TaxTMI 
TaxTMI 
2009 (5) TMI 1006
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....9, 231-232, 233-234 and 742-743 of 2005, whereby and whereunder the High Court was pleased to dispose of the claim petitions of the appellants herein. 3. In order to decide these appeals, it would be necessary to state few basic facts. The appellants herein are claimants whose children were studying in school. On 18.11.1997 when these children were proceeding to the school in a bus bearing No. DL IP-1644, the bus after overrunning the road and breaking the railing got drowned in Yamuna river at Wazirabad Yamuna Bridge. Consequent to the accident, 29 children died. 4. The bus was being driven by Mr. Karan Pal (respondent No. 1 herein) and was owned by Mr. Hari Kishan (respondent No. 2) and was insured with National Insurance Company Ltd. (respondent No. 3). It was alleged that the driver was driving the bus in a rash and negligent manner and at a very fast speed. It was further alleged that the bus driver lost control of the bus and after breaking the railing of the bridge on left side, the same fell into the river Yamuna. 5. The appellants filed claim petitions individually on account of fault liability and sought for payment of compensation under Section 163A read with Second S....
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.... awarded by the Tribunal) and interest @ 7.5% per annum from the date of filling of the claim petition till payment. It was further held that 50% of the enhanced compensation with interest shall be paid and the balance 50% shall be kept in the form of fixed deposit or in the post office for a period of six years. The High Court directed that the dependents would be entitled to interest but would not withdraw the principal amount during the lock-in period of six years without the permission of the Tribunal. 9. Feeling aggrieved, the appellants have preferred the present special leave petition contending that the High Court ought to have applied the ratio of Lata Wadhwa v. State of Bihar (2001)IILLJ1559SC to the facts of the case and also that it failed to award a fair and reasonable compensation. It was submitted that the High Court ought to have awarded compensation of Rs. 10, 00,000/-. It was the further contention that the High Court erred in applying notional income of deceased child as Rs. 15,000/- per annum only. It was further contended that the Tribunal ought to have enhanced the income considering the rise in cost of living as well as inflation. 10. Undoubtedly, the compe....
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.... ensures consistency and certainty and prevents different amounts being awarded in different cases. 14. For calculating the yearly loss of dependency the starting point is the wages being earned by the deceased, less his personal and living expenses. This provides a basic figure. Thereafter, effect is given to the future prospects of the deceased, inflation and general price rise that erodes value and the purchasing power of money. To the multiplicand so calculated, multiplier is to be applied. The multiplier is decided and determined on the basis of length of dependency, which must be estimated. This has to be necessarily discounted for contingencies and uncertainties. Reference in this regard may be made to the judgments of this Court in the case of Sarla Dixit v. Balwant Yadav (1993)IILLJ664SC ; Managing Director TNSTC Ltd. v. K.T. Bindu AIR2005SC4425 ; T.N. State Transport Corporation Ltd. v. S. Rajapriya AIR2005SC2985 ; New India Assurance Co. Ltd. v. Charlie, AIR2005SC2157 and United India Insurance Co. Ltd. v. Patrica Jean Mahajan [2002]3SCR1176 . 15. The real problem that arises in the cases of death of children is that they are not earning at the time of the accident. In....
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....on himself if he had lived. As compensation for loss of dependency is to be calculated on the basis of notional income because the deceased was a child. It by necessary implication takes into account future prospects, inflation, price rise etc. 18. Therefore keeping in view of Second Schedule of the Act, this Court do not see any reason to differ with the view taken by the Tribunal as well as the High Court in so far as award of pecuniary compensation to the dependents/claimants is concerned. We must point out here that the learned Counsel for the appellants had argued that the notional sum of Rs. 15,000/- should be enhanced and increased as the legislature has not amended the Second Schedule and the same continues to be in existence since it was enacted on 14.11.1994. We are not examining and going into this aspect as the accident had taken place in the present case nearly three years after the enactment of the Second Schedule. The time difference between the date of the enactment and the date of accident is not substantial. 19. The other issue is with regard to non-pecuniary compensation to the appellants-dependents on the loss of human life, loss of company, companionship, hap....
