NATIONAL INSURANCE CO. LTD.versusSHYAM SINGH AND ORS.
- Citation
- 2011 INSC 440
- Decided
- 4 July 2011
- Disposal
- Appeal(s) allowed
- Bench
- MUKUNDAKAM SHARMA
Holding
The multiplier is to be determined by the higher of the age of the deceased or the claimant, but when the claimants are aged parents, their age governs; therefore the Tribunal’s multiplier was correct and the High Court’s enhancement was erroneous.
Summary
The parents of a 19‑year‑old mechanical fitter who died in a motor accident claimed compensation for loss of dependency. The Motor Accident Claims Tribunal awarded Rs 1,72,000 using a multiplier of 9 based on the average age of the parents (55‑56 years). The High Court enhanced the multiplier to 18, relying on the deceased’s age, and increased the award to Rs 3,39,000. On appeal, the Supreme Court held that the multiplier must be determined by the higher of the age of the deceased or the claimant, but where the claimants are aged parents, their age governs, as articulated in Vijay Shankar Shinde. Consequently, the Tribunal’s multiplier (8/9) was deemed correct and the High Court’s enhancement was set aside. The appeal was allowed and the original award restored.
Issues considered
- Whether the High Court correctly enhanced the multiplier by applying the age of the deceased rather than the age of the claimants (the parents).
- How the multiplier should be determined under the Motor Vehicles Act, 1988, when a young unmarried deceased leaves behind aged parents.
Legislation cited
- Indian Penal Code, 1860s. 229, s. 304-A
- Motor Vehicles Act, 1988s. 163A
Subjects
Judgment
(2011) 7 S.C.R. 810
A NATIONAL INSURANCE CO. LTD.
v.
SHYAM SINGH AND ORS.
(Civil Appeal No. 4921 of 2011)
JULY 4, 2011
8
[DR. MUKUNDAKAM SHARMA AND
ANIL R. DAVE, JJ.]
Motor Vehicles Act, 1988 - s. 163A; Second Schedule -
C Motor accident - Qeath of 19 year old unmarried young man
- Compensati9n,..claim by his parents - Determination of
multiplier - ffeld: Choice of multiplier is determined by the
age of the deceased or claimants whichever is higher - In this
case, a young unmarried man died in an accident leaving
D behind aged parents :- Multiplier applied keeping in view the
average age of the deceased's parents.
Respondent No. 3 and 4 are parents of a 19 year old
boy who died in a motor accident. They filed claim petition
stating that the deceased was a young man of robust
E health and was working as mechanical fitter in an
Engineering Prism Cement Factory on a salary of Rs.
4500/- per month and in total was getting Rs. 6000/- per
month inclusive of salary and over-time allowance and
was supporting his parents financially; and that after his
F death, Respondents No. 3 and 4 were rendered without
any financial support and deprived of the association and
pleasure of having a family and grand children in future.
The Motor Accident Claims Tribunal came to a finding
G that the deceased was earning Rs. 3000/- per month and
deducted 50% therefrom towards personal expenses, as
he was a bachelor. Considering the age of the parents
which was 56 and 55 years, it applied the Multiplier of 9,
and awarded a total compensation of Rs. 1,72,000/- (Rs.
H 810
NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 811
AND ORS.
1,62,000/- towards the loss of dependency+ Rs. 10,000/- A
towards conventional heads) alongwith 6% interest p.a.
from the date of claim petition. Being aggrieved,
Respondent 'No. 3 and 4 preferred miscellaneous appeal
before the High Court for enhancement of amount of
compensation. The High Co~rt enhanced the multiplier B
to 18 instead of 9 and granted expenses to the tune of
Rs. 15000/- under conventional heads. Accordingly, the
High Court enhanced the.amount of compensation from
Rs. 1,72,000/- to Rs. 3,39,000/-.
The· question which· arose for consideration in the C
instant appeal was whether the High Court correctly
enhanced the multiplier keeping in view the age of the
deceased which was 19 years.
Allowing the appeal, the Court D
HELD: The assessment of damages and
compensation takes into account a number of
imponderables. This Court in the case of Vijay Shankar
Shinde dealt with the law with regard to determination of E
the multiplier in a similar situation as in the present case.
The Court held that the choice of multiplier is determined
by the age of the deceased or claimants whichever is
higher. It held that the selection of multiplier cannot in all
cases be solely dependent on the age of the deceased.
If a young man is killed iri the accident leaving behind F
aged parents who may not survive long enough to match
with a high multiplier provided by the 2nd Schedule, then
the Court has to offset such high multiplier and balance
the same wit~ the short life expectancy of the claimants.
