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Supreme Court of India
Kurvan Ansari Alias Kurvan Ali vs Shyam Kishore Murmu on 16 November, 2021Author: R. Subhash Reddy

Bench: R. Subhash Reddy, Hrishikesh Roy

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.6902 OF 2021
(Arising out of Special Leave Petition (C) No.5311 of 2019)

Kurvan Ansari alias Kurvan Ali
& Anr. …Appellant(s)

versus

Shyam Kishore Murmu & Anr. …Respondent(s)

J U D G M E N T

R.SUBHASH REDDY,J.

1. Leave Granted.

2. This Civil Appeal is preferred by the appellants –

claimants in M.A. No.66 of 2011, preferred before the

High Court of Jharkhand at Ranchi, aggrieved by the

judgment and order dated 03.08.2018.

3. Necessary facts, in brief, for disposal of this

Appeal are that on 06.09.2004, while the son of the

appellants
Signature Not Verified

Digitally signed by
– claimants viz., Ibran Ali, a boy aged
Rajni Mukhi
Date: 2021.11.16
17:43:28 IST
Reason:
about 7 (seven) years studying in Class-II, was

standing by the side of the road in front of his

maternal grandparents’ house, a motorcycle has dashed

him causing grievous injuries resulting in his death.

The said vehicle was driven by one Mr.Sunil Gurum and

owned by respondent No.1 and insured with respondent

No.2.

4. On account of the said accident which resulted the

death of the child of the claimants, they filed a Claim

Petition under Section 163-A of the Motor Vehicles Act,

1988 claiming compensation. Before the Motor Accidents

Claims Tribunal, it was the case of the claimants that

the accident has occurred due to rash and negligent

driving of the driver of the offending motorcycle; the

deceased boy was aged about 7 years at the time of

accident and he was studying in Class-II. The Tribunal

by appreciating oral and documentary evidence on

record, has come to the conclusion that the accident

has occurred due to rash and negligent driving of the

motorcycle’s driver viz., Sunil Gurum. The Tribunal,

considering notional income of the deceased at

Rs.15,000/- per annum, by applying multiplier ‘15’,

awarded compensation of Rs.2,25,000/- with interest @6%

2
per annum from the date of judgment. Since the driver

of the offending motorcycle Mr.Sunil Gurum was not

possessing valid driving licence at the time of

accident, the Tribunal directed respondent No.2

-Insurance Company to pay the compensation to the

claimants and recover the same from its owner.

5. Pleading contributory negligence, the insurance

company had preferred M.A. No.115 of 2011, for

enhancement of compensation, the claimants have

preferred M.A. No.66 of 2011, before the High Court of

Jharkhand at Ranchi.

6. By the impugned judgment, the High Court has

dismissed the appeal preferred by the Insurance Company

and partly allowed the appeal preferred by the

claimants by awarding a further sum of Rs.15,000/-

towards funeral expenses. Thus, it is held that the

appellants are entitled to a sum of Rs.2,40,000/-

towards compensation with interest as awarded by the

Tribunal from the date of filing Claim Petition.

7. We have heard Sri S.N. Bhat, learned counsel for

the appellants, and Sri V.S. Chopra, learned counsel

for respondent No.2 – Insurance Company.

3
8. Sri S.N. Bhat, learned counsel for the appellants,

mainly contended that the compensation awarded by the

Tribunal as confirmed by the High Court is on lower

side and is not just and fair. The learned counsel has

contended that the compensation was awarded by assuming

income of the deceased notionally at Rs.15,000/- per

annum as per Schedule-II of the Motor Vehicles Act,

1988 which is applicable to the claims made under

Section 163-A of the Motor Vehicles Act, 1988. It is

submitted that the notional income of Rs.15,000/- was

fixed as early as in the year 1994 and somehow, the

same is continued in the statute without any amendment

in spite of repeated directions by this Court. It is

submitted that in view of the provision under Section

163-A(3) of the Motor Vehicles Act 1988, though it was

obligatory on the part of the Government to amend

Schedule–II, same as fixed in the year 1994, continued

since then. Thus, it is submitted that the notional

income as fixed, is to be considered by taking into

account increase in the cost of living. In support of

his arguments, the learned counsel for the appellants

has relied on the judgments of this Court in the cases

of Puttamma & Ors. v. K.L. Narayana Reddy & Anr. 1, R.K.
1
(2013) 15 SCC 45

4
Malik & Anr. v. Kiran Pal & Ors. 2 and Kishan Gopal &

Anr. v. Lala & Ors.3.

9. On the other hand, Sri V.S. Chopra, learned counsel

for respondent No.2 – Insurance Company, has submitted

that there are no grounds to interfere with the

impugned judgment of the High Court and placed reliance

on the judgment of this Court in the case of Rajendra

Singh & Ors. v. National Insurance Company Limited &

Ors.4.

