SEBASTIANI LAKRA & ORS Vs. NATIONAL INSURANCE COMPANY LTD & ANR
LAWS(SC)-2018-10-54
SUPREME COURT OF INDIA
Decided on October 12,2018

Sebastiani Lakra And Ors Appellant
VERSUS
National Insurance Company Ltd And Anr Respondents

JUDGEMENT

Deepak Gupta J. - (1.) Leave granted.
(2.) These appeals filed by the claimants-appellants are directed against the judgment dated 21.12.2017 delivered by the High Court of Orissa at Cuttack whereby compensation of Rs.40,90,000/- awarded by the IInd Addl. District Judgecum-Vth Motor Accidents Claim Tribunal, Rourkela (hereinafter referred to as 'the MACT') has been reduced to Rs.36,00,000/-.
(3.) The MACT found that the revised basic pay of the deceased was Rs.51,328/- and he was entitled to DA of Rs.7,237/- at the time of his death i.e. he was getting a total salary of Rs.58,565/-. However, the MACT, for the purposes of compensation, assessed the monthly income of deceased at Rs.50,000/- per month and deducted 1/3 for his personal expenses leaving a datum figure of Rs.33,333/- per month. Since the deceased was 52 years old, the MACT following the judgment of this Court in Sarla Verma v. DTC, 2009 6 SCC 121 , applied a multiplier of 11 and assessed compensation at Rs.40,00,000/- for loss of income, Rs.25,000/- was added for funeral expenses, Rs.5,000/- for the loss of estate, Rs.50,000/- towards loss of consortium and Rs.10,000/- for loss of affection i.e. total compensation of Rs.40,90,000/- was awarded to the claimants. The claimants and the insurance company filed appeals challenging the quantum of compensation. The main ground raised by the insurance company was that the claimants were being paid a sum of Rs.50,082/- per month under the Employees Family Benefit Scheme (for short 'the EFB Scheme'). The High Court, without giving any reasons, has reduced the compensation by almost Rs.5,00,000/-, to Rs.36,00,000/-. Reasons are the heart and soul of any judicial pronouncement. No judicial order is complete without reasons and it is expected that every court which passes an order, should give reasons for the same.;


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