Partly allowed

Lachi Devi and Others v. Brahma Dev and Another

Allahabad HC15 Oct 2019FAFO/440/1994

Case brief

AI extract

What is this about?

The High Court allowed an appeal challenging the compensation quantum in a motor accident case. The court enhanced the award by recalculating future loss of income and non-pecuniary damages per Supreme Court precedents, modified the interest rate to 9%, and directed the respondent to deposit the enhanced amount.

What did the court decide?

Compensation enhanced to Rs. 1,75,000 at 9% interest from date of filing till award and 6% thereafter; respondent directed to deposit within 12 weeks.

Lachi Devi and Others Vs Brahma Dev and Another — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. 440 of 1994

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Appellant :- Lachi Devi And Others Respondent :- Brahma Dev And Another Counsel for Appellant :- V.C.Dixit, ,S.D.Ojha Counsel for Respondent :- K.L.Grover,Ajai Singh

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard learned counsel for the parties and perused the judgment and order impugned. Sri K.L. Grover has been substituted by Sri Ajay Singh.

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This appeal, at the behest of the claimants, challenges the judgment and award dated 7.1.1994 passed by Motor Accident Claims Tribunal, Mau (hereinafter referred to as 'Tribunal') in M.A.C.P. No. 20 of 1991 awarding a sum of Rs.35,420/- with interest at the rate of 12%.

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This is an appeal of the year 1994. The accident took place in the year of 1991. I had shown grace by asking the respondents to be represented by an Advocate but it appears that the Insurance Company has not given any instructions till date.

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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 appellant that the Tribunal has considered the income of the deceased to be Rs. 500/- per month which is unjust. It is submitted that the Tribunal has not granted any amount towards future loss of income to the deceased which is required to be granted in view of the decision in National Insurance Company Limited Vs. Pranay Sethi and

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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 appellant and perusing the judgment and order impugned, this Court feels that the income of the deceased would be Rs.900/per month namely Rs.10,800/- per year, to which as the deceased was 40 years of age, 25% of the income i.e. Rs. 2,700/- 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.10,800 + 2,700 = Rs.13,500/-. After deduction of 1/3^rd , the annual datum figure available to the family would be Rs.9,000/-. 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.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.9,000 x 15 + 40,000 = Rs. 1,75,000/-.

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As far as rate of interest is concerned, 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, have 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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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

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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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Order Date :- 15.10.2019 Irshad

Lachi Devi and Others v. Brahma Dev and Another

Case brief

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Lachi Devi and Others v. Brahma Dev and Another

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