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Judgment
M. Karpagavinayagam, J.—The claimants are the appellants herein. The first claimant is the widow, the second claimant is the daughter and
the third claimant is the son of the deceased.
For the death of deceased in the accident due to the negligent driving of the driver of the vehicle belonging to the first respondent, the claimants
filed a claim petition seeking for compensation of Rs. 2,00,000/-. The Tribunal, holding that the driver of the vehicle was negligent, awarded only
Rs. 25,000/-. Hence, this appeal seeking for the enhancement of the compensation.
P. Arjuna, aged about 48 years, was, at the time of accident, working as an Office Assistant in the Corporation of Madras. On 2.11.1987 at
about 7.20 p.m., the deceased was riding on his bi-cycle from east to west along Greenways Road. While he was turning towards south at the
junction of Durgabai Deshmukh Road, the autorickshaw bearing registration No. TME 6778 belonging to the first respondent insured with the
second respondent, came in a rash and negligent manner and hit against the cyclist, with the result, he fell down and sustained head injuries. He was
taken to Government Royapettah Hospital, where he died next day, despite treatment. The claimants, legal representatives of the deceased, filed a
claim petition claiming compensation of Rs. 2,00,000/-.
On behalf of the claimants P.Ws. 1 to 2 were examined and Exs. P1 to P5 were marked. P.W. 1 wife of the deceased is the first claimant;
P.W. 2 Sankaran is the eye-witness and P.W. 3 is the Sub-Inspector of Police, who spoke about the registration of the case.
On behalf of the respondents, viz., owner of the vehicle and the Insurance Company, R.Ws. 1 to 3 were examined. R.W. 1 is the husband of
the first respondent/owner of the vehicle, R.W. 2 Sundaramurthy, another eye-witness and R.W. 3 Dr. Kamala, who spoke to the fact that the
deceased did not consume alcohol at the time of the accident on the basis of the post mortem report.
After analysing the materials placed before the Tribunal, it concluded that the driver of the auto-rickshaw was negligent and held that the
claimants 1 and 2, viz., widow and daughter, would be entitled to Rs. 25,000/-, that is Rs. 15,000/- towards no-fault liability, Rs. 5,000/- towards
loss of consortium and Rs. 5,000/- towards loss of expectation of life.
Challenging this award on the ground of quantum, the claimants have filed this appeal contending that fixing of the quantum by the Tribunal is not
in accordance with the well laid principles as pointed out by this Court as well as the Apex Court.
Mr. Gangaram Prasad, the learned Counsel appearing for the appellants, would point out that the Tribunal, having held that the driver of the
auto-rickshaw was negligent, ought to have awarded the compensation on the basis of the fault liability, whereas the Tribunal committed a grave
illegality in awarding Rs. 15,000/- on the basis of no-fault liability. He would further point out that the claim made was Rs. 2,00,000/-, is too
meagre.
On the other hand, Mr. Balachandran, the learned Counsel appearing for the first respondent-owner of the vehicle and Mr. Rosi Naidu, the
learned Counsel appearing for the second respondent-Insurance Company, would submit, in justification of the impugned award, that though the
fixing of the amount towards no-fault liability may not be correct, the total figure arrived at by the Tribunal cannot be said to be on the lower side.
In addition to this submission, Mr. Rosi Naidu would point out that at any rate, the Insurance Company can be fastened with the liability to the
extent of only Rs. 50,000/- being the limited on the basis of Ex. R1 copy of the Policy.
I have carefully gone through the judgment impugned and other records.
A perusal of the award impugned would clearly show that the Tribunal has committed a grave illegality in fixing the award on the basis of no-
fault liability. The Tribunal, on analysing the materials placed before it, on the basis of the evidence of P.Ws. 1 to 3 examined on the side of the
claimants, having held that the driver of the auto-rickshaw was negligent, ought not to have fixed the amount on the basis of no-fault liability.
Yet another infirmity, which is noticed in the impugned award is that the Tribunal held that the claimants would not be entitled to any amount of
compensation towards loss of pecuniary benefits, inasmuch as the third claimant had been given a job on compassionate grounds on the reason
that his father/deceased died in the accident.
