KISHAN GOPAL Vs LALA .
Bench: G.S. SINGHVI,V. GOPALA GOWDA
Case number: C.A. No.-007137-007137 / 2013
Diary number: 19838 / 2011
Advocates: RAMESHWAR PRASAD GOYAL Vs
M. M. KASHYAP
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REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.7137 OF 2013
(Arising out of SLP(C) No.21139 of 2011)
KISHAN GOPAL & ANR. … APPELLANTS Vs.
LALA & ORS. … RESPONDENTS
J U D G M E N T
V.Gopala Gowda, J.
This appeal has been filed by the appellants
questioning the correctness of the judgment dated 15th
March, 2011 passed in SBCMA No.1283 of 2000 by the
High Court of Judicature at Rajasthan, Jaipur Bench,
affirming the judgment and award dated 25.5.2000 of
the Motor Accident Claims Tribunal, Tonk (for short
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C.A @.S.L.P.(C)No.21139 of 2011 -
'the Tribunal') in MAC case No.7/93, urging various
relevant facts and legal contentions in support of
their claim made in this appeal.
2. Necessary relevant facts are stated hereunder to appreciate the case of the appellants and also to find
out whether the appellants are entitled for the
reliefs as prayed in this appeal.
The appellants are the parents of the deceased
Tikaram, who died in a road accident on 19.07.1992 on
account of rash and negligent driving of the motor
vehicle tractor bearing registration No. RJX 5532 by
the driver, as he was traveling in the trolley which
was turned upside down and he fell down from the
trolley and sustained grievous injuries and succumbed
to the same. The FIR was registered with the Police
Station Uniara, Tonk being case No.121/92. After
investigation in the case, charge-sheet No.81/92
(Ex.2) was filed on 30.07.1992 against the first
respondent, the driver of the offending vehicle and
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its owner the respondent No.2. A site map (Ex.3) was
drawn up, post-mortem of the deceased was conducted
and post-mortem Report was marked as Ex.7. The
claimants, being the appellants-parents, who have lost
their son at the age of 10 years in the motor vehicle
accident and the vehicle was insured with respondent
No.3 - the Insurance Company, preferred claim petition
under Section 140 read with Section 166 of the Motor
Vehicles Act, 1988 (in short the 'M.V. Act') claiming
compensation for Rs.15,63,000/- under the headings of
loss of dependency, mental agony, loss of love and
affection, expenses incurred for carrying dead body
and performing last rites of the deceased son as per
Hindu customs. Further, they have, inter alia, pleaded
that the son would have earned a sum of Rs.2000/- p.m.
after the age of 18 years and he would have lived upto
70 years, therefore, multiplied by 52 for claiming the
financial assistance that he could have rendered to
the parents, the same is worked out to Rs.12,48,000/-.
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3. Notices were served upon respondent Nos.1 and 2, the driver and the owner of the offending vehicle.
Despite service of notice upon them they did not
choose to appear and contest the proceedings and
therefore, they were placed ex-parte in the claim
proceedings before the Tribunal.
4. The Insurance Company appeared and filed its statement of counter denying the various averments of
the claim petition and pleaded that the deceased son
of the appellants was not studying and further
disputed that there was possibility of earning
Rs.2000/- p.m. by the deceased. It was further
pleaded that in the FIR, it is mentioned that deceased
boy was going in the tractor-trolley, fell down from
it on account of rash and negligent driving of the
offending vehicle by the first respondent, the
deceased son sustained grievous injuries and
succumbed to the same. It is further stated that the
driver of the offending vehicle had no right to carry
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passenger in a tractor as it is exclusively required
to be used for the agricultural operation and
therefore, there is contravention of the terms and
conditions of the insurance policy issued in favour of
the owner of the offending vehicle. It is further
stated by the Insurance Company that the trolley was
not registered and the driver of the offending vehicle
did not have the valid licence and hence, it is not
liable to pay compensation as claimed by the
appellants. On the basis of the pleadings, five issues
were framed by the Tribunal for its determination.
