Partly allowed

Smt. Kusum Alias Kusum Devi and Others v. the New India Insurence Company Ltd. and Others

Allahabad HC24 Sept 2019FAFO/1102/1998

Case brief

AI extract

What is this about?

Appeal against Motor Accident Claims Tribunal award maintained in part. High Court enhanced compensation to Rs. 4.80 lakhs based on revised income assessment and multiplier, modified interest rate to 7.5%, and remanded record to deposit amount immediately.

What did the court decide?

Compensation enhanced to Rs. 4,80,000/- with interest at 7.5%; respondent to deposit recovered amount excluding interest within 12 weeks.

Smt. Kusum Alias Kusum Devi and Others Vs the New… — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 1102 of 1998

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Appellant :- Smt. Kusum Alias Kusum Devi And Others Respondent :- The New India Insurence Company Ltd. And Others

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Counsel for Appellant :- Suneel Rai,Rajendra Pratap Singh Counsel for Respondent :- A.A. Khan,D.P.Singh

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard learned counsel for the parties and the perused the judgment and order impugned.

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This appeal, at the behest of the claimants, challenges the award dated 15.9.1998 passed by Motor Accident Claims Tribunal/IIIrd Additional District Judge, Ghaziabad (hereinafter referred to as 'Tribunal') in M.A.C.Petition No.342 of 1989 awarding a sum of Rs.1,61,000/-.

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The deceased was a constable is not in dispute. The only dispute regarding the age of the deceased. The accident is not in dispute. The issue of negligence decided by the Tribunal is not in dispute. The Insurance Company has given the recovery rights. The only issue to be decided is, the compensation.

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It is submitted by learned counsel for the appellant that the Tribunal has considered the income of the deceased to be Rs.1300/- per month which is unjust and it should have been at least to be Rs.1438/- per month as the deceased was a constable (government employee). It is submitted that the Tribunal has not granted any amount towards future loss of income which is required to be granted in view of the decision in National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050. It is further submitted that the amount under non-pecuniary heads and the interest awarded by the Tribunal are on the lower side and require enhancement.

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As against this, learned counsel for the respondent states that the compensation which is awarded by the Tribunal is just and proper and does not call for any interference as income of the deceased has not been proved and the amount awarded under the head of non pecuniary damages is as per motor vehicle rules framed by the U.P. State.

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After hearing the learned counsels for the parties and perusing the judgment and order impugned, this Court feels that the income of the deceased can be assessed at Rs.1438/- per

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month namely Rs.17,256/- per year to which as the deceased was 29 years of age, 50% of the income requires to be added in view of the decision in Pranay Sethi (Supra) which would come to Rs.17,256/- + Rs.8628/- = Rs.25,884/- rounded up to Rs.26,000/- out of which 1/3rd requires to be deducted as personal expenses of the deceased as he had three minor children and his widow and, hence, the annual datum figure available to the family is Rs.25,884/-. As the deceased was in the age bracket of 26-30 years, the applicable multiplier would be 17 in view of the decision of the Apex Court in Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121 . Hence, the claimants are entitled to a total sum of Rs.25,884 x 17 + Rs.40,000 = Rs.4,80,028/- which rounded up to Rs.4,80,000/-.

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As far as issue of rate of interest is concerned, the interest should be 7.5% in view of the latest decision of the Apex Court in National Insurance Co. Ltd. Vs. Mannat Johal and Others, 2019 (2) T.A.C. 705 (S.C.) wherein the Apex Court has held as under :

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"13. The aforesaid features equally apply to the contentions urged on behalf of the claimants as regards the rate of interest. The Tribunal had awarded interest at the rate of 12% p.a. but the same had been too high a rate in comparison to what is ordinarily envisaged in these matters. The High Court, after making a substantial enhancement in the award amount, modified the interest component at a reasonable rate of 7.5% p.a. and we find no reason to allow the interest in this matter at any rate higher than that allowed by High Court."

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No other grounds are urged orally when the matter was heard.

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In view of the above, the appeal is partly allowed. Judgment and decree passed by the Tribunal shall stand modified to the aforesaid extent. The respondent-Insurance Company shall first deposit the amount with interest at the rate of 7.5% from the date of filing of the claim petition till the amount is deposited within a period of 12 weeks from today and then recover the same from owner as per the order of Tribunal. I have not decided the issue of breach of policy as owner has chosen not to appear. The amount already deposited be deducted from the amount to be deposited.

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Record be sent back to the Tribunal forthwith.

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Order Date :- 24.9.2019/Mukesh

Smt. Kusum Alias Kusum Devi and Others v. the New India Insurence Company Ltd. and Others

Case brief

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Smt. Kusum Alias Kusum Devi and Others v. the New India Insurence Company Ltd. and Others

Case brief

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