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.... separately as pecuniary damages and special damages. Pecuniary damages are those which the victim has actually incurred and which are capable of being calculated in terms of money; whereas non-pecuniary damages are those which are incapable of being assessed by arithmetical calculations. In order to appreciate two concepts pecuniary damages may include expenses incurred by the claimant: (i) medical attendance; (ii) loss of earning of profit up to the date of trial; (iii) other material loss. So far non-pecuniary damages are concerned, they may include (i) damages for mental and physical shock, pain and suffering, already suffered or likely to be suffered in future; (ii) damages to compensate for the loss of amenities of life which may include a variety of matters i.e. on account of injury the claimant may not be able to walk, run or sit; (iii) damages for the loss of expectation of life, i.e., on account of injury the normal longevity of the person concerned is shortened; (iv) inconvenience, hardship, discomfort, disappointment, frustration and mental stress in life. In this case, the Court awarded non-pecuniary special damages of Rs. 3, 00,000/- to the claimants. 23. In Common ....
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....mpensation. The injury inflicted by deprivation of the life of a child is extremely difficult to quantify. In view of the uncertainties and contingencies of human life, what would be an appropriate figure, an adequate solatium is difficult to specify. The courts have therefore used the expression "standard compensation" and "conventional amount/sum" to get over the difficulty that arises in quantifying a figure as the same ensures consistency and uniformity in awarding compensations. 26. While quantifying and arriving at a figure for "loss of expectation of life", the Court have to keep in mind that this figure is not to be calculated for the prospective loss or further pecuniary benefits that has been awarded under another head i.e. pecuniary loss. The compensation payable under this head is for loss of life and not loss of future pecuniary prospects. Under this head, compensation is paid for termination of life, which results in constant pain and suffering. This pain and suffering does not depend upon the financial position of the victim or the claimant but rather on the capacity and the ability of the deceased to provide happiness to the claimant. This compensation is paid for ....
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....at the Court must ensure that a just compensation was awarded. 30. In Grewal case (supra), compensation of Rs. 5 lakhs was awarded to the claimants and the same was held to be justified. Learned Counsel for the respondent No. 3, however, pointed out that in the said case the Supreme Court had noticed that the students belonged to an affluent school as was apparent from the fee structure and therefore the compensation of Rs. 5 lakhs as awarded by the High Court was not found to be excessive. It is no doubt true that the Supreme Court in the said case noticed that the students belonged to an upper middle class background but the basis and the principle on which the compensation was awarded in that case would equally apply to the present case. 31. A forceful submission has been made by the learned Counsels appearing for the claimants-appellants that both the Tribunal as well as the High Court failed to consider the claims of the appellants with regard to the future prospects of the children. It has been submitted that the evidence with regard to the same has been ignored by the Courts below. On perusal of the evidence on record, we find merit in such submission that the Courts below....
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....in view that the Tribunal constituted under the Act as provided in Section 168 is required to make an award determining the amount of compensation which is to be in the real sense "damages" which in turn appears to it to be "just and reasonable". It has to be borne in mind that compensation for loss of limbs or life can hardly be weighed in golden scales. But at the same time it has to be borne in mind that the compensation is not expected to be a windfall for the victim. Statutory provisions clearly indicate that the compensation must be "just" and it cannot be a bonanza; not a source of profit; but the same should not be a pittance. The courts and tribunals have a duty to weigh the various factors and quantify the amount of compensation, which should be just. What would be "just" compensation is a vexed question. There can be no golden rule applicable to all cases for measuring the value of human life or a limb. Measure of damages cannot be arrived at by precise mathematical calculations. It would depend upon the particular facts and circumstances, and attending peculiar or special features, if any. Every method or mode adopted for assessing compensation has to be considered in t....