10. Having heard the learned counsel for the parties,

we have perused the impugned judgment and the other

material placed on record.

11. As the claim was made under Section 163-A of the

Motor Vehicles Act 1988, since the deceased child was

not an earning member, the Tribunal has considered

notional income as per Schedule–II for the purpose of

fixing compensation. The Tribunal has awarded

compensation by taking notional income of the deceased

at Rs.15,000/- per annum by applying multiplier ‘15’,

awarded compensation of Rs.2,25,000/- towards loss of

dependency with interest @ 6% per annum from the date

2
(2009) 14 SCC 1
3
(2014) 1 SCC 244
4
(2020) 7 SCC 256

5
of judgment. When the appeals are preferred by the

Insurance Company as well as the appellants herein, by

the impugned common judgment, the High Court has

dismissed the appeal preferred by the Insurance

Company, and in the appeal preferred by the claimants,

while confirming the compensation awarded for loss of

dependency at Rs.2,25,000/-, has awarded a further sum

of Rs.15,000/- towards funeral expenses and accordingly

granted a total compensation of Rs.2,40,000/- with

interest @6% per annum payable by respondent No.2 –

Insurance Company and by permitting it to recover the

same from Respondent No.1 – owner of the motorcycle.

12. In the judgment in the case of Puttamma & Ors.1,

this Court has observed that the Central Government was

bestowed with the duties to amend Schedule-II in view

of Section 163-A(3) of the Motor Vehicles Act 1988, but

it failed to do so. In view of the same, specific

directions were issued to the Central Government to

make appropriate amendments to Schedule-II keeping in

mind the present cost of living. In the said judgment,

till such amendments are made, directions were issued

for award of compensation by fixing a sum of

Rs.1,00,000/- (Rupees one lakh only) towards

6
compensation for the non-earning children up to the age

of 5 (five) years old and a sum of Rs.1,50,000/-

(Rupees one lakh fifty thousand only) for the non-

earning persons of more than 5 (five) years old.

13. In the case of R.K. Malik & Anr.2 also, this Court

has observed that the notional income fixed under

Section 163-A of the Motor Vehicles Act, 1988 as

Rs.15,000/- per annum should be enhanced and increased

as the same continued to exist without any amendment

since 14.11.1994. In the case of Kishan Gopal & Anr.3

where the deceased was a ten years old child, this

Court has fixed his notional income at Rs.30,000/- per

annum.

14. In this case, it is to be noted that the accident

was on 06.09.2004. In spite of repeated directions,

Schedule-II is not yet amended. Therefore, fixing

notional income at Rs.15,000/- per annum for non-

earning members is not just and reasonable.

15. In view of the judgments in the cases in Puttamma

& Ors.1, R.K. Malik & Anr.2 and Kishan Gopal & Anr.3, we

are of the view that it is a fit case to increase the

notional income by taking into account the inflation,

devaluation of the rupee and cost of living. In view of

7
the same, the judgment in the case of Rajendra Singh &

Ors.4 relied on by the learned counsel for respondent

No.2-Insurance Company would not render any assistance

to the case of the insurance company.

16. In view of the above, we deem it appropriate to

take notional income of the deceased at Rs.25,000/-

(Rupees twenty five thousand only) per annum.

Accordingly, when the notional income is multiplied

with applicable multiplier ‘15’, as prescribed in

Schedule-II for the claims under Section 163-A of the

Motor Vehicles Act 1988, it comes to Rs.3,75,000/-

(Rs.25,000/- x Multiplier 15) towards loss of

dependency. The appellants are also entitled to a sum

of Rs.40,000/- each towards filial consortium and

Rs.15,000/- towards funeral expenses. Thus, the

appellants are entitled to the following amounts

towards compensation:(a) Loss of Dependency : Rs. 3,75,000-00
(b) Filial Consortium : Rs. 80,000-00
(Rs.40,000/- x 2)
(c) Funeral Expenses : Rs. 15,000-00
—————–
Total : Rs. 4,70,000-00

17. Accordingly, the appellants are entitled for a sum

of Rs.4,70,000/- (Rupees four lakhs seventy thousand

8
only) towards total compensation with interest at 6%

per annum from the date of claim petition till the date

of realisation. The enhanced compensation shall be

apportioned between the appellants as ordered by the

Tribunal. The entire compensation shall be paid to the

appellants by respondent No.2 – Insurance Company, and

we keep it open to the Insurance Company to recover the

same from respondent No.1 – owner of the motorcycle by

initiating appropriate proceedings as the motorcycle

was driven by the driver who was not possessing valid

driving licence on the date of the accident.

18. Accordingly, this Civil Appeal is allowed partly

with directions as indicated above. No order as to

costs.

……………………………………………………J
(R. SUBHASH REDDY)

……………………………………………………J
(HRISHIKESH ROY)
NEW DELHI;
November 16, 2021

9

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