Partly allowed

Smt. Savitri Devi and Others v. the New India Assurance Co. Ltd. and Ors.

Allahabad HC27 Sept 2019FAFO/1570/2004

Case brief

AI extract

What is this about?

The court increased compensation for heirs of a deceased in a motor accident from the Tribunal's award to Rs. 16,90,000 using the Sarla Verma multiplier. It also reduced the interest rate from 12% to 7.5% based on Supreme Court precedents.

What did the court decide?

Judgment and decree modified; respondent to deposit enhanced compensation with 7.5% interest within 12 weeks.

Smt. Savitri Devi and Others Vs the New India Assurance Co. Ltd… — Insurance | Allahabad HC (2019)

¶1

Court No. - 33

¶2

Case :- FIRST APPEAL FROM ORDER No. 1570 of 2004

¶3

Appellant :- Smt. Savitri Devi And Others Respondent :- The New India Assurance Co. Ltd. And Ors.

¶4

Counsel for Appellant :- Mohd. Naushad Siddiqui,Shreesh Srivastava Counsel for Respondent :- Amaresh Sinha

¶5

Hon'ble Dr. Kaushal Jayendra Thaker,J.

¶6

Heard Sri Shreesh Srivastava for the appellant and Sri Amresh Sinha for the respondents.

¶7

By way of this appeal, the appellants have felt aggrieved by inadequacy of the compensation awarded to the heirs of the deceased, who died in the vehicular accident. The claimants had claimed a sum of Rs. 45,19,664/- with 18% interest.

¶8

The accident is not in dispute. The accident occurred on 25.9.2002, whereby the deceased was dashed by truck no. UP-78-T-9395, which came on its wrong side, dashed with the motorcycle causing the death of Ramendra Narain Tripathi, who died on the spot and the motorcycle was damaged.

¶9

The deceased was working as a Charge-man in Grade-I and was earning Rs.15,384/- with over time monthly. The F.I.R. was lodged. The involvement of the vehicle is not disputed. The driver of the truck has been held negligent and as the issue of negligence is decided against driver of the truck, it has attained finality, there is no issue regarding breach of policy conditions as the Insurance company has accepted the judgment.

¶10

The deceased was born on 1.5.1962 and, therefore, was aged 40 years. The deceased was earning a salary of Rs.12,000/- plus Rs. 3,000/- as over time. The income of

¶11

¶12

the deceased was considered by the Tribunal to be Rs.5,636/- and deducted Rs.2,636/- as his expenses granting Rs. 3,000/- as datum figure multiplied by 12 and granted Rs. 7,000/- for non-pecuniary damages.

¶13

While going through the documentary evidence, it is clear that the deceased was earning Rs.12,000/- per month and after all deduction, his income can be considered to be Rs.8,000/-, thus, as he was 38 years old, 50% will have to be added which would come to Rs. 12,000/-

¶14

After hearing the learned counsel for the appellant and perusing the judgment and order impugned, this Court feels that the income of the deceased would be Rs.8,000/per month namely Rs.96,000/- per year, to which as the deceased was below 40 years of age, 50% of the income i.e. Rs. 4,000/- requires to be added as future income of the deceased in view of the decision in Pranay Sethi (Supra) which would bring the annul figure to Rs.96,000 + 48,000 = Rs. 1,44,000/-. Hence, after deduction of 1/4^th , the annual datum figure available to the family would be Rs.1,08,000/-. As the deceased was 38 years of age, the applicable multiplier would be 15 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.70,000/- is granted under the head of non-pecuniary damages in view of the decision in Pranay Sethi (Supra). Hence, the claimants are entitled to a total compensation of Rs.1,08,000 x 15 + 70,000 = Rs. 16,90,000/-.

¶15

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.) ,

¶16

¶17

wherein the Apex Court has held as under :

¶18

" 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. "

¶19

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

¶20

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 respondentInsurance Company shall 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. The amount already deposited be deducted from the amount to be deposited.

¶21

Order Date :- 27.9.2019 Irshad

Smt. Savitri Devi and Others v. the New India Assurance Co. Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

Smt. Savitri Devi and Others v. the New India Assurance Co. Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Parties & counsel

Coram

Case details

Similar cases

The New India Assurance Company Ltd. Vs Smt. Chunna Devi and Others

Oriental Insurance Co. Ltd. Vs Smt. Sheela and Others

Oriental Insurance Co. Ltd. Vs Smt.Sheela and Others

Kumari Iti Agarwal Vs Sri Ganesh Pal and Others

Devendra Kumar Vs Wazid Ali and Another

Employees State Insurance Corp. Kanpur Vs Kamta Saran