Laxmidhar Nayak and Ors. v. Ju Gal Kish Ore Behera and Ors.
R. BANUMATHI, J. l. Leave granted.
2. Appellants who are the sons and daughter of the deceased
Chanchali Nayak have filed this appeal seeking enhancement of
compensation for the death of their mother in the road accident on
29.09.1991 as against compensation of Rs.70,600/- awarded by the
tribunal and affirmed by the High Court ofOrissa.
3. Mother of appcllants-Chanchali Nayak was working as an
agricultural labourer. On the date ofaccidcnt - 29.09.199 l at about 8.00
a.m., Chanchali Nayak was proceeding on the left side of the road
alongwith some other labourers. At that time, due to head-on-collision
between two vehicles-bus (bearing No.OSF 5157) and truck (bearing
No.OAC 495'). the bus swerved to the extreme left side of the road and
ran over Chaochali Nayak and she succumbed to injuries. In the claim
petition filed by the claimants, the tribunal held that the accident was due
to rash and negligent driving of both the vehicles.
4. So far as the compensation is concerned, the tribunal has taken
the monthly income of the deceased at Rs.650/- per month and after
deducting an amount of Rs.250/- towards her personal expenses,
assessed the contribution to the family at Rs.400/- per month. Deceased
was aged 42 years and the tribunal adopted multiplier of" 12" and awarded
compensation of Rs.57.600/- for the loss of dependency and adding
conventional damages, tribunal has awarded total compensation of
Rs. 70,600/-. The respondents No. I and 2 - owners of the bus and the
truck were held liable to pay the compensation to the claimants at 50%
each alongwith interest at the rate of 9% per annum. Pointing out that
the claimants have not produced the insurance policies of the vehicles,
the tribunal held that the insurance company is not liable to indemnify
the compensation. However, it is seen from the judgment of the High
Court that the insurance company has been satisfied with the award.
LAXMIDHAR NAYAK AND ORS. v. JUGAL KISHORE 245
BEHERA AND ORS. [R. BANUMATHJ, J.]
On appeal to the High Court by the claimants, the High Court affirmed A
the quantum of compensation ofRs.70,600/- awarded to the claimants
but reduced the rate of interest from 9% to 7%. So far as the liability of
the insurance company is concerned, the High Court held that the
insurance company-respondent No.3 having paid the compensation to
the claimants cannot avoid its liability to pay the compensation amount.
Being dissatisfied with the quantum of compensation, the appellants have
filed this appeal.
5. We have heard the learned counsel for the appellants.
Respondent No.2 and insurance company-respondent No.3 have not
entered their appearance. We have perused the impugned j udgmcnt and
the materials placed on record.
6. PW-! in his evidence stated that Chanchali Nayak was earning
Rs.35/- per day as wages out of the labour work. Deceased Chanchali
Nayak was an agricultural labourer. The tribunal has taken her income
at the rate ofRs.25/-per day and assessed the monthly income at Rs.650/
- per month. It is quite improbable that a labourer would be available for D
such a small amount ofRs.25/- per day. The wages fixed by the tribunal
for the daily labourer at Rs.25/- per day and the monthly income at
Rs.650/- is too low. The reasoning of the tribunal that a lady labourer
may not get engagement daily is not acceptable. Even though works like
cutting of paddy and other agricultural Jabour may not be available on all
days throughout the year, in rural areas other kinds of work arc available
for a labourer. Deceased Chanchali Nayak even though was said to be
earning only Rs.35/- per day at that time, over the years, she would have
earned more. In our view, deceased Chanchali Na yak. being a woman
and mother of three children, would have also contributed her physical
labour for maintenance ofhousehold and also taking care of her children.
The High Court as well as the tribunal did not keep in view the contribution
of the deceased in the household work, being a labourer and also
maintaining her husband, her daily income should be fixed at Rs.150/-
per day and Rs.4,500/- per month.,
7. Taking income from the agricultural Jabour work at Rs.3,000/
per month and Rs.1,500/- per month for the household work, the monthly
income of the deceased is fixed at Rs.4,500/- per month deducting 1/3"'
for personal expenses, contribution of deceased towards the family is
calculated at Rs.3,000/- per month and Rs.36.000/- per annum. Deceased
Chanchali Na yak was aged 42 years. As per the second schedule to the
246
SUPREME COURT REPORTS [2017] I l S.C.R.
Motor Vehicles Act, 1988, for the age groups 40-45 years multiplier is
'.' 15". As per Sar/a Verma (Smt.) and Others v. Delhi Transport
Corporation and Another (2009) 6 SCC l 2 l, for the age groups 41-45
years multiplier to be adopted is" l 4". Therefore, the multiplier of" I 2"
adopted by the tribunal and the High Court may not be correct. Hence,
the multiplierof" 12" adopted may not be correct. Adopting the multiplier
of" 14" Joss ofdcpcndcncy is calculated at Rs.5,04,000/-(3,000xl2xl4).
8. As per the tkcision of the Constitution Bcnch in National
l11sura11ce Company Li111i1ed 1: Pranav Set/1i and Others 2017 (13)
SCALE l 2. compensation of Rs.15,000/-for loss ofrstate and Rs.15,0001
- for funeral expenses is awarded. Thus total compensation awarded to
the claimants is enhanced to Rs.5.34,000/- payable with interest at the
rate of 7'Vo per annum.
9. The impugned judgment is modified and the compensation
payable to the claimants is enhanced to Rs.5,34.000/-. The enhanced
compensation is payabk with interest at the rate of7% per annum from
27.01.2016 (the date of judgment of the High Court) and this appeal is
pm1ly allowed. Respondents No. l to 3 are jointly and severally liable to
pay the cnlrnnccd compensation with interest.
Dc:vika Gujral Appc:al partly allowt'd.