5.On behalf of the appellants, Kishan Gopal the father of the deceased was examined as AW-1. He has
deposed in his evidence narrating the manner in
which the accident took place and marked the
documents produced by him viz. FIR, charge-sheet,
Site Map, Notice under Section 174, Insurance cover
note, Mechanical Inspection, post-mortem Report,
Notice under Section 133 and the Registration
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Certificate as Exhs. 1 to 9 respectively. AW-2, who
was cultivating in the adjoining field situated near
the place of accident was examined on behalf of the
appellants and he has spoken about the incident and
deposed that the deceased boy was going in the
tractor-trolley and the first respondent-driver was
driving the tractor and the trolley turned down and
he fell down as the driver drove the tractor with
high speed negligently and he had sustained
grievous injuries and succumbed to the same. The
respondent Insurance Company have not adduced the
rebuttal evidence in support of its pleaded case in
its counter statement. In the counter statement of
the Insurance Company, it is pleaded that the claim
petition filed by the appellants is a fabricated
one in collusion with the driver and the owner of
the offending vehicle. It is not forthcoming from
the judgment of Tribunal that the Insurance Company
has filed the application under Section 170(b) of
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the M.V. Act seeking permission from the Tribunal in
the proceedings to avail the defence available for
the insured of the offending vehicle to contest the
proceedings on merits. As could be seen from the
record, the lawyer of the Insurance Company has
cross-examined the appellants' witnesses before the
Tribunal.
6. The Tribunal, on appreciation of pleadings and legal evidence on record, has answered the issue
No.1, after adverting to the averments of the claim
petition and evidence on record, and held that the
appellants have not succeeded in proving that
Tikaram died because of falling from the tractor-
trolley which was driven rashly and negligently by
the driver. Issue No.2 was also answered holding
that the appellants are not entitled for the
compensation as claimed by them for the reason that
the finding recorded on the issue No.1 is in the
negative.
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7. Aggrieved by the judgment and award of the Tribunal, the appellants filed an appeal before the
High Court questioning the correctness of the findings
recorded on the contentious issue Nos.1 & 2 contending
that rejection of the claim petition by it is not only
erroneous in fact but also suffers from error in law.
Therefore, they have approached the High Court by
filing an appeal for grant of just and reasonable
compensation to them setting aside the judgment and
award of the Tribunal.
8. The learned Judge of the High Court has not exercised his appellate jurisdiction by reappreciating
the pleadings and evidence on record and he had
mechanically concurred with the findings and reasons
recorded by the Tribunal on the contentious issues in
its judgment and dismissed the appeal by passing a
cryptic order without adverting to the pleadings,
legal evidence and legal contentions urged on behalf
of the parties.
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9. The appellants are aggrieved by the impugned judgment and award passed by the High Court and they
have filed this appeal urging various tenable grounds.
As per the Office Report dated 13th December, 2012,
Notice was issued to all the respondents. M/s M.M.
Kashyap and Aftab Ali Khan, Advocates have filed
vakalatnama and memo of appearance on behalf of
respondent Nos. 1 and 3 respectively and also filed
counter affidavits on their behalf. Acknowledgement
card duly signed by respondent No.2 has been received
back in proof of the service of notice upon him but no
one has entered appearance and filed vakalatnama or
memo of appearance on his behalf, therefore, it is
reported that the service of notice on him is
complete.
10. This appeal was listed before this Court on 14.12.2012, when the Court was pleased to pass the
following order:-
“Send for the record of award dated 25.05.2000 passed by Motor Accident Claims
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Tribunal, Tonk, Rajasthan in MACT Case No.7/1993.
The Registry is directed to send requisition to the Presiding Officer of the Tribunal. It is expected that the Presiding Officer will remit the record of the case without any delay.
Put up after the receipt of the record.”
11. This appeal was listed before the Court on 12th
August, 2013. On behalf of the appellants we have
heard Mr.Praveen Kumar Jain, Advocate. None appeared
on behalf of the respondents and this Court granted
leave. Though respondent Nos.1 & 3 have filed their
counter affidavits reiterating the averments made in
the counter statement filed by the Insurance Company
before the Tribunal extracting certain portion from
the FIR and Statements of Evidence of AW-1 – the
father of the deceased and AW-2 - the brother of the
deceased and placed strong reliance upon the
definition of 'trailer' as defined under Section 2(46)
of the M.V. Act, and that the trolley of the tractor
is not registered with the registering Authority. The
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tractor with trolley can be used only for agricultural
purposes but not for carrying passengers which would
be in contravention of the provisions of the M.V. Act
and terms and conditions of the policy issued covering
the Motor Vehicle Tracter. Therefore, it is stated by
the Insurance Company that by allowing the deceased
boy to travel in the trolley of the tractor, the
driver has violated the terms & conditions of the
insurance policy and law and it has also placed
reliance upon the decision of this Court in National Insurance Co.Ltd. v. Baljit Kaur1, in support of its defence wherein this Court has held that the
passengers, who travel in the goods carriage and die
in the accident are not entitled to get any
compensation from the Insurance Company under the
policy.
