{"id":89265,"date":"2010-01-28T00:00:00","date_gmt":"2010-01-27T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/u-p-state-road-transport-vs-smt-naima-rehman-others-on-28-january-2010"},"modified":"2017-04-09T20:28:34","modified_gmt":"2017-04-09T14:58:34","slug":"u-p-state-road-transport-vs-smt-naima-rehman-others-on-28-january-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/u-p-state-road-transport-vs-smt-naima-rehman-others-on-28-january-2010","title":{"rendered":"U.P. State Road Transport &#8230; vs Smt. Naima Rehman &amp; Others on 28 January, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Allahabad High Court<\/div>\n<div class=\"doc_title\">U.P. State Road Transport &#8230; vs Smt. Naima Rehman &amp; Others on 28 January, 2010<\/div>\n<pre>Court No. - 34\n\nCase :- FIRST APPEAL FROM ORDER No. - 2211 of 2006\n\nPetitioner :- U.P. State Road Transport Corporation Thru' Regional\nManager\nRespondent :- Smt. Naima Rehman &amp; Others\nPetitioner Counsel :- Avanish Mishra\nRespondent Counsel :- A.L. Jaiswal,Sharve Singh\n\nHon'ble Prakash Chandra Verma,J.\n<\/pre>\n<p>Hon&#8217;ble Ram Autar Singh,J.\n<\/p>\n<p>A.F.R. Court No.34<\/p>\n<p>F.A.F. O. No. 2211 of 2006<br \/>\nU.P. State Road Transport Corporation,<br \/>\nthrough its Regional Manager Moradabad<br \/>\nRegional,     Moradabad      &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;Defendant-<br \/>\nAppellant<br \/>\nVs.\n<\/p>\n<p>Smt. Naima Rehman and others &#8212;&#8212;&#8212;&#8212;&#8212;Claimant-<br \/>\nRespondents<\/p>\n<p>Hon. Prakash Chandra Verma, J.\n<\/p>\n<p>Hon. Ram Autar Singh, J.\n<\/p>\n<p>(Delivered by Hon. R.A.Singh,J.\n<\/p>\n<p>1. This First Appeal arises out of judgment and award dated<br \/>\n27.5.2006 passed by Shri P.K. Mishra, learned Additional<br \/>\nDistrict Judge\/Motor Accident Claims Tribunal (hereinafter<br \/>\n&#8216;The Tribunal&#8217;), Rampur in M.A.C.P. No. 141 of 2004<br \/>\nwhereunder the claim of Rs.12,5000\/- as compensation<br \/>\nalongwith 4 % per annum interest from the date of filing of<br \/>\nthe claim petition has been allowed.\n<\/p>\n<p>2. Being aggrieved thereby the U.P.S.R.T.C. Appellant<br \/>\n(hereinafter the appellant) has preferred this appeal. The facts<br \/>\nof the case in a narrow compass are recapitulated herein<br \/>\nbelow:\n<\/p>\n<p> 3. The petition was moved by the claimant-respondents<br \/>\nagainst appellant and two others under section 166 of Motor<br \/>\nVehicles Act, 1988, with this allegation that on 1.7.2004<br \/>\nKhalid Hussain, husband of the claimant Smt. Naima<br \/>\nRehman alongwith his brother Kamran Ahmad was coming<br \/>\nfrom Dhamora to Rampur by Motorcycle No.U.P.22-C\/0791<br \/>\nwith moderate speed on left side of the road and when he<br \/>\nreached in front of Wings &amp; Nest Hotel at about 11.30 A.M.,<br \/>\nthe offending bus no. U.P.53L\/9942 being driven by its driver<br \/>\nrashly and negligently came from opposite direction and its<br \/>\ndriver without showing any indicator turned the said bus with<br \/>\nthe same fast speed on wrong direction towards the said Hotel<br \/>\nand collided with motorcycle, in which Khalid Hussain,<br \/>\ndriver of the motorcycle sustained grievous injuries and died<br \/>\nin District Hospital, Rampur due to his injuries, but pillion<br \/>\nrider Kamran Ahmad had narrow escape.\n<\/p>\n<p>4. It has further been alleged that deceased Khalid Hussain<br \/>\nduring his life time was working as A.G.-1(d) in Food<br \/>\nCorporation of India and drawing Rs.15,512\/- per month as<br \/>\nsalary, out of which he used to maintain his family and due to<br \/>\nhis sudden death all the petitioners were deprived of the said<br \/>\nincome of the deceased. The petitioner no.1 Smt. Naima<br \/>\nRehman, wife of the deceased and petitioners no.2 and 3,<br \/>\nbeing son and daughter claimed themselves to be his legal<br \/>\nheirs and filed claim petition for a compensation of Rs.50<br \/>\nlacs.