Partly allowed

Nizamuddin v. Khan Mohammad and Others

Allahabad HC16 Aug 2019FAFO/2489/2004

Case brief

AI extract

What is this about?

The Single Judge partly allowed a first appeal challenging a motor accident compensation award. The Court enhanced the compensation to Rs. 3,20,000 based on re-evaluated income and granted interest increase to 9% per annum by the decision date.

What did the court decide?

Judgment and decree of the Tribunal are modified to award Rs. 3,20,000 with interest at 9% from the date of filing the claim petition and 6% thereafter.

Nizamuddin Vs Khan Mohammad and Others — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 2489 of 2004

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Appellant :- Nizamuddin Respondent :- Khan Mohammad And Others Counsel for Appellant :- Ram Singh Counsel for Respondent :- Mansoor Ahmad,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.46 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. The only issue to be decided is the quantum.

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It is submitted by learned counsel for the appellant that the Tribunal has not considered income of the deceased,the compensation even in the year of accident is lower side. The deceased was doing mazdori work and she was 45 years of age. She was survived by husband and two sons.

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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 re-assessed. Apex Court in the case of National Insurance Company Limited Vs. Pranay Setthi and others, S.L.P. (Civil) No. 25590 of 2014, decided on 31.10.2017 . The amount awarded under the conventional head is also not

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required to be enhanced.

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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 as claimed to which as the deceased was 45 years of age, 25% of the income requires to be added in view of the decision in Pranay Sethi (Supra) which would come to Rs.24,000 + 6,000 = Rs.30,000/- 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.20,000/-. As the deceased was in the age bracket of 41-45 years, the applicable multiplier would be 14 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 towards conventional heads as it is matter of 2001. Hence, the claimants are entitled to a total sum of Rs.20,000 x 14 +40,000 = Rs.3,20,000/-.

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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. under Motor Vehicles Act, 1988 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, which will enure for the benefit of the appellant and, therefore the rate of interest would be 9% as held in catena of decision 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

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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 award 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

Nizamuddin v. Khan Mohammad and Others

Case brief

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Nizamuddin v. Khan Mohammad and Others

Case brief

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