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2024 Supreme(Gau) 1346
IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH AT KOHIMA BENCH
Budi Habung, J.
The Divisional Manager, National Insurance Co. Ltd – Petitioner
Versus
Smti. Niva Das, W/O Late Sirada Das and ors. – Respondents
MACApp./10/2022
Decided On : 12-09-2024
Advocate Appeared:
For the Petitioner: Moajungla, Ketoli, Yangpila, Setalu, Thuyekhrulu
For the Respondent: Tongpok Pongener, Akum Jamir, S Reopi, M. Athai, Tongpang Jamir, Laknyei Phom, T Atalu Chizo, Jendemo Tsanglao, M. Divina Therie, Asen S Longkumer, Vikehienuo Vimerha, Akum Aier
IMPORTANT POINT
The judgment underscores the importance of accurate income assessment and fair deductions in compensation claims, while affirming the standard interest rate applicable in such cases.
Headnote:
Compensation - Motor Accident Claim - Motor Vehicles Act, 1988, Section 173 - The court modified the compensation awarded to the claimant, emphasizing the need for fair assessment of income and dependency deductions while upholding the interest rate as per prevailing banking norms.
Fact of the Case:
The case arose from a motor accident claim petition for compensation due to the death of a businesswoman caused by a motorcycle accident. The initial compensation awarded was contested by the insurance company, leading to a review and modification of the compensation amount.
Finding of the Court:
The court found that the income of the deceased was not disputed and agreed to modify the deduction for dependents from 1/4th to 1/3rd, while maintaining the interest rate at 9% per annum as per established legal precedents.
Issues: The main issues were the accuracy of the deceased's income, the appropriate deduction for dependents, and the applicable interest rate on the compensation amount.
Ratio Decidendi: The court held that the agreed modification of the compensation amount was reasonable and aligned with legal standards, particularly regarding income assessment and interest rates.
Result: The appeal is partially allowed, modifying the compensation to Rs. 7,30,000 with 9% interest.
JUDGMENT :
Budi Habung, J.
Heard Ms. Moajungla, learned counsel for the appellant. Also heard Mr. Tongpok Pongener, learned counsel appearing on behalf of the respondent nos. 1 and 2.
2. By filling this MAC appeal under section 173 of the Motor Vehicles Act, 1988 the appellant has put to challenge the impugned judgment and order dated 31.05.2022 passed by the learned Member, MACT, Mokokchung, Nagaland in MAC Case No. 09/2020 and the order dated 29.09.2022 whereby, and by which the learned Tribunal has granted compensation of Rs. 8,05,000/-as final award in favour of the claimant/respondent herein and directed the opposite party/Insurance Company (appellant herein) to pay awarded amount along with 9% interest per annum from the date of filing of the claim application.
3. This case has arisen out of the motor accident claim petition filed by the claimants/respondents herein before the learned Member, MACT, Mokokchung, Nagaland seeking grant of compensation for the death of their mother, late Sirada Das who died due to the hit of the offending motorcycle bearing registration No. AS03-X-0711 near NH-37, Jorhat, Assam on 06.02.2020 at 6 pm. The accident occurred due to the rash and negligent driving of the driver of the motorcycle Shri Banu Gopal Das.
4. The claim case was contested. On completion of trial, the learned Tribunal by its judgment and order dated 31.05.2022 has awarded the compensation amount of Rs. 10,75,000/- in favour of the claimant/respondent herein and directed the opposite party/ National Insurance Company to pay the compensation amount within 30 days from the date of the said order failing which an interest at the rate of 9% per annum would be added to the awarded amount w.e.f. the date of filing of the claim petition.
5. Being aggrieved, the appellant filed a review petition praying for modification of the impugned judgment and award dated 31.05.2022. The said Review petition was partially allowed on 29.09.2022. Accordingly, a final compensation award was granted in favour of the claimant at Rs. 8,05,000/- and directed the opposite party/Insurance Company (appellant herein) to pay awarded amount along with 9% interest per annum from the date of filing of the claim application.
6. Being further aggrieved by the impugned judgment and award of the Tribunal dated 31.05.2022 and the review order dated 29.09.2022 in MACApp./9/2020, the appellant has filed the instant appeal for reduction of the quantum of compensation amount.
7. However, at the very outset, the learned counsel for the appellant made it clear that the factum of the instant case is not disputed. She has further submitted that the appellant has a specific prayer on the following heads of the compensation amount. They are:
(i) The income of the deceased shown as Rs. 15,000/- is in the higher side.
(ii) The deduction of two dependent members should be 1/3th instead of 1/4th since there are only 2 dependents of the deceased person.
(iii) That the interest should be as per the present bank interest rate instead of 9% per annum.
8. The learned counsel for the respondent/claimant submits that the deceased was a businesswoman at the time of her death and she was earning Rs. 15,000/- (Rupees fifteen thousand) per month. The learned counsel for the respondent/ claimants submitted that there is no any logic or any documents produced by the appellant to show that the deceased was not earning Rs. 15,000/- (Rupees Fifteen thousand) per month; therefore, there is no reason for reduction of the said amount from the monthly income of the deceased.
9. With regards to the interest, the learned counsel for the respondent submitted that the interest at the rate of 9% per annum is as per the present banking interest rate and submitted that there is a catena of decision of the Hon’ble Supreme Court and various High Court which came after Sarla Verma decision whereby the 9% interest per annum on the compensation amount granted by the Tribunals have been upheld. Hence, prays for upholdin
