This Court has clarified in the case of Meena Devi v. Nunu Chand Mahto[(2023) 1 SCC 204], that the objective of granting compensation under the Motor Vehicles Act, 1988, is to ensure that just and fair compensation is paid to the aggrieved party. Another question which arose for our consideration, as for the purpose of loss of dependency, the deduction of annual income should be 1/3rdor 1/4th, as there are five claimants. The Tribunal did not consider appellant Nos.4 and 5, namely, the father and the younger sister, respectively, of the deceased as dependents, stating therein that the father was not dependent on the income of the deceased and since the father is alive, the younger sister is also not dependent on the income of the deceased. This Court inGujarat SRTC v. Ramanbhai Prabhatbhai[(1987) 3 SCC 234],observed that a legal representative is one, who suffers on account of death of a person due to a motor vehicle accident and need not necessarily be a wife, husband, parent or child. {Para 13}
14. Recently in N. Jayasree v. Cholamandalam MS General Insurance Company Ltd. [(2022) 14 SCC 712], this Court observed that :
"16. In our view, the term "legal representative" should be given a wider interpretation for the purpose of Chapter XII of the MV Act and it should not be confined only to mean the spouse, parents and children of the deceased. As noticed above, the MV Act is a benevolent legislation enacted for the object of providing monetary relief to the victims or their families. Therefore, the MV Act calls for a liberal and wider interpretation to serve the real purpose underlying the enactment and fulfil its legislative intent. We are also of the view that in order to maintain a claim petition, it is sufficient for the claimant to establish his loss of dependency. Section 166 of the MV Act makes it clear that every legal representative who suffers on account of the death of a person in a motor vehicle accident should have a remedy for realisation of compensation."
15. In our view, in furtherance of the above exposition of law, the appellant Nos.4 and 5 being the father and younger sister of the deceased, both not financially independent, would fall under the definition of legal representatives for the purpose of claiming the compensation under the Motor Vehicles Act, 1988, and they were considered as dependents upon the income of the deceased, as he was doing wholesale business of selling fruits to meet the day-to-day expenses of the family. Therefore, the deduction made towards the personal expenses of the deceased should be 1/4thas the number of dependent family members is five.
IN THE SUPREME COURT OF INDIA
Civil Appeal No. 3763 of 2025.
Date of Order: 24.01.2025
Sadhana Tomar and Ors. Vs. Ashok Kushwaha and Ors.
Hon'ble Judges/Coram:
Sanjay Karol and Prashant Kumar Mishra, JJ.
Citation: MANU/SCOR/28227/2025.
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