12. Respondent No.1 has filed counter affidavit, stating the following averments, the relevant
paragraphs are extracted hereunder for our perusal:- 1(2004) 2 SCC 1
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“2...That there is contradiction in statement of Kishan Gopal AW1 and Babu AW2 as Babu stated that Tikaram deceased fell down due to rash and negligent driving of tractor by Lala the Deponent herewith. Whereas Kishan Gopal stated that Tikaram fell down due to rash and negligent driving of tractor by which tractor got turned. 3. That deceased Tikaram was not studying in School and there is no possibility of earning Rs.2000/- per month.
4. That as passenger cannot travel in tractor and death was caused sitting in trolly which is not allowed. The petitioner cannot claim any compensation for the negligence of Tikaram sitting in trolly. Tractor can only be used for agricultural purposes. 5. That driver had no valid licence. 6. That learned Tribunal in its award rightly gave finding that there is contradiction in statement of Kishan Gopal AW1 and Babu AW2 as Kishan Gopal stated that his son died as his son was hit by Lala driving the tractor fast and negligently. Whereas Babu stated that Lala was driving tractor rashly and negligently because of which the tractor got turned down and in the accident Tikaram died. As per the contradictions the case was not proved by the petitioner before the Tribunal. Further, there are contradictions in the statement of witnesses and FIR.
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7. That the Insurance Company did not appear to prove the fact that Lala was not having valid licence to drive tractor.
8. That Insurance Company has to prove that driver has not got valid licence. The finding to this effect given by learned Tribunal is right.
9. That petitioner is not entitled for any compensation.
10. That the above special leave petition may kindly be dismissed.”
13. The ground urged by the appellants in this appeal is that the High Court has erred in concurring
with the finding of fact recorded by the Tribunal in
its judgment on the contentious issue Nos.1 & 2. It is
erroneous for the reason that the same is contrary to
substantive evidence on record in favour of the
appellants and no rebuttal evidence is adduced by the
Insurance Company in the case to accept its defence
pleas and record the finding on the contentious issue
Nos.1 and 2 in its favour. Further, it is urged that
both the Tribunal and the High Court have not taken
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into consideration the relevant indisputed fact that
the criminal case is registered against respondent
No.1-the driver and respondent no.2-the owner of the
vehicle and the charge-sheet is filed against them.
Both AW-1 and AW-2 adduced evidence before the
Tribunal stating that the deceased son of the
appellants was traveling in the trolley of the
tractor, it was turned down on account of rash and
negligent driving of the offending vehicle by
respondent No.1 and he fell down from the trolley and
the tractor tyre ran over the body and he sustained
grievous injuries and succumbed to the same. Further,
it is urged that in the absence of evidence of either
the driver or the owner of the tractor and also in the
absence of rebuttal evidence on behalf of the
Insurance Company in support of its pleadings, the
finding of fact recorded by the Tribunal stating that
the accident did not take place on account of rash and
negligent driving of the offending vehicle by the
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driver is erroneous, as it has failed to consider the
evidence on record in a proper perspective in favour
of the appellants. The finding recorded by the
Tribunal without appreciating the entire evidence of
AW-1 and AW-2 on record, by picking bits and piece of
certain sentences from evidence of the witnesses and
FIR Exh.1 and answered the contentious issue No.1
against the appellants which approach of it is
erroneous, which finding is erroneously affirmed by
the High Court, mechanically without re-appreciating
the evidence and assigning valid and cogent reasons in
support of its conclusion in concurring with the
Tribunal. Further, it is contended that the Tribunal
has since answered the contentious issue No.1 holding
that the death of Tikaram is not due to rash and
negligent driving of the tractor by its driver is not
proved, it has answered the contentious issue No.2
stating that the question of awarding compensation as
claimed by the appellants does not arise and
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consequently, it has rejected the claim petition,
which decision of it is not only erroneouos, but, also
suffers from error in law. Therefore, the learned
counsel for the appellants has requested this Court to
award just and reasonable compensation in favour of
the appellants by allowing this appeal.
14. On behalf of respondent Nos.1 and 3 counter affidavits have been filed but none appeared at the
time of hearing. After hearing the learned counsel for
the appellants, this appeal was reserved for judgment.
On the basis of the factual and rival legal
contentions urged on behalf of the appellants, the
following points are framed for consideration of this
Court:-
I) Whether the findings of fact recorded on
issue Nos.1 & 2 framed by the Tribunal,
which finding is affirmed by the High Court
in the impugned judgment is vitiated on
account of erroneous reasoning?
