[MV Act] Ori HC | Does compassionate appointment given to the widow allow deductions in compensation granted? HC decides

Orissa High Court: Biswanath Rath, J. dismissed both appeals being devoid of merits.

The facts of the case are such that the deceased, at about 8 P.M. was proceeding to perform his duty by a bicycle on left side of the road near Balugaon Bazaar on N.H.5 when the offending Truck came in high speed in a rash and negligent manner and dashed against the deceased from his backside resulting in his death.

A claim petition by the claimants i.e. the legal heirs of the deceased was filed seeking compensation which was thereby granted by the Tribunal. Assailing the said order, the insurance company filed one appeal primarily on the question of quantum, and another appeal was filed by the legal heirs for enhancement of compensation

Two appeals have been filed which was collectively taken by the Court and disposed off by the common order.

Counsel for the insurance company Mr G Mishra submitted that the fact of future gain to the family on account of death of the deceased by way of compassionate appointment given to the wife should have also been kept in mind of the Tribunal while granting compensation and future prospects.

Counsel for the claimants Mr KK Das submitted that widow’s compassionate appointment and getting salary/some benefits on the death of her husband not to be deducted from gross income while calculating compensation

The Court relied on judgment Helen C. Rebello v. Maharashtra State Road Transport Corporation and observed that  “bank balance, shares, fixed deposits, etc. though are all a pecuniary advantage receivable by the heirs on account of one’s death but all these have no co-relation with the amount receivable under a statute occasioned only on account of accidental death. How could such an amount come within the periphery of the Motor Vehicles Act to be termed as ‘pecuniary advantage’ liable for deduction.”

 The Court further relied on Vimal Kanwar v. Kishore Dan, 2013(3) TAC6 (SC) and observed that “Compassionate appointment” can be one of the conditions of service of an employee, if a scheme to that effect is framed by the service leaving behind the dependents, one of the dependents may request for compassionate appointment to maintain the family of the deceased employee dies in harness. This cannot be stated to be an advantage receivable by the heirs on account of one’s death and have no correlation with the amount receivable under a statute occasioned on account of accidental death.”

The Court thus held “this Court finds none of the grounds agitated by the Insurance Company remains sustainable in the eye of law.” 

The Court further held “the bereaved family got the premature superannuation benefits on the head of the deceased and also an employment under rehabilitation assistance scheme, this Court observes grant of Rs.1,00,000/- towards funeral expenses be considered as compensation towards funeral expenses, loss of estate as well as loss of love and affection. In the above view, this Court is not inclined to grant any further amount on the above heads except directing to treat grant of Rs.1,00,000/- (Rupees one lakh) only towards funeral expenses as expenses on the head of loss of estate and for loss of love and affection as well as loss of consortium”. 

In view of the above, both the appeals were dismissed.[S. Divya v. P. Ramalingeswar, MACA Nos. 593 & 774 of 2016, decided on 05-04-2021]


Arunima Bose, Editorial Assistant has reported this brief.

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