Partly allowed

Prem Shanker and Another v. Suresh Kumar and Others

Allahabad HC15 Oct 2019FAFO/2907/2004

Case brief

AI extract

What is this about?

Appeal against Motor Accident Claims Tribunal award for enhancement of compensation quantum and interest rate. Court increased compensation based on revised income assessment and multiplier for a deceased bachelor, and modified interest rate to 7.5% citing Supreme Court precedents.

What did the court decide?

Compensation modified to Rs.3,02,400 plus Rs.50,000 filial consortium. Interest fixed at 7.5% from filing date until deposit within 12 weeks.

Prem Shanker and Another Vs Suresh Kumar 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. - 2907 of 2004

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Appellant :- Prem Shanker And Another Respondent :- Suresh Kumar And Others Counsel for Appellant :- Jitendra Pal Singh Counsel for Respondent :- Amaresh Sinha,Mahtab Alam

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard Sri Jitendra Pal Singh, learned counsel for the appellants, Sri Mahtab Alam, learned counsel for the respondents and perused the judgment and order impugned.

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This appeal, at the behest of the claimants, challenges the judgment and award dated 19.7.2004 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No.8, Aligarh (hereinafter referred to as 'Tribunal') in M.A.C.P. No. 103 of 2001 awarding a sum of Rs.1,12,000/- with interest at the rate of 6%.

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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 it by the Tribunal. The only issue to be decided is, the quantum.

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It is submitted by learned counsel for the appellants that the Tribunal has considered the income of the deceased to be Rs. 1,250/- per month which is unjust and it should have been at least to be Rs.3,000/- per month as the deceased was a milkman. 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 amount under non-pecuniary heads and the interest awarded by the Tribunal are on the lower side and require enhancement.

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After hearing the learned counsel for the appellants and perusing the judgment and order impugned, this Court feels that the income of the deceased would be Rs.2,000/- per month namely Rs.24,000/- per year, to which as the deceased was below 40 years of age, 40% of the income i.e. Rs. 9,600/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.24,000 + 9,600 = 33,600/-. The deduction of 1/2 towards personal expenses of the deceased has been considered by the Tribunal but the deceased was bachelor hence

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1/2 will have to be deducted towards personal expenses. Hence, after deduction of 1/2, the annual datum figure available to the family would be Rs.16,800/-. As the deceased was 23 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 . Hence, the claimants are entitled to a total compensation of Rs.16,800 x 18 = 3,02,400/-.Plus Rs.50000 for filial consortium to parents.

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

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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 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.

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Order Date :- 15.10.2019 Md Faisal

Prem Shanker and Another v. Suresh Kumar and Others

Case brief

What is this about?

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Prem Shanker and Another v. Suresh Kumar and Others

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