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Param Pal Sharda vs Dhani Ram

Supreme Court19 September 2022C.T. Ravikumar · B.R. Gavai

Ratio decidendi

The rule this decision rests on

Where a duly proved salary certificate of a deceased victim showing monthly income is placed on record and the witness employed by the deceased's employer has testified in examination to prove that certificate, the Tribunal and appellate court commit an error of law in disbelieving or failing to give due weightage to the salary certificate and instead fixing income at a notional figure, merely because the deceased held a non-permanent employment position. A duly proved documentary record of actual earned income carries greater evidentiary weight than a notional assessment, and the compensation for loss of life must be calculated on the basis of the established monthly income as evidenced by the salary certificate, not on a diminished notional estimate.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

N0N-REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. OF 2022 [Arising out of Special Leave Petition (Civil) Nos.7345-7346 of 2021]

PARAM PAL SHARDA AND ORS. ...APPELLANT(S)

VERSUS DHANI RAM AND ORS. ...RESPONDENT(S)

ORDER

B.R. GAVAI, J.

1. Leave granted.

2. These appeals challenge the common judgment and order

of the High Court of Punjab and Haryana at Chandigarh dated

14th November 2019 passed in F.A.O. No. 1167 of 2010 and

Signature Not Verified F.A.O. No.1168 of 2010.

Digitally signed by DEEPAK SINGH Date: 2022.09.19 15:28:56 IST Reason: 1

3. The facts, in brief, giving rise to the present appeals are as

under:

3.1 On 26th August 2007, Rajinder Pal Sharda, Param Pal

Sharda (appellant No.1 herein), Nitin Sharda and one Harmail

Singh were returning to Patiala from Ludhiana in a Hyundai

Accent Car bearing No.PB-11-AE-9400, driven by Nitin Sharda.

When they reached opposite to Harman Farm House Palace,

Sirhind Road, Patiala, a Scorpio Car bearing No.PB-23-D-0109,

driven by Harjinder Singh (respondent No.2 herein) came from

the opposite direction in a zig-zag manner and dashed the

aforesaid Hyundai Accent Car. Due to the impact, Rajinder Pal

Sharda died on the spot. The remaining three, namely, Param

Pal Sharda, Nitin Sharda and Harmail Singh were taken to

Rajendra Hospital, Patiala, where Nitin Sharda and Harmail

Singh succumbed to the injuries. A First Information Report No.

397 dated 27th August 2007 was registered under Section 279

and 304-A of the Indian Penal Code, 1860 against Harjinder

Singh (respondent No.2 herein) at P.S. Sadar, Patiala.

2 3.2 The appellants are the son, daughters and wife of the

deceased Rajinder Pal Sharda, and brother, sisters and mother

of the deceased Nitin Sharda. They filed Claim Petitions before

the Motor Accident Claims Tribunal, Patiala (hereinafter referred

to as “the Tribunal”) under Section 166 of the Motor Vehicles Act,

1988 being MAC No.23T/19.12.07/23.12.08 and MAC

No.15T/19.12.07/ 23.12.08 for grant of compensation to the

tune of Rs.25 lacs each with interest on account of the death of

Rajinder Pal Sharda and Nitin Sharda respectively.

3.3 In the Claim Petition being MAC No.23T/19.12.07/

23.12.08 for grant of compensation on account of the death of

Rajinder Pal Sharda, the Tribunal assessed the income of the

deceased Rajinder Pal Sharda at Rs.5,150/- per month and after

considering the relevant aspects, passed an Award amounting to

Rs.1,68,000/- including Rs.10,000/- as loss of consortium in

favour of appellant No.4-Raj Rani, who is the widow of the

deceased Rajinder Pal Sharda. The Tribunal also passed an

Award amounting to Rs.50,000/- each in favour of claimant Nos.

2 to 4, who are the son and daughters of the deceased Rajinder

3 Pal Sharda. The Tribunal also held that the claimants were

entitled to interest at the rate of Rs.9% per annum from the date

of filing of the claim petition till actual realization.

3.4 Insofar as the Claim Petition being MAC No.15T/19.12.07/

23.12.08 for grant of compensation on account of the death of

Nitin Sharda is concerned, the Tribunal notionally fixed his

monthly income at the rate of Rs.6,000/-. The Tribunal,

therefore, passed an Award amounting to Rs.4,10,000/- in

favour of appellant No.4-Raj Rani, who is the mother of the

deceased Nitin Sharda. Insofar as the rate of interest is

concerned, a similar order came to be passed by the Tribunal as

was passed in the other Claim Petition.

