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Judgment
The claimants assail an award of June 8, 2017 passed on an application under Section 166 of the Motor Vehicles Act, 1988 in respect of an accident that took place on October 10, 2015 near Tamluk.
The tribunal found that the accident was as a result of the rash and negligent driving by the driver of the offending bus bearing registration no.WB-39-9240. The claim was filed for a total sum of Rs.35 lakh. The claimants say that the tribunal erred in disregarding the evidence adduced on their behalf as to the income of the victim at the time of his death. The appellants say that the tribunal did not award any amount on account of future prospects and that the tribunal did not allow general damages.
The insurance company submits that there were good reasons for the tribunal to not take cognisance of the income tax returns since other documents pertaining to the alleged business of the victim were not disclosed. The insurance company points out to the relevant passage at pages 6 and 7 of the impugned award to show how the tribunal dealt with such aspect of the matter.
It is evident from the relevant passage that the income tax returns of the victim for three years were submitted. However, inspite of the tribunal referring to the contents of the income tax returns, it completely disregarded the same on the ground that the claimants had not produced any documents relating to the business of the victim or rent receipt of the shop or receipts for purchase of gold and the like. Clearly, the tribunal failed to take into account relevant considerations and took irrelevant considerations into account while deciding on the income of the victim at the time of his death.
The income tax returns of the victim and the balance-sheets for the three relevant years appended thereto reveal that the victim carried on business as a goldsmith and in assessment year 2012-13, the victim had an income of Rs.2,33,211/-, in assessment year 2013-14, he had an income of Rs.2,51,046/- and in assessment year 2014-15 he had an income of Rs.2,76,639/-. In view of the permissible deductions, the victim did not have to pay any tax. The balance-sheets of the victim reveal that expenses had been incurred on account of, inter alia, shop rent, electricity charges, labour charges and the like. On an examination of the income tax returns and the balance-sheets appended thereto, there could have been no doubt that the victim carried on business and had a shop wherefrom he operated.
In the light of such cogent material as to the victim's income for over a period of at least three years prior to his death, the tribunal could not have disregarded the income tax returns and arbitrarily fixed the income of the victim at a notional amount of Rs.5,000/- per month.
On the basis of the income tax returns, it would be rational to accept the victim's income to have been at least Rs.2.50 lakh per year. On the basis of such income and by following the judgments in Sarla Verrma and Pranay Sethi, the total quantum of compensation works out to Rs.42,70,000/- together with interest thereon at the rate of 8% per annum from the date of lodgment of the claim till receipt of payment as more fully indicated hereafter.
Since the income of the victim is taken as Rs.2.50 lakh per annum, on account of future prospects 40% has to be added since the victim was aged about 33 at the time of his death. The notional income, thus, becomes Rs.3.50 lakh out of which one-fourth has to be deducted on account of personal expenses since the number of claimants is more than 4. After making such deduction, the multiplier of 16 will apply to the notional amount of Rs.2,62,500/- . To the resultant product of Rs.42 lakh, a further sum of Rs.70,000/- on account of general damages has to be added to arrive at the final gross figure of Rs.42,70,000/- on which the claimants will be entitled to interest as indicated above. The claimants have, thus far, received a sum of Rs.7,84,500/- together with interest at the rate of 6% per annum as awarded by the tribunal.
The insurance company will calculate the balance amount due to the claimants in terms of this order, including on account of interest, and make over the same to the tribunal calculated upto October 31, 2015 by November 15, 2015 for the tribunal to make over the payment to the claimants upon proper verification and identification in accordance with entitlement of the individual claimants.
FMA 1054 of 2019 along with CAN 5306 of 2018 are disposed of as above, but without any order as to costs.
Certified website copies of this order, if applied for, be urgently made available to the parties upon compliance with the requisite formalities.