IN THE HIGH COURT OF JHARKHAND AT RANCHI
KAILASH PRASAD DEO, J.
Renuka Devi and Others – Appellants
Versus
The United India Insurance Co. Ltd. and Another – Respondents
M.A. No. 132 of 2014
Decided On : 12-01-2021
Enhancement - Compensation Award - Motor Vehicles Act - Section 171, 2017 (16) SCC 680, 2009 (6) SCC 121, 2019 (4) TAC 724, 2011 (14) SCC 639 - The court discussed the compensation awarded, future prospects, conventional head, and interest payable under the Motor Vehicles Act. It referenced key legal provisions such as Section 171, 2017 (16) SCC 680, 2009 (6) SCC 121, 2019 (4) TAC 724, and 2011 (14) SCC 639, and interpreted them to enhance the compensation amount and adjust the interest rate, influenced by the judgments of the Apex Court.
Fact of the Case:
The appellants sought enhancement of the compensation award for a fatal accident under the Motor Vehicles Act. The deceased was involved in a fatal accident, and the appellants contested the compensation amount, future prospects, conventional head, and interest payable.
Finding of the Court:
The court found that the compensation amount, future prospects, conventional head, and interest payable needed enhancement based on the evidence and legal provisions referenced.
Issues: The issues revolved around the adequacy of the compensation amount, future prospects, conventional head, and interest payable under the Motor Vehicles Act.
Ratio Decidendi: The court decided to enhance the compensation amount, future prospects, conventional head, and adjust the interest rate based on the evidence and interpretations of relevant legal provisions.
Final Decision: The court allowed the appeal, enhancing the compensation amount and adjusting the interest rate.
JUDGMENT :
KAILASH PRASAD DEO, J.
1. It appears that appellants, Renuka Devi, Devendra Nath Tiwari and Menika Devi have preferred the instant appeal for enhancement of the Award dated 21.12.2013 passed by learned District Judge-cum-M.A.C.T. Judge-VII, Dhanbad in Title (M.V.) Suit No. 270/2008, whereby appellants have been awarded compensation to the tune of Rs. 2,84,000/- (wrongly typed as Rs. 2,74,000/-) along with interest payable @ 9% per annum from the date of filing of the claim application till the date of its realization.
2. It appears that after admitting the appeal on 29.08.2018 Coordinate Bench of this Court has passed order for issuance of notice upon respondent no. 2 Chandan Kumar Mishra, but in the meantime the matter was referred before the Lok Adalat for settlement, but the settlement failed before the Lok Adalat and thereafter, it was again listed before the regular Bench for adjudication.
3. It has been submitted by learned counsel for the United India Insurance Company Ltd. that no appeal has been preferred by the Insurance Company against the impugned award either for setting aside of the award or having right of recovery from the owner of the insured vehicle, rather Insurance Company has already satisfied the award to the tune of Rs. 3,24,000/- and as such, learned counsel for Insurance Company has submitted that this appeal may be disposed of.
4. Learned counsel for the appellants, Mr. Birendra Kumar has submitted that income of the deceased has been claimed to the tune of Rs. 7,500/- per month while working as Accounts Assistant under M/s SPM Financial Consultancy, Dhanbad and Dr. Devendra Sharan (PW-4), proprietor of SFM Consultancy, Dhanbad have been examined and has proved the salary certificate as Exhibit-1 issued under his signature vide Ref. No. SPM/102/2007-08 dated 10.02.2008.
5. Learned counsel for the appellants has further submitted that learned Tribunal without having any reason has considered the income of the deceased to be Rs. 3,000/- per month, which is meagre amount contrary to the evidence brought on record.
6. Learned counsel for the appellants has further submitted that the learned Tribunal has not granted any future prospect though the deceased, who died at the age of 24 years comes below the age of 40 years and have fixed income, as such, appellants are entitled for future prospect @ 40% of the income.
7. Learned counsel for the appellants has further submitted that recently the Hon'ble Apex Court in the case of Kirti and Another vs. Oriental Insurance Company Ltd. decided the issue in Civil Appeal Nos. 19-20 of 2021 on 05.01.2021 and as such, the claimants/ appellants are entitled for future prospect @ 40%.
8. Learned counsel for the appellants has further submitted that under the conventional head in view of the judgment passed by the Hon'ble Apex Court in the case of National Insurance Company Ltd. vs. Pranay Sethi and Others, (2017) 16 SCC 680 paragraph-59.8, the compensation towards conventional head ought to be granted to the tune of Rs. 70,000/- i.e. Rs. 40,000/- for loss of consortium, Rs. 15,000/- for funeral expenses and Rs. 15,000/- for loss of estate. The learned Tribunal has only granted Rs. 10,000/- i.e. Rs. 5,000/- towards loss of estate and Rs. 5,000/- towards the funeral expenses, as such, meagre amount has been paid under the conventional head.
9. Learned Tribunal has only considered the Renuka Devi (wife) and Menika Devi (mother) as dependents of the deceased and refused to consider Devendra Nath Tiwari brother of the deceased as a dependent. Learned counsel for the appellants has further submitted that instead of deducting personal and living expenses to the tune of 1/3rd, the learned Tribunal has deducted half, which is non-sustainable in the eyes of law in view of the judgment passed by the Apex Court in the case of Sarla Verma vs. Delhi Transport Corporation, (2009)
Dharampal and Sons vs. U.P. State Road Transport Corporation
National Insurance Company Ltd. vs. Pranay Sethi and Others
Ranjana Prakash and Others vs. Divisional Manager and Another
The main legal point established is that the compensation amount, future prospects, conventional head, and interest payable under the Motor Vehicles Act can be enhanced and adjusted based on the evid....
The main legal point established is the determination of compensation amount under the Motor Vehicles Act by considering various judgments.
Income Tax is the mirror of one's income unless proved otherwise.
The main legal point established in the judgment is the reliance on documentary evidence to determine the deceased's income and the application of legal precedents to re-compute the compensation awar....
The main legal point established in the judgment is the determination of just and fair compensation under the Motor Vehicles Act, considering the deceased's income, future prospects, deductions, mult....
Rule 220A-3(i) of Rules is future prospects of a deceased, shall be added in actual salary or minimum wages of deceased.
Compensation calculations in motor accident claims must include allowances and future prospects, with appropriate multipliers based on the deceased's age.
The main legal point established in the judgment is the assessment and modification of compensation under various heads in accordance with legal precedents and established income of the deceased.
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