Partly allowed

Smt. Parvati Joshi and Another v. Amit Tyagi and Others

Allahabad HC26 Sept 2019FAFO/2004/2009

Case brief

AI extract

What is this about?

The First Appellate Court enhanced the compensation awarded for a motor accident death, correcting the income estimate, future loss calculation, personal expense deduction, multiplier, and interest rate based on Supreme Court precedents, resulting in an award of Rs. 4,93,600/- at 7.5% interest.

What did the court decide?

Tribunal judgment modified; total compensation fixed at Rs. 4,93,600/-. Award bearing interest at 7.5% p.a. until payment.

Smt. Parvati Joshi and Another Vs Amit Tyagi and… — Motor Accident Claims | Allahabad HC (2019)

¶1

Court No. - 33

¶2

Case :- FIRST APPEAL FROM ORDER No. - 2004 of 2009 Appellant :- Smt. Parvati Joshi And Another Respondent :- Amit Tyagi And Others Counsel for Appellant :- S.D. Ojha Counsel for Respondent :- Vibhuti Narain,Vibhuti Narain Singh,Vidya Kant Shukla

¶3

Hon'ble Dr. Kaushal Jayendra Thaker,J.

¶4

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

¶5

This appeal, at the behest of the claimants, challenges the judgment and award dated 26.2.2009 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No.9, Meerut (hereinafter referred to as 'Tribunal') in M.A.C.Petition No. 847 of 2006 awarding a sum of Rs.1,52,000/- with interest at the rate of 6%.

¶6

The accident is not in dispute. The issue of negligence decided by the Tribunal is not in dispute. The Insurance Company has not challenged the liability imposed on them. The only issue to be decided is, the quantum.

¶7

It is submitted by learned counsel for the appellant that the Tribunal has considered the income of the deceased to be Rs. 15000/- per year which is unjust and it should have been at least Rs.3,000/- per month as the deceased was serving in Parag Milk Dairy. It is submitted that the Tribunal has not granted any amount towards future loss of income the deceased 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 multiplier, the amount under nonpecuniary heads and the interest awarded by the Tribunal are on the lower side and require enhancement.

¶8

As against this, learned counsel for the respondent states that the quantum which is awarded by the Tribunal is just and proper and does not call for any interference as income which has not been proved, cannot be granted. It is also submitted that deduction towards personal expenses of the deceased should have been 1/2.

¶9

After hearing the learned counsel for the parties and perusing the judgment and order impugned, this Court feels that the income of the deceased would be Rs.3,000/per month namely Rs.36,000/- per year as he was serving

¶10

in Parag Milk Dairy, to which as the deceased was below 40 years of age, 40% of the income i.e. Rs. 14,400/requires to be added as future income of the deceased in view of the decision in Pranay Sethi (Supra) which would bring the annual figure to Rs.36,000 + 14,400 = 50,400/-. The deduction towards personal expenses of the deceased would be 1/2 and not 1/3rd as deducted by the Tribunal as deceased was was bachelor and survived by his mother and a minor brother. Hence, after deduction of 1/2, the annual datum figure available to the family would be Rs.25,200/-. As the deceased was 20 years of age, the applicable multiplier would be 18 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.40,000/- 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.25,200 x 18 + 40,000 = 4,93,600/-

¶11

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 :

¶12

"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."

¶13

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

¶14

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 deposit the amount within a period of 12 weeks from today with interest at the rate of 7.5% from the date of filing of the claim petition till the amount is deposited . The amount already deposited be deducted from the amount to be deposited.

¶15

Order Date :- 26.9.2019 DKS

Smt. Parvati Joshi and Another v. Amit Tyagi and Others

Case brief

What is this about?

What did the court decide?

Smt. Parvati Joshi and Another v. Amit Tyagi and Others

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

Saldeo and Another Vs Ayodhya and Others

Mohd. Iqbal Vs Bldeo Lal and Others

Mohd.Atiq Vs Shyam Gas Private Ltd. and Another

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