Partly allowed

Bhagwan Devi and Another v. New India Insurance Co. Ltd. and Others

Allahabad HC19 Sept 2019FAFO/899/2006

Case brief

AI extract

What is this about?

The High Court allowed a first appeal against an order of the Motor Accident Claims Tribunal. The court enhanced the compensation from Rs. 1,29,800 to Rs. 2,11,440 by revising the income datum, applying future loss of income adjustments, and correcting the multiplier and expense deduction. The interest rate was increased to 7.5% per annum, citing the Supreme Court standard.

What did the court decide?

Tribunal judgment and decree modified; compensation enhanced to Rs. 2,11,440; interest rate increased to 7.5% p.a.; Insurance Company directed to deposit amount within 12 weeks.

Bhagwan Devi and Another Vs New India Insurance Co… — Motor Accident Claims | Allahabad HC (2019)

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Court No. - 33

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Case :- FIRST APPEAL FROM ORDER No. - 899 of 2006 Appellant :- Bhagwan Devi And Another Respondent :- New India Insurance Co. Ltd. And Others Counsel for Appellant :- Rajeev Singhal,Ambreesh Kumar,Mohd. Asim Zulfiquar Counsel for Respondent :- S.B.L. Gour

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard learned counsel for the parties and the perused the judgment and order impugned.

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This appeal, at the behest of the claimants, challenges the judgment and award dated 12.1.2006 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No.15, Agra (hereinafter referred to as 'Tribunal') in M.A.C.Petition No. 762 of 2003 awarding a sum of Rs.1,29,800/- with interest at the rate of 5%.

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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 them. 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. 1200/- per month which is unjust. He has relied on the decision of this Court in Smt. Bindu Devi and others Vs. Smt. Naraini Devi and another, LAWS (All) 2016 (11) 102 and has submitted that the income of the deceased should have been at least Rs.1800/- per month as the deceased was a labourer and doing the loading/unloading work. 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 multiplier, the amount under nonpecuniary heads and the interest awarded by the Tribunal are on the lower side and require enhancement.

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As against this, learned counsel for the respondent states that the quantum which is awarded by the Tribunal is just and proper and does not call for any interference as income which has not been proved cannot be granted.

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After hearing the learned counsel for the parties and perusing the judgment and order impugned, this Court feels that the

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income of the deceased as assessed by the Tribunal is just and proper as the judgment in Smt. Bindu Devi (Supra) would not be applicable as there the deceased was doing his own business of selling carpets whereas in our case he was a labourer. Hence, his annual income would be Rs.14,400, to which as the deceased was below 40 years of age, 40% of the income i.e. Rs. 5,760/- 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.14,400 + 5,760 = 20,160/-. The deduction towards personal expenses of the deceased would be 1/2 and not 1/3rd as deducted by the Tribunal as he was bachelor and was survived by his parents. Hence, after deduction of 1/2, the annual datum figure available to the family would be Rs.10,080/-. As the deceased was 25 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 . In addition to that, Rs.30,000/- 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.10,080 x 18 + 30,000 = 2,11,440/-

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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 :- 19.9.2019 DKS

Bhagwan Devi and Another v. New India Insurance Co. Ltd. and Others

Case brief

What is this about?

What did the court decide?

Bhagwan Devi and Another v. New India Insurance Co. Ltd. and Others

Case brief

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What did the court decide?

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