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2020 Supreme(All) 1030

IN THE HIGH COURT OF ALLAHABAD
VIVEK KUMAR BIRLA, J.
National Insurance Company Ltd. – Appellant
Versus
Smt. Kiran and Others – Respondents
First Appeal from Order No. 1615 of 2017
Decided On : 13-10-2020

Advocates:
Advocate Appeared:
For the Appellant : Arvind Kumar.
For the Respondents: Chandra Bhan Gupta, Vidya Kant Shukla.

Point of Law: uniformity with respect to the grant of consortium and loss of love and affection. Several Tribunals and High Courts have been awarding compensation for both loss of consortium and loss of love and affection. The Constitution Bench in Pranay Sethi (supra), has recognized only three conventional heads under which compensation can be awarded viz. loss of estate, loss of consortium and funeral expenses

Headnote:

Motor Vehicle act, 1988 - Section 166 - Claim for compensation - Motor Accident - Allegedly being driven rashly and negligently - He was taken to the Hospital and ultimately he died due to injuries suffered in the accident - It was claimed that he was aged and was earning per month as self-employed tailor working from home - Company is not challenging its liability as apparently there was no breach of policy conditions, Per month income of the deceased was assessed and presumed –

Finding of the Court:

Courts have been awarding compensation for both loss of consortium and loss of love and affection - Constitution Bench, has recognized only three conventional heads under which compensation can be awarded viz. loss of estate, loss of consortium and funeral expenses - In so far as the amount awarded towards love and affection to three persons at the rate each that is to be reduced maximum as held by the Hon'ble Apex Court in the case, however, a sum is to be awarded to the maximum under all such head which includes loss of love and affection and funeral future expenses also - In view thereof, the total amount which can be granted under this head is modified, Therefore, the amount is now to be calculated - Awarded compensation is accordingly reduced as calculate above, however, the aforesaid amount shall carry interest as directed by the learned Tribunal –

Result: Appeal allowed partly.

JUDGMENT :

VIVEK KUMAR BIRLA, J.

1. Heard Sri. Arvind Kumar, learned counsel for the appellant and Sri. Vidya Kant Shukla, learned counsel appearing for the claimant-respondents no. 1 to 8.

2. Present appeal has been filed challenging the judgment and order dated 21.2.2017 passed by the Additional District Judge, Court No. 7, Kanpur Nagar/Motor Accident Claims Tribunal, Kanpur Nagar in M.A.C. No. 737 of 2015.

3. The award is being challenged on the ground of excessive compensation awarded to the claimants.

4. Shorn of details, facts of the case are that on 17.6.2015 at about 10 p.m. on GT road near R.K. Hospital, P.S. Chaubeypur, district Kanpur when the deceased Jai Prakash was coming alongwith his friend on Motorcycle No. UP-77Q-5127 he was hit by Truck No. UP-78AT-2282 which was allegedly being driven rashly and negligently. He was taken to the Hospital and ultimately he died due to injuries suffered in the accident. It was claimed that he was aged about 35 years and was earning Rs. 15,000/- per month as self-employed tailor working from home.

5. In view of the ground taken in the appeal this Court is concerned with Issue no. 2 which is to the effect as to what compensation the claimants are entitled for?

6. The appellant-Company is not challenging its liability as apparently there was no breach of policy conditions. Per month income of the deceased was assessed and presumed @ Rs. 6,000/- by the learned Tribunal is also not under challenge. However, learned counsel for the appellant submits that 1/4th amount is to be deducted towards personal expenditure of the deceased and not 1/5th. The Tribunal has committed mistake in making deduction of 1/5th only towards personal expenditure of the deceased on the ground that there are eight dependents. He submits that the minors are to be taken as half unit and therefore, the total unit comes to 5 and 1/2 only and accordingly 1/4th deduction has to be made towards personal expenditure. The multiplier applied is not in issue. However, he submits that only 40% could have been awarded towards future prospects and 50% has been incorrectly awarded. It was further submitted that in view of the judgment of the Hon'ble Apex Court passed in Civil Appeal No. 3093 of 2020, New India Assurance Company vs. Pinki only Rs. 40,000/- should be awarded towards love and affection and consortium and separate amount cannot be awarded to different individuals. Submission, therefore, is that the compensation awarded is highly excessive.

7. Per-contra, learned counsel appearing for the claimant-respondents has supported the impugned award, however, he submitted that in view of the judgment of the Hon'ble Apex Court in the case of Sarla Verma vs. Delhi Transport Corporation, (2009) 6 SCC 121 : 2009 (2) TAC 677 the learned Tribunal has rightly deducted 1/5th towards personal expenditure of the deceased taking dependency of eight persons. He further submitted that 50% has rightly been awarded towards future prospects. He further submits that the award is not liable to be disturbed and justified amount has been awarded.

8. I have considered the rival submissions and have perused the record.

9. In Sarla Verma (supra) in paragraph 42 it was held as under:-

    “42. We therefore hold that the multiplier to be used should be as mentioned in column (4) of the Table above (prepared by applying Susamma Thomas, Trilok Chandra and Charlie), which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for 26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years.”

10. In National Insurance Co. Ltd. vs. Pranay Sethi and Others,

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