KALPANARAJ vs. TAMIL NADU STATE TRANSPORT CORPORATION

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3461 of 2003 KALPANARAJ & ORS. ………APPELLANTS VS. TAMIL NADU STATE TRANSPORT CORPN. ……RESPONDENT J U D G M E N T V.GOPALA GOWDA, J. JUDGMENT This appeal is filed by the appellants questioning the correctness of the judgment and final Order dated 30.01.2002 passed by the High Court of Judicature at Madras in Civil Misc. Appeal No. 1487 of 1999, urging various facts and legal contentions in justification of their claim. Page 1 C.A. No. 3461 of 2003 2 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 relief as prayed in this appeal. 3. The deceased, while going on his motorcycle from Vellore to Kannamangalam, collided with the bus of the respondent-Corporation as a result of which he sustained fatal injuries and died on the spot. The legal representatives of the deceased viz, his wife and two minor children filed M.C.O.P. No. 539 of 1994 contending that the accident occurred solely because of the rash and negligent driving of the bus of the respondent-Corporation. If the driver of the bus had JUDGMENT driven the bus with carefulness, there might have been no possibility of dragging the deceased along with the motorcycle for a distant of 120 feet. The appellants- claimants claimed an amount of 20 lakhs compensation for the death caused by the respondent. The Tribunal, after considering the material evidence on record of P.W.1 and P.W. 2 and R.W.1 and the ten Page 2 C.A. No. 3461 of 2003 3 exhibits filed on behalf of the appellant- claimants, found that the accident has occurred only due to rash and negligent driving of the driver of the bus of the

multiplier of 18, determined a sum of 32,40,000/- as compensation. However, he restricted the sum of compensation to 20,90,000/-, since that was the amount claimed by the appellants-claimants. The Tribunal further awarded interest @12% per annum on the said amount. 4. Aggrieved by the Award of the Tribunal, the respondent-Corporation filed an appeal challenging the JUDGMENT Order of the Tribunal. The High Court, however, only restricted itself to ascertain as to whether the compensation awarded by the Tribunal was excessive. And if so, then what is the amount to which the appellants- claimants are entitled to. 5. The High Court opined that the Tribunal erred in relying upon the statement of evidence of the wife of Page 3 C.A. No. 3461 of 2003 4 the deceased to determine the monthly income of the deceased at 15,000/- instead of relying upon the income shown in the Income Tax return. Further, the High Court

according to the High Court, the Tribunal erred in determining the multiplier of 18 instead of 13 considering the age of the deceased which was 46 at the time of the accident. 6. Accordingly, the High Court held that the unsubstantiated oral evidence alone of P.W.1 cannot be taken into consideration in the light of Exhs. A.8, A.9 and A.10. The monthly income of the deceased is JUDGMENT therefore taken as 3,115/- per month for computation of the multiplicand on the basis of net average income of the deceased calculated as per the income tax return produced as evidence on record. Therefore, the compensation determined under the head of loss of income under the head of ‘loss of income’ of the deceased was determined by the High Court at Page 4 C.A. No. 3461 of 2003 5 4,86,000/-. Further, the High Court has reduced compensation under the head of funeral expenses from 25,000/- to 10,000/-. The Tribunal awarded a

the wife at 19,55,000/-. The High Court reduced the compensation under the head of ‘loss of love and affection’ by the minor children at 20,000/- each. Also, the amount awarded towards loss of consortium to the wife was reduced by the High Court to 30,000/-. Therefore, in total, the High Court awarded a total amount of 5,76,000/- as compensation to the appellants- claimants. The interest rate was also reduced to 9% per annum by the High Court from 12% awarded by the JUDGMENT Tribunal. 7. It is pertinent to note that the only available documentary evidence on record of the monthly income of the deceased is the income tax return filed by him with the Income Tax Department. The High Court was correct therefore, to determine the monthly income on the basis Page 5 C.A. No. 3461 of 2003 6 of the income tax return. However, the High Court erred in ascertaining the net income of the deceased as the amount to be taken into consideration for calculating

