TaxTMI 
TaxTMI 
1977 (2) TMI 132
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....eds of out nation have passed laws and statutes to minimise motor accidents and to provides for adequate compensation to the families who face serious socio-economic problems if the main bread-earner loses his life in the motor accident. The time is ripe for serious consideration of creating non-fault liability. Having regard to the directive principles of State policy, the poverty of the ordinary run of victims of automobile accidents, the compulsory nature of insurance of motor vehicles, the nationalisation of general insurance companies and the expanding trend towards nationalisation of bus transport, the law of torts based on no-fault needs reform. While Section 110 of the Motor Vehicles Act provides for the Constitution of Claims Tribunals for determining the compensation payable, s. 110-A provides for the procedure and circumstances under which the family of a victim of a motor accident can get compensation and lays down the various norms, though not as exhaustively as it should have. The Courts, however, have spelt out and enunciated valuable principles from time to time which guide the determination of compensation in a particular situation. Unfortunately, however, Section ....
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.... direction. The driver of the M. P. Speedways Company was Ram Swaroop while that of the bus belonging to Bhuta was Sushil Kumar. When the two buses were approaching in opposite directions, both the drivers being negligent and having failed to take the necessary precautions of keeping to their left led to a head-on collision of the two buses as a consequence of which the two persons, namely, Satyendra Nath Raha and Uma Shanker Shastri sustained fatal injuries to which they succumbed on the same day in the Gohad Hospital. The facts and circumstances under which the accident took place have not been disputed by counsel for the parties, nor have the essential findings of fact given by the Claims Tribunal and the High Court been challenged before us. The appeal, therefore, lies within a very narrow compass. 4. But before dealing with the appeals, it may be necessary to indicate the reliefs granted by the Claims Tribunal to the parties concerned. The Claims Tribunal decreed the claim of Raha to the extent of ₹ 60,000/- only against all the respondents holding that the drivers of both the buses were negligent. The claim of Shastri was decreed only to the extent of ₹ 40,000/- ....
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....d a total amount of ₹ 29,000/- (Rs. 15,000/- by Gupta and ₹ 14,000/- by Insurance Companies) in full and final settlement of the claim of Raha and, therefore, the appeal should be decreed in terms of the compromise. It was further contended that even if the amount awarded by the Claims Tribunal to Raha is enhanced that should be payable by Bhuta alone and not by the appellant Gupta, who has settled the claim with the appellant Raha. There can be no doubt that if really a settlement has been reached between Gupta and Raha then no further decree can be passed as against Gupta. The appellant further undertook to pay ₹ 10.000/- to Shastri in fulfilment of her claim. As ₹ 10,000/ has already been paid to Shastri with the result that Bhuta has yet to pay ₹ 20,000/- being her share to Shastri. 6. Finally, it was contended that as there was no allegation of negligence against Ram Swaroop the driver of the M.P. Speedways Co. the High Court ought not to have decreed the claim of Raha against the appellant Gupta, We have perused the plaint before the Claims Tribunal, which is rather loosely drafted, but it clearly contains the relief of compensation even against....
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....; 1,89,402 including the increments earned and the maximum grade drawn. This figure may be rounded off to ₹ 1,88,000/-. Even if half of this be deducted as being rightly taken to have been spent by the deceased to cover day to day domestic expenses , payment of income-tax and other charges, the actual income lost to the family including the value of the estate and the loss to the dependants would be ₹ 94,000/-. This will be a fair estimate which does not take into account the economic value of the deprivation to the wife of her husband's company for ever and the shock felt by the children. It was suggested by the High Court that as the deceased Raha was not a permanent employee, the amount taken into account by the Compensation Tribunal was correct. This is, however, not a consideration which could have weighed with the Claims Tribunal in making the assessment, because it was purely contingent . On the other hand with the rise in price index it could well have been expected that there would be several revisions in the grade by the time the deceased Raha had attained the age of supernnuation, which, if taken into account, would further enhance the amount. In these ci....
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....at precious human lives lost in motor accidents leaving a trail of economic disaster in the shape of their unprovided for families call for special attention of the law makers to meet this social need by providing for heavy and adequate compensation particularly through Insurance Companies. It is true that while our law makers are the best judges of requirement of the society, yet it is indeed, surprising that such an important aspect of the matter has missed their attention. Our country can ill-afford the loss of precious life when we are building a progressive society and if any person engaged in industry, office, business or any other occupation dies, a void is created which is bound to result in a serious set back to the industry or occupation concerned. Apart from that the death of a worker creates a serious economic problem for the family which he leaves behind. In these circumstances it is only just and fair that the Legislature should make a suitable provision so as to pay adequate compensation by properly evaluating the precious life of a citizen in its true perspective rather than devaluing human lives on the basis of an artificial mathematical formula. It is common knowl....