Sunday, 22 December 2013

Limits on doctrine of stare decisis-Need for law to evolve with time



Rajesh v. Rajbir Singh, (2013) 9 SCC 54

Ss. 166 and 168 - Fatal accident - Computation of compensation - Future prospects of deceased - Consideration of -
Addition to be made to actual income of deceased (which existed at the time of his death) towards his future prospects -
Rule laid down as to, in Sarla Verma, (2009) 6 SCC 121 in relation to salaried persons - Subsequently clarified and also
made applicable to persons self-employed or engaged on fixed wages in Santosh Devi, (2012) 6 SCC 421 - Further
clarified herein in relation to self-employed persons or those on fixed wages - Different additions to actual income for
different age groups of such persons - Specified - Held, in case of self-employed persons or persons with fixed wages,

the actual income of the deceased must be enhanced for purpose of computation of compensation: (i) by 50% where his
age was below 40 yrs, (ii) by 30% where he belonged to age group of 40 to 50 yrs, and (iii) by 15% where he was
between age group of 50 to 60 yrs - However, no such addition/enhancement permissible where deceased exceeded the
age of 60 yrs - For the above purpose, reiterated, actual income would mean income after paying tax, if any
Ss. 166 and 168 - Power and duty of Tribunal/Court to award compensation - Scope - Held, can award compensation in
excess of what is claimed - Duty is to award just, equitable, fair and reasonable compensation with reference to settled
principles irrespective of claim made - J
Ss. 166, 168, 169 and 173 - Claim proceedings - Reiterated, Tribunal/court should not succumb to niceties or
technicalities,

Art. 141 - Precedents - Limits on doctrine of stare decisis - Passage of time/subsequent events - If ground for
reconsideration of decision - Need for law to evolve with time - Observation made in earlier decision mainly to achieve
uniformity and consistency on a socio-economic issue, though precedent, reiterated, can be and ought to be periodically
revisited, (
Ss. 166 and 168 - Fatal accident - Computation of compensation - Principles laid down in Sarla Verma, (2009) 6 SCC
121, as clarified in Santosh Devi, (2012) 6 SCC 421 and in the instant case - Application of - Deceased, aged about 33
yrs, a clerk in school under Education Department of Government - Having regard to future prospects of deceased
considering his age, his monthly income for purpose of computation of compensation determined as Rs 14,280 by
adding 50% of his salary to actual salary income - Deducting 1/4th of the monthly income towards personal expenses of

deceased, contribution to family (dependants) determined as Rs 10,710 per month - Applying multiplier of 16,
compensation determined as Rs 20,56,320 [i.e. Rs 10,710 x 12 x 16] - In addition thereto, Rs 1,00,000 each awarded
towards loss of consortium to spouse and loss of care and guidance to minor children - Rs 25,000 awarded towards
funeral expenses - Thus, total compensation awarded as Rs 22,81,320 with interest @ 7.5% p.a. from date of filing of
petition till realisation
Ss. 166 and 168 - Fatal accident - Computation of compensation - Monthly salary of deceased - Consideration of,
therefor - Revision in pay of deceased subsequent to his death - Revision taking place [pursuant to recommendations of
6th Pay Commission] with retrospective effect from date prior to accident - Effect of - Non-production of certificate as to
revised salary before Claims Tribunal or High Court due to subsequent announcement in respect thereof - On facts,
revised salary considered by Supreme Court for determination of compensation, 

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