3.5 In the appeal against the Award passed by the Tribunal in

the matter of the deceased Rajinder Pal Sharda, the High Court

enhanced the compensation from Rs.3,18,000/- to

Rs.4,78,456/-. In the appeal against the Award passed by the

Tribunal in the matter of the deceased Nitin Sharda, the High

Court enhanced the compensation to Rs.10,97,200/- (rounded

off to Rs.10,97,000/-) from Rs.4,10,000/-.

4 3.6 Being aggrieved, the present appeals.

4. We have heard Ms. Eliza Bar, learned counsel appearing on

behalf of the appellants and Mr. Ashok Anand, learned counsel

appearing on behalf of respondent No.2 and Mr. Vishnu Mehra,

learned counsel appearing on behalf of respondent No.3-

Insurance Company. Respondent No.1, though served, did not

enter appearance.

5. The appellants have accepted the judgment and order of the

High Court insofar as the award of compensation on account of

the death of deceased Rajinder Pal Sharda is concerned.

6. The appellants are aggrieved since the High Court and the

Tribunal have notionally fixed the monthly income of the

deceased Nitin Sharda at Rs.6,000/- only.

7. Ms. Eliza Bar, learned counsel appearing on behalf of the

appellants submits that both the Tribunal as well as the High

Court have grossly erred in estimating the monthly income of the

deceased Nitin Sharda at the rate of Rs.6,000/-.

8. Per contra, Mr. Vishnu Mehra, learned counsel appearing

on behalf of the respondent No.3-Insurance Company, submits

5 that both the Tribunal as well as the High Court, after taking

into consideration that the deceased Nitin Sharda was employed

in a private firm and that it was not a permanent job, have rightly

disbelieved the salary certificate showing the monthly salary of

deceased Nitin Sharda at the rate of Rs.15,000/-. Learned

counsel submits that no interference with the concurrent

findings of the High Court and the Tribunal to the effect that the

monthly income of the deceased Nitin Sharda was Rs.6,000/- is

warranted.

9. A perusal of the order of the Tribunal dated 27th August

2009 passed in MAC No.15T/19.12.07/23.12.08 would reveal

that the appellants have placed on record the Salary Certificate

of the deceased Nitin Sharda. The said Salary Certificate was

showing a monthly salary at Rs.15,000/-. It will further be

relevant to note that the appellants have also examined Mr. Rajiv

Bhardawaj, a Clerk in Regent Strips Pvt. Ltd., Mandi

Gobindgarh, who has proved the said Salary Certificate. From

the materials placed on record, it would reveal that the deceased

Nitin Sharda was working as Manager in the said Regent Strips

6 Pvt. Ltd., Gobindgarh. Deceased Nitin Sharda was a qualified

person, having passed Master of Arts in History from Punjab

University and was also pursuing his M. Phil. in History through

a correspondence course from Himachal Pradesh University. He

had already cleared the 1st Semester of the said course in April

2007.

10. In view of the Salary Certificate being duly proved, we are

of the view that the Tribunal and the High Court have erred in

not giving due weightage to the same. We find that the

compensation to be paid on account of the death of the deceased

Nitin Shard ought to be worked out by considering his monthly

income at Rs.15,000/-, and as such, we are inclined to allow the

present appeals. The compensation on account of the death of

the deceased Nitin Sharda is, therefore, being re-assessed as

under:

7

S.No. Heads Calculations

(i). Income Rs.15,000/- per month

(ii). 40% of (i) above to Rs.15,000/- + Rs.6,000/- = be added as future Rs. 21,000/- per month prospects

(iii). ½ of (ii) above Rs.21,000/- ÷ 2 = Rs.10,500/- deducted towards personal expenses.

(iv). Compensation after Rs.10,500/- x 12 x 18 = multiplier Rs.22,68,000/- (deceased was 23 years of age) (v). Conventional Heads Loss of Rs.30,000/- towards estate and funeral (vi). Loss of consortium Rs.1,20,000/- (Rs. 40,000/- each to appellant Nos. 1 to 3) (vii). Loss of consortium Rs.40,000/- (to appellant No.4- the mother)

(viii). Total compensation Rs.24,58,000/- awarded [(iv)+(v)+(vi)+(vii)] Enhanced amount of compensation Rs.24,58,000/- - Rs.4,10,000/- = Tribunal Rs.20,48,000/- High Court Rs.24,58,000/- - Rs.10,97,000/- = Rs.13,61,000/-

8

11. The enhanced compensation of Rs.13,61,000/- along with

interest at the rate of 6% per annum shall be paid to the

appellants within a period of three months from the date of this

order.

12. The appeals are allowed in the above terms. No order as to

costs. Pending applications, if any, shall stand disposed of.

....................J. [B.R. GAVAI]

..........................J. [C.T. RAVIKUMAR] NEW DELHI;

SEPTEMBER 19, 2022.

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