The dictum laid down in *Vijay Shankar Shinde is G
applicable to the present case. Accordingly, it is held that
the Tribunal had. rightfully applied the multiplier of 8 by
taking the average of the parents of the deceased who
were 55 and 56 years .. The award passed by the Tribunal
is restored. [Paras 8, 9, 10, 11] [814-G; 815-C-H; 816-A-H] H
812 SUPREME COURT REPORTS [2011] 7 S.C.R.
A General Manager, Kera/a State Road Transport
Corporation, Trivandrum v. Mrs. Susamma Thomas and Ors.
AIR 1994 SC 1631 and *V1fay Shankar Shinde and Ors. v.
State of Maharashtra (2008) 2 SCC 670 - relied on.
Sar/a Verma (Smt.) and Others v. Delhi Transport
8
Corporation andAnother (2009) 6 SCC 121 - referred to.
Case Law Reference:
(2009) 6 sec 121 referred to Para 5, 6
c AIR 1994 SC 1631 relied on Para 8
(2008) 2 sec 670 relied on Para 9, 10 .
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
4921 Of 2011. .
D
From the Judgment & Order dated 15.3.2010 of the High
Court of Madhya Pradesh Principal Seat at Jabalpur in Misc.
Appeal No. 4867 of 2009.
E Ramesh Chandra Mishra, Dr. Meera Agarwal for the
Appellant.
Dr. Kailash Chand for the Respondents.
The Judgment of the Court was deliver~d by
F
DR. MUKUNDAKAM SHARMA, J.1. Leave granted.
2. This appeal is directed against the judgment and order
dated 15.03.2010 passed by the High Court of Madhya
Pradesh at Jabalpur in Miscellaneous Appeal No. 4867 of
G 2009, whereby the High Court had partially allowed the appeal
filed by the Respondent No. 3 and 4 herein, against the award
dated 28.08.2009 passed by the Second Additional Motor
Accident Claims Tribunal, Satna, Madhya Pradesh and
enhanced the compensation awarded by the Tribunal.
H
NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 813
AND ORS. [DR. MUKUNDAKAM SHARMA, J.]
3. The factual matrix of the case is that Respondent No. A
3 and 4 are parents of one Yogendra Kumar Pathak, who was
19 years of age and on 01.11.2007 while on his way to his
village Kor Gaon, he alongwith his sister were travelling_in jeep
No. MP 19-A 930. The said jeep wasbeing driven by
Respondent No. 1 and met with an accident near Dhal Factory B
General Road due to rash and negligent driving by the
Respondent No. 1which resulted in his death on the spot. FIR
was lodged at Police Station, Civil Lines, Satna against the
driver under Sections 229 and 304-A of the Indian Penal Code.
His dead body was taken to his village from the hospital on c
payment of Rs. 800/- and·amount of Rs. 25000/- was spent on
cremation.
4. It was stated in the claim petition that before his death,
the deceased was a young man of robust health and was
working as mechanical fitter in Priya Engineering Prism D
Cement Factory on the salary of Rs. 4500/- per month and in
total was getting Rs. 6000/- a month inclusive of salary and over
time allowance and was supporting his parents financially. After
his death, Respondents No. 3 and 4 have been rendered
without any financial support and have been deprived of the E
association and pleasure of having a family and grand children
in future.
5. The M.A.C.T., Satna, came to a finding that the
deceased was earning Rs. 3000/- per month and deducted 50
% therefrom towards personal expenses, as he was a bachelor. F
Considering the age of the parents which was 56 and 55 years,
applied the Multiplier of 9, and awarded a total compensation
of Rs. 1, 72,000/- (Rs. 1,62,000/- towards the loss of
dependency+ Rs. 10,000/~ towards conventional heads) along
with 6 % interest per annum from the date of claim petition. G
Being aggrieved, the Respondent No. 3 and 4 preferred
miscellaneous appear No. 4867 of 2009 before the High Court
for enhancement of amount of compensation stating that the
income of the deceased was Rs. 4500/- and not Rs. 3000/- as
determined by the Tribunal, and a multiplier of 16 instead of 9 H
814 SUPREME COURT REPORTS [2011] 7 S.C.R.
A was supposed to be applied. The High Court relying on the
judgment of this Court in the case of Sar/a Verma (Smt.) and
Others v. Delhi Transport Corporation and Another (2009) 6
sec 121, enhanced the multiplier to 18 instead of 9 and
granted expenses to the tune of Rs. 15000/- under conventional
B heads. Accordingly, the High Court enhanced the amount of
compensation from Rs. 1,72,000/- to Rs. 3,39,000/-
6. The learned counsel appearing for the appellant
submitted that the High Court had failed to correctly apply the
ratio laid in the case of Sar/a Verma case (supra.). It was
C further contended that this Court has repeatedly held that in
case where an unmarried young man dies, the average age of
the parents will be taken for determining the multiplier and not
the age of the deceased. In the aforesaid case, it has been
clearly stated that for the age group of 56-60 years the
D multiplier should be 8, as has been correctly applied by the
Tribunal by taking the average age of the Respondents 3 and
4 who are 55 and 56 years of age. It was further submitted that
assuming, though not admitting, even if the age of the deceased
is to be considered for determining the multiplier, the correct
E multiplier should have been 16 instead of 18, which is
applicable to the age group between 15 to 20 years.
