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TMI Blog2001 (8) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances to pursue the cases before the criminal and civil courts. It has been alleged in the writ petition that while 150th Birth Anniversary of Sir Jamshedji Tata, was being celebrated on 3rd of March, 1989 within the factory premises and a large number of employees, their families including small children had been invited, but the organisers had not taken adequate safety measures and on the other hand, several provisions of the Factories Rules and Factories Act had been grossly violated. A devastating fire engulfed the VIP Pandal and area surrounding and by the time the fire was extinguished, a number of persons lay dead and many were suffering with burn injuries. Some of the injured also died on the way to the hospital or while being treated at the hospital. The death toll reached 60 and the total number of persons injured were 113. Amongst the persons dead, there are 26 children, 25 women and 9 men. It was also stated that out of the 60 persons, who died, 55 were either employees or relations of employees of the Tata Iron and Steel Company and similarly, out of 113 persons injured, 91 were either employees or their relations. Smt. Lata Wadhwa, the petitioner No. 1, lost her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Y.V. Chandrachud, former Chief Justice of India to look into the matter and determine the compensation, payable to the legal heirs of the deceased as well as compensation payable to the injured persons. It was also indicated on the basis of an agreement between the parties that in determining the compensation, principles indicated by the Andhra Pradesh High Court in its decisions in Chairman, A.P.S.R.T.C. vs. Safiya Khatoon [1985 Accident Claims Journal (A.C.J.)212], Bhagwan Das vs. Mohd. Arif [1987 A.C.J.1052], and A.P.S.R.T.C. vs. G. Ramanaiya (1988 A.C.J.223) should be borne in mind. The Court also further observed that while determining compensation, the benefits and advantages conferred on the injured persons or upon the legal heirs of the deceased persons by the company, need not be taken into account and that factor would be taken into consideration, while passing the final orders. The Court, also by the aforesaid order dated 15th December, 1993, stayed the criminal proceedings, pending in the Court of Sub-Divisional Magistrate, Jamshedpur as well as the Criminal Revisional Application, pending before the Ranchi Bench of the Patna High Court. It was directed further, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the annuity tables and the actuarys assistance in Hodges vs. Harland Wolff Limited (1965) 1 ALL ER 1086, but the British Law Commission accepted the use and relevancy of the annuity tables in its Working Paper No. 27 by observing : The actuarial method of calculation, whether from expert evidence or from tables, continues to be technically relevant and technically admissible but its usefulness is confined, except perhaps in very unusual cases, to an ancillary means of checking a computation already made by the multiplier method. Even Kemp Kemp on Quantum of Damages after comparing the multipliers chosen by judges from their experience found a close proximity between the said multiplier method and those arrived at from the annuity tables in the American Restatement of the Law of Torts. After a thorough analysis of the different methods of computation of the compensation to be paid to the dependants of the deceased and what are the different methods of computing loss of future earnings, Shri Chandrachud has come to the conclusion that the multiplier method is of universal application and is being accepted and adopted in India by Courts, including the Supreme Court and as suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and then taking into account the age of the deceased and finding the dependency at 60% of the annual income and then by application of different multipliers, the compensation has been arrived at. As stated earlier, a conventional compensation of Rs.25,000/- has been added in each case. While determining the compensation, the benefits already granted to the dependants of the deceased as well as to the injured persons or their relatives have not been taken into account in view of the specific orders of this Court dated 15th of December, 1993, though it would be a relevant consideration for us, while disposing of the matter finally. No interest however has been granted, as the question of interest has been left for consideration of this Court. So far as the costs of the proceedings are concerned, this Court had directed the Tata Iron Steel Company to bear the entire cost of the proceedings. In case of persons injured with burn injury, it had been contended before Shri Chandrachud, on behalf of claimants that the organisers committed serious act of negligence in choosing the place for celebration in a sensitive area of the company where around the pandal, hazardous installations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, and ultimately held that there is no hard and fast rule in cases of burn injuries that cosmetic surgery or massage or air-conditioning is an absolute necessity in every case and every case depends upon its own facts. There being no pleadings in the statement of claim, regarding the nature of burn injury suffered, the nature, duration and quality of treatment received by the burn victims, the requirement of future treatment prescribed by any Doctor, the state or condition of burn injuries when the Statement of Claim was filed, the disability suffered by any burn victim, the expenditure if any, incurred by any burn victim until the Statement of Claim was filed and the loss of earning capacity in any individual case, it is not possible to grant such fanciful claim, without any basis. Shri Chandrachud however, has hastened to add : I might add that TISCO gave me a solemn assurance that, even as of today, if any burn victim produces the advice of a Burn-Expert Doctor for further medical or surgical treatment in India, TISCO is prepared to bear the expenses of the said treatment. Having rejected the claim on the special heads on which claimants had made and thereafter taking an overal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in the tragic incident, the company itself was of the view that whatever amount of compensation is determined to be reasonable, the company will bear the same. It is in fact, he who came forward to make the offer and when the name of Shri Chandrachud was suggested, he had also agreed that the entire expenses could be borne by the company. But according to Mr. Nariman, in the absence of any data and figures for different heads of claim made by the claimants, the only option that was left for determination was some broad principles and in arriving at his ultimate conclusion, Shri Chandrachud has relied upon those broad principles and consequently, no error can be said to have been committed in the determination in question. According to Mr. Nariman, the principles evolved in Khatoons case have been duly analysed and applied and the contention of Mrs. Jethmalani that principles enunciated therein had not been followed, is not correct. Mr. Nariman, on his own, agreed that the compensation amount determined for the children could be doubled by this Court. Mr. Nariman, however seriously objected for the matter being remitted for re-determination, essentially, on the ground that it wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end for the benefit of the dependants, and thereafter it should be capitalised by multiplying it by a figure representing the proper number of years purchase. It was also stated that much of the calculation necessarily remains in the realm of hypothesis and in that region arithmetic is a good servant but a bad master, since there are so often many imponderables. In every case, it is the overall picture that matters, and the court must try to assess as best as it can, the loss suffered. On the acceptability of the multiplier method, the Court observed: The multiplier method is logically sound and legally well-established method of ensuring a just compensation which will make for uniformity and certainty of the awards. A departure from this method can only be justified in rare and extraordinary circumstances and very exceptional cases. The Court also further observed that the proper method of computation is the multiplier method and any departure, except in exceptional and extraordinary cases, would introduce inconsistency of principle, lack of uniformity and an element of unpredictability for the assessment of compensation. The Court disapproved the contrary views taken by som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g at future uncertain events, does not decide whether on balance one thing is more likely to happen than another, but merely puts a value on the chances. A possibility may be ignored if it is slight and remote. Any method of calculation is subordinate to the necessity for compensating the real loss. But a practical approach to the calculation of the damages has been stated by Lord Wright, in a passage which is frequently quoted, in Davies vs. Powell Duffryn Associated Collieries Ltd. [1942] All ER 657, to the following effect:- The starting point is the amount of wages which the deceased was earning, the ascertainment of which to some extent may depend on the regularity of his employment. Then there is an estimate of how much was required or expended for his own personal and living expenses. The balance will give a datum or basic figure which will generally be turned into a lump-sum by taking a certain number of years purchase. It is not necessary for us to further delve into the matter, as in our opinion, Shri Justice Chandrachud, has correctly arrived at the basic figure as well as in applying the proper multiplier, so far as the employees of the TISCO are concerned, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween the age group of 5 to 10 years and the second group between the age group of 10 to 15 years. In case of children between the age group of 5 to 10 years, a uniform sum of Rs.50,000/- has been held to be payable by way of compensation, to which the conventional figure of Rs.25,000/- has been added and as such to the heirs of the 14 children, a consolidated sum of Rs.75,000/- each, has been awarded. So far as the children in the age group of 10 to 15 years, there are 10 such children, who died on the fateful day and having found their contribution to the family at Rs.12,000/- per annum, 11 multiplier has been applied, particularly, depending upon the age of the father and then the conventional compensation of Rs.25,000/- has been added to each case and consequently, the heirs of each of the deceased above 10 years of age, have been granted compensation to the tune of Rs.1,57,000/- each. In case of the death of an infant, there may have been no actual pecuniary benefit derived by its parents during the child's life- time. But this will not necessarily bar the parents claim and prospective loss will found a valid claim provided that the parents establish that they had a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ron and Steel Company, and on considering the submission of Mr. Nariman, we would direct that the compensation amount for the children between the age group of 5 to 10 years should be three times. In other words, it should be Rs.1.5 lakhs, to which the conventional figure of Rs.50,000/- should be added and thus the total amount in each case would be Rs. 2.00 lakhs. So far as the children between the age group of 10 to 15 years, they are all students of Class VI to Class X and are children of employees of TISCO. The TISCO itself has a tradition that every employee can get one of his child employed in the company. Having regard to these facts, in their case, the contribution of Rs.12,000/- per annum appear to us to be on the lower side and in our considered opinion, the contribution should be Rs.24,000/- and instead of 11 multiplier, the appropriate multiplier would be 15. Therefore, the compensation, so calculated on the aforesaid basis should be worked out to Rs. 3.60 lakhs, to which an additional sum of Rs.50,000/- has to be added, thus making the total amount payable at Rs.4.10 lakhs for each of the claimants of the aforesaid deceased children. So far as the eight other person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Claim was filed and last but not the least, the loss of earning capacity in any individual case. Shri Justice Chandrachud has also noted the statement of the counsel, appearing for the Tata Iron and Steel Company, that if any burn victim produces the advice of a Burn-Expert Doctor for any further medical or surgical treatment in India, TISCO is prepared to bear the expenses of the said treatment. The materials produced, indicate the anxiety and steps taken by the company officials in making available the services of doctors from Delhi, Bombay, U.K., USA and Italy and the injured patients were referred to hospitals in Delhi, Bombay, Madras and Bangalore. Even some of the injured patients were sent to U.K., U.S.A., and Paris for cosmetic surgery at the companys expense. In examining the question of damages for personal injury, it is axiomatic that pecuniary and non-pecuniary heads of damages are required to be taken into account. In case of pecuniary damages, loss of earning or earning capacity, medical, hospital and nursing expenses, the loss of matrimonial prospects, if proved, are required to be considered. In the case of Non-Pecuniary losses, loss of expectation of life, los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount already in deposit, may be deposited by the company within a period of three months from today. The compensation amount could be disbursed in favour of each of the claimants by way of Account Payee Cheques, and the claimants, on being identified by the counsel, the same should be handed- over to them. In the event, any claimant would require that the compensation should be paid by Bank Draft, then the money could be sent to the claimant by A/c Payee Bank Draft, after deducting the commission of the bank from the amount in question. If any of the claimants are not in a position to come to this Court for receiving the compensation amount, then they should intimate the Registry of this Court, the address to which the amount could be sent and on being properly attested by the counsel, appearing for them and on receipt of such intimation, the amount in question could be sent by A/c Payee Cheque, by Registered Post. We also keep on record the valuable services rendered by Ms. Rani Jethmalani, in putting forth the grievances of the claimants and arguing the matter with great ability and clarity of thoughts. We also keep on record the able assistance of Shri F.S. Nariman, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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