Case: Smt. Rajendra Kumari &amp; Another Vs. Smt.Shanta Trivedi &amp; Others

Rs.4,000 in each case. 7. The finding of the Tribunal on issue No.7 is as follows: The learned counsel for the claimants conceded that the liability of the Insurance Company could not exceed Rs.4,000 in each case. Issue is accordingly decided in favour of the opposite party 3. 8. Upon the said findings, the Tribunal made an award for Rs.10,000 in favour of the appellants against the opposite parties including the Rajasthan Manila Parishad and the driver of the truck assessing the liability of the Insurance Company to the extent of Rs.4,000 only. 9. Being aggrieved by the award of the Tribunal, the appellants preferred an appeal to the Rajasthan High Court challenging only the adequacy of the amount of compensation as awarded by the Tribunal. A cross-objection was also filed by the Rajasthan Mahila Parishad, the owner of the car. The High Court, as stated already, affirmed the award and dismissed the appeal and the cross-objection. Hence this appeal by special leave. 10. The first point that has been urged by Mr Lodha, learned counsel appearing on behalf of the appellants, is that the High Court was not justified in affirming the award of the Tribunal for Rs.10,000 only as compensation. It appears from the evidence of appellant 1 that the father of the deceased had a dairy farm, a poultry farm, a flour mill and an agricultural farm. The deceased used to look after the business and his monthly income was about Rs.1,000 and that out of the said income, about Rs.700 used to be spent and the total saving was only Rs.300 per month. As against this evidence, no evidence was led by the respondents regarding the income of deceased. The High Court, in affirming the award of the Tribunal as to the quantum of compensation observed as follows: It appears to us from the evidence so led by the claimants that Hari Singh at the time of his death was in fact a student and may be that whenever he could spare time, he looked after the various business activities of his father which according to Rajendra Kumari are still running. He had devoted himself to the family business and had no prospects whatever dependent upon education. While estimating the benefits derived from the various business activities one cannot lose sight of the contingencies of losses and fluctuations in income that occur in such types of business. We do realise that the loss of a husband to a young Rajput girl is something which no amount of money can compensate, yet in the circumstances of the case, we do not find that the amount of compensation fixed by the Tribunal was too high or low. We feel that it represents the just and proper compensation. 11. We are unable to understand the reasons given by the High Court in finding that the amount of compensation as awarded by the Tribunal was quite adequate. The High Court has not disbelieved the evidence of appellant 1 that her husband had an income of Rs.1,000 a month. It is true that Hari Singh was a student at the time of his death, but he was also looking after the business of his father and earning a sum of Rs.1,000 a month. There is no reason to disbelieve the evidence of appellant 1 about the income of Hari Singh. 12. Even at the modest computation, the contribution of Hari Singh towards his family could not less than Rs.500 per month, that is, Rs.6,000 per year. Taking the normal span of life to be 60 years, Hari Singh would have lived for another 35 years. It is apparent that the appellants have been deprived of more than a lakh or rupees and, accordingly, their claim for Rs 1 lakh on account of compensation was quite reasonable. Both the Tribunal and the High Court were not justified in assessing the amount of compensation payable to the appellants at Rs.10,000 only. 13. The next question is as to the liability of the Insurance Company, respondent 4 herein. It has been already noticed that the appellants conceded before the Tribunal that the liability of the Insurance Company did not exceed the sum of Rs.4,000. Indeed, as the law stood at the material time, the maximum liability of the Insurance Company in such a case was only to the tune of Rs.4,000. In the appeal before the High Court, the appellants did not challenge the finding of the Tribunal that the statutory liability of the Insurance Company was Rs.4,000 only as conceded to by the appellants. For the first time in this Court, it is submitted that respondent 4 is liable for the entire amount of compensation. It is urged by Mr.Lodha appearing for the appellants that it was incumbent upon respondent 4 to file before the Tribunal the policy of insurance in order to show that apart from the statutory liability up to Rs.4,000, respondent 4 had no further liability under the policy in excess of the statutory liability. In support of the contention, much reliance has ben placed by the learned counsel on a decision of this Court in National Insurance Company Ltd. v. Jugal Kishore National Insurance Company Ltd. v. Jugal Kishore (1988)1 S.C.C. 626: 1988 S.C.C. (Crl) 222: 1988 A.C J. 270: A.I.R. 1988 S.C. 719. In that case, it has been observed that where the Insurance Company concerned wishesto take a defence in a claim petition that its liability is not in excess of the statutory liability, it should file a copy of the insurance policy along with its defence. This decision in our opinion, is not applicable to the facts of the instant case. It has been already noticed that before the Tribunal the appellants had categorically admitted that the liability of the Insurance Company extended to Rs.4,000 only. In the circumstances, we do not think that it was incumbent upon the Insurance Company to file the policy. The contention made on behalf of the appellants is, accordingly, rejected.