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II) Whether the appellants are entitled for
compensation, if so to what amount?
III) What award?
15. The first point is required to be answered in favour of the appellants by assigning the following
reasons:-
The deceased son of the appellants died in an
accident, while he was traveling in a trolley of the
tractor bearing No.RJX-5532 on 19.07.1992, the trolley
turned down on account of rash and negligent driving
of the tractor by the driver-respondent No.1. In this
regard, the FIR was registered being FIR No.121/92
with the Uniara Police Station, Tonk. On the basis of
the said FIR, the investigation was made by the
Investigation Officer and charge-sheet No.81/92 was
filed on 30.07.1992 against the driver and the owner
of the offending vehicle for the offences punishable
under Sections 279 and 304-A IPC read with certain
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provisions of the M.V.Act. The FIR and the charge-
sheet were produced in the evidence of the first
appellant-the father of the deceased, who was examined
as AW-1. He has also produced and marked the site map
(Ex.3), action taken under Section 174 (Ex.4),
Insurance cover note Ex.5, Mechanical inspection Ex.6
and post-mortem report Ex.7 as exhibits in the
evidence to substantiate the case of the appellants to
show that accident took place on account of rash and
negligent driving of driver of the tractor. AW-2 -
Babu s/o Kishan Gopal, r/o Bhat-Ka Nada, Tehsil
Uniara, Dist. Tonk, who is an agriculturist by
occupation, is examined on behalf of the appellants,
who has deposed before the Tribunal and he has stated
that the deceased Tikaram was traveling in the trolley
of the tractor, which was driven by the first
respondent in a high speed, rashly and negligently on
account of which the vehicle got turned down and the
tyre of tractor ran over Tikaram on account of which,
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he sustained grievous injuries and succumbed to the
same. The following evidence is elicited from AW-2 in
his cross-examination by the lawyer of the Insurance
Company to the following effect;
“that at the time of accident he was carrying
paddy and he was one field away from the place
of accident and he reached there by running.
Before him, several other persons also reached
the site of the accident and he was examined by
the Investigating Officer and the same is
accepted as true after understanding the same”.
AW-1, the father of the deceased boy has also
spoken about the manner in which accident took place
and his son Tikaram died and had produced the
documentary evidence referred to supra in justification
of the case pleaded by the appellants. In his
evidence, he has stated that Tikaram was sitting in the
trolley of the tractor and the tractor was driven by
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its driver rashly and negligently on account of which
the trolley turned down and his son sustained grievous
injuries and died. The suggestion put to AW-1 in his
cross-examination by the lawyer of the Insurance
Company to the following effect
“this is correct that when accident
took place I was at home. It is the incident of
5 p.m. when my son had gone to graze cattle. My
son was made to sit in the trolley by the
tractor wala.”
The lawyer of the Insurance Company has not challenged
the evidence of AW-2 that the deceased was traveling in
the trolley of the tractor and accident took place on
account of rash and negligent driving of the driver.
Therefore, the fact of accident that took place on
19.07.1992 at 5.00 p.m. is not challenged by the lawyer
of the Insurance Company at all. Apart from the said
fact, no rebuttal evidence adduced by the Insurance
Company before the Tribunal in the claim proceedings.
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It has also not obtained permission from the Tribunal
under Section 170(b) of the M.V. Act to contest the
case on the defence of the insured as the driver and
the insured both remained ex-parte in the proceedings
before the Tribunal and therefore, it could not have
contested the case on merits as held by this Court in
the case of National Insurance Company vs. Nicolletta
Rohtagi reported in 2002(7) SCC 456. It is also not
clear in the counter statement filed by the Insurance
Company before the Tribunal that the claim petition was
filed by the appellants on account of collusion between
them and respondent Nos.1 and 2, the driver and the
owner of the vehicle respectively.
16. In view of the aforesaid facts, the Tribunal should have considered both oral and documentary
evidence referred to supra and appreciated the same in
the proper perspective and recorded the finding on the
contentious issue No. 1 & 2 in the affirmative. But it
has recorded the finding in the negative on the above
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issues by adverting to certain statements of evidence
of AW-1 and referring to certain alleged discrepancies
in the FIR without appreciating entire evidence of AW-
1 and AW-2 on record properly and also not assigned
valid reasons in not accepting their testimony. The
Tribunal should have taken into consideration the
pleadings of the parties and legal evidence on record
in its entirety and held that the accident took place
on 19.07.1992, due to which Tikaram sustained grievous
injuries and succumbed to the same and the case was
registered by the Uniara Police Station under Sections
279 and 304-A, IPC read with Sections 133 and 181 of
the M.V. Act against the first and second respondents.
