Case Note & Summary
The appeal arose from a judgment and award dated 23.8.2008 passed by the Motor Accident Claims Tribunal, Chandrapur in M.A.C.P. No.123/2001. The claimants, being the widow, three minor children, and mother of the deceased Pradip Ramteke, were awarded compensation of Rs.11,81,000/- for his death in a motor vehicular accident on 7.8.2001. The accident involved a truck bearing No. MH-31-1809 insured with the appellant, The New India Assurance Company Ltd. The deceased was riding a bicycle when he was knocked down by the truck. He was employed with Western Coalfields Ltd. (W.C.L.) and was drawing a monthly salary of Rs.10,195/-. The Tribunal, after considering deductions, held the carry-home salary to be Rs.9,475/- per month. Deducting one-third towards personal expenses, the loss of dependency was calculated at Rs.6,100/- per month, i.e., Rs.73,200/- per annum. Applying a multiplier of 16 based on the deceased's age, the total compensation was computed at Rs.11,81,000/-. The appellant insurance company challenged only the quantum, arguing that since the widow had been given compassionate employment by the employer, the loss of dependency should be reduced. The respondents' counsel relied on the decision in A.P.S.R.T.C. vs. G. Jana Bai & others (2001(43) ACC 716) to argue that compassionate employment is not a factor to reduce compensation. The court agreed, holding that the compassionate employment of the widow is a separate benefit and cannot be deducted from the compensation amount. The appeal was dismissed, and the award was confirmed.
Headnote
A) Motor Accident Claims - Quantum of Compensation - Compassionate Employment - The issue was whether the compensation for loss of dependency should be reduced because the widow obtained compassionate employment after the deceased's death - The court held that compassionate employment is a separate benefit and cannot be deducted from the compensation amount - The Tribunal's award of Rs.11,81,000/- was upheld (Paras 2-5).
Issue of Consideration
Whether the quantum of compensation awarded by the Motor Accident Claims Tribunal should be reduced on account of the widow of the deceased getting compassionate employment from the employer.
Final Decision
The appeal is dismissed. The judgment and award dated 23.8.2008 passed by the Motor Accident Claims Tribunal, Chandrapur in M.A.C.P. No.123/2001 is confirmed. No order as to costs.
Law Points
- Compensation for loss of dependency
- compassionate employment not deductible
- Motor Vehicles Act
- 1988
Case Details
2012 LawText (BOM) (09) 115
First Appeal No. 64 of 2006
Mr. M.B. Joshi for appellant, Mr. A.W. Paunikar for respondent no.1 to 5.
The New India Assurance Company Ltd., Chandrapur Branch, through its Regional Manager, M.E.C.L. Premises, Dr. Ambedkar Bhawan, Seminary Hills, Nagpur.
1] Vandana wd/o Pradip Ramteke, 2] Niraj s/o Pradip Ramteke, 3] Shubham s/o Pradip Ramteke, 4] Depawan s/o Pradip Ramteke (minors through guardian respondent no.1), 5] Smt. Parbatabai wd/o Ghanshyam Ramteke, 6] M/s Shubh Carriers Pvt. Ltd. (deleted)
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Nature of Litigation
Appeal against award of compensation by Motor Accident Claims Tribunal in a claim petition for death in motor vehicle accident.
Remedy Sought
The appellant insurance company sought reduction of the compensation amount awarded by the Tribunal.
Filing Reason
The appellant contended that the Tribunal erred in not deducting from the loss of dependency on account of the widow getting compassionate employment.
Previous Decisions
The Motor Accident Claims Tribunal, Chandrapur in M.A.C.P. No.123/2001 awarded Rs.11,81,000/- as compensation.
Issues
Whether the quantum of compensation should be reduced because the widow obtained compassionate employment after the deceased's death.
Submissions/Arguments
Appellant: The widow's compassionate employment reduces the loss of dependency, so the compensation should be reduced.
Respondents: Compassionate employment is a separate benefit and cannot be deducted from compensation; relied on A.P.S.R.T.C. vs. G. Jana Bai.
Ratio Decidendi
The compassionate employment of the widow of the deceased is a separate benefit and cannot be deducted from the compensation amount awarded for loss of dependency. The quantum of compensation determined by the Tribunal was correct and does not warrant reduction.
Judgment Excerpts
The only point which requires consideration is whether there ought to have been deduction on account of the widow getting compassionate employment.
It must be remembered that though the wife of the deceased has secured employment on compassionate grounds, her employment has nothing to do with the compensation to be awarded on account of death of the deceased.
Procedural History
The Motor Accident Claims Tribunal, Chandrapur passed an award on 23.8.2008 in M.A.C.P. No.123/2001 granting compensation of Rs.11,81,000/- to the claimants. The appellant insurance company filed First Appeal No. 64 of 2006 before the Bombay High Court, Nagpur Bench, challenging the quantum of compensation. The appeal was heard and dismissed on 17.9.2012.
Acts & Sections
- Motor Vehicles Act, 1988:
