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2017 Supreme(HP) 560

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Vivek Singh Thakur, J.
National Insurance Company Limited – Appellant
Versus
Darshana Devi & others – Respondents
FAO (MVA) No. 472 of 2012
Decided On : 29-06-2017

Advocates Appeared:
For the Appellant :Shri. Lalit K. Sharma, Advocate
For the Respondent:Mr. Ramakant Sharma, Sr. Advocate with Mr. Basant Thakur, Advocate, Mr. Anil Kumar, Advocate, Mr. Anup Rattan, Advocate, Mr. Ashish Verma, Advocate, Mr. B.S.Attri, Advocate

The main legal point established in the judgment is the relevance of the age of the deceased in applying multipliers for compensation calculation and the court's jurisdiction to enhance compensation.

Headnote:

Motor Accident Claims - Compensation Calculation - Sarla Verma & others vs. Delhi Transport Corporation and another (2009)6 SCC 121, U.P. SRTC vs. Trilok Chandra (1996)4 SCC 362, Amrit Bhanu Shali vs. National Insurance Company Limited (2012)11 SCC 738, Reshma Kumari and others vs. Madan Mohan and another (2013)9 SCC 65, Munna Lal Jain and another vs. Vipin Kumar Sharma and others (2015)6 SCC 347 - The court discussed the application of multipliers for determining compensation, the relevance of the age of the deceased, and the consideration of future prospects in calculating compensation. It also addressed the determination of the rate of interest and the court's jurisdiction to enhance compensation.

Fact of the Case:

The case involved a motor accident resulting in the death of a 26-year-old. The Motor Accident Claims Tribunal awarded compensation to the claimants, which was challenged by the Insurance Company.

Finding of the Court:

The court found that the MACT had rightly applied the multiplier based on the age of the deceased and upheld the rate of interest awarded. It also held that the court had the power to enhance compensation and considered the future prospects of the deceased in calculating the compensation. The court awarded additional compensation for loss of love and affection to the claimants.

Issues: The issues included the application of multipliers, the determination of the rate of interest, the consideration of future prospects, and the court's jurisdiction to enhance compensation.

Ratio Decidendi: The court emphasized the relevance of the age of the deceased in applying multipliers for compensation calculation and upheld the rate of interest awarded by the MACT. It also affirmed the court's jurisdiction to enhance compensation and considered the future prospects of the deceased in calculating the compensation.

Final Decision: The appeal was disposed of, and the Insurance Company was directed to deposit the difference of compensation amount. The court awarded additional compensation for loss of love and affection to the claimants.

JUDGMENT :

Vivek Singh Thakur, J.

Assailing award dated 30.6.2012 passed in Motor Accident Claims Petition No. 9-N/II of 2009 titled Darshana Devi and another vs. Rohit Sharma and others by the Motor Accident Claims Tribunal (I), Kangra at Dharamshala, appellant Insurance Company has preferred present appeal.

2. On account of death of 26 years old son of respondents No. 1 and 2/claimants in a motor accident occurred on 7.12.2008, the MACT has awarded compensation in favour of claimants to the tune of Rs.4,03,800/- along with interest at the rate of 9% per annum from the date of institution of petition till deposit of the award amount with cost of petition to the tune of Rs.2000/-. Details of awarded compensation are as under:-

(i)

Compensation for loss of dependency awarded

Rs.388800.00/-

(ii)

Just and reasonable funeral compensation awarded

Rs.10000.00/-

(iii)

Just and reasonable transportation of dead compensation awarded

Rs.5000.00/-

(iv)

Medical compensation awarded

(As no medical bills placed on record)

NIL

Total compensation awarded

Rs. 403800.00/-

3. I have heard learned counsel for parties and have gone through the material placed on the record.

4. Learned counsel for appellant company has referred para 38 of judgment passed by the Apex Court in Sarla Verma & others vs. Delhi Transport Corporation and another (2009)6 SCC 121 wherein para 18 of judgment of the Apex Court passed in U.P. SRTC vs. Trilok Chandra (1996)4 SCC 362 has been quoted stating therein that selection of multiplier in all cases cannot be solely dependent upon age of deceased and where a bechelor dies at the age of 45 years and dependants are his parents then age of parents would also be relevant in choice of multiplier and thus he submitted that in present case also, deceased was 26 years of age at the time of accident, whereas his parents Darshana Devi and Prem Singh were of 55 and 60 years of age at that time and therefore learned MACT wrongly applied multiplier on the basis of age of deceased who was bachelor rather multiplier on the basis of age of his dependant parents is to be applied.

5. Aforesaid plea of appellant Insurance Company is misconceived and is contrary to the law of land. It is now settled that selection of multiplier for determining the amount of compensation to be awarded to dependants is to be based on age of deceased and not at the age of dependant (See para 15 of Amrit Bhanu Shali vs. National Insurance Company Limited (2012)11 SCC 738). Three Judges Bench of the Apex Court in case Reshma Kumari and others vs. Madan Mohan and another (2013)9 SCC 65, after considering Sarla Verma’s case cited supra, has held that multiplier is to be applied with reference to the age of deceased. The said ratio of law has been reiterated by another three Judges Bench of the Apex Court in Munna Lal Jain and another vs. Vipin Kumar Sharma and others (2015)6 SCC 347.

6. In view of pronouncement of the Apex Court in cases cited supra, plea of appellant Insurance Company is not sustainable. The Motor Accident Claims Tribunal has rightly applied multiplier of 18 on the basis of age of the deceased.

7. Learned counsel for appellant has also contended that interest at the rate of 9% per annum awarded by the MACT is on higher side and it should have been according to prevailing rate of interest in the Nationalized Banks which at the time of filing of petition was not more than 6% and therefore, he pleaded that rate of interest deserves to be decreased from 9% to 6% in present case. He has also relied upon judgment of the High Court of Madhya Pradesh in National Insurance Company Limited vs. Sukhiya Bail and others 2010 ACJ 2001 wherein interest at the rate of 8% from the date of filing of petition was awarded.

8. Learned counsel for claimants has referred judgment of the Apex court in case Puttamma an








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