Partly allowed

Smt. Gangashree and Another v. Rev. a. Amos and Another

Allahabad HC2 Jan 2018FAFO/2355/2004

Case brief

AI extract

What is this about?

The High Court allowed an appeal enhancing compensation from Rs. 1,10,000 to Rs. 3,00,000 for the death of an 18-year-old. The court also increased the interest rate from 6% to 9% per annum, directed deposit of the amount, and modified the judgment and decree accordingly.

What did the court decide?

Compensation enhanced to Rs. 3,00,000 with interest at 9% per annum from the date of filing of appeal till deposit.

Smt. Gangashree and Another Vs Rev. a. Amos and… — Motor Accident Claims | Allahabad HC (2018)

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Court No. - 27 Case :- FIRST APPEAL FROM ORDER No. - 2355 of 2004 Appellant :- Smt. Gangashree And Another Respondent :- Rev. A. Amos And Another Counsel for Appellant :- B.P. Verma

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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1. This appeal under section 173 of Motor Vehicle Act, 1988 ( hereinafter referred to as the "Act, 1988") at the instance of Smt. Gangashree and another (hereinafter referred to as "appellant") has arisen from judgment and award dated 13.11.2003 passed by Motor Accident Claim Tribunal/ Additional Session Judge, Court No. 2, Mathura (hereinafter referred to as "Tribunal") in Motor Accident Claim Petition No.142 of 2001, whereby compensation of Rs.1,10,000/- has been awarded by Tribunal. Aggrieved thereto, appellant has come up in this appeal claiming enhancement on the awarded amount on the death of their son who was 18 years of age.

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2. Though the notice are sent since about 10 years, the Oriental Insurance Company Limited has not appointed any counsel. The owner is also unrepresented.

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3. The accident is not in dispute. The death is also not in dispute.

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4. It is submitted by Sri B.P. Verma, learned counsel appearing on behalf of appellant that till date i.e. for 13 years he has not received any notice of any appeal being filed either by Insurance Company or owner. Hence, the Insurance Company is liable as the policy is invoked and the Insurance Company was invoked and there was no defence which were taken proved which would absolve them from the liability. Sri B.P. VermaAdvocate has relied on the judgment of this Court reported in 2003 LawSuit(All) 1405 and has requested this Court to

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enhance the amount of compensation and also the rate of interest.

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5. Amount awarded by Tribunal is Rs.1,10,000/- with 6% interest. The claimant has claimed a sum of Rs.3,69,000/- with 9% rate of interest and has also relied on the recent judgment in National Insurance Company Ltd. Vs. Pranay Sethi and others, 2017(0) Supreme (SC) 1050. It is aadmitted position of fact that the age of the deceased was 18 years of age, hence, the compensation will have to be calculated in that way.

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6. I am agreement with the submission of Sri B.P. VermaAdvocate that compensation of Rs.1,10,000/- for the death of deceased who was 18 years old boy is less. Recently this Court in United India Insurance Company Limited Vs. Mumtaz Ahmad, LAWS(ALL) 2017 2 184 has held that for minors the amount awardable would be Rs.2.25.000/-. This Court granted Rs.2,25,000/- for the death of minor. Hence for the person of age of 18 years, National Insurance Company Ltd. Vs. Pranay Sethi and others ( supra) , this judgment would be applicable the income can be considered to be minimum Rs.3,000/- per month. Hence, amount of lump sum of Rs.3,00,000/- would be just and proper which would include the rise of 3% rate of interest as the Tribunal has awarded 6% rate of interest, the rate of interest would be normally 9% interest.

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7. I find in recent authorities, Courts have held that appropriate rate of interest should be 9%.

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8. In Neeta Vs The Divisional Manager, MSRTC (2015) 3 SCC 590 where accident took place on 22.03.2011, Court allowed 9% rate of interest and held that interest awarded by Tribunal at 8% was erroneous. Para-11 of the judgment reads as under:-

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"The appellants are also entitled to the interest on the compensation awarded by this Court in these appeals at the rate of 9% per annum along with the amount under the different heads as indicated above. The Courts below have erred in awarding the interest at the rate of 8 % per annum on the compensation awarded by them to the Appellants without following the decision of this Court in Municipal Corporation of Delhi, Delhi Vs. Uphaar Tragedy Victims Association and Ors. MANU/SC/1255/2011: (2011) 14SCC 481. Accordingly, we award the interest at the rate of 9% per annum on the compensation determined in these appeals from the date of filing of the application till the date of payment."

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9. In Kanhsingh Vs. Tukaram, 2015 (1) SCALE 366 where accident had taken place on 02.07.2006 but tribunal awarded no interest. Court held that this is erroneous and 9 % interest should have been allowed in view of the principles laid down in Municipal Corporation of Delhi Vs Association of Victims of Uphaar Tragedy (2011) 14 SCC 481 .

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10. In Kalpanaraj and Others Vs Tamil Nadu State Transport Corporation (2015) 2 SCC where accident took place on or before 1994, High Court had awarded interest at the rate of 9 % per annum which was challenged that it is on higher side. Court upheld said rate of interest.

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11. In Shashikala and Others Vs Gangalakshmamma and Another (2015) 9 SCC 150 , where accident had taken place on 14.12.2006, Court allowed 9 % rate of interest from the date of claim petition till the date of realization.

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12. In Asha Verman and Ors Vs Maharaj Singh & Ors, 2015 (4) SCALE 329 , High Court awarded interest at the rate of 8 % . Accident took place on 27.11.2016. It was held that 8

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% interest is on lower side and it should be 9 %.

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13. In Surit Gupta Vs United India Insurance Company

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(2015) 11 SCC 457 , accident took place in July, 1990. Punjab and Haryana High Court had awarded interest at the rate of 6 %. Court held that it is on lower side and it should be 9 %.

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14. In Chanderi Devi and another Vs Jaspal Singh and others (2015) 11 SCC 703 , date of accident is September 2006 and the incumbent died on 04.10.2006. Court awarded 9 % interest.

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15. In Jitendra Khimshankar Trivedi Vs Kasam Daud Kumbhar and Others (2015) 4 SCC 237 , incident was on 21.09.1990. Tribunal awarded 15 % interest which was reduced to 12% by Gujrat High Court. Court held that it is on higher side and awarded 9 % interest following its decisions in Amresh Kumari Vs Niranjan Lal Jagdish Parshad Jain 2010 ACJ 551 (SC) and Mohinder Kaur Vs Hira Nand Sindhi (2007) ACJ 2123 (SC) .

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16. The appeal is partly allowed . Hence the amount is required to be enhanced from Rs.1,10,000/- to Rs. 3,00,000/-. The additional amount will carry 9% rate of interest in the peculiar facts and circumstances of this case from the date of filing of the appeal till the same is deposited. Copy of this order be served to M/s Oriental Insurance Company Limited and the amount be deposited within 18 weeks from today with interest.

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17. The judgment and decree shall stand modified to the aforesaid extent.

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Order Date :- 2.1.2018/Mukesh

Smt. Gangashree and Another v. Rev. a. Amos and Another

Case brief

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Smt. Gangashree and Another v. Rev. a. Amos and Another

Case brief

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