Partly allowed

Smt. Ram Kumari and Others v. the New India Assurance Co. Ltd. and Others

Allahabad HC15 Oct 2019FAFO/3362/2006

Case brief

AI extract

What is this about?

In a second appeal, the Court enhanced compensation from Rs. 1.62 lakhs to Rs. 6.37 lakhs by recalculating future loss of income and awarding non-pecuniary damages based on Pranay Sethi. Interest was modified from 12% to 7.5% following Mannat Johal.

What did the court decide?

Compensation modified to Rs. 6,37,000/-; interest fixed at 7.5% from filing date payable within 12 weeks.

Smt. Ram Kumari and Others Vs the New India… — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 3362 of 2006

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Appellant :- Smt. Ram Kumari And Others Respondent :- The New India Assurance Co. Ltd. And Others Counsel for Appellant :- Mohd. Naushad Siddiqui Counsel for Respondent :- Aijaz Ahmad Khan,Rajesh Kumar Srivastava

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard Sri Mohd. Naushad Siddiqui, learned counsel for the appellants, Sri Rajesh Kumar Srivastava, 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 10.08.2006 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No.14, Kanpur Nagar (hereinafter referred to as 'Tribunal') in M.A.C.P. No. 763 of 2003 awarding a sum of Rs.1,62,000/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 selling followers. 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.3,000/- per month namely Rs.36,000/- per year, to which as the deceased was aged about 40 years at the time of accident, 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 annul figure to Rs.36,000 + 14,400 = 50,400/-, out of which 1/4 requires to be deducted as personal expenses

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of the deceased and, hence, the annual datum figure available to the family is Rs.37,800/-. As the deceased was 40 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.37,800 x 15 + 70,000 = Rs. 6,37,000/-.

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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

Smt. Ram Kumari and Others v. the New India Assurance Co. Ltd. and Others

Case brief

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Smt. Ram Kumari and Others v. the New India Assurance Co. Ltd. and Others

Case brief

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