by assuming a monthly income of Rs 15,000. The Supreme Court examined the salary certificate for May 2012 showing a net pay of Rs 23,419 and held that this figure must be used to compute the deceased's annual income. Applying the multiplier of 17 and a standard addition of Rs 70,000, following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, the Court increased the compensation to Rs 45,28,981 (rounded to Rs 45.29 lakhs) with interest at 9% per annum from the filing of the claim. The appeal was allowed, and the enhanced amount was ordered to be paid jointly by the vehicle owner and insurer.
Issues considered
- What is the correct monthly income of the deceased to be used for calculating compensation?
- Whether the High Court was justified in discarding the salary certificate showing Rs 23,419 per month?
- What multiplier and standard addition should be applied in determining the quantum of compensation under the Motor Vehicles Act?
Legislation cited
Subjects
Judgment
[2020] 5 S.C.R. 255 255
B. SANGEETHA & ANR. A
v.
OMR TRAVEL ACCESS PVT. LTD. & ANR.
(Civil Appeal No. 2511 of 2020)
JUNE 05, 2020 B
[DR. DHANANJAYA Y CHANDRACHUD,
HEMANT GUPTA AND AJAY RASTOGI, JJ.]
Compensation:
Motor Accident – claim for compensation – Tribunal taking C
the monthly income of deceased as Rs. 9000/- p.m. awarded
compensation of Rs. 20,11,000/- – High Court in appeal enhanced
the compensation to Rs. 33,07,000/-, by taking the monthly income
of deceased as Rs. 15000/- p.m.– Appeal to Supreme Court – Held:
The salary certificate of the deceased indicated that his monthly
D
salary was Rs. 23,419/- p.m.– Therefore, compensation awarded
by High Court is enhanced to Rs. 45,29,000/-, with interest at 9%
p.a. from the date of filing of claim petition until payment – Appeal
allowed – Motor Vehicles Act, 1988.
National Insurance Company Limited v. Pranay Sethi
(2017) 16 SCC 680 : [2017] 13 SCR 100 – relied on. E
Case Law Reference
[2017] 13 SCR 100 relied on Para 8
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2511
of 2020. F
From the Judgment and Order dated 27.06.2017 of the High
Court of Judicature at Madras in CMA No. 2667/2015.
T. Harish Kumar, Navneet Dugar, Advs. for the Appellants.
Smarhar Singh, Ashutosh Thakur, A. K. Soni, Rajeev G
Maheshwaranand Roy, P. Srinivasan, Adv. for the Respondents.
H
255
256 SUPREME COURT REPORTS [2020] 5 S.C.R.
A The following Order of the Court was passed :
ORDER
1. Leave granted.
2. This appeal arises from a judgment and order dated 27 June
B 2017 of a Division Bench of the High Court of Judicature at Madras.
The High Court in an appeal against an award of the Motor Accident
Claims Tribunal1, enhanced the compensation payable to the appellants
from Rs 20,11,000 to Rs 33,07,000. The amount was directed to be
apportioned between the appellants, who are the wife and mother of
the deceased. The liability has been fastened jointly and severally on
C the owner of the offending vehicle and the insurer.
3. The issue in the present appeal pertains only to the quantum
of compensation.
4. The Tribunal proceeded on the basis that the monthly salary
D of the deceased proximate to the date of the accident (which took place
on 21 June 2012) was Rs 9,000.The High Court determined the income
at Rs 15,000 per month. Learned Counsel for the appellants submits
that in the face of ample evidence produced by the appellants, the High
Court was not justified in discarding the salary certificate for May 2012.
5. The deceased was a BSc in computers and was employed in
E
a private company. The spouse of the deceased, who deposed in support
of the claim for compensation, produced the salary certificates of the
deceased and bank statements. The High Court has adverted to the
salary certificates and the bank statements, which were relied upon by
the appellants, in the course of its judgment. Exhibit P-8, which was a
F salary certificate for the month of May 2012 indicated that the salary
of the deceased was Rs 23,419. However, the High Court held that
the salary, as reflected in the said certificate, should not be accepted
having regard to the salary certificates for the anterior period which
had also been produced on the record, which showed a lower salary.
G 6. The Tribunal held that though the deceased had been employed
with the Sauter Race Technologies Private Limited, the salary certificate
that was produced was of Carrier Race Technologies Limited. This
finding has been stressed upon by the learned counsel appearing on
1
H “Tribunal”
B. SANGEETHA & ANR. v. 257
OMR TRAVEL ACCESS PVT. LTD. & ANR.
behalf of the insurer. On this aspect of the matter, the cross-examination A
of the claimant indicates that no effort was made by the insurer to
discredit the salary certificate which was produced by the spouse of
the deceased. In the course of her deposition, she explained that Carrier
Race Technologies Limited was a sister concern. Salary certificates
and bank statements were produced.
B
7. Since the bank statements and the certificates were duly
proved and marked, there was no reason or justification for discarding
the salary certificate for the month of May 2012, which indicates that
the net pay of the deceased was Rs 23,419. This is for the period
proximate to the accident. The compensation awarded by the High Court
must hence be enhanced in accordance with the legal principles which C
emerge from the decisions of this court. The compensation payable to
the appellants is recomputed as follows:
(i) Annual Income computed at the rate of
Rs 23,419 per month 2,81,028
D
(ii) Less one third towards personal expenses 93,676
(iii) Net income (I minus ii) 1,87,352
(iv) Add future prospects of 40% 74,941
(v) Total income 2,62,293
E
(vi) Total compensation (multiplier of 17) 44,58,981
(vii) Add standard additions 70,000
(viii) Total compensation payable 45,28,981
8. In granting future prospects, the standard addition of Rs 70,000 F
and adopting a multiplier of 17, we are guided by the judgment of the
Constitution Bench in National Insurance Company Limited v
Pranay Sethi2. There is no dispute in regard to the correctness of the
multiplier applied by the High Court.
9. In view of the above discussion, we direct that the appellants G
shall be entitled to a total compensation of Rs 45,28,981 rounded off to
Rs 45.29 lakhs on which interest shall be payable at nine per cent per
annum from the date of filing of the claim petition until payment.
2
(2017) 16 SCC 680 H
258 SUPREME COURT REPORTS [2020] 5 S.C.R.
A 10. The enhanced amount shall be paid over in equal proportion
to the appellants, together with accrued interest, if any.
11. The appeal stands allowed in the above terms. No order as
to costs.
12. Pending application, if any, stands disposed of.
B
Kalpana K. Tripathy Appeal allowed.
C
D
E
F
G
H
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