Supreme Court Enhances Compensation in Fatal Road Accident Case
Road accidents often lead to tragic loss of lives, causing irreparable damage to the victims’ families. In many cases, the financial compensation awarded under the Motor Vehicles Act, 1988 becomes a crucial means of providing relief to the dependents of the deceased. This case, involving the deaths of Rajinder Pal Sharda and Nitin Sharda, is one such instance where the Supreme Court of India was called upon to correct an error in assessing compensation.
The appellants, who were the legal heirs of the deceased, sought enhanced compensation on the ground that the lower courts had underestimated the deceased’s income. The case highlights the importance of determining fair compensation based on actual income, future prospects, and other relevant factors.
Background of the Case
The accident occurred on August 26, 2007, when Rajinder Pal Sharda, his son Nitin Sharda, and two others were traveling in a Hyundai Accent car. A Scorpio vehicle, driven by Harjinder Singh, collided with their vehicle near Sirhind Road, Patiala, due to rash and negligent driving. As a result:
- Rajinder Pal Sharda died on the spot.
- Nitin Sharda and another passenger succumbed to their injuries later.
- A First Information Report (FIR) was registered against Harjinder Singh under Sections 279 and 304A of the Indian Penal Code (IPC).
Claims Filed Before the Motor Accident Claims Tribunal
The legal heirs of the deceased filed two separate compensation claims before the Motor Accident Claims Tribunal (MACT), Patiala, under Section 166 of the Motor Vehicles Act, 1988. They sought Rs. 25 lakh each as compensation for the deaths of Rajinder Pal Sharda and Nitin Sharda.
Tribunal’s Decision
The MACT made the following awards:
- For Rajinder Pal Sharda: Rs. 3,18,000, later enhanced to Rs. 4,78,456 by the High Court.
- For Nitin Sharda: Rs. 4,10,000, later enhanced to Rs. 10,97,000 by the High Court.
The claimants were dissatisfied, particularly with the assessment of Nitin Sharda’s monthly income, which was fixed at Rs. 6,000 by the MACT.
Arguments of the Appellants
The appellants contended that:
- The deceased Nitin Sharda was earning Rs. 15,000 per month, as evidenced by his salary certificate.
- He was working as a Manager at Regent Strips Pvt. Ltd., Gobindgarh.
- He had a Master of Arts in History and was pursuing an M.Phil.
- The High Court and the Tribunal erred in disregarding documentary proof of his salary.
Arguments of the Respondents
The insurance company and the opposing parties contended:
- The deceased was employed in a private firm, and his job was not permanent.
- The salary certificate submitted by the claimants could not be relied upon without further corroboration.
- The Tribunal had rightly assessed the income at Rs. 6,000 per month.
Supreme Court’s Analysis
The Supreme Court, comprising Justices B.R. Gavai and C.T. Ravikumar, considered the evidence and found that:
- The salary certificate provided by the appellants was duly proved.
- A clerk from the company testified that Nitin Sharda was indeed earning Rs. 15,000 per month.
- The deceased was highly qualified and had a promising career ahead.
- Disregarding the salary certificate was an error.
Revised Compensation Calculation
The Supreme Court reassessed the compensation as follows:
| Calculation Head | Amount (Rs.) |
|---|---|
| Monthly Income | 15,000 |
| Future Prospects (40%) | 6,000 |
| Total Monthly Income | 21,000 |
| Deduction for Personal Expenses (50%) | -10,500 |
| Annual Income | 10,500 × 12 = 1,26,000 |
| Multiplier (18, as per age 23) | 22,68,000 |
| Loss of Estate and Funeral Expenses | 30,000 |
| Loss of Consortium (for dependents) | 1,20,000 |
| Loss of Consortium (for mother) | 40,000 |
| Total Compensation | 24,58,000 |
Final Supreme Court Judgment
The Supreme Court allowed the appeal and directed:
- An enhanced compensation of Rs. 24,58,000.
- The insurance company must pay an additional Rs. 13,61,000 with 6% annual interest.
- The amount should be paid within three months.
Conclusion
This judgment reinforces the importance of fair compensation in motor accident cases. By ensuring that a deceased’s actual income and qualifications are considered, the Supreme Court set a precedent for accurate assessment of claims. The ruling also highlights the need for proper scrutiny of salary certificates and ensures that dependents receive justice.
Petitioner Name: Param Pal Sharda and Ors..Respondent Name: Dhani Ram and Ors..Judgment By: Justice B.R. Gavai, Justice C.T. Ravikumar.Place Of Incident: Patiala, Punjab.Judgment Date: 19-09-2022.
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