Allowed

National Insurance Company v. Mohammad Abdullah Bhat and Ors.

J&K HC1 Dec 2021MA/59/2018

Case brief

AI extract

What is this about?

This order allows an appeal filed by an insurance company challenging a Tribunal award in a motor accident claim. The High Court set aside theaward regarding the validity of the driver's license by relying on a coordinate Bench decision but reduced the compensation for future prospects from 50% to 40% and burial expenses from Rs. 25,000 to Rs. 15,000 following Supreme Court precedents.

What did the court decide?

The impugned award is modified; the total compensation payable is reduced to Rs. 9,43,200.

National Insurance Company Vs Mohammad Abdullah Bhat and… — Motor Accident Claims | J&K HC (2021)

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S. No. 9

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After Notice Matters

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HIGH COURT OF JAMMU &KASHMIR AND LADAKH AT SRINAGAR

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MA No. 59/2018

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National Insurance Company.

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...Petitioner(s)

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Through: Mr. Areeb Kawoosa, Adv. Vice Mr. J.A. Kawoosa, Sr. Adv.

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Mohammad Abdullah Bhat and Ors. ….. Respondent(s) Through: Mr. M. Altaf Khan, Adv, R- 1 to 4. Mr. B. A. Tak, Adv, R- 5 & 6.

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CORAM:

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HON’BLE MR. JUSTICE JAVED IQBAL WANI, JUDGE.

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ORDER

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01.12.2021

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Award dated 24.11.2016, passed by Motor Accident Claim Tribunal, Srinagar, in claim petition titled as “Mohammad Abdullah Bhat and Others V. Abdul Lateef Matt and Others” is being questioned by the Insurance Company appellant herein inter alia on the grounds that the respondent No. 6, driver was not holding an effective driving license and that sufficient evidence was led by the appellant Insurance Company before the Tribunal in this regard yet the Tribunal decided the said issue against the appellant Insurance Company which as such is against settled position of law and that the compensation awarded by the Tribunal in favour of claimantsrespondents herein is arbitrary, excessive and unjust, in that the deceased was unmarried of the age of 22 years and that the Tribunal has taken the income of the deceased at Rs. 6,500/- per month without there being any independent evidence and that the Tribunal also added 50 % on account of future prospectus besides awarding Rs. 25,000/- as burial expenses.

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The award of 50 percent increase on account of future prospectus of the deceased as also award of Rs. 25,000/- as burial expense is contended to be against the judgment passed by the Apex court in case reported in 2017 SCC Online SC 127 titled as “National Insurance Company Limited V. Pranay Sethi.” According to the learned counsel for the appellant, the appeal as such in this matter requires to be allowed while setting aside the impugned award.

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Per contra appearing counsel for the claimants-respondents would controvert and resist the contentions raised by the counsel for the appellant and would contend that the issue of driving license being raised in the appeal stands settled by a coordinate Bench of this Court in CMAM No. 144/2017 titled as “National Insurance Company Limited. V. Abdul Ahad Najar and Others,” having arisen out of the same occurrence/accident award.

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Learned counsel for the respondents however, would concede to the position of law insofar as 50 % increase on account of future prospectus of the deceased has been awarded by the Tribunal inasmuch as the amount of 25,000/- as burial expenses.

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According to the learned counsel for the respondents the 50 % increase on account of future prospectus has to be 40 %, whereas the burial expenses instead of Rs. 25000/- has to be Rs. 15000/-.

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Heard learned counsel for the parties and perused the record.

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Having regard to the aforesaid position coupled with the submissions made by learned appearing counsel for the parties, the instant appeal is taken up for final disposal at this stage.

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The ground urged by the appellant Insurance Company quo the invalid driving license of the driver of the offending vehicle is rejected in view of findings recorded by the coordinate Bench in “ National Insurance Company Limited V. Abdul Ahad Najar and Ors” supra. The amount of 50% granted by the Tribunal on account of future prospectus is reduced to 40% percent in view of the law laid down by the Apex Court in “National Insurance Company Limited V. Pranay Sethi.”

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so also, is the amount of burial expenses reduced from Rs. 25,000/- to Rs. 15,000/-.

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Accordingly, the award shall stand modified as under with the following breakup: -

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Rs. 6500 + 40 % additional income and deduction of 50% towards personal expenses = Rs. 4,550/- instead of Rs. 4,875/-.

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Rs 4550*12 * 17 = Rs. 9,28,200/-

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Funeral expenses Rs. 15,000/-

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Total: - Rs. 9,43,200/-

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Thus the amount of Rs. 943200/- along with interest @ 6% per annum from the date of the petition till the final realization is awarded in favour of the claimants who shall share the award amount in equal

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proportions in tune with the directions passed by the Tribunal. The court fee shall also be the first charge on the award.

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Disposed of.

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The registry is directed to release the aforesaid amount of compensation worked out by this Court in favour of the claimants in tune with the directions of the Tribunal after proper verification and identification by their counsel, the rest of the amount, if any, shall be released in favour of the Insurance Company.

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(Javed Iqbal Wani)
Judge
SRINAGAR
01.12.2021
“Junaid”

National Insurance Company v. Mohammad Abdullah Bhat and Ors.

Case brief

What is this about?

What did the court decide?

National Insurance Company v. Mohammad Abdullah Bhat and Ors.

Case brief

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What did the court decide?

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