The registration of FIR and filing of the charge-sheet
against respondent Nos.1 & 2 are not in dispute,
therefore, the Tribunal should have no option but to
accept the entire evidence on record and recorded the
finding on the contentious issue Nos.1 and 2 in favour
of the appellants. Further, it should have held that
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the deceased son died in the tractor accident, driven
by first respondent rashly and negligently, but it has
answered the above contentious issue Nos. 1 & 2 in the
negative and therefore, we have to set aside the said
erroneous findings as the Tribunal has failed to
appreciate the entire evidence both oral and
documentary properly to answer the issue Nos.1 & 2 in
the affirmative. From the perusal of the evidence
elicited in the cross-examination of AW-1 – the father
and AW-2 who reached the spot immediately after the
accident, he had seen the accident and narrated that
the deceased boy had sustained grievous injuries in
the accident and succumbed to the same. The evidence
on record proved that the deceased sustained grievous
injuries in the accident on account of which he died.
The Insurance Company by cross-examining the witness
No. AW-2 has categorically admitted the accident, as
its counsel had put the suggestion to him the relevant
portion of which is extracted above, which portion of
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evidence clearly go to show that in the accident the
deceased died, but the Tribunal has failed to
appreciate the evidence of AW-2 and also the
documentary evidence referred to supra, while
recording the finding of fact on the contentious issue
No.1. The counter affidavit of respondent No.1 filed
in these proceedings cannot be relied upon by this
Court at this stage as he did not choose to appear
before the Tribunal, though he had filed statement of
counter and neither he nor the Insurance Company
adduced rebuttal evidence by obtaining permission from
the Tribunal under Section 170(b) of M.V. Act to avail
the defence of the insured respondent No.2, as the
Insurance Company has limited defence as provided
under Section 149(2) of the M.V. Act. But on the
other hand, by reading the averments from the
paragraphs extracted from the affidavit of respondent
No.1, the driver would support the case of the
appellants.
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17. In our considered view, the Tribunal has ignored certain relevant facts and evidence on record while
considering the case of the appellants. The High Court
though it has got power to re-appreciate the pleadings
and evidence on record, has declined to do so and
mechanically endorsed the findings of fact on
contentious issue Nos.1 & 2 after referring to certain
stray sentences from the evidence of AW-1 and the FIR
and it has erroneously held that there is a
contradiction between the FIR, the claim petition and
the evidence of the appellants. It has concurred with
the finding of fact recorded on the contentious issues
and accepted dismissal of the petition. The concurrent
findings of fact are erroneous and invalid and
therefore, the same call for our interference in this
appeal. The approach of the High Court to the claim of
the appellants is very casual as it did not advert to
the oral and documentary evidence placed on record on
behalf of the appellants, particularly, in the absence
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of rebuttal evidence adduced by the Insurance Company,
hence the same is liable to set aside and accordingly
we set aside the same.
18. Point Nos.2 and 3 are answered together in favour of the appellants for the following reasons:-
The Tribunal having answered the contentious
issue No.1, against the appellants in its judgment the
same is concurred with by the High Court by assigning
erroneous reasons and it has affirmed dismissal of the
claim petition of the appellants holding that the
accident did not take place on account of the rash and
negligent driving of the offending vehicle by the
first respondent and therefore the contentious issue
Nos.1 and 2 are answered in the negative against the
appellants and it has not awarded compensation in
favour of the appellants.
Since we have set aside the findings and reasons
recorded by both the Tribunal and the High Court on
the contentious issue Nos.1 & 2 by recording our
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reasons in the preceding paragraphs of this judgment
and we have answered the point in favour of the
appellants and also examined the claim of the
appellants to award just and reasonable compensation
in favour of the appellants as they have lost their
affectionate 10 year old son. For this purpose, it
would be necessary for us to refer to Second Schedule
under Section 163-A of the M.V. Act, at clause No.6
which refers to notional income for compensation to
those persons who had no income prior to accident. The
relevant portion of clause No.6 states as under:
“6. Notional income for compensation to those who had no income prior to accident:
.............. (a) Non-earning persons – Rs.15,000/- p.a.”
