Partly allowed

Farheemuddin and Another v. Khan Mohammad and Others

Allahabad HC16 Aug 2019FAFO/2483/2004

Case brief

AI extract

What is this about?

Single judge enhanced compensation awarded by the Motor Accident Claims Tribunal to Rs.436,000 against the original Rs.70,000 by recalculating loss of income using age-based multipliers and future prospects. Interest rate enhanced from 7% to 9% for the pending period. Appeal partly allowed.

What did the court decide?

Compensation enhanced to Rs.4,36,000 to be deposited with interest at 9% from filing till disposal and 6% thereafter within 12 weeks.

Farheemuddin and Another Vs Khan Mohammad and Others — Insurance | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 2483 of 2004

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Appellant :- Farheemuddin And Another Respondent :- Khan Mohammad And Others Counsel for Appellant :- Ram Singh Counsel for Respondent :- Rajeev Ojha

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard Sri Ram Singh, learned counsel for appellants and Sri Rajeev Ojha, learned counsel for respondents.

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This appeal, at the behest of the claimants, challenges the judgment and award dated 07.04.2004 passed by Motor Accident Claims Tribunal, Kaushambi in Claim Petition No.63 of 2001 awarding a sum of Rs.70,000/- with interest at the rate of 7% per annum.

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The accident is not in dispute. The issue of negligence is decided in favour of the appellant herein. The Insurance Company has not challenged the liability imposed on them by the Tribunal.

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It is submitted by learned counsel for the appellant that the Tribunal has not considered income of the deceased and has granted lump sum Rs.70,000/- which is unjust even in the year of accident. It is submitted that the income of the deceased should have been considered to be at least twice as she was self employed as a Tailor and she was 22 years of age at the time of accident. She was survived by husband and minor child. The amount for future prospects is not granted.

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It is submitted that the deceased being 22 years of age at the time of accident, the compensation granted by the Tribunal requires to be enhanced and recalculated. The Tribunal granted

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Rs.50,000/- for loss of income and Rs.20,000/- for funeral and others damages. The tribunal has held that it does not believe that the deceased was doing tailoring work but was a house wife.

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It is submitted by Sri Rajeev Ojha, learned counsel for the respondents that the income which has not been proved cannot be more than what has been assessed by the Tribunal.

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Learned counsel for respondents submitted that the deceased was gratuitous passenger, the submission before this Court was neither buttressed before the tribunal nor was it proved by leading cogent evidence.

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In that view of the matter, it cannot be said that the deceased were gratuitous passenger. The finding of fact that the driver of the jeep was solely negligent in causing the accident is also not brought in challenge.

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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 should have been Rs.2,000/- per month namely Rs.24,000/- per year to which as the deceased was 22 years of age, 40% of the income requires to be added in view of the decision in National Insurance Company Limited Vs. Pranay Setthi and others, S.L.P. (Civil) No. 25590 of 2014, decided on 31.10.2017 which would come to Rs.24,000 + 9,600 = 33,600/- out of which 1/3rd requires to be deducted as personal expenses of the deceased and, hence, the annual datum figure available to the family is Rs.22,400/- rounded up to Rs.22,000/-. As the deceased was in the age bracket of 21-25 years, the applicable multiplier would be 18 in view of the decision of the Apex Court in Sarla Verma Vs. Delhi Transport

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Corporation, (2009) 6 SCC 121 . In addition to that Rs.40,000/is granted towards conventional heads as it is matter of 2001. Hence, the claimants are entitled to a total sum of Rs.22,000 x 18 +40,000 = 4,36,000/-.

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The rate of interest will have to be enhanced and I am unable to accept the submission of Sri Rajeev Ojha, learned counsel for the respondent that the Rules framed by U.P. will apply. A Division Bench of Lucknow Bench in F.A.F.O. No. 199 of 2017 (National Insurance Company Limited Vs. Lavkush and another) decided on 21.3.2017 has interpreted the Rules, which has been followed by this Court time and again, will enure for the benefit of the appellant and, therefore the rate of interest would be 9% as held in catena of decisions of this High Court.

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I am in agreement with counsel for the respondent that after the appeal is filed and is kept pending the rate of interest requires to be decreased.

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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 amount be deposited with interest at the rate of 9% from the date of filing of the claim petition till disposal of claim petition and 6% thereafter till the amount is deposited. The amount be deposited within a period of 12 weeks from today. The amount already deposited be deducted from the amount to be deposited.

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This Court is thankful to both the counsels to see that this very old matter is disposed of.

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Order Date :- 16.08.2019 Shubhankar

Farheemuddin and Another v. Khan Mohammad and Others

Case brief

What is this about?

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Farheemuddin and Another v. Khan Mohammad and Others

Case brief

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