7. On the other hand, the learned counsel appearing for
the Respondents No. 3 and 4 supported the impugned
judgment and submitted that the High Court correctly enhanced
F the multiplier keeping in view the age of the deceased which
was 19 years.
8. The assessment of damages and compensation takes
into account a number of imponderables. This has been held
by this court in the case of General Manager, Kera/a State
G Road Transport Corporation, Trivandrum v. Mrs. Susamma
Thomas and Ors. (AIR 1994 SC 1631) as: -
"The assessment of damages to compensate the
dependents is beset with difficulties because from the
nature of things, it has to take into account many
H imponderables, e.g. the life expectancy of the deceased
NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 815
AND ORS. [DR. MUKUNDAKAM SHARMA, J.]
and the dependents, the amount that the deceased would A
have earned during the remainder of hi~ life, the amount
that he would have contributed to the dependents during
that period, th_e chances that the deceased may not have
lived or the dependents may not live up to the estimated
remaining period of their life expectancy, the chances that B
the deceased might have got better employment or income
or might have lost his employment or income together etc."
9. This Court in the case of Vijay Shankar Shinde and Ors.
v. State of Maharashtra (2008) 2 SCC 670, after referring to
the earlier judgments of this Court, in detail, dealt with the law C
with regard to determination of the multiplier in a similar
situation as in the present case. The said findings of this Court
are as under:
"6. We have given anxious consideration to these
contentions and are of the opinion that the same are D
devoid of any merits. Considering the law laid down in New
India Assurance Co. Ltd. v. Charlie AIR 2005 SC 2157,
it is clear that the choice of multiplier is determined by the
age of the deceased or claimants whichever is higher.
Admittedly, the age of the father was 55 years. The E
question of mother's age never cropped up because that
was not the contention raised even before the Triat Court
or before us. Taking the age to be 55 years, in our opinion,
the courts below have not committed any illegality in
applying the multiplier of 8 since the father was running 56th F
year of his life.
7. The learned Counsel relying on the 2nd Schedule of the
Act contended that. the deceased being about 16. or 11
years of age, a multiplier of 16 or 17 should have been
granted. It is undoubtedly true that Section 1€3A was G
brought on the Statute book to shorten the period of
litigation. The burden to·prove the·negligence or fault on
the part ofdriver and other allied burdens u/s 140 or 166
were really cumbersome and time consuming. Therefore
as a part of social justice, a system was introduced via H
816 SUPREME COURT REPORTS [2011] 7 S.C.R.
A Section 163A wherein such burden was avoided and
thereby a speedy remedy was provided. The relief u/s
163-A has been held not to be additional but alternate. The
Schedule provided has been threadbare discussed in
various pronouncements including Deepal Girishbhai Soni
B v. United India Insurance Co. Ltd. AIR 2004 SC 2107.
2nd Schedule is to be used not only referring to age of
victim but also other factors relevant therefore.
Complicated questions of facts and law arising in accident
cases cannot be answered all times by relying on
c · mathematical equations. In fact in U.P. State Road
Transport Corporation v. Trilok Chandra (1996) 4 SCC
362, Ahmedi, J. (As the Chief Justice then was) has
pointed out the shortcomings in the said Schedule and has
held that the Schedule can only be used as a guide. It was
also held that the selection of multiplier cannot in all cases
D
be solely dependent on the age of the deceased. If a
young man is killed in the accident leaving behind aged
parents who may not survive long enough to match with a
high multiplier provided by the 2nd Schedule, then the
Court has to offset such high multiplier and balance the
E same with the short life expectancy of the claimants. That
precisely has happened in this case. Age of the parents
was held as a relevant factor in case of minor's death in
recent decision in Oriental Insurance Co. Ltd. v. Syed
Ibrahim and Ors. AIR 2008 SC 103. In our considered
F opinion, the Courts below rightly struck the said balance."
10. In our view, the dictum laid down in Vijay Shankar
Shinde (supra) is applicable to the present case on all fours.
Accordingly, we hold that the Tribunal had rightfully applied the
G multiplier of 8 by taking the average of the parents of the
deceased who were 55 and 56 years.
11. Thus, the present appeal is allowed to the aforesaid
extent and the award passed by the Tribunal is restored. No
costs.
H B.B.B. Appeal allowed.
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