NATIONAL INSURANCE COMPANYLTD Vs. INDIRA SRIVASTAVA
LAWS(SC)-2007-12-103
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on December 12,2007

National Insurance Companyltd Appellant
VERSUS
INDIRA SRIVASTAVA Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) Connotation of the term 'income' for the purpose of determination of 'just compensation' envisaged under Section 168 of the Motor Vehicles Act, 1988 (the Act) calls for question in this appeal which arises out of a judgment and order dated 6.4.2007 passed by the High Court of Judicature at Allahabad, Lucknow Bench at Lucknow in FAFO No.171 of 2001. Respondent's husband R.K. Srivastava was employed in a company named Gabriel India Ltd. While he was travelling in an auto rickshaw from Charbagh Railway Station, Lucknow to his residence situated at Ashok Marg, the same met with an accident with a 'Mahindra Commander Jeep' driven rashly and negligently. He sustained injuries and ultimately succumbed thereto. Respondents herein filed a claim petition before the learned Tribunal. A salary certificate was produced in the said proceedings which is in the following terms : JUDGEMENT_1641_TLPRE0_2007_1.html
(3.) The learned Tribunal opined that in computing his income, the element of conveyance allowance only would fall outside the purview of income. On the aforementioned basis, the monthly income of the deceased was assessed at Rs.20364/-. Applying the multiplier of 13, as the age of the deceased was 45 years, it was held : "As such, on using multiple of 13 to the annual income of deceased at Rs.2,32,372/-, the amount works out to Rs.30,20,836/-. The deceased would have spent 1/3rd of this amount on himself, hence on deducting 1/3rd from this amount, 2/3rd compensation amount comes to Rs.20,13,890/-." It was concluded: "Considering all these facts, I reach to this finding that the petitioners are entitled to get 2/3rd of the total income of deceased worked out by using multiple of 13 i.e. about Rs.20,00,000/-. Issue No.5 is decided accordingly. It is the liability of opposite party No.3 Insurance Company. On behalf of opposite party No.3, the ruling of Hon'ble High Court Smt. Lalta Devi Vs. Suresh & Ors., T.A.C. 8, 1999 (1) page 847 has been filed before me, but this ruling does not extend any specific benefit to opposite party No.3. Hence, while deciding this issue No.5, I come to this conclusion that the petitioners are entitled to get Rs.20,00,000/- (Rs. Twenty Lakhs) as compensation.";


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.