Case: Manjusri Raha and Others Etc Vs. B.L. Gupta and Others Etc

no doubt that whole of this amount would have to be spent, there being no other source of income and, therefore, this amount cannot be said to be lost to the estate. The certificate Ext. P-4 further shows that the deceased Raha would have got death-cum-retirement gratuity t o the extent of Rs. 13, 500/- calculated on the basis of the presumptive average emoluments and presumptive last emoluments. If the deceased had lived after superannuation, he might probably have got this amount. After adding this amount of Rs. 13, 500/- to. Rs. 90, 000 the total amount would come to Rs. 1, 03, 500/- which may be rounded off to roughly Rs. 1, 00, 000/-. In any view of the matter, therefore, the appellant Raha was entitled to a compensation of Rs. 1, 00, 000/-, and the Courts below erred in completely overlooking these two important aspects which we have discussed.4. It appears that the appellants Raha as also Padmavati Shastri could have got heavier compensation from the Insurance Companies, but unfortunately the Motor Vehicles Act has taken a very narrow view by limiting the liability of the Insurance Companies under s. 95 (2) (d) to Rs. 2, 000/- only in case of a third party.While our Legislature has made laws to cover every possible situation, yet it is well nigh impossible to make provisions for all kinds of situations. Nevertheless where the social need of the hour requires that 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 the requirements 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 a 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 previous life of a citizen in its true perspective rather than devaluing human lives on the basis of an artificial mathematical formula. It is common knowledge that where a passenger travelling by a plane dies in an accident, he gets a compensation of Rs. 1, 00, 000/- or like large sums, and yet when death comes to him not through a plane but through a motor vehicle he is entitled only to Rs. 2, 000/-. Does it indicate that the life of a passenger travelling by plane becomes more, precious merely because he has chosen a par- ticular conveyance and the value of his life is considerably r educed if happens to choose a conveyance of a lesser value like a motor vehicle ? Such an invidious distinction is absolutely shocking to any judicial or social conscience and yet s. 95(2)(d) of the Motor Vehicles Act seems to. suggest such a distinction. We hope and trust that our law-makers will give. serious attention to this aspect of the matter and remove this serious lacuna in s. 95(2)(d) of the Motor Vehicles Act. We would also like to. suggest that instead of limiting the liability of the Insurance Companies to a specified sum of money as representing the value of human life, the amount should be left to be determined by a Court in the special circumstances of each case. We further hope our suggestions will be duly implemented and the observations of the highest Court of the country do not become a mere pious wish.In M/s. Sheikhupura Transport Co. Ltd. v. Northern India Transporters Insurance Co. Ltd. (A.I.R 1971 S.C. 1624.) this Court has clearly held that an Insurance Company is not liable to pay any sum exceeding Rs. 2,000/- upto a maximum of Rs. 20, 000/- on the plain words of s. 95 (2) (d) of the Motor Vehicles Act and the only remedy to provide for adequate compensation for a precious life of a human life is for the Legislature to take a practical view of the loss of human life in motor accidents.5. In P.B. Kader &Ors. v. Thatcharoma and Ors. (A.I.R. 1970 Kerala 241.) a Division Bench of the Kerala High Court, while dwelling on this aspect observed as follows:"It is sad that an Indian life should be so devalued by an Indian law as to. cost only Rs. 2, 000/-, apart from the fact that the value of the Indian rupee has been eroded and Indian life has become dearer since the time the statute was enacted, and the consciousness of the comforts and amenities of life in the Indian community has arisen, it would have been quite appropriate to revise this fossil figure of Rs. 2,000/- per individual, involved in an accident, to make it more realistic and humane, but that is a matter for the legislature; and the observation that I have made is calculated to remind the lawmakers that humanism is the basis of law and justice."6. We find ourselves in complete agreement with the observations made by the Kerala High Court in the aforesaid case and we would like to remind the law-makers that the time has come to take a more humane an d practical view of things while passing statute like the Motor Vehicles Act in regulating compensation payable by Insurance Companies to victims of motor accidents. We have not the slightest doubt that if the attention of the Government is drawn, the lacuna will be covered up in good time.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]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 Rs. 10, 000/- to Shastri in fulfilment of her claim. As Rs. 10, 000/- has already been paid to Shastri with the result that Bhuta has yet to pay Rs. 20, 000/- being her share tohave perused the plaint before the Claims Tribunal, which is rather loosely drafted, but it clearly contains the relief of compensation even against Gupta and Ram Swaroop driver. The High Court has pointed out that even though there is no clear plea of negligence in the claim of Raha, the facts alleged and proved in the case dearly show that Ram Swaroop the driver of the M.P. Speedways Company was both rash and negligent. Pleadings have to be interpreted not with forma- l istie rigour but with latitude or awareness of low legal literacy of poor people. We fully agree with the finding of the High Court and see no reason to disturb it. We also agree with the order of the High Court by which it makes Gupta and Bhuta jointly and severally liable. That was the only decree which could have been passed in the circum- stances.Coming now to the appeal filed by Raha, counsel for the appellant submitted that the compensation awarded by the Claims Tribunal is grossly inadequate and certain important factors have not been taken into consideration. On a perusal of the judgment of