\n<\/p>\n<p>5. The U.P.S.R.T.C. opposite party no.1 filed its written<br \/>\nstatement alleging that on 1.7.2004 its bus no.U.P.53L\/9942<br \/>\nwas going from Delhi to Siddharth Nagar and its driver was<br \/>\ndriving the same with moderate speed and when it reached<br \/>\nnear Wings &amp; Nest Hotel, Rampur at about 11 a.m., its driver<br \/>\nafter giving signal turned the said bus towards the said hotel<br \/>\nand when it crossed half of pitch road, all of sudden a<br \/>\nmotorcycle being driven by its driver negligently came from<br \/>\nopposite direction, lost control over the same and collided<br \/>\nwith the bus, in which the driver of the motorcycle sustained<br \/>\ninjuries and died in District Hospital, Rampur and thus the<br \/>\naccident took place due to negligence of deceased.\n<\/p>\n<p>6. The opposite party no.2-United India Insurance Company<br \/>\nin its written statement expressed its ignorance about fact<br \/>\nrelating to accident in question. The Insurance Company also<br \/>\nexpressed his ignorance about the age, income and profession<br \/>\n of the deceased Khalid Hussain. It has been alleged by<br \/>\nopposite party no.2 that the said motorcycle was not insured<br \/>\nwith the Insurance Company and it was unnecessarily<br \/>\nimpleaded in the petition.\n<\/p>\n<p>7. The opposite party no.3 claiming himself to be the owner<br \/>\nof the said motorcycle no. U.P.22-C\/0791 filed his written<br \/>\nstatement alleging that the said motorcycle no. U.P.22-<br \/>\nC\/0791 was insured with opposite party no.2 on the date of<br \/>\nthe accident and the deceased was having effective and valid<br \/>\ndriving licence at that time. Admitting the allegations made in<br \/>\nthe claim petition opposite party no.3 alleged that at the time<br \/>\nof accident motorcycle no. U.P.22-C\/0791 of opposite party<br \/>\nno.3 was being driven by deceased with moderate speed and<br \/>\nwhen he reached in front of Wings &amp; Nest Hotel, bus no.<br \/>\nU.P.53L\/9942 being driven by its driver negligently and<br \/>\nrashly, came from opposite direction and all of sudden, driver<br \/>\nof the said bus turned the same towards the said hotel on<br \/>\nwrong direction and collided with the motorcycle, as a result<br \/>\nof which Khalid Hussain sustained grievous injuries and he<br \/>\nsuccumbed to same.\n<\/p>\n<p>8. The learned tribunal framed following six issues on the<br \/>\nbasis of pleading of parties.\n<\/p>\n<p>1. Whether the accident took place due to rash and negligent<br \/>\ndriving of bus no. U.P.53L\/9942 on 1.7.2004 at 11.30 a.m. in<br \/>\nfront of Wings &amp; Nest Hotel within the circle of P.S. Civil<br \/>\nLines, District Rampur, in which driver of the above bus<br \/>\ncollided the same with motorcycle no. U.P.22-C\/0791 being<br \/>\ndriven by Khalid Hussain from Dhamora to Rampur in which<br \/>\nKhalid Hussain sustained injuries and ultimately died due to<br \/>\nhis injuries<br \/>\nor<br \/>\nWhether the accident took place due to motorcycle being<br \/>\ndriven by Khalid Hussain rashly and negligently, in which<br \/>\nKhalid Hussain succumbed to his injuries?\n<\/p>\n<p>2. Whether the deceased Khalid Hussain driver of motorcycle<br \/>\nwas having valid and effective driving licence at the time of<br \/>\nthe accident?\n<\/p>\n<p>3. Whether motorcycle involved in the accident was insured<br \/>\nwith opposite party no.2 at the time of the accident?\n<\/p>\n<p>4. Whether the petition is barred by section 64 (V)(B) of<br \/>\nInsurance Act?\n<\/p>\n<p> 5. Whether the petition is barred by sections 147\/149 of<br \/>\nMotor Vehicle Act?\n<\/p>\n<p>6. Whether the petitioners are entitled to get any amount of<br \/>\ncompensation? If so, To what amount and from whom?\n<\/p>\n<p>9. On behalf of petitioners, P.W.1 Kamran Ahmad was<br \/>\nexamined to prove the factum of accident as alleged in<br \/>\npetition. Opposite party no.1 examined\/ D.W.1<br \/>\nPanchmeshwar Tripathi in defence. The petitioners also filed<br \/>\ndocumentary evidence in support of allegations made in<br \/>\npetition. The learned Tribunal decided issue no.1 in favour of<br \/>\nthe petitioners holding that the accident took place due to rash<br \/>\nand negligent driving of the driver of bus no. U.P.53L\/9942,<br \/>\nwho turned the said bus without giving any signal\/indicator<br \/>\ntowards Wings &amp; Nest Hotel on wrong direction on 1.7.2004<br \/>\nat 11.30 a.m. and collided the same with motorcycle no.