SC raises accident compensation to Rs 25.2 lakh to kin of deceased farmer

In determining compensation under the MV Act, the tribunal noted of the total extent of land he cultivated, he owned 12 acres and rest were those of his family

In a relief to the family members of a young farmer who died in road accident, the Supreme Court has ordered payment of enhanced compensation from Rs 17.66 lakh to over Rs 25.20 lakh to them, after noting that the deceased was cultivating 66 acres, and was entitled to a third of the value of produce from income of those agricultural lands.

A bench of Justices Krishna Murari and S Ravindra Bhat noted that it is an uncontroverted fact that the deceased Jagjit Singh was 35-year-old and was also a lambardar of the village, and a graduate.

In determining compensation under the Motor Vehicle Act, the tribunal noted of the total extent of land he cultivated, he owned 12 acres and rest were those of his family.

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The tribunal arrived at a lump sum amount of Rs 95,000 per annum, and deducted 1/3 rd from that sum, on the ground that it constituted expenditure, and made a further deduction of 1/3rd amount towards the deceased’s living expenses.

The High Court arrived at the final figure of Rs 17.66 lakh with 7.5 per cent interest per annum.

"This court is of the opinion that even while the High Court increased the level of income, it did not address the issue in the correct perspective," the bench said, adding appellants are entitled to Rs 25.20 lakh towards loss of dependency and the three appellants being the children and mother of the deceased, are entitled to Rs 40,000 each towards filial and parental consortium.

The court allowed an appeal filed by Harvinder Kaur and other, family members of the deceased against the decision by the Punjab and Haryana High Court.

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Singh was returning from Chandigarh in a car with two other passengers, when a negligently driven truck collided with their car on September 29, 2004. After being grievously injured, he was transferred to the hospital for medical attention, but succumbed to his injuries.

His family members approached the Motor Accident Claims Tribunal which awarded a sum of just Rs 6.60 lakh to the family members under the Motor Vehicle Act.

It was also submitted before the court that the deceased was the lambadaar of the village, and undertook various responsibilities related to this role. A man of enterprise, it was reiterated, that he was young, well educated, and progressive farmer who employed modern farming techniques, and was instrumental in increasing the income from the lands.

It was also argued that the deceased was central to the income generating activity, and the steady rise in his income was testimony to his dynamic approach. His death affected the income generating capacity, and therefore,the loss of dependency on that score was vital.