Mr. Bhimrao Ramchandra Lad and Anr. vs National Insurance Co. Ltd. and Anr. — Bombay HC (2025) — LawSathi Research

Mr. Bhimrao Ramchandra Lad and Anr. vs National Insurance Co. Ltd. and Anr. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal allowed. The Claimants are entitled to enhanced compensation of Rs.4,24,880/- with interest @ 7.5% per annum from the date of filing of the Claim Petition till realization; the consortium amount of Rs.1,32,000/- carries 7.5% interest from 1st November 2017 till realization. The Respondent-Insurance Company is directed to deposit the enhanced compensation with accrued interest within six weeks of receipt of the order; the Claimants may withdraw the deposited amount with interest; the Claimants shall pay deficit court fees on the enhanced amount as per Rules; Record and Proceedings to be sent back to the Tribunal; pending Civil and Interim Applications disposed of.

Issue for consideration

Whether the compensation awarded by the Tribunal was on the lower side and the Appellants-Claimants were entitled to enhancement. +1 more

Court's answer

The Claimants are entitled to 40% future prospects on the notional income, as per the view of the Hon'ble Apex Court in National Insurance Co. Ltd. V/s. Pranay Sethi.

Ratio / Principle

Considering that the deceased was getting income from the agricultural field, was a wrestler and was studying in the second year of B.A., his monthly income is fixed at Rs.6,000/- per month (in place of the Tribunal's Rs.3,600/-).

Key takeaways

As per the view of the Hon'ble Apex Court in Magma General Insurance Co. Ltd. V/s. Nanu Ram, each claimant is entitled to Rs.48,000/- as consortium amount, Rs.18,000/- for funeral expenses and Rs.18,000/- for loss of estate; the consortium awarded by the Tribunal was on the lower side.ratio¶31
On the recomputed figures (monthly income Rs.6,000/-, annual income Rs.72,000/-, multiplier 18, 40% future prospects, deduction of half towards personal expenses, and conventional heads with 10% increase), the total just compensation payable is Rs.10,39,200/-; deducting the Tribunal award of Rs.6,14,320/-, the enhanced compensation is Rs.4,24,880/-.ratio¶45
The enhanced compensation of Rs.4,24,880/- carries interest at 7.5% per annum from the date of filing of the Claim Petition till realization; out of this amount, the consortium component of Rs.1,32,000/- carries 7.5% interest from 1st November 2017 till realization.

Detailed headnote1 paragraphs

Motor Accident Claims – Enhancement of compensation – First Appeal by Claimants (parents of the deceased) against the award of the Motor Accident Claims Tribunal, Sangli – Deceased was about 20 years old, a wrestler by profession, studying in the second year of B.A., and earning income from an agricultural field (ownership proved by Exhibit-37, 7/12 extract) – The Tribunal, holding that the deceased was not in employment and that agricultural income continued after his death, had assessed his monthly income at Rs.3,600/- (Rs.150/- per day) – Held: considering that the deceased was getting income from the agricultural field and was a wrestler studying in the second year of B.A., his monthly income is fixed at Rs.6,000/- – The Claimants are entitled to 40% future prospects as per National Insurance Co. Ltd. V/s. Pranay Sethi, 2017 ACJ 2700 (SC) – Conventional heads enhanced as per Magma General Insurance Co. Ltd. V/s. Nanu Ram, 2018 ACJ 2782 (SC): consortium of Rs.48,000/- per claimant (Rs.96,000/- for two claimants), funeral expenses Rs.18,000/- and loss of estate Rs.18,000/-, with 10% increase – With multiplier 18 and deduction of half towards personal expenses, total just compensation payable is Rs.10,39,200/-; deducting the Tribunal award of Rs.6,14,320/-, enhanced compensation of Rs.4,24,880/- is granted with interest @ 7.5% per annum from the date of filing of the Claim Petition till realization; the consortium component of Rs.1,32,000/- carries 7.5% interest from 1st November 2017 – Insurance Company directed to deposit the amount within six weeks; Claimants permitted to withdraw; deficit court fees payable on the enhanced amount; Record and Proceedings to be returned to the Tribunal.

23-FA-822-2024-JUDG.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

FIRST APPEAL NO.822 OF 2024

Digitally signed by NILAM NILAM SANTOSH SANTOSH KAMBLE KAMBLE Date: 2025.08.11 18:14:49 +0530

Bhimrao Ramchandra Lad } Age-55 years, Occ: Agriculture } } 2. Indubai Bhimrao Lad } Age-50 years, Occ: Household } Both are R/at Kundal, Taluka-Palus, } District-Sangli. } ...Appellants Versus 1. National Insurance Co. Ltd. } Having office at Amrai Road, Near LIC } Building, Sangli.