<br \/>\nU.P.22-C\/0791, in which Khalid Hussain sustained grievous<br \/>\ninjuries and ultimately he died in District Hospital, Rampur,<br \/>\nduring his treatment. The learned tribunal decided issues no.2<br \/>\nand 3 in negative against the opposite parties. No argument<br \/>\nwas advanced on issues no.4 and 5 and thus these issues were<br \/>\ndecided in negative. The learned tribunal decided issue no.6<br \/>\nin favour of the petitioners and awarded Rs.12,50,000\/- as<br \/>\ncompensation on account of death of Khalid Hussain in the<br \/>\nsaid accident giving reasons therein.\n<\/p>\n<p>10. The opposite party no.1 has challenged said judgment and<br \/>\naward contending that this is a case of head-on-collusion but<br \/>\nthe Motor Accident Claims Tribunal wrongly fastened the<br \/>\nliability upon the appellant.\n<\/p>\n<p>11. We have considered submissions made on behalf of<br \/>\nparties and carefully examined the evidence on record.\n<\/p>\n<p>12. The learned counsel for the appellant has contended that<br \/>\nthe offending bus was being driven with moderate speed and<br \/>\nwas taken turn after giving signal, but the learned tribunal<br \/>\nrecorded the findings otherwise that the bus was being driven<br \/>\nrashly and negligently. The bus could not be driven with fast<br \/>\nspeed while taking turn otherwise it could be turned turtle and<br \/>\nthus the findings recorded by the learned tribunal was not<br \/>\nbased upon cogent reasons and it completely ignored the<br \/>\npossibility of contributory negligence. It has further been<br \/>\ncontended that the deceased was not having a valid driving<br \/>\nlicence and he was not a skilled driver, at the time of the<br \/>\naccident. The learned tribunal calculated the amount of<br \/>\n compensation on the basis of gross salary of Rs.14,500\/-,<br \/>\nwhereas the deceased was getting only Rs.12,811\/- per month<br \/>\nafter mandatory deductions.\n<\/p>\n<p>13. The learned counsel for respondents repelling the above<br \/>\ncontentions has contended that the learned tribunal rightly<br \/>\nheld the driver of the bus of appellant liable for causing<br \/>\naccident because on the basis of the evidence the driver of the<br \/>\nsaid bus turned it towards Wings &amp; Nest Hotel on wrong<br \/>\ndirection without giving signal and collided the same with<br \/>\nmotorcycle of the deceased coming from opposite direction.\n<\/p>\n<p>14. A perusal of the record would go to show that the learned<br \/>\ntribunal has rightly placed reliance on the testimony of P.W.1<br \/>\nKamran Ahmad, who was a pillion rider of the motorcycle at<br \/>\nthe time of the accident and he witnessed the entire scene of<br \/>\nthe incident. He categorically stated that he alongwith his<br \/>\nbrother Khalid Hussain was coming from Dhamora to<br \/>\nRampur on 1.7.2004 by motorcycle no. U.P.22-C\/0791 and<br \/>\nwhen he alongwith him reached at about 11.30 a.m. in front<br \/>\nof Wings &amp; Nest Hotel, the offending bus no. U.P.53L\/9942<br \/>\nbeing driven in rash and negligent manner came from<br \/>\nopposite direction i.e. Rampur side and its driver without<br \/>\ngiving signal turned the said bus towards the said hotel and<br \/>\ncollided it with their motorcycle in which his brother Khalid<br \/>\nHussain sustained grievous injuries and ultimately he died in<br \/>\nDistrict Hospital, Rampur and the driver of the said bus<br \/>\neluded his capture. He also stated that he lodged an F.I.R. at<br \/>\nP.S. Shahzad Nagar about the said accident.\n<\/p>\n<p>15. Nothing was elicited in his cross-examination which<br \/>\ncould make his testimony unreliable. This witness in his<br \/>\ncross-examination further stated that the motorcycle was<br \/>\nbeing driven by deceased Khalid Hussain with moderate<br \/>\nspeed at the time of the accident but the driver of offending<br \/>\nbus turned it towards his right hand i.e. Wings &amp; Nest Hotel<br \/>\nwithout giving signal and due to rash and negligent driving of<br \/>\nthe bus the said accident took place. The learned tribunal<br \/>\nrightly believed the testimony of P.W.1 Kamran Ahmad and<br \/>\nrejected the testimony of D.W.1 Panchmeshwar Tripathi,<br \/>\nconductor of the said bus, on the ground that he admitted in<br \/>\nhis cross-examination that he could not see actual scene of<br \/>\noccurrence from his seat. The learned tribunal rightly<br \/>\n recorded its findings on the basis of the evidence of D.W.1<br \/>\nPanchmeshwar Tripathi and circumstances attending to the<br \/>\ncase that the bus was being driven with fast speed at the time<br \/>\nof the accident and driver of the bus turned it with same<br \/>\nspeed. Issue no. 1 has been rightly decided in favour of the<br \/>\npetitioners with which no interference is required.