Vijay Sharma and ors. Vs. Nanak Ikon Stores and anr.

Vijay Sharma and ors. vs Nanak Ikon Stores and anr.

Type Court Judgment Court Madhya Pradesh Decided Nov 30, 2000

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Citation: sooperkanoon.com/511346
Court: Madhya Pradesh High Court
Judge: R.D. Vyas and ;Shambhoo Singh, JJ.
Decided On: Nov 30, 2000
Subject: Insurance;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: Insurance;Motor Vehicles

Parties & Advocates

Appellant / Petitioner

Vijay Sharma and ors.

Advocate Mr. Punegar

Respondent

Nanak Ikon Stores and anr.

Advocate Mr. Dhuper

Legal References

Reported In: I(2001)ACC693

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..........amount be enhanced. on the other hand, mr. dhuper, learned counsel for the respondent no. 2-insurance company, supported the impugned award.4. we considered the arguments advanced by learned counsel for both sides and perused the record. the fact of driving of maruti car in rash and negligent manner and occurring of accident has not been disputed before us. the question for consideration is whether the amount of compensation awarded by the tribunal is on lower side. it has come in the evidence of vijay kumar sharma that his wife prema sharma was helping him in running his business of computer and typing. he and his wife combindly used to earn rs. 67,000/- per month. in the year 1995-96 he paid rs. 1,300/- as income tax. he produced the registration card of his shop ex. p7 and also the copy of income-tax return ex. p6. vijay kumar sharma further stated that due to the death of his wife prema sharma, he had to engage one servant for cooking and other servant for washing utensils, clothes and cleaning the house. he had to pay rs. 500-600/- per month to the servants respectively. vijay kumar sharma admitted in cross-examination that his wife was matriculate and she did not know typing. under such circumstances, the learned tribunal rightly held that it was not proved that the deceased was earning rs. 3,000/- or more per month. but from the evidence of vijay kumar sharma, it is clear that he was required to engage two servants whom he was paying rs. 1,100/- per month. even in schedule 2 to section 163a of the motor vehicles act, 1988, notional income for compensation to those who had no income has been provided rs. 15,000/- per annum. looking to the fact that due to the death of the deceased, vijay kumar sharma had to spend rs. 1,100/- per month for engaging two servants. the servants work only for 7 or 8 hours while the family members work day and night for the welfare of the family. he has been deprived of her services which she was rendering in running his.....

Full Judgment

Shambhoo Singh, J.

1. This appeal is directed by the claimants against the award dated 1.7.1998 passed by VIIth M.A.C.T., Indore in Claim Case No. 141/86.

2. The claimants' case, in brief, was that on 9.2.1996 deceased Prema Sharma, the wife of appellant No. 1 and mother of appellant Nos. 2 and 3, was travelling in Maruti Car No. M.P. 09-N/0770, belonging to respondent No. 1 and insured with respondent No. 2. They were coming from Onkareshwar to Indore. Near Indore, the driver Sachchanand drove this car in rash and negligent manner and dashed against a truck, as a result of which Prema Sharma and other occupants of the car sustained injuries. Prema Sharma died on the spot. The deceased was helping in the business of Computer and Typing carried on by appellant No. 1 and she was earning Rs 3,000/- per month. The appellants filed claim case seeking compensation of Rs. 6,60,000/-. The respondents resisted the claim. Respondent No. 2, Insurance Company inter alia averred that the driver of Maruti Car had no valid driving licence. Thus, the owner of the car committed breach of the terms and conditions of the insurance policy. Hence, it was not liable to pay compensation. On appreciation of evidence, the Tribunal held that the accident occurred due to rash and negligent driving of Maruti Car No. M.P. 09-N/0770, as a result of which Prema Sharma sustained injuries and died on the spot. The Tribunal held that the deceased was earning Rs. 1,000/- per month and awarded compensation of Rs. 1,10,000/- with interest at the rate of 12% per annum. The claimants have filed this appeal for enhancement of compensation amount.

