IN THE HIGH COURT OF GAUHATI (ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MICHAEL ZOTHANKHUMA, J.
The New India Assurance Co. Ltd. Through the Branch Manager – Appellant
Versus
Lalremmawii and 8 Ors – Respondents
MACApp. 15 of 2018
Decided on : 22-10-2021
Motor Vehicles – Accident claim – Grant of compensation – Liability of insurance company – Respondent No. 9, who is the owner of the accident vehicle – Accident resulted in the death of two (2) persons out of the nine (9) passengers - whether the future prospects of the deceased should have been calculated on the basis of 40% of his income or on the basis of 50% of his income. Secondly, whether the learned Tribunal erred in awarding compensation towards "loss of love and affection" and due to "loss of expectation of life".
Finding of the Court:
Future prospects of the deceased, who is a bachelor, would have to be calculated on the basis of 40% of his income not on the basis of 50% of his income. Secondly, no compensation could have been awarded on account of "loss of love and affection" and due to "loss of expectation of life". Further, the compensation for the purpose for funeral expenses and loss of estate would have to be @ Rs. 15,000/- each in terms of the judgment of the Apex Court in Pranay Sethi & Ors.
Result: Award modified
JUDGMENT :
Heard Mr. Lalfakawma, learned counsel for the appellant as well as Mr. Lalchhanliana Khiangte, learned counsel for the respondent Nos. 1 to 8. No one appears for the respondent No. 9, who is the owner of the accident vehicle.
2. The present appeal has been filed by the appellant Insurance Company against the impugned Judgment & Award dated 18.10.2017 passed by the MACT Aizawl in MACT Case No. 38/2016, by which the compensation amount of Rs. 19,70,000/-along with interest @ 7% per annum from the date of filing till payment was directed to be made to the respondent Nos. 1 to 8/claimants.
3. The brief facts of the case is that on 08.05.2016, a motor vehicle (Tata Sumo) bearing Registration No. MZ-01-J-8927, belonging to the instant respondent No. 8 and driven by one Lalrintluanga, S/o Lalnghilhlova of Ramhlun North, Aizawl, Mizoram, met with an accident at Chiehruphi village, East Jaintia Hills District, Meghalaya while proceeding towards Guwahati from Aizawl. The accident resulted in the death of two (2) persons out of the nine (9) passengers, which included the 22 year old son of the respondent Nos. 1 & 2. Respondent No. 3 is the sister of the deceased, while respondent Nos. 4 & 5 are the brothers of the deceased. The parents of respondent Nos. 6 & 7 are still alive. Respondent No. 6 is the niece of the deceased and daughter of respondent No. 3 and her husband. Respondent No. 7 is the nephew of the deceased and son of respondent No. 4 and his wife (respondent No. 8). The said accident vehicle was validly insured with the instant appellant at the time of the accident. The respondent Nos. 1-8/Claimants filed a claim petition under Section 166 of the Motor Vehicle Act, 1988 claiming compensation before the MACT, Aizawl.
After taking evidence and hearing the parties, the MACT, Aizawl passed its Judgment & Award dated 18.10.2017 in MACT Case No. 38 of 2016, whereby the learned Tribunal awarded the respondent Nos. 1-8/Claimants compensation amounting to Rs. 19,70,000/-(Rupees nineteen lakhs seventy thousand only) with interest @ 7% calculated from the date of filing i.e., 06.09.2016, till final payment.
4. Mr. Lalfakawma, learned counsel for the appellant Insurance Company submits that amongst the various grounds of challenge taken up by the appellant, the appellant would not like to press the ground that there was no rash and negligent act on the part of the driver of the accident vehicle, inasmuch as, the said issue has been decided by this Court in analogous matters, i.e. in MAC Appeal No. 12/2019 “The New India Assurance Co. Ltd. Vs. Smt. V.Siami & 7 Ors.” and MAC Appeal No. 3/2018 “Smt. V.Siami & 6 Ors. Vs. Shri. R. Lalthlengliana & Anr.”, vide common Judgment & Order dated 16.10.2020.
5. The appellant’s counsel submits that there are three other grounds of challenge to the impugned judgment and award. Firstly, the learned Tribunal erred in deducting the personal expense of the deceased @ 1/3rd of his income instead of 50% of his income, keeping in view of the fact that the deceased was a Bachelor. Secondly, the future prospects of the deceased should have been calculated on the basis of 40% of his income instead of 50% of his income, by taking into consideration the decision of the Apex Court in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors., reported in (2017) 16 SCC 680. Thirdly, in terms of the judgment of the Apex Court in Pranay Sethi & Ors. (Supra), the learned Tribunal could not have awarded compensation towards “loss of love and affection” and due to “loss of expectation of life”. He submits that this Court, in the common Judgment & Order dated 16.10.2020 passed in the analogous appeals, i.e. MAC Appeal No. 12/2019 and MAC Appeal No. 3/2018, has held that in view of Pranay Sethi & Ors.(Supra), no compensation can be awarded for “loss of love and affection” and “loss of expectation of life”.
The
Lakshmi Narayan Guin & Ors. Vs. Niranjan Modak
National Insurance Co. Ltd. Vs. Pranay Sethi & Ors.
Oriental Insurance Co. Ltd. Vs. Smt. Lalawmpuii & Anr., MAC Appeal No. 36/2017
Reshma Kumari & Ors. Vs. Madan Mohan & Anr.
SupremeToday
An appeal is a continuation of a suit, as a result of which a change in law will become applicable on the date of the appellate decree, provided that no vested right is taken away.
The main legal point established in the judgment is the application of legal principles from the case of Pranay Sethi (Supra) to determine the compensation under various heads, including future prosp....
The main legal point established in the judgment is that the determination of compensation under the Motor Vehicles Act, 1988 should consider the notional income of the deceased, future prospects, an....
The main legal point established in the judgment is the determination of just compensation under the Motor Vehicles Act, considering the deceased's income, future prospects, and other conventional he....
The main legal point established in the judgment is the application of legal principles set by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. to determine ....
Compensation for vehicular accidents must be just, fair, and reasonable, determined by the deceased's age, income, and dependents, as per established legal standards.
The main legal point established in the judgment is the determination of just and reasonable compensation under the Motor Vehicles Act, 1988, considering the deceased's income, future prospects, loss....
Point of Law : In death cases, compensation would be awarded only under three conventional heads, viz – loss of estate, loss of consortium and funeral expenses.
Legal representatives must demonstrate dependency to claim compensation; appropriate deduction for personal expenses in compensation should be one-third for married deceased as per established jurisp....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.