\n<\/p>\n<p>16. The learned tribunal has rightly held that non production<br \/>\nof driving licence of the deceased Khalid Hussain would not<br \/>\naffect the rights of the petitioners in getting the<br \/>\ncompensation. He further held that no insurance policy<br \/>\ncertificate could be filed on behalf of the petitioners, as a<br \/>\nresult of which presumption would be drawn that there was<br \/>\nno insurance policy of the motorcycle at the time of the<br \/>\naccident and at the most liability of the Insurance Company<br \/>\ncould be held in respect of third party.\n<\/p>\n<p>17. No liability was fastened on opposite party no.2 by the<br \/>\nlearned tribunal. No argument has been advanced on behalf<br \/>\nof the appellant on issues no. 4 and 5 before this Court. The<br \/>\nfindings recorded by tribunal on issues no.2, 3, 4 and 5 have<br \/>\nnot been challenged by appellant in this appeal.\n<\/p>\n<p>18. The learned counsel for appellant has vehemently<br \/>\ncontended that the learned tribunal committed factual and<br \/>\nlegal error in calculating the amount of compensation,<br \/>\nbecause the amount of compensation should have been<br \/>\ncalculated on the basis of basic pay and D.A. out of which the<br \/>\namount of G.P.F. and income tax was liable to be deducted.<br \/>\nMoreover the amount awarded by tribunal is highly excessive<br \/>\nand liable to be reduced in view of personal expenditure to be<br \/>\nincurred on deceased.\n<\/p>\n<p>19. So far as the findings recorded by learned tribunal on<br \/>\nissue no.6 is concerned, there is evidence on record to this<br \/>\neffect that the deceased Khalid Hussain was drawing<br \/>\nRs.15,512\/- per month as salary while he was working as<br \/>\nA.G.-1(d) in Food Corporation of India. The salary certificate<br \/>\nhas been proved by P.W.3 Jai Ram Sharma working as<br \/>\naccountant in Food Corporation of India, who has stated that<br \/>\ndeceased Khalid Hussain was working on above post in Food<br \/>\nCorporation of India till the time of accident. This fact has<br \/>\nalso been corroborated by P.W.2 Smt. Naima Rehman, wife<br \/>\n of the deceased in her testimony. The learned tribunal on the<br \/>\nbasis of evidence on record deducted Rs.1,000\/- as income<br \/>\ntax from total income of Rs. 15,512\/- and found Rs.14,512\/-<br \/>\nper month as actual salary of deceased and taking round<br \/>\nfigure found his monthly income at Rs.14,500\/- and annual<br \/>\nincome at Rs.1,74,000\/-.\n<\/p>\n<p>20. The learned tribunal further held that 1\/3rd amount as<br \/>\npersonal expenditure to be incurred on deceased should be<br \/>\ndeducted which came to Rs.58,000\/- and thus net income of<br \/>\nthe deceased came to Rs.1,16,000\/ per annum. The learned<br \/>\ntribunal adopting the multiplier of 11 calculated the amount<br \/>\nof compensation as Rs.12,76,000\/- in addition to funeral<br \/>\nexpenses of Rs.2,000\/- , mental agony of Rs.5,000\/- and loss<br \/>\nof property of Rs.2,500\/- and thus total amount of<br \/>\ncompensation worked out to be Rs.12,85,500\/- and taking the<br \/>\nround figure learned tribunal calculated the amount of<br \/>\ncompensation at Rs.12,50,000\/- and held that out of the said<br \/>\namount petitioner no.1 Smt. Naima Rehman would get<br \/>\nRs.6,50,000\/- and petitioners no. 2 and 3 would get<br \/>\nRs.3,00,000\/- each. It was further directed that the share of<br \/>\npetitioner no.1 would be deposited in any nationalised bank<br \/>\nin fixed deposit scheme for a period of six years and the<br \/>\npetitioners would get interest at the rate of 4% on the said<br \/>\namount of compensation from the date of presentation of<br \/>\npetition till date of actual payment.\n<\/p>\n<p>21. The learned counsel for the respondents\/claimants has<br \/>\nrelied on the decision in the case of Asha and others Vs.