The aforesaid clause of the Second Schedule to
Section 163-A of the M.V. Act, is considered by this
Court in the case of Lata Wadhwa & Ors. v. State of
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Bihar & Ors.2, while examining the tortuous liability of the tort-feasor has examined the criteria for
awarding compensation for death of children in
accident between age group of 10 to 15 years and held
in the above case that the compensation shall be
awarded taking the contribution of the children to the
family at Rs.12,000/- p.a. and multiplier 11 has been
applied taking the age of the father and then under
the conventional heads the compensation of Rs.25,000/-
was awarded. Thus, a total sum of Rs.1,57,000/- was
awarded in that case. After noting the submission made
on behalf of TISCO in the said case that the
compensation determined for the children of all age
groups could be double as in its view the
determination made was grossly inadequate and the
observation was further made that loss of children is
irrecoupable and no amount of money could compensate
the parents. Having regard to the environment from
which the children referred to in that case were 2 (2001) 8 SCC 197
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brought up, their parents being reasonably well-placed
officials of TISCO, it was directed that the
compensation amount for the children between the age
group of 5 to 10 years should be three times. In other
words, it should be Rs.1.5 lakhs to which under the
conventional heads a sum of Rs.50,000/- should be
added and thus total amount in each case would be Rs.2
lakhs. Further, in the case referred to supra it has
observed that in so far as the children of age group
between 10 to 15 years are concerned, they are all
students of Class VI to Class X and are children of
employees of TISCO and one of the children was
employed in the Company in the said case having regard
to the fact the contribution of the deceased child was
taken Rs.12,000/- p.a. appears to be on the lower side
and held that the contribution of such children
should be Rs.24,000/- p.a. In our considered view,
the aforesaid legal principle laid down in Lata Wadhwa's case with all fours is applicable to the
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facts and circumstances of the case in hand having
regard to the fact that the deceased was 10 years'
old, who was assisting the appellants in their
agricultural occupation which is an undisputed fact.
We have also considered the fact that the rupee value
has come down drastically from the year 1994, when the
notional income of the non-earning member prior to the
date of accident was fixed at Rs.15,000/-. Further,
the deceased boy, had he been alive would have
certainly contributed substantially to the family of
the appellants by working hard. In view of the
aforesaid reasons, it would be just and reasonable for
us to take his notional income at Rs.30,000/- and
further taking the young age of the parents, namely
the mother who was about 36 years old, at the time of
accident, by applying the legal principles laid down
in the case of Sarla Verma v. Delhi Transport Corporation3, the multiplier of 15 can be applied to the multiplicand. Thus, 30,000 x 15 = 4,50,000 and
3 (2009) 6 SCC 121
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C.A @.S.L.P.(C)No.21139 of 2011 -
50,000/- under conventional heads towards loss of love
and affection, funeral expenses, last rites as held in
Kerala SRTC v. Susamma Thomas4, which is referred to in Lata Wadhwa's case and the said amount under the conventional heads is awarded even in relation to the
death of children between 10 to 15 years old. In this
case also we award Rs.50,000/- under conventional
heads. In our view, for the aforesaid reasons the said
amount would be fair, just and reasonable compensation
to be awarded in favour of the appellants. The said
amount will carry interest at the rate of 9% p.a. by
applying the law laid down in the case of Municipal Council of Delhi v. Association of Victims of Uphaar Tragedy5, for the reason that the Insurance Company has been contesting the claim of the appellants from
1992-2013 without settling their legitimate claim for
nearly about 21 years, if the Insurance Company had
awarded and paid just and reasonable compensation to
4 (1994) 2 SCC 176 5 (2011) 14 SCC 481
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C.A @.S.L.P.(C)No.21139 of 2011 -
the appellants the same could have been either
invested or kept in the fixed deposit, then the amount
could have earned five times more than what is awarded
today in this appeal. Therefore, awarding 9% interest
on the compensation awarded in favour of the
appellants is legally justified.
19. Accordingly, we pass the following order:
I) The appeal is allowed and the impugned
judgments and awards of both the Tribunal and
High Court are set aside.
II) The awarded amount of Rs.5,00,000/- with
interest at the rate of 9% per annum should be
paid to the appellants from the date of filing
of the application till the date of payment.
III) We direct the Insurance Company to issue
the demand draft drawn on any Nationalized
Bank by apportioning the compensation amount
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C.A @.S.L.P.(C)No.21139 of 2011 -
equally with proportionate interest and send
it to the appellants within six weeks from the
date of receipt of a copy of this judgment.
….........................................J. [G.S. SINGHVI]
...................J
[V. GOPALA GOWDA]
New Delhi, August 26, 2013.
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