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2020 (6) TMI 387 - SC - Indian LawsCompensation on account of death caused by accident - HELD THAT - On a perusal of the documentary evidence on record i.e. the ITRs for the assessment years 2005-06 and 2006-07, filed prior to the death of the deceased, which reflect the income of approximately ₹ 1,00,000 p.a. (as assessed by the MACT in its Award dated 22.12.2009), we make this the basis for computing the compensation payable to the Claimants - We award future prospects @40% of the income of the deceased. Given the fact that the deceased left behind five dependents, the deduction towards his personal expenses would be 1/4th. Even though the Claimants/Appellants herein did not file an Appeal against the Award dated 22.12.2009 passed by the MACT before the High Court, we deem it appropriate to enhance the compensation by exercising our jurisdiction under Article 142 of the Constitution of India in order to do complete justice between the parties - The Respondent Insurance Company is directed to pay the compensation awarded to the Appellants within a period of twelve weeks from the date of this judgment, after adjusting any amount which may have been paid. The amount payable to the Appellants shall carry Interest @ 7.5% p.a. from the date of filing the claim petition till the date of realization. Appeal disposed off.
Issues:
1. Assessment of compensation by Motor Accident Claims Tribunal (MACT) 2. Appeal against MACT's award before the High Court 3. High Court's determination of deceased's income and compensation 4. Appeal against High Court's judgment before the Supreme Court Analysis: Assessment of compensation by MACT: The MACT, in its award, computed the loss of dependency at ?12,20,000 for the deceased who left behind five dependents. Additionally, it awarded amounts for loss of consortium, love and affection, and funeral expenses, totaling to ?12,55,000 with 6% interest. The Insurance Company was held liable for payment. Appeal against MACT's award before the High Court: The Insurance Company challenged the MACT's award before the High Court, which reduced the total compensation to ?5,81,440. The High Court based its decision on the deceased's income from previous years, disregarding the income from the year of the accident. The High Court also reduced amounts awarded for consortium and love and affection. High Court's determination of income and compensation: The High Court's judgment was found to be based on factual inaccuracies by the Supreme Court. The High Court wrongly assumed the deceased was a government employee and miscalculated his income. It disregarded the income from the year of the accident, leading to a reduced compensation amount. Appeal against High Court's judgment before the Supreme Court: The Claimants appealed the High Court's judgment before the Supreme Court. The Supreme Court, after reviewing the evidence, set aside the High Court's decision. It considered the income of ?1,00,000 per annum, as assessed by MACT, for computing compensation. Future prospects were awarded at 40% of the income, following legal precedents. The total compensation was determined at ?17,50,000, enhancing it to ensure justice between the parties. In conclusion, the Supreme Court allowed the Civil Appeal, directing the Insurance Company to pay the compensation to the Claimants within twelve weeks with 7.5% interest. This comprehensive judgment rectified the errors in the lower courts' assessments and ensured fair compensation for the dependents of the deceased.
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