The main legal point established in the judgment is the court's authority to adjust compensation, non-pecuniary benefits, and the rate of interest based on legal provisions and previous case law.

Suresh Kait, J. (Oral)

MAC.APP. 1185/2012

1. Vide the present appeal, the appellant/Insurance Company is assailing the impugned award dated 03.07.2012, whereby the learned Tribunal has granted compensation for a sum of Rs.20,62,000/- with interest at the rate of 12% per annum from the date of filing the claim petition, i.e., 12.07.2011 till realization of the amount.

2. Learned counsel appearing on behalf of the appellant/Insurance Company has argued that the respondents/claimants have failed to prove that the deceased was in a permanent employment and that he was working with M/S Garg Paper Converters and was drawing salary of Rs.16,000/- per month. Therefore, in the absence thereof, while calculating the compensation, the learned Tribunal should not have added 50% of the actual income of the deceased towards future prospects.

3. To strengthen her arguments on this issue, learned counsel has relied upon a case of Sarla Verma & Ors. Vs. DTC & Anr., (2009) 6 SCC121, which has been confirmed by the Full Bench of the Apex Court in the case bearing Civil Appeal No. 4646 of 2009 titled as ‘Reshma Kumari & Ors. Vs. Madan Mohan & Anr.’ delivered on 02.04.2013.

4. Learned counsel also relied upon the case of Bijoy Kumar Dugar Vs. Bidyadhar Dutta & Ors. AIR 2006 SC 1255 and submitted that the claimants neither produced any material nor examined any witness to prove that there were chances of increase in the salary of the deceased and had he been alive, he would have earned more. Therefore, in the absence of the same, the learned Tribunal has wrongly added 50% of the actual income of the deceased towards future prospects.

5. Learned counsel further argued that the compensation granted by the learned Tribunal towards non-pecuniary benefits such as Rs.1,50,000/- for loss of love and affection and Rs.30,000/- for loss of estate is on higher side.

6. Learned counsel further argued that while awarding the compensation the learned Tribunal has awarded an exorbitant rate of interest as 12% per annum on the awarded amount from the date of filing the claim petition till realization of the amount. She submitted that normally the rate of interest awarded on the compensation amount varies from 7.5% to 9% and interest at the rate of 12%, as awarded by the learned Tribunal, is being awarded only in case of default of payment. However, there is no such default on the part of the appellant/Insurance Company, therefore, the rate of interest may be reduced.

7. Though there is no straight jacket formula to allow the compensation towards non-pecuniary benefits as it differs in each case depending upon the facts and circumstances of the case.

8. In the present case, the deceased had died at the young age of 22 years. He left behind his parents. He was a bachelor. Recently, in the case of Rajesh and Ors. Vs. Rajbir Singh and Ors. 2013 (6) SCALE 563, the Full Bench of the Apex Court has granted Rs.1,00,000/- for loss of love and affection.

9. This Court has also followed the aforenoted dictum in the case bearing MACA No.846/2011 titled as ‘ICICI Lombard General Insurance Co. Ltd. Vs. Angrej Singh & Ors.’, decided on 30.09.2013.

10. Therefore, keeping in view the settled position of law and that the deceased was aged 22 years at the time of the accident, I do not find any discrepancy in the order of the learned Tribunal in adding 50% of the actual income of the deceased towards future prospects. However, keeping in mind the facts and circumstances of the case, I reduce the compensation for loss of love and affection etc.from Rs.1,50,000/- to Rs.1,00,000/- and for loss of estate from Rs.30,000/- to Rs.10,000/-.

11. I note, in the present case, there is no such order of any default on the part of the appellant/Insurance Company, therefore, I am of the considered opinion that the rate of interest, i.e., 12% per annum awarded by the learned Tribunal is on higher side. Hence, the same is reduced to 9% per annum.

12. Learned counsel for the appellant/Insurance Company