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2021 Supreme(All) 1466

IN THE HIGH COURT OF ALLAHABAD
KAUSHAL JAYENDRA THAKER, DINESH PATHAK, JJ.
Smt. Kavita Singh and Others – Appellants
Versus
H.D.F.C. Ergo General Insurance Co. Ltd. and Others – Respondents
First Appeal From Order No. 2386 of 2016
Decided On : 19-08-2021

Advocates:
Advocate Appeared:
For the Appellant : Mayank.
For the Respondent: Sushil Kumar Mehrotra.

Headnote:

Motor Accident - Quantum of compensation – Accident - Appellants that deceased was about 32 years at the time of the accident. Tribunal has wrongly assessed his income by excluding amount of HRA - Judgment of Apex Court in - Tribunal could not have deducted HRA and thus, income of the deceased may be considered - Further it did not grant any amount under the head of future prospect - Deceased was fourth class employee in National Federation of Cooperative Federation of Corporative Sugar Factory – Court agree with the submission of the learned counsel for appellants that HRA cannot be excluded while considering income of deceased in view of Judgment – Court consider income of the deceased – Held, Apportioned on financial year to financial year basis and if the interest payable to claimant for any financial year exceeds insurance company/owner is/are entitled to deduct appropriate amount under the head of 'Tax Deducted at Source' as provided u/s 194A (3) (ix) of Income Tax Act, 1961 and if the amount of interest does not exceeds in any financial year, registry of this Tribunal is directed to allow the claimant to withdraw amount without producing the certificate from the concerned Income- Tax Authority - Aforesaid view has been reiterated by this High Court in Review Application - appeal is partly allowed.

JUDGMENT :

1. Heard Sri Mayank, learned counsel for the appellants, Sri Sushil Kumar Mehrotra, learned counsel for the respondent and perused the judgment and order impugned.

2. This appeal, at the behest of the claimants, challenges the judgment and award dated 22.4.2016 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No. 3, Mathura (hereinafter referred to as 'Tribunal') in M.A.C. No. 567 of 2014 awarding a sum of Rs.23,51,000/- with interest at the rate of 7% as compensation.

3. The accident is not in dispute. The issue of negligence decided by the Tribunal is not in dispute. The respondent has not challenged the liability imposed on them. The only issue to be decided is, the quantum of compensation awarded.

4. It is submitted by learned counsel for the appellants that deceased was about 32 years at the time of the accident. Tribunal has wrongly assessed his income as Rs.16260/- by excluding the amount of HRA. It is submitted that in view of the Judgment of Apex Court in Vimal Kanwar and others Vs. Kishore Dan and others, 2013 (3) T.A.C. 6 (S.C.) the Tribunal could not have deducted HRA and thus, income of the deceased may be considered Rs.18159/-. Further it did not grant any amount under the head of future prospect, which should be granted in view of the decision in National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050. It is further submitted that the amounts granted under non-pecuniary damages are on the lower side and it should be as per the decision in Pranay Sethi (Supra). It is further submitted that the deduction towards personal expenses of the deceased should be 1/3rd. Hence, the award requires enhancement.

5. As against this, learned counsel for the Insurance Company has submitted that the award does not require any interference. The Tribunal has not committed any error in not granting the future loss of income.

6. We have considered the submissions and considered the factual data. The deceased was fourth class employee in National Federation of Cooperative Federation of Corporative Sugar Factory. We agree with the submission of the learned counsel for the appellants that HRA cannot be excluded while considering the income of the deceased in view of Judgment in Vimal Kanwar (supra). Thus, we consider income of the deceased to Rs.18159/-. Further as the deceased was below 40 years of age and a salaried person, 50% is to be added towards future loss of income. Main contention of Sri Mehrotra is that deduction of 1/4 is bad as father cannot be said to be dependent and deduction of personal expenses has to be always based on the number of dependents/legal representative of the deceased. We are convinced with the submission of Sri Mehrotra. Thus, deduction towards personal expenses would be 1/3rd and not 1/4th. The amount under the head of non-pecuniary head would be Rs.70,000/-+30,000 as this is appeal of the year 2016 and about four years have elapsed.

7. Hence, total compensation payable is recalculated and is computed herein-below:

i.

Income

Rs. 18,159/-

ii.

Percentage towards future prospects: 50% namely

Rs. 9079/- (rounded up)

iii.

Total income: Rs. 18,159 + 9,079

Rs. 27,238/-

iv.

Income after deduction of 1/3rd

Rs. 18,159/-

v.

Annual income: Rs. 18159 x 12

Rs. 2,17,908/-

vi.

Multiplier applicable

16

vii.

Loss of dependency: Rs. 2,17,908 x 16

Rs. 34,86,528/-

viii.

Amount under non-pecuniary head

Rs. 1,00,000/-

ix.

Total compensation

Rs. 35,86,528/-

8. As far as issue of rate of interest is concerned, it should be 7.5% in view of the latest decision of the Apex Court in National Insurance Co. Ltd. Vs. Mannat Johal and Others, 2019 (2) T.A.C. 705 (S.C.) wherein the Apex Court has held as under:-

    "13. The aforesaid features equally apply to the contentions urged on behalf of the claimants

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