<br \/>\nUnited India Insurance Company Limited and another,<br \/>\n1(2004) ACC 533 (SC), wherein the salary certificate of the<br \/>\ndeceased shows that the salary of the deceased was<br \/>\nRs.8,632\/-, but the High Court after making necessary<br \/>\ndeductions held the salary to be Rs. 6,642\/-. The Hon&#8217;ble<br \/>\nApex Court held that the High Court was wrong in deducting<br \/>\nthe allowances and amounts paid towards LIC, Society<br \/>\ncharges and HBA etc because the claimants would have been<br \/>\nreceiving the same amount at the time when the deceased was<br \/>\nalive. Thus the claimants are entitled to get compensation for<br \/>\nthe loss suffered by them. There can be no doubt the<br \/>\ndependents would only be receiving the net amount less 1\/3<br \/>\nrd for his personal expenses.\n<\/p>\n<p>                      22. The Hon&#8217;ble Apex Court in the case of Smt. Sarla Verma<br \/>\n                     and others Vs. Delhi Transport Corporation and another,<br \/>\n                     2009(2) T.A.C. 677 (S.C.) has discussed various aspect of<br \/>\n                     accident cases settling the judgments in this regard. The<br \/>\n                     Hon&#8217;ble Apex Court has observed that it would be appropriate<br \/>\n                     to recall the relevant principles relating to assessment of<br \/>\n                     compensation in cases of death. Earlier, there used to be<br \/>\n                     considerable variation and inconsistency in the decisions of<br \/>\n                     Courts\/Tribunals on account of some adopting the Nance<br \/>\n                     method enunciated in Nance Vs. British Columbia Electric<br \/>\n                     Railway, Company Limited, 1991 A.C. 601 and some<br \/>\n                     adopting the view method enunciated in Deview Vs. Powell<br \/>\n                     Duffryn Associated Collieries Limited, 1942 A.C. 601. The<br \/>\n                     difference between the two methods was considered and<br \/>\n                     explained in General Manager, Kerala State Road Transport<br \/>\n                     Corporation Vs. Susamma Thomas, 1994 (2) S.C.C. 176.<br \/>\n                     After exhaustive consideration, the Hon&#8217;ble Apex Court<br \/>\n                     preferred the Davies method to Nance method. In Susamma<br \/>\n                     Thomas case the principles laid down can be reproduced as<br \/>\n                     below:\n<\/p>\n<p>       &#8220;In fatal accident action, the measure of damage is the pecuniary loss<br \/>\nsuffered and is likely to be suffered by each dependant as a result of the death.<br \/>\nThe assessment of damages to compensate the dependants is beset with<br \/>\ndifficulties because from the nature of things, it has to take into account many<br \/>\nimponderable e.g., the life expectancy of the deceased and the dependants, the<br \/>\namount that the deceased would have earned during the remainder of his life, the<br \/>\namount that he would have contributed to the dependants during that period, the<br \/>\nchances that the deceased may not have lived or the dependants may not live up<br \/>\nto the estimated remaining period of their life expectancy, the chances that the<br \/>\ndeceased might have got better employment or income or might have lost his<br \/>\nemployment or income altogether.\n<\/p>\n<p>       The matter of arriving at the damages is to ascertain the net income of the<br \/>\ndeceased available for the support of himself and his dependants, and to deduct<br \/>\ntherefrom such part of his income as the deceased was accustomed to spend upon<br \/>\nhimself, as regards both self-maintenance and pleasure, and to ascertain what<br \/>\npart of his net income the deceased was accustomed to spend for the benefit of<br \/>\nthe dependants. Then that should be capitalized by multiplying it by a figure<br \/>\nrepresenting the proper number of year&#8217;s purchase.\n<\/p>\n<p>       The multiplier method involves the ascertainment of the loss of dependency<br \/>\nor the multiplicand having regard to the circumstances of the case and<br \/>\ncapitalizing the multiplicand by an appropriate multiplier. The choice of the<br \/>\nmultiplier is determined by the age of the deceased (or that of the claimants<br \/>\n whichever is higher) and by the calculation as to what capital sum, if invested at<br \/>\na rate of interest appropriate to a stable economy, would yield the multiplicand<br \/>\nby way of annual interest. In ascertaining this, regard should also be had to the<br \/>\nfact that ultimately the capital sum should also be consumed-up over the period<br \/>\nfor which the dependency is expected to last.