3. Mr. Punegar, learned Counsel for the appellants, submitted that the learned Tribunal committed error in holding that the deceased was earning only Rs. 1,000/- per month. He submitted that the appellant vijay Kumar Sharma and the deceased Prema Sharma had formed partnership and their earning was more than Rs. 7,000/- per month. They were income tax payee, therefore, the compensation amount be enhanced. On the other hand, Mr. Dhuper, learned Counsel for the respondent No. 2-Insurance Company, supported the impugned award.

4. We considered the arguments advanced by learned Counsel for both sides and perused the record. The fact of driving of Maruti Car in rash and negligent manner and occurring of accident has not been disputed before us. The question for consideration is whether the amount of compensation awarded by the Tribunal is on lower side. It has come in the evidence of Vijay Kumar Sharma that his wife Prema Sharma was helping him in running his business of Computer and Typing. He and his wife combindly used to earn Rs. 67,000/- per month. In the year 1995-96 he paid Rs. 1,300/- as income tax. He produced the Registration Card of his shop Ex. P7 and also the copy of income-tax return Ex. P6. Vijay Kumar Sharma further stated that due to the death of his wife Prema Sharma, he had to engage one servant for cooking and other servant for washing utensils, clothes and cleaning the house. He had to pay Rs. 500-600/- per month to the servants respectively. Vijay Kumar Sharma admitted in cross-examination that his wife was matriculate and she did not know typing. Under such circumstances, the learned Tribunal rightly held that it was not proved that the deceased was earning Rs. 3,000/- or more per month. But from the evidence of Vijay Kumar Sharma, it is clear that he was required to engage two servants whom he was paying Rs. 1,100/- per month. Even in Schedule 2 to Section 163A of the Motor Vehicles Act, 1988, notional income for compensation to those who had no income has been provided Rs. 15,000/- per annum. Looking to the fact that due to the death of the deceased, Vijay Kumar Sharma had to spend Rs. 1,100/- per month for engaging two servants. The servants work only for 7 or 8 hours while the family members work day and night for the welfare of the family. He has been deprived of her services which she was rendering in running his business. In view of it we assess the earning of the deceased at Rs. 1,800/- per month. The learned Tribunal committed error in assessing the earning of the deceased at Rs. 1,000/- per month. On deducting l/3rd of Rs. 1,800/- for personal expenses of the deceased, the dependency of the appellants comes to Rs. 1,200/- per month and yearly Rs. 14,400/-. It has come in the evidence of Vijay Kumar Sharma and postmortem report that the age of the deceased was 35 years. In view of Second Schedule to Section 163A of the Motor Vehicles Act, 1988, we select multiplier of 17. On multiplying it with the multiplicand, the amount comes to (14,400 x 17) Rs. 2,44,800/-. Appellant No. 1 is also entitled to Rs. 5,000/- for loss of consortium and Rs. 2,000/- for funeral expenses. On addition of this amount, the amount of compensation comes to Rs. 2,51,800/-. It is rounded up to Rs. 2,52,000/-.

5. In the result, the appeal is partly allowed. The impugned award is modified and it is directed that the respondent No. 2-Insurance Company shall pay Rs. 2,52,000/- to the appellants with interest at the rate of 12% per annum from the date of filing of claim application till realisation (after adjusting the amount already deposited/paid). The enhanced amount be equally distributed among the appellants. The entire share of appellant Nos. 2 and 3 and Rs. 50,900/- out of the share of appellant No. 1 with accrued interest be deposited in maximum interest paying scheme in nationalised Bank' for a period of six years or till appellant Nos. 2 and 3 become major whichever is later. There shall be no order as to costs.

Same Court & Year Madhya Pradesh · 2000 Same Parties Vijay Sharma and ors. vs Nanak Ikon Stores and anr. Same Subject Insurance;Motor Vehicles Same Judge R.D. Vyas and ;Shambhoo Singh, JJ.

Insurance;Motor Vehicles