the Claims Tribunal it would appear that the only basis on which the compensation has been awarded is the total salary which the deceased Satyendra Nath Raha would have got upto the age of 55 years which has been taken at Rs. 1, 20, 000/- and after deducting half which would normally have been spent, the actual income lost to the family was Rs. 60, 000/-. It seems to us, however, that in making the calculation, the Claims Tribunal and the High Court overlooked two important and vital considerations. In the first place, while the admitted position was that the deceased Satyendra Nath Raha was working in the grade of Rs 590-30-830-35-900 and was getting a salary of Rs. 620/- p.m. at the time of his death, the Courts below have not taken into account the salary which he would have earned while reaching the maximum of his grade long before his retirement. It is admitted that the deceased Satyendra Nath Raha was 37 years of age at the time of the accident and at this rate he would have reached the maximum of the grade of Rs. 900/- at the age of 46 years i.e. full 9 years before his superannuation. The claimant has produced a certificate Ext. P-4 from the office of the Accountant General, Madhya Pradesh, Gwalior, which shows that from April 11, 1962 (i.e. the date next to the date of the death of Satyendra Nath Raha) to October 15, 1980 which would be the last working day of the deceased Raha, the deceased Raha would have drawn Rs, 1, 89, 402 including the increments earned and the maximum grade drawn. This figure m ay be rounded off to Rs. 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 dependents would be Rs. 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 husbands 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 superannuation, which, if taken into account, would further enhance the amount. In these circumstances, therefore, we think that the amount of Rs. 90, 000/- would represent the correct compensation so far as the salary part of the deceased Raha is concerned.The Courts below have al so not considered the effect of the pensionary benefits which the deceased Raha would undoubtedly have got after retirement, and in fact the Claims Tribunal has restricted the span of the life of the deceased only to the age of 55 years i.e. the age of superannuation, whereas in the present economic conditions the life of an average Indian has increased more than two-fold. It is, therefore, reasonable to expect that if the deceased had not died due to accident, he would have lived up at least upto the age of 65 years, if not more, so as to earn the pensionary benefits for 10 years after retirement. According to the certificate Ext. P -4 the deceased Raha would have been entitled to a monthly pension of Rs. 337-50 which would mean about Rs. 4, 050/- per year. There can be no doubt that whole of this amount would have to be spent, there being no other source of income and, therefore, this amount cannot be said to be lost to the estate. The certificate Ext. P-4 further shows that the deceased Raha would have got death-cum-retirement gratuity t o the extent of Rs. 13, 500/- calculated on the basis of the presumptive average emoluments and presumptive last emoluments. If the deceased had lived after superannuation, he might probably have got this amount. After adding this amount of Rs. 13, 500/- to. Rs. 90, 000 the total amount would come to Rs. 1, 03, 500/- which may be rounded off to roughly Rs. 1, 00, 000/-. In any view of the matter, therefore, the appellant Raha was entitled to a compensation of Rs. 1, 00, 000/-, and the Courts below erred in completely overlooking these two important aspects which we haveis true that while our law makers are the best judges of the requirements 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 a 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 previous life of a citizen in its true perspective rather than devaluing human lives on the basis of an artificial mathematical formula. It is common knowledge that where a passenger travelling by a plane dies in an accident, he gets a compensation of Rs. 1, 00, 000/- or like large sums, and yet when death comes to him not through a plane but through a motor vehicle he is entitled only to Rs. 2, 000/-. Does it indicate that the life of a passenger travelling by plane becomes more, precious merely because he has chosen a par- ticular conveyance and the value of his life is considerably r educed if happens to choose a conveyance of a lesser value like a motor vehicle ? Such an invidious distinction is absolutely shocking to any judicial or social conscience and yet s. 95(2)(d) of the Motor Vehicles Act seems to. suggest such a distinction. We hope and trust that our law-makers will give. serious attention to this aspect of the matter and remove this serious lacuna in s. 95(2)(d) of the Motor Vehicles Act. We would also like to. suggest that instead of limiting the liability of the Insurance Companies to a specified sum of money as representing the value of human life, the amount should be left to be determined by a Court in the special circumstances of each case. We further hope our suggestions will be duly implemented and the observations of the highest Court of the country do not become a mere pious wish.In M/s. Sheikhupura Transport Co. Ltd. v. Northern India Transporters Insurance Co. Ltd. (A.I.R 1971 S.C. 1624.) this Court has clearly held that an Insurance Company is not liable to pay any sum exceeding Rs. 2,000/- upto a maximum of Rs. 20, 000/- on the plain words of s. 95 (2) (d) of the Motor Vehicles Act and the only remedy to provide for adequate compensation for a precious life of a human life is for the Legislature to take a practical view of the loss of human life in motorfind ourselves in complete agreement with the observations made by the Kerala High Court in the aforesaid case and we would like to remind the law-makers that the time has come to take a more humane an d practical view of things while passing statute like the Motor Vehicles Act in regulating compensation payable by Insurance Companies to victims of motor accidents. We have not the slightest doubt that if the attention of the Government is drawn, the lacuna will be covered up in good time.