\n<\/p>\n<p>        It is necessary to reiterate that the multiplier method is logically sound<br \/>\nand legally well-established. There are some cases which have proceeded to<br \/>\ndetermine the compensation on the basis of aggregating the entire future<br \/>\nearnings for over the period the life expectancy was lost, deducted a percentage<br \/>\ntherefrom towards uncertainties of future life and award the resulting sum as<br \/>\ncompensation. This is clearly unscientific. For instance, if the deceased was, say<br \/>\n25 years of age at the time of death and the life expectancy is 70 years, this<br \/>\nmethod would multiply the loss of dependency for 45 years- virtually adopting a<br \/>\nmultiplier of 45 and even if one-third or one-fourth is deducted therefrom<br \/>\ntowards the uncertainties of future life and for immediate lump sum payment, the<br \/>\neffective multiplier would be between 30 and 34. This is wholly impermissible.&#8221;\n<\/p>\n<p>        23. In U.P. State Road Transport Corporation Vs. Trilok Chandra, 1996 (4)<br \/>\nS.C.C. 362, the Hon&#8217;ble Apex Court while reiterating the preference to Davies<br \/>\nmethod followed in Susamma Thomas has made following observations:\n<\/p>\n<blockquote><p>     &#8220;In the method adopted by Viscount Simon in the case of Nance also, first<br \/>\n     the annual dependency is worked out and then multiplied by the estimated<br \/>\n     useful life of the deceased. This is generally determined on the basis of<br \/>\n     longevity. But then, proper discounting on various factors having a bearing<br \/>\n     on the uncertainties of life, such as, premature death of the deceased or the<br \/>\n     dependent, remarriage, accelerated payment and increased earning by wise<br \/>\n     and prudent investments, etc, would become necessary. It was generally felt<br \/>\n     that discounting on various imponderables made assessment of compensation<br \/>\n     rather complicated and cumbersome and very often as a rough and ready<br \/>\n     measure, one-third to one-half of the dependency was reduced, depending on<br \/>\n     the life-span taken. This is the reason why Courts in India as well as England<br \/>\n     preferred the Davies&#8217; formula as being simple and more realistic. However, as<br \/>\n     observed earlier and as pointed out in Susamma Thomas&#8217; case, usually<br \/>\n     English Courts rarely exceed 16 as the multiplier. Courts in India too<br \/>\n     followed the same pattern till recently when Tribunals\/Court began to use a<br \/>\n     hybrid method of using Nance&#8217;s method without making deduction for<br \/>\n     imponderables&#8230;&#8230;Under the formula advocated by Lord Wright in Davies,<br \/>\n     the loss has to be ascertained by first determining the monthly income of the<br \/>\n     deceased, then deducting therefrom the amount spent on the deceased, and<br \/>\n     thus, assessing the loss to the dependents of the deceased. The annual<br \/>\n     dependency assessed in this manner is then to be multiplied by the use of an<br \/>\n     appropriate multipliers.&#8221;\n<\/p><\/blockquote>\n<p> 24. In Susamma Thomas case it has been observed that the<br \/>\nproper method of computation is the multiplier method. Any<br \/>\ndeparture, except in exceptional and extra-ordinary cases,<br \/>\nwould introduce inconsistency of principle, lack of<br \/>\nuniformity and an elements of unpredictability, for the<br \/>\nassessment of compensation. Basically only three facts need<br \/>\nto be established by the claimants for assessing compensation<br \/>\nin the case of death: (a) age of the deceased; (b) income of the<br \/>\ndeceased; and (c) the number of dependants. The issues to be<br \/>\ndetermined by the Tribunal to arrive at the loss of<br \/>\ndependency are (i) additions\/deductions to be made for<br \/>\narriving at the income; (ii) the deduction to be made towards<br \/>\nthe personal living expenses of the deceased; and (iii) the<br \/>\nmultiplier to be applied with reference to the age of deceased.