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Smt. Sheetal and 3 Others v. the New India Insurance Co. Ltd. Mathura and 2 Others

Allahabad HC6 Feb 2020FAFO/505/2016

Case brief

AI extract

What is this about?

This appeal against an order of the Motor Accident Claims Tribunal enhancing the compensation award. The Single Judge considered the deceased's age, income, and multiplier, enhancing the total compensation to Rs. 13,63,264/-, directing deposit in the Post Office Monthly Income Scheme, and allowing cash in hand for the senior surviving heir.

What did the court decide?

Enhanced compensation awarded to Rs. 13,63,264/-; Rs. 1,288,264/- to be deposited in monthly income scheme; balance Rs. 75,000/- in cash.

Smt. Sheetal and 3 Others Vs the New India Insurance… — Motor Accident Claims | Allahabad HC (2020)

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Court No. - 53

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Case :- FIRST APPEAL FROM ORDER No. - 505 of 2016

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Appellant :- Smt. Sheetal And 3 Others Respondent :- The New India Insurance Co. Ltd. Mathura And 2 Others

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Counsel for Appellant :- Mayank

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Hon'ble Vivek Agarwal,J.

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Heard Sri Mayank, learned counsel for the appellants.

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This appeal under section 173 of the Motor Vehicles Act has been filed by the appellants being aggrieved of the order dated 30.09.2015 passed by Motor Accident Claims Tribunal / Additional District Judge, Court No. 8, Mathura in MACP No. 131 of 2015 for enhancement of award.

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Brief facts of the case is that on 29.1.2015 at 9:30 pm the accident took place while Sanjeet Singh, husband of the appellant no. 1 Smt. Sheetal, was standing on NH-2, Yamah Agency, P.S. Highway at roadside on Kachchi Patari and was talking with some persons, then a motorcycle No. UP 85-U-6480 coming from Farah hit Sanjeet, who sustained grievous injuries and thereafter he died.

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The claimants/appellants filed MACP No. 131 of 2015 before the Motor Accident Claims Tribunal / Additional District Judge, Court No. 8, Mathura (in short learned Claims Tribunal). The learned Claims Tribunal has passed the award dated 30.9.2015.

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It is submitted that deceased was about 21 years old. He had a shop of electrical goods and utensils and was earning Rs. 12000/- per month and he was the only earning member of the family. It is further submitted that learned Claims Tribunal has erred on two grounds. Firstly, it has not awarded future prospects and secondly it has not taken into consideration even minimum wages of a person and has arbitrarily computed minimum notional income of the deceased as Rs. 3000/- per month. It is also submitted that under other head only a sum of Rs. 15000/- has been awarded whereas it should have been Rs.

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70,000/- as per law laid down by the Hon’ble Supreme Court in case of National Insurance Company Limited Vs. Pranay Sethi and others as reported in ( 2017) 16 Supreme Court Cases 680. It is also submitted that even if minimum wages as were obtaining at the time of accident of deceased, for unskilled labourer, that will come to the tune of Rs. 6,415/- per month.

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Sri Arvind Kumar, learned counsel for the Insurance Company appears and supports the award and submits that only correction in notional income is required in regard to future prospects and non pecuniary compensation and except such correction in notional income, no other enhancement is permissible.

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After hearing arguments of counsel for the rival parties, it is apparent that on the date of accident, minimum wages even for an unskilled labourer were to the tune of Rs. 6,415/- per month as have been notified by the Labour Commissioner for the State of UP under the provisions of Minimum Wages Act, 1948, and thus it comes to the tune of Rs. 76,980/- per annum. As deceased is survived by three legal heirs and there is no evidence that claimant no. 4 Km. Rekha was solely dependent on the deceased. It will be presumed that 1/3rd of this income was being spent by the deceased on self i.e. Rs. 25,660/- per annum. Therefore annual dependency will come to the tune of Rs. 51,320/- per year.

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Learned Claims Tribunal has accepted the age of the deceased to be 21 years and has applied multiplier of 18 as has been laid down by Hon’ble Supreme Court in case of Sarla Verma (Smt) and others Vs. Delhi Transport Corporation and another as reported in (2009) 6 SCC 121. Hence, the total pecuniary damages come to the tune of Rs. 9,23,760/-. Over and above, claimants will be entitled to as sum of 40% under the head of future prospects and another sum of Rs. 70000/- under the head of non pecuniary damages as has been laid down by Hon’ble Supreme Court in case of National Insurance Company Limited Vs. Pranay Sethi and others as reported in (2017)

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16 Supreme Court Cases 680, taking total compensation to Rs. 13,63,264/- against a sum of Rs. 4,47,000/- awarded by the learned Claims Tribunal. Therefore, the award is enhanced to the tune of Rs. 9,16,264/- for which claimants will be entitled and which will be appropriated amongst Claimant nos. 1, 2 and 3 in the same ratio as has been prescribed by the Claims Tribunal. It will carry interest at the rate of 7% per annum from the date of filling of the claim petition. The claimant alonwith interest will be deposited in the monthly income scheme of the Post office so to the fetch recurring income to the claimants for their maintenance and studies, leaving only a sum of Rs. 75,000/- in cash in the hands of the appellant no. 1. With the aforesaid observations, the appeal is disposed of.

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Order Date :- 6.2.2020 S.K.S.

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Smt. Sheetal and 3 Others v. the New India Insurance Co. Ltd. Mathura and 2 Others

Case brief

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Smt. Sheetal and 3 Others v. the New India Insurance Co. Ltd. Mathura and 2 Others

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