Laxman Vishnu Patil } Age-65 years, Occ: Agriculture & Trading } R/at Devrashtre, Taluka-Kadegaon, } District-Sangli. } ...Respondents

Mr.Bhushan Walimbe a/w Mr.Mayank Tripathi, for the Appellants. Ms.Shalini Shankar, for Respondent No.1.

CORAM : SHIVKUMAR DIGE, J.

DATE : 6^th AUGUST 2025

ORAL JUDGMENT :-

. This appeal is preferred by the Appellants-Claimants

seeking enhancement of the compensation.

N.S. Kamble page 1 of 6

23-FA-822-2024-JUDG.doc

It is contention of the learned counsel for the

Appellant that, the deceased was wrestler. He was studying in second year of B.A., but the Tribunal has considered his monthly income at Rs.3,000/- per month, which is on lower side. Hence, requested to allow the Appeal.

It is contention of learned counsel for the

Respondents-Insurance Company, that the Tribunal has passed well reasoned order, no interference is required in it. The learned counsel further submitted that, no evidence is produced on record to prove the income of the deceased and requested to dismiss the Appeal.

I have heard both learned counsel. Perused judgment

and order passed by the Motor Accident Claims Tribunal (‘The Tribunal’, for short), Sangli.

It is Claimants case that, the deceased was wrestler by profession and he was studying in Second year of B.A. At the time of the accident, the deceased was 20 years old. To prove the income of the deceased the Claimants have examined Claimant No.1. He has stated that, at the time of the accident, deceased

N.S. Kamble page 2 of 6

23-FA-822-2024-JUDG.doc

was 21 years old and he was student of second year B.A. and was earning Rs.5,000/- to Rs.6,000/- per month. He has further stated that, the deceased was good wrestler and had received several medals, and he was earning income from agriculture field. Exhibit-37 is 7/12 extract showing ownership of agricultural land in the name of deceased. Nothing elicited in cross-examination of this witness.

While dealing with the issue of income of the deceased, the Tribunal has observed that, the deceased was not in employment and after the death of deceased, agricultural income is continued. On that ground, the Tribunal has considered monthly income of the deceased at Rs.3,600/- i.e. Rs.150/- per day. I am unable to understand the observations of the Tribunal. The deceased was getting income from agricultural field. The documents produced on record shows that, the deceased was wrestler and he was studying in Second Year of B.A.. Considering these facts, I am considering monthly income of the deceased at Rs.6,000/- per month.

The Claimants are entitled for 40% future prospects.

N.S. Kamble page 3 of 6

23-FA-822-2024-JUDG.doc

As per view of the Hon’ble Apex Court in the case of National Insurance Co. Ltd. V/s. Pranay Sethi¹ .

The consortium is awarded on lower side. As per view of Hon’ble Apex Court in case of Magma General Insurance

Co. Ltd. V/s. Nanu Ram² , each claimant is entitled for Rs.48,000/- as consortium amount, Rs.18,000/- for funeral expenses and Rs.18,000/- for loss of estate. Considering above calculation’s the Claimants are entitled for following compensation.

Particulars Amount

Monthly Income

Rs.6,000.00

Annual Income (Notional Income X Rs.72,000.00 12 months) Multiplier 18 (Rs.72,000/- x 18) Rs.12,96,000.00

Rs.12,96,000.00 Rs.18,14,400.00

Future Prospects (40%) Rs.18,14,400.00 Rs.12,96,000 – Rs.5,18,400 (-) Personal Expenses (½ amount) Rs.9,07,200.00

Conventional Heads with 10% increase Consortium (Rs.48,000 x 2) Loss of Estate Funeral Expenses Total Just Compensation Payable

Rs.96,000.00 Rs.18,000.00 Rs.18,000.00

Rs.10,39,200.00

1 2017 ACJ 2700 (SC)

2 2018 ACJ 2782 (SC)

N.S. Kamble page 4 of 6

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Less: Tribunal Awarded Rs.6,14,320.00 Enhanced Compensation Rs.4,24,880.00

In view of above, I pass following order.

ORDER

(i) The Appeal is allowed.

(ii) The Claimants are entitled for enhanced compensation of Rs.4,24,880/- @ 7.5% per annum from the date of the filing of Claim Petition till realization of the amount. Out of this amount Rs.1,32,000/- is consortium amount, the Claimant’s are entitled @ 7.5% interest on it from 1^st November 2017, till realization of the amount.

(iii) The Respondent-Insurance Company shall deposit enhanced compensation amount along with accrued interest thereon, within six weeks from the receipt of this order.

(iv) The Claimants are permitted to withdraw the deposited amount alongwith interest.

(v) The Claimants shall pay deficit Court Fees on

N.S. Kamble page 5 of 6

23-FA-822-2024-JUDG.doc

enhanced amount, as per Rules.

(vi) Record and Proceedings be sent back to the Tribunal.

(vii) All pending Civil and Interim Applications are disposed of.

(SHIVKUMAR DIGE, J.)

N.S. Kamble page 6 of 6