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2023 Supreme(All) 178

IN THE HIGH COURT OF ALLAHABAD
KAUSHAL JAYENDRA THAKER, J.
Smt. Kamini Singh And Others - Appellant
Versus
New India Assurance Co. And Others - Respondent
First Appeal From Order No. 2740 of 2006
Decided On : 05-04-2023

Advocates Appeared:
For the Appellant : Shivendra Singh
For the Respondent: Aditya Singh Parihar, Aditya Singh Parihar

Point of Law: Purpose of keeping compensation is to safeguard interest of claimants.

Headnote:

Income Tax Act, 1961 – Section 194A (3) (ix) - Accident - Negligence - Quantum of compensation - Multiplier of 11 - Appeal challenges judgment and award passed – Tribunal has considered multiplier of 11 as per age of deceased which is just and proper. [Para 8]

Finding of the Court: Tribunal has considered multiplier of 11 as per age of deceased which is just and proper as it was law prevailing in day when accident occurred - Learned counsel for respondent has lastly contended that compensation awarded by Tribunal is just and proper and does not call for any interference of Court - Accident is of year 2001 whereas judgment of Tribunal is prior to decision in Pranay Sethi (Supra) and, therefore, non addition of future loss of income is just and proper - Deceased was in age bracket of 36-40, 50% of income will have to be added in view of decision of Apex Court in Pranay Sethi (Supra) - Deduction towards personal expenses of deceased would be 1/3rd as deceased has left behind him seven dependents - As far as amount under non-pecuniary heads is concerned, appellants would be entitled to Rs.70,000/- in view of decision of Apex Court in Pranay Sethi (Supra) and, therefore, Court round up figure to under this head - Judgment and decree passed by Tribunal shall stand modified to aforesaid extent.

Result: Appeal partly allowed.

JUDGMENT :

[Kaushal Jayendra Thaker, J.]

1. Heard Sri Mohd. Nausad Siddiqui, learned counsel for the appellants and Sri Aditya Singh Parihar, learned counsel for the respondent and perused the judgment and order impugned. None appears for owner.

2. This appeal, at the behest of the claimants, challenges the judgment and award dated 18.9.2004 passed by the Motor Accident Claims Tribunal/ District Judge, Bareilly (hereinafter referred to as 'Tribunal') in M.A.C.P No.375 of 2001 awarding a sum of Rs.6,20,800/- as compensation with interest at the rate of 6%.

3. The accident is not in dispute. The issue of negligence decided by the Tribunal is also not in dispute. The only issue to be decided is the quantum of compensation awarded.

4. The accident took place on 22.4.2001. The deceased was 40 years of age and was in service in U.P. Co-Operative Federation as Centre In-charge. The Tribunal considered his income to be Rs.7000/-per month, deducted 1/3rd towards personal expenses of the deceased, granted multiplier of 11 and awarded Rs.5,000/-towards non pecuniary damages. The Tribunal has calculated the total compensation to be Rs.6,20,800/- payable to the legal representative.

5. Learned counsel for the appellants submit that the income of the deceased should be considered to be at least Rs.7974/-per month as per pay slip. The deductions made by Tribunal could not be considered as P.F. contribution cannot be deducted. It is further submitted by learned counsel for the appellants that the Tribunal has not added any amount under the head of future loss of income which should be granted. The Apex Court in National Insurance Co. Ltd. Vs. Pranay Sethi and others, 2017 LawSuit (SC) 1093 has suggested guidelines for grant of future loss of income. It is also submitted that the Tribunal has applied the multiplier of 11. Though it is proved that the age of deceased was 40 years. The deduction of 1/3rd for personal expenses is also bad, should be 1/4th as there were seven dependants of the deceased who was the sole breadwinner. The multiplier should be 15 in view of the decision of the Apex Court in Sarla Verma and others Vs. Delhi Transport Corporation and Another, 2009 LawSuit (SC).

6. It is also submitted by learned counsel for the appellant that the amount awarded under non pecuniary damages is on the lower side and is required to be enhanced in view of the decision in National Insurance Co. Ltd. Vs. Pranay Sethi and others, 2017 LawSuit (SC) 1093.

7. Learned counsel for the appellant has lastly submitted that the rate of interest awarded by Tribunal is on the lower side and it should be as per the repo rate prevailing in those days.

8. As against this, learned counsel for respondent-insurance company has contended that Tribunal has rightly not considered any amount under the head of future loss of income as it was not proved by claimants as to what would be increment in salary. It is submitted by learned counsel for respondent-insurance company that he Tribunal has considered the multiplier of 11 as per the age of the deceased which is just and proper as it was the law prevailing in the day when the accident occurred. Learned counsel for the respondent has lastly contended that the compensation awarded by the Tribunal is just and proper and does not call for any interference of this Court.

9. It is further submitted by learned counsel for the respondent that the accident is of the year 2001 whereas the judgment of the Tribunal is prior to the decision in Pranay Sethi (Supra) and, therefore, non addition of future loss of income is just and proper.

10. Heard the learned counsels for the parties and considered the factual data. This Court finds that the accident occurred on 22.4.2001 causing death of Bhanu Pratap Singh who was 40 years of age at the time of accident. The Tribunal has assessed his income to be Rs.7000/-per month which according to this Court, in the year of accident, would be at Rs.7974/-per month looking to his salary slip,

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