Partly allowed

Smt. Surjeet Kaur and Others v. New India Assurance Co. Ltd. and Others

Allahabad HC20 Sept 2019FAFO/1234/1991

Case brief

AI extract

What is this about?

This judgment modifies the Tribunal's award in a motor accident claim case. The Court enhanced the compensation amount adjudicating the deceased's income and multiplier while reducing the interest rate to 7.5%. The respondent insurance company was directed to deposit the revised amount within 12 weeks.

What did the court decide?

Tribunal judgment modified; compensation enhanced to Rs. 4,36,000; interest rate fixed at 7.5%; respondent to deposit amount within 12 weeks.

Smt. Surjeet Kaur and Others Vs New India Assurance… — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 1234 of 1991

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Appellant :- Smt. Surjeet Kaur And Others Respondent :- New India Assurance Co. Ltd. And Others Counsel for Appellant :- Madhav Jain

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Case is being called out in the revised call. None is present for New India Assurance Company Limited, though notices have been sent to them and 29 years have elapsed.

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This appeal for enhancement of amount awarded by Tribunal, at the behest of Smt. Surjeet Kaur and Others ( hereinafter referred to as "appellants"), has been preferred against the judgment and award dated 23.1.1991 passed by Vth Additional District Judge/Motor Accident Claims Tribunal, Agra (hereinafter referred to as 'Tribunal') in Motor Accident Claim Petition No.195 of 1989 for claiming a sum of Rs.6,50,000/- with 18% rate of interest.

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According to the appellant it was a case of composite negligence as there were three vehicle involved in the accident and the deceased was not a tort-feasor. Laxman Swaroop driver of the scooter dashed with the truck . The accident occurred on 2.2.1989 and the deceased-Piara Singh was an employment and the salary of Rs.3500/- per month which was proved by the documentary evidence. The Tribunal has considered the income of the deceased at Rs.3,439/- per month after deducting all the other emolument and holding that Rs.1200/- would be the amount which he would be sparing after the family members and granted a sum of Rs.1,25,000/- but deducted 25% on the basis of contributory negligence of the driver of scooter. As far as the claimants are concerned, the case is of composite negligence and, therefore, no amount could have been

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deducted.

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It is submitted that the said amount cannot be deducted. The amount requires to be evaluated again. The income of the deceased was Rs.3500/-. He was survived by his wife, one unmarried daughter and two sons. The deceased was a permanent way inspector in railway earning a salary of Rs.3,439/- per month. His date of birth was 15.1.1941. The Tribunal considered the contribution Rs.1,200/- only and deducted all other amounts multiplied with 12, granting a sum of Rs.1,73,000/- but deducted a sum of 25%.

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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 was Rs.3439/- comprising Rs.2000/basic, Rs.904 T.A., Rs.460/- as DA and CCA Rs.75/- per month. The income can be considered Rs.3,000/- per month, namely Rs.36,000/-/- per year to which as the deceased was 48 years of age, hence, 30 % of the income requires to be added in view of the decision in Pranay Sethi (Supra) which would come to Rs.36000 + 10,800 = 46800/- out of which Rs.15,600/- requires to be deducted as personal expenses of the deceased as he had three dependants and, hence, the annual datum figure available to the family is Rs.31,200./-. As the deceased was in the age bracket of 46-50 years, the applicable multiplier would be 13 in view of the decision of the Apex Court in Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121. In addition to that Rs.30,000/- is granted towards conventional heads as it is matter of 1991 . Hence, the claimants are entitled to a total sum of Rs..31,200 x 13+30,000 =Rs.4,35,600/- which rounded up to 4,36,000/-.

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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

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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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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 of the Truck 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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Order Date :- 20.9.2019 Mukesh

Smt. Surjeet Kaur and Others v. New India Assurance Co. Ltd. and Others

Case brief

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Smt. Surjeet Kaur and Others v. New India Assurance Co. Ltd. and Others

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