IN THE HIGH COURT OF ALLAHABAD
KAUSHAL JAYENDRA THAKER, AJIT SINGH, JJ.
Smt. Pista Devi and Others - Appellants
Versus
The New India Insurance Co. Ltd. and Others - Respondents
First Appeal From Order No. 2526 of 2014
Decided On : 28-04-2022
Compensation - Motor Accident Claims Tribunal - Fatal Accidents Act, 1855, Sarla Verma and others Vs. Delhi Transport Corporation and Another, 2009 LawSuit (SC), Syed Basheer Ahamed & Ors. vs. Mohd. Jameel & Anr., 2009 ACJ 690 (SC), Gobald Motor Service Ltd. & Anr. Vs. R.M.K. Veluswami and other [1962 (1) SCR 929], National Insurance Co. Limited Vs. Pranay Sethi and others, 2017 0 SC 1050, New India Assurance Company Ltd. Vs. Urmila Shukla and others, National Insurance Co. Ltd. Vs. Mannat Johal and Others, 2019 (2) T.A.C. 705 (S.C.), Bajaj Allianz General Insurance Company Private Ltd. v. Union of India
Fact of the Case:
The appeal challenges the judgment and award passed by the Motor Accident Claims Tribunal awarding compensation for a fatal accident. The only issue to be decided is the quantum of compensation awarded.
Finding of the Court:
The court found that the multiplier and non pecuniary damages should be modified, and the rate of interest should be reduced to 7.5%.
Issues: The issues included the determination of the quantum of compensation, application of multipliers, and assessment of future loss of income and non pecuniary damages.
Ratio Decidendi: The court modified the multiplier and non pecuniary damages based on the legal principles established in various judgments, including Sarla Verma and others Vs. Delhi Transport Corporation and Another, 2009 LawSuit (SC), and National Insurance Co. Limited Vs. Pranay Sethi and others, 2017 0 SC 1050.
Final Decision: The appeal was partly allowed, and the judgment and award passed by the Tribunal were modified. The respondent-Insurance Company was directed to deposit the modified amount with reduced interest.
JUDGMENT :
1. Heard Sri B.P. Verma, learned counsel for the claimant-appellants and Sri Arvind Kumar, learned counsel appearing for the New India Insurance Company.
2. This appeal, at the behest of the claimants, challenges the judgment and award dated 07.08.2014 passed by the Motor Accident Claims Tribunal/ Additional District Judge, Court No.02, Mathura (hereinafter referred to as 'Tribunal') in M.A.C.P No. 172 of 2013 (Smt. Pista Devi and others Vs. The New India Insurance Company Ltd. and others.) awarding a sum of Rs.52,51,911/- as compensation with interest at the rate of 7%.
3. The accident having taken place at the time of noon at about 1:45 P.M. on 04.03.2013 is not in dispute. The vehicle of the opposite party No. 2 Bansal Transport Company, Nayee Mandi, Bharatpur being involved in the accident is not in dispute. The issue of negligence decided by the Tribunal has attained finality as the opposite party No. 2, the owner of the offending vehicle, has chosen not to challenge the award of the Tribunal. Hence, the only issue to be decided is the quantum of compensation awarded.
4. The accident took place in the year 2013. The deceased was about 52 years of age and was working on the post of Charge-man (F) in the Marketing Division of Indian Oil Corporation, Mathura Refinery, Mathura and Rs.79,876/-per month was his salary. The learned Tribunal has considered the income of the deceased to be Rs.61500/-per month, deducted 1/4th towards personal expenses of the deceased as he was married person and in view of the prevailing judgements, granted multiplier of 9 taking into consideration the relevant factor of age of the deceased and his dependents. The Tribunal has granted Rs.5,000/- towards funeral expenses, however Rs.15,000/- was claimed in the claim petition.
5. It is submitted by Shri Verma, learned counsel for the appellants that the Tribunal has not granted any amount towards future loss of income; the multiplier granted by the Tribunal is not in consonance with the decisions of the Apex Court. According to him, the multiplier of 11 ought to have been granted by the learned Tribunal as per the decision of the Apex Court in Sarla Verma and others Vs. Delhi Transport Corporation and Another, 2009 LawSuit (SC), but unfortunately in a very strange and casual manner, the learned tribunal has lost sight of this important aspect of the matter while passing the award impugned in this appeal for enhancement of the compensation amount awarded to the dependents of the deceased under different heads. He further submits that the multiplier cannot be as per the whims and fancies of the learned Tribunal just because the deceased was a married person and the loss of non pecuniary damages to the family has to be considered and awarded as per the settled legal position more particularly the law enunciated by the Apex Court in the case of Syed Basheer Ahamed & Ors. vs. Mohd. Jameel & Anr., 2009 ACJ 690 (SC), which lays down the law in respect to determination and assessment of the dependency of the claimants on the deceased persons. The question as to what factors should be kept in view for calculating pecuniary loss to a dependent came up for consideration before a three-Judge Bench of this Court in Gobald Motor Service Ltd. & Anr. Vs. R.M.K. Veluswami and other [1962 (1) SCR 929], with reference to a case under the Fatal Accidents Act, 1855, wherein, K. Subba Rao, J. (as His Lordship then was) speaking for the Bench observed thus :
Syed Basheer Ahamed & Ors. vs. Mohd. Jameel & Anr.
Gobald Motor Service Ltd. & Anr. Vs. R.M.K. Veluswami and other
National Insurance Co. Ltd. Vs. Mannat Johal and Others
Smt. Hansagauri P. Ladhani v/s The Oriental Insurance Company Ltd.
AI
The main legal point established in the judgment is the application of multipliers and assessment of future loss of income and non pecuniary damages in fatal accident compensation cases.
Point of Law : Accident claim - Purpose of keeping compensation is to safeguard the interest of the claimants. As long time has elapsed, the amount be deposited in the Saving Account of claimants in ....
Point of Law : Accident claim - Purpose of keeping compensation is to safeguard the interest of the claimants. Since long time