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Krishna Bai and ors. Vs. RiyajuddIn and ors.

Krishna Bai and ors. vs RiyajuddIn and ors.

Type Court Judgment Court Madhya Pradesh Decided Feb 21, 2008
~5 min read
https://sooperkanoon.com/case/511219

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Citation
Court
Madhya Pradesh High Court
Judge
Decided On
Subject
Motor Vehicles

Case Summary

AI-generated summary - not the official court judgment text.

- Section 2(f): [Dipak Misra, K.K. Lahoti & Rajendra Menon, JJ] Service Tax - Packaging and bottling of liquor whether amounts to manufacture within meaning of Section 2(f) of Central Excise Act 1944? Finance Act 932 of 1994), Section 65 (76 b) (as amended on 16.6.2005) - Held, The first limb of the inclusive defi...

Key legal issue
Motor Vehicles

Parties & Advocates

Appellant / Petitioner

Krishna Bai and ors.

Advocate Mr. Subodh Abhyankar

Respondent

RiyajuddIn and ors.

Advocate Mr. C.P. Singh

Legal References

Reported In
2009ACJ1508

Excerpt

- section 2(f): [dipak misra, k.k. lahoti & rajendra menon, jj] service tax - packaging and bottling of liquor whether amounts to manufacture within meaning of section 2(f) of central excise act 1944? finance act 932 of 1994), section 65 (76 b) (as amended on 16.6.2005) - held, the first limb of the inclusive definition of the manufacture under section 2(f) of central excise act has a very wide connotation. as the definition clause lays down an inclusive facet, the term manufacture has to be construed in a natural and plain manner and would include any process incidental or ancillary to the completion of a manufactured product. keeping in view the context in which the term manufacture has been used, it would take in its fold incidental and ancillary process in the manufacture or finishing of any manufactured product. it does not leave any room for doubt that an allied process should be integral and inextricable part of manufacture of completeness and presentability of the manufactured product. section 65(76b) of finance act used the words but it does not include. thus it is a definition which has the inclusive as well as exclusive facet. by virtue of the same it may include certain things and exclude others. it is well settled principle of law that a definition is not to be read in isolation and has to read in context of phrase which it defines, releasing that function of a definition is to give precision and certainty to the word or phrase which would otherwise be vague and uncertain. regard being had to the exclusionary fact in the finance act, though a limited one it would exclude the manufacturing process as defined under section 2(f) of the 1944 act. keeping in view the aforesaid dictionary clauses and circulars issued by the c.b.e.c. it is quite luminescent that would manufacture has to be understood in a broader sense and not to be confined or restricted to the excisable product in the act. it would include all processes which amount to manufacture..........it is for claiming enhancement in the compensation awarded by the tribunal, the claimants have come up in appeal. so the question that arises for consideration is, whether any case for enhancement in compensation awarded by the tribunal on facts/evidence is made out in the compensation awarded and, if so, to what extent?2. heard mr. subodh abhyankar, learned counsel for the appellants and mr. c.p. singh, learned counsel for the respondent insurance company.3. it is not necessary to narrate the entire facts in detail such as how the accident occurred, who was negligent in driving the offending vehicle, who is liable for paying compensation, etc. it is for the reason that firstly all these findings are recorded in favour of the claimants by the tribunal. secondly, none of these findings though recorded in claimants' favour are under challenge at the instance of any of the respondents such as, owner/driver or insurance company either by way of cross-appeal or cross-objection. in this view of the matter, we do not wish to burden our judgment by detailing facts on all these issues.4. it is a death case. on 10.4.2001 om prakash aged 41 years working as cotton agent, died in a vehicular accident. it is this incident which gave rise to filing of claim petition by his legal representatives under section 166 of the act against non-applicant no. 1, driver; non-applicant no. 2, owner and non-applicant no. 3, insurer of offending vehicle, claiming compensation for his death. it was contested by non-applicant no. 3 (insurance company) whereas non-applicant nos. 1 and 2 remained ex parte. parties adduced evidence. the claims tribunal by impugned award partly allowed the claim petition and accordingly, awarded total compensation of rs. 5,44,032. it was held that deceased was aged 41 years, that his yearly earning was rs. 68,000. deducting 1/3rd out of total income and applying the multiplier of 12, the claims tribunal awarded a total sum of rs. 5,44,032. the claims.....

Full Judgment

A.M. Sapre, J.