1 (2008) 2 SCC 763 Page 6 C.A. No. 3461 of 2003 7

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(Emphasis laid down by this Court) 8. In the light of the principle of law laid down by this Court in the Indira Srivastava case mentioned supra, we are of the opinion that the High Court erred in making deductions under various heads to arrive at Page 9 C.A. No. 3461 of 2003 10 the net income instead of ascertaining the gross income of the deceased out of the annual income earned from his occupation mentioned in the income tax return submitted for the relevant financial year 1994-1995. 9. As per the Income Tax return of the financial year 1994-1995 produced on record, the deceased was earning 88,660/- per annum or 7330/- per month. Further, the deceased being 46 years of age at the time of death, he is entitled to 30% increase in the future prospects of income as per the legal principle laid down by this Court in Santosh Devi v. National Insurance Company 2 Ltd. and Ors . 10. Also, since the deceased was 46 years of age at the JUDGMENT time of the accident, a multiplier of 13 seems appropriate for determining the quantum of compensation as per the principle laid down by this Court in the case of Sarla Verma and Ors. v. Delhi Transport 3 Corporation and Anr .

3 (2009) 6 SCC 121 Page 10 C.A. No. 3461 of 2003 11 11. Therefore, the total amount of compensation the appellants- claimants are entitled to under the head of loss of income is:

[( 7330+30/100 x 14,86,524/-.] 12. Further, since the deceased has left behind his wife and two children, the amount to be deducted under rd the head of personal expenses is 1/3 of the total income in the light of the principle laid down in Sarla Verma case (supra) which was reiterated in Santosh Devi case (supra). Therefore, the amount to be awarded as compensation to the appellant is = ( 14,86,524/- - 1/3 x 14,86,524/-) = 9,91,016/-. 13. The appellant-claimants sought an amount of JUDGMENT 10,000/- towards damage to the motorcycle. Since, the claim has neither been rebutted with evidence by the respondent, we grant compensation of 10,000/- towards the damage caused to the bike. 14. Further, the High Court awarded a sum of 30,000/- towards loss of consortium and 20,000/- each Page 11 C.A. No. 3461 of 2003 12 towards loss of love and affection by the minor children. This amount awarded by the High Court is on the lower side in the light of the principle laid down

Court awarded and 1,00,000/- towards loss of care and guidance to the minor children. Accordingly, we award a compensation of 1,00,000/- each towards loss of consortium and towards loss of love and affection. 15. Apart from this, we award 1,00,000/- towards loss of estate and 1,00,000/- towards loss of expectation of the life of the deceased. We also award a sum of 50,000/- for funeral expenses and cost of litigation. JUDGMENT Therefore, a total sum of 14,51,016/- which is rounded off at 14,51,000/- is awarded to the appellants- claimants. 16. Further, the High Court has awarded the compensation with interest @9% per annum. We concur with this holding of the High Court in the light of the

Page 12 C.A. No. 3461 of 2003 13 decision of this Court in Municipal Corporation of Delhi, Delhi v. Uphaar Tragedy Victims Association & 5 Ors. Accordingly, we award an interest @ 9% per annum

apportioned between the appellants equally with proportionate interest. We direct the Insurance Company to deposit 50% of the awarded amount with proportionate interest in any of the Nationalized Bank of the choice of the appellants for a period of 3 years. The rest of 50% amount awarded with proportionate interest shall be paid to the appellants by way of a demand draft within six weeks from the date of receipt of a copy of this order after deducting the amount if already paid. JUDGMENT During the said period, if they want to withdraw a portion or entire deposited amount for their personal or any other expenses, including development of their asset, then they are at liberty to file application before the Tribunal for release of the deposited amount, which may be considered by it and pass

Page 13 C.A. No. 3461 of 2003 14 appropriate order in this regard. We set aside the impugned judgment and order of the High Court and modify the judgment in the aforesaid terms by allowing

………………………………………………………………………J. [GYAN SUDHA MISRA] ………………………………………………………………………J. [V. GOPALA GOWDA] New Delhi, April 22, 2014 JUDGMENT Page 14