<br \/>\nIf these determinants are standardized, there will be<br \/>\nuniformity and consistency in the decisions. There will be<br \/>\nlesser need for detailed evidence. It will also be easier for the<br \/>\ninsurance companies to settle accident claims without delay.<br \/>\nTo have uniformity and consistency, Tribunals should<br \/>\ndetermine compensation in cases of death, by the following<br \/>\nwell-settled steps:\n<\/p>\n<p>Steps 1.\n<\/p>\n<p>The income of the deceased per annum should be determined.<br \/>\nOut of the said income a deduction should be made in regard<br \/>\nto the amount which the deceased would have spent on<br \/>\nhimself by way of personal and living expenses. The balance,<br \/>\nwhich is considered to be the contribution to the dependant<br \/>\nfamily, constitutes the multiplicand.\n<\/p>\n<p>Step 2.\n<\/p>\n<p>Having regard to the age of the deceased and period of active<br \/>\ncareer, the appropriate multiplier should be selected. This<br \/>\ndoes not mean ascertaining the number of years he would<br \/>\nhave lived or worked but for the accident. Having regard to<br \/>\nseveral imponderables in life and economic factors, a table of<br \/>\nmultipliers with reference to the age has been identified. The<br \/>\nmultiplier should be chosen from the said table with reference<br \/>\nto the age of the deceased.\n<\/p>\n<p>Steps 3.\n<\/p>\n<p>The annual contribution to the family (multiplicand) when<br \/>\nmultiplied by such multiplier gives the &#8216;loss of dependancy&#8217; to<br \/>\nthe family.\n<\/p>\n<p>The funeral expenses, cost of transportation of the body and<br \/>\n cost of any medical treatment of the deceased before death<br \/>\nshould also be added.\n<\/p>\n<p>25. Generally the actual income of the deceased less income<br \/>\ntax should be the starting point for calculating the<br \/>\ncompensation. The question is whether actual income at the<br \/>\ntime of death should be taken as the income or whether any<br \/>\naddition should be made by taking note of future prospects. In<br \/>\nSusamma Thomas, it has been held that the future prospects<br \/>\nof advancement in life and career should also be sounded in<br \/>\nterms of money to augment the multiplicand and that where<br \/>\nthe deceased had a stable job, the Court can take note of the<br \/>\nprospects of the future and it would be unreasonable to<br \/>\nestimate the loss of dependency on the actual income of the<br \/>\ndeceased at the time of death.\n<\/p>\n<p>26. The personal and living expenses of the deceased should<br \/>\nbe deducted from the income, to arrive at the contribution to<br \/>\nthe dependents. No evidence need be led to show the actual<br \/>\nexpenses of the deceased. In fact, any evidence in that behalf<br \/>\nwill be wholly unverifiable and likely to be unreliable.<br \/>\nClaimants will obviously tend to claim that the deceased was<br \/>\nvery frugal and did not have any expensive habits and was<br \/>\nspending virtually the entire income on the family. In some<br \/>\ncases, it may be so. No claimant would admit that the<br \/>\ndeceased was a spendthrift, even if he was one. It is also very<br \/>\ndifficult for the respondents in a claim petition to produce<br \/>\nevidence to show that the deceased was spending a<br \/>\nconsiderable part of the income on himself or that he was<br \/>\ncontributing only a small part of the income on his family.<br \/>\nTherefore, it became necessary to standardize the deductions<br \/>\nto be made under the head of personal and living expenses of<br \/>\nthe deceased. This lead to the practice of deducting towards<br \/>\npersonal and living expenses of the deceased, one third of the<br \/>\nincome if the deceased was a married, and one-third of<br \/>\nincome if the deceased was a bachelor. This practice was<br \/>\nevolved out of experience, logic and convenience. In fact<br \/>\none-third deduction, got statutory recognition under Second<br \/>\nSchedule to the Act, in respect of claims under Section 163-A<br \/>\nof the Motor Vehicles Act, 1988.\n<\/p>\n<p>27. But such percentage of deduction is not an inflexible rule<br \/>\nand offers merely a guideline. In Susamma Thomas case, it<br \/>\n was observed that in the absence of evidence, it is not unusual<br \/>\nto deduct one-third of the gross income towards the personal<br \/>\nliving expenses of the deceased and treat the balance as the<br \/>\namount likely to have been spent on the members of the<br \/>\nfamily of the deceased.