1. This is an appeal filed by the claimants, who are legal representatives of the deceased under Section 173 of the Motor Vehicles Act, 1988, against an award dated 27.9.2002 passed by the learned Additional Member, Motor Accidents Claims Tribunal, Sendhwa in Claim Case No. 87 of 2001. By impugned award, the Tribunal has awarded a total sum of Rs. 5,44,032 with interest to the claimants for the death of Om Prakash, who died in a vehicular accident. According to the claimants, the compensation awarded is on a lower side and hence, it needs to be enhanced. It is for claiming enhancement in the compensation awarded by the Tribunal, the claimants have come up in appeal. So the question that arises for consideration is, whether any case for enhancement in compensation awarded by the Tribunal on facts/evidence is made out in the compensation awarded and, if so, to what extent?

2. Heard Mr. Subodh Abhyankar, learned Counsel for the appellants and Mr. C.P. Singh, learned Counsel for the respondent insurance company.

3. It is not necessary to narrate the entire facts in detail such as how the accident occurred, who was negligent in driving the offending vehicle, who is liable for paying compensation, etc. It is for the reason that firstly all these findings are recorded in favour of the claimants by the Tribunal. Secondly, none of these findings though recorded in claimants' favour are under challenge at the instance of any of the respondents such as, owner/driver or insurance company either by way of cross-appeal or cross-objection. In this view of the matter, we do not wish to burden our judgment by detailing facts on all these issues.

4. It is a death case. On 10.4.2001 Om Prakash aged 41 years working as cotton agent, died in a vehicular accident. It is this incident which gave rise to filing of claim petition by his legal representatives under Section 166 of the Act against non-applicant No. 1, driver; non-applicant No. 2, owner and non-applicant No. 3, insurer of offending vehicle, claiming compensation for his death. It was contested by non-applicant No. 3 (insurance company) whereas non-applicant Nos. 1 and 2 remained ex parte. Parties adduced evidence. The Claims Tribunal by impugned award partly allowed the claim petition and accordingly, awarded total compensation of Rs. 5,44,032. It was held that deceased was aged 41 years, that his yearly earning was Rs. 68,000. Deducting 1/3rd out of total income and applying the multiplier of 12, the Claims Tribunal awarded a total sum of Rs. 5,44,032. The Claims Tribunal did not award any compensation under conventional heads. It is against this award, the claimants have felt aggrieved and filed this appeal contending that it is on lower side hence, it be enhanced suitably.

5. Having heard learned Counsel for the parties and having perused record of the case, we are inclined to allow the appeal in part.

6. We have gone through the evidence adduced by the claimants. Having gone through the same, we are of the view that looking to the dependants in the family of deceased, i.e., widow and four minor daughters; it is just and proper to deduct 1/4th out of total income in place of 1/3rd. So far as the deceased's yearly income is concerned, the same does not call for any interference. It is for the reason that Tribunal has placed reliance on the income tax returns of the deceased. We, therefore, find no good ground to enhance the yearly income determined by the Tribunal, i.e., Rs. 68,000.

7. Deducting 1/4th out of total income, we get a sum of Rs. 51,000 for calculating dependency. Applying the multiplier of 15 in place of 12 applied by Claims Tribunal, because of deceased's age (41 years), we get a sum of Rs. 51,000 x 15 = Rs. 7,65,000. To this, we add a lump sum amount of Rs. 25,000 awarded towards conventional heads being just and proper and we get a total sum of Rs. 7,65,000 + Rs. 25,000 = Rs. 7,90,000.

8. In other words, the claimants are held entitled for a total sum of Rs. 7,90,000 by way of compensation for the death of Om Prakash.

9. The compensation awarded to the claimants is a just, reasonable and proper looking to the facts and circumstances of the case and taking into account the law laid down by the Supreme Court in these types of cases. Indeed in such cases, no fixed and any static formula is provided for determining the compensation and the same is required to be determined on the basis of evidence adduced and the relevant factors mentioned supra. It is on this basis, the courts have to work out award of reasonable compensation.

10. Learned Counsel for the appellants cited some authorities for claiming enhancement. We have gone through these authorities. In our opinion and as observed supra, every case depends upon facts of each case and one can rely upon the cases for awarding compensation.

11. In this view of the matter, the appeal succeeds and is allowed in part. Impugned award is modified to the extent indicated above. The enhanced sum will carry interest at the rate of 6 per cent per annum from the date of application till realization. All other findings are upheld being not under challenge.

Counsel's fee Rs. 1,500, if certified.

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