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

Explanation:
1[ds]11. We are unable to understand the reasons given by the High Court in finding that the amount of compensation as awarded by the Tribunal was quite adequate. The High Court has not disbelieved the evidence of appellant 1 that her husband had an income of Rs.1,000 a month. It is true that Hari Singh was a student at the time of his death, but he was also looking after the business of his father and earning a sum of Rs.1,000 a month. There is no reason to disbelieve the evidence of appellant 1 about the income of Hari Singh12. Even at the modest computation, the contribution of Hari Singh towards his family could not less than Rs.500 per month, that is, Rs.6,000 per year. Taking the normal span of life to be 60 years, Hari Singh would have lived for another 35 years. It is apparent that the appellants have been deprived of more than a lakh or rupees and, accordingly, their claim for Rs 1 lakh on account of compensation was quite reasonable. Both the Tribunal and the High Court were not justified in assessing the amount of compensation payable to the appellants at Rs.10,000 onlyIt has been already noticed that the appellants conceded before the Tribunal that the liability of the Insurance Company did not exceed the sum of Rs.4,000. Indeed, as the law stood at the material time, the maximum liability of the Insurance Company in such a case was only to the tune of Rs.4,000. In the appeal before the High Court, the appellants did not challenge the finding of the Tribunal that the statutory liability of the Insurance Company was Rs.4,000 only as conceded to by the appellants. For the first time in this Court, it is submitted that respondent 4 is liable for the entire amount of compensation. It is urged by Mr.Lodha appearing for the appellants that it was incumbent upon respondent 4 to file before the Tribunal the policy of insurance in order to show that apart from the statutory liability up to Rs.4,000, respondent 4 had no further liability under the policy in excess of the statutory liability. In support of the contention, much reliance has ben placed by the learned counsel on a decision of this Court in National Insurance Company Ltd. v. Jugal Kishore National Insurance Company Ltd. v. Jugal Kishore (1988)1 S.C.C. 626: 1988 S.C.C. (Crl) 222: 1988 A.C J. 270: A.I.R. 1988 S.C. 719. In that case, it has been observed that where the Insurance Company concerned wishesto take a defence in a claim petition that its liability is not in excess of the statutory liability, it should file a copy of the insurance policy along with its defence. This decision in our opinion, is not applicable to the facts of the instant case. It has been already noticed that before the Tribunal the appellants had categorically admitted that the liability of the Insurance Company extended to Rs.4,000 only. In the circumstances, we do not think that it was incumbent upon the Insurance Company to file the policy. The contention made on behalf of the appellants is, accordingly, rejected14. In the result, we direct that the appellants are entitled to a sum of Rs.l lakh (Rupees one lakh only) on account of compensation. Out of the said sum, the Insurance Company respondent 4, is liable to pay Rs.4,000 only and respondents 1,2 and 3 including the Rajasthan Manila Parishad are jointly and severally liable to pay to the appellants the remaining amount. The respondents shall deposit the decretal amount to the extent of their respective liabilities in the Motor Accident Claims Tribunal, Udaipur, within two months from date; in default, the decretal amount or so much thereof as will remain outstanding will bear interest at 12 per cent per annum till realisation.