\n<\/p>\n<p>28. The Hon&#8217;ble Apex Court in the case of Oriental Insurance<br \/>\nCompany Limited Vs. Deo Patodi and others, 2009 (4) AWC<br \/>\n3331 (SC), has observed that deduction of one-third towards<br \/>\npersonal expenses is the ordinarily rule in India. In the case of<br \/>\nNational Insurance Company Limited Vs. Pitam Singh and<br \/>\nanother, 2007 (4) T.A.C. 993 (Allahabad), it has also been<br \/>\nobserved that the deduction of one-third made by the tribunal<br \/>\ncalls for no interference. In the case of Bilkish Vs. United<br \/>\nIndia Insurance Company Limited and another, 2008 (2)<br \/>\nAWC 2043 (SC), it has been observed that one-third amount<br \/>\nshould be deducted as personal expenses of the deceased<br \/>\nfrom his income.\n<\/p>\n<p>29. So far as multiplier used in the present case is concerned,<br \/>\nSecond Schedule of M.Vehicles Act, provides the multiplier<br \/>\nof 11 in the case of the deceased between 51 to 55 years. In<br \/>\nview of the permanent account no.0AA HPH 1597 the date of<br \/>\nbirth of the deceased has been found as 1.1.1951 and thus the<br \/>\nage of the deceased Khalid Hussain has been found to be 53<br \/>\nyears at the time of accident and thus the learned tribunal has<br \/>\nrightly used multiplier of 11 in this case which does not suffer<br \/>\nfrom any error or illegality.\n<\/p>\n<p>30. The salary slip relating to June, 2004 filed in the court<br \/>\nbelow has been proved by P.W.3 Jai Ram Sharma in view of<br \/>\nwhich the deduction of Rs.1,000\/- as income tax has been<br \/>\nshown and sum of Rs.1691\/- has been shown to be deducted<br \/>\ntowards G.P.F. The learned tribunal has rightly held that the<br \/>\namount of G.P.F. is contributed by the employee himself and<br \/>\non retirement he gets this amount alogwith interest and thus<br \/>\nthe amount of G.P.F deducted from the salary cannot be<br \/>\nexcluded from his income. On account of deduction of<br \/>\nRs.1,000\/- per month as Income Tax from the salary of the<br \/>\ndeceased the net income of the deceased comes to<br \/>\nRs.14,512\/- per month and the learned tribunal has rightly<br \/>\nheld that the said amount in round figure comes to<br \/>\n Rs.14,500\/-per moth. No other amount can be said to be<br \/>\ndeductable from the income of the deceased in order to<br \/>\ncalculate the amount of compensation on account of his death<br \/>\nin the accident. The learned Tribunal has rightly deducted<br \/>\none-third amount from the income of the deceased which has<br \/>\nbeen presumed to have been spent on the deceased himself<br \/>\nduring his life time as he would have spent this amount on<br \/>\nhimself and thus learned tribunal has not committed any error<br \/>\nin deducting one-third amount from his income.\n<\/p>\n<p>31. In view of above discussions, we are in full agreement<br \/>\nwith the findings recoded by the learned tribunal, which do<br \/>\nnot suffer from infirmity or illegality. No error is found in the<br \/>\naward passed by the learned Tribunal in calculating the<br \/>\namount of compensation granted to the petitioners. There is<br \/>\nno illegality or irregularity in the judgment and award which<br \/>\ndoes not require any interference. Consequently this appeal<br \/>\nlacks merit and is dismissed. The judgment and award passed<br \/>\nby the learned tribunal is confirmed. The parties shall bear<br \/>\ntheir own costs.\n<\/p>\n<p>Dated:28.1.2010<br \/>\nR.U.\n<\/p>\n<p>Order Date :- 28.1.2010<br \/>\nRU\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Allahabad High Court U.P. State Road Transport &#8230; vs Smt. Naima Rehman &amp; Others on 28 January, 2010 Court No. &#8211; 34 Case :- FIRST APPEAL FROM ORDER No. &#8211; 2211 of 2006 Petitioner :- U.P. State Road Transport Corporation Thru&#8217; Regional Manager Respondent :- Smt. Naima Rehman &amp; Others Petitioner Counsel :- Avanish Mishra [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,8],"tags":[],"class_list":["post-89265","post","type-post","status-publish","format-standard","hentry","category-allahabad-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>U.P. State Road Transport ... vs Smt. 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