This approach, in my view, is quite erroneous, especially, in view of the decision taken by a Division Bench of this Court in Alagammai @
Indira and Anr. v. Managing Director, Marudu Pandian Transport Corporation and Anr. 1996 1 LW 478 : (1997) ACC 243 , and Tata
Engineering and Locomotive Co. Ltd. and Another Vs. Vasanthi alias Anantha Lakshmi and Others, . According to the Division Bench of this
Court, the contention that the claimant has been given employment on compassionate grounds and the salary given to the claimant should be
deducted from the compensation, has no merit, in view of the fact that the employment was given only on compassionate grounds and not as a
compensation for the death of the deceased. The job given to the claimant on the death of deceased, though it was on compassionate grounds,
would only depend upon the qualification of the person concerned. The salary in that job is paid to the claimant only after extracting work.
Therefore, the amount of salary given to one of the claimants in a new job provided on compassionate grounds cannot form part of the
compensation to be given to the claimants.
Moreover, it is not the case of the respondent that the employment was given one of the claimants as a matter of compensation for the death of
the deceased. It is also held in the said decision that the employment given on compassionate grounds to one of the claimants and the consequent
earning by the claim an cannot be considered while fixing the pecuniary loss of the deceased. So, under those circumstances, I have no hesitation
to hold that the finding by the Tribunal that the salary for the job given to the 3rd claimant on compassionate grounds shall be taken into
consideration for computing the compensation is perverse and the same is liable to be set aside.
In regard to quantum, it is pointed out that the Tribunal apart from Rs. 15,000/- as no-fault liability, awarded Rs. 5,000/- towards loss of
consortium to the wife and Rs. 5,000/- towards loss of expectation of life. These amounts are also very much on the lower side.
The age of the deceased, as per Ex. P4 post-mortem certificate was 55, but, however, salary certificate Ex. P1 would clearly show that the
age of the deceased was 48 years. P.W. 1, the first claimant, would also state on the strength of the salary certificate that her husband''s age was
only 48 years. Therefore, the age of the deceased can be safely fixed as 48 years.
According to the salary certificate, the monthly salary of the deceased was Rs. 1,022/-. If Rs. 700/- is fixed as monthly dependency and the
multiplier of 13 is adopted, the total amount (Rs. 700 x 12 x 13) would work out to Rs. 1,09,000/-. In addition to this, I am of the view that some
more amounts could be awarded under other heads also. The deceased died only next day in the hospital. During the period of hospitalisation, he
suffered a lot because he had sustained injuries on his head. Therefore, towards paid and suffering, an award of Rs. 10,000/- would be
appropriate. The age of the wife at the time of accident was 39 years. So, Rs. 15,000/- could be addeci towards consortium. Towards loss of
love and affection to the children, Rs. 10,000/- could be added. For transport charges and for funeral expenses, Rs. 3,000/- and Rs. 2,000/-
respectively could be added. Thus, the total amount of compensation comes to Rs. 1,49,200/-, which can be rounded off to Rs. 1,50,000/-,
which, in my view, is the just and fair compensation to which the claimants are entitled.
With reference to the extent of liability, it is submitted by the learned Counsel for the first respondent/owner of the vehicle that the entire liability
should be fastened on the Insurance Company, since the Policy would cover unlimited liability.
On the strength of Ex. R1 Insurance Policy, it is vehemently contended that the Insurance Company alone could be asked to pay the entire
amount of compensation.
On the other hand, the learned Counsel appearing for the Insurance Company would submit that the Insurance Company even in the counter
stated that the Policy is only for a limited liability of Rs. 50,000/- and to establish the said plea, it has also filed Ex. R1.
A perusal of the Insurance Policy would clearly show that the liability of the Insurance Company to third party risk is limited to the extent of
Rs. 50,000/-. It is also seen from the records that in the cross-examination of R.W. 1, the husband of the first respondent, owner of the vehicle, it
has been elicited that the Policy is only for a limited liability of Rs. 50,000/-.
Therefore, in view of the fair admission made by R.W. 1, the husband of the first respondent, during the course of cross-examination that there
is only limited liability., there is no difficulty in coming to the conclusion that the Insurance Company could be made liable for a limited liability only,
i.e., liable to pay only Rs. 50,000/- and the balance amount shall be paid by the first respondent, the owner of the vehicle, alongwith interest at the
rate of 12 per cent per annum from the date of petition till the date of payment.
In other respects, the judgment of the Tribunal is confirmed.
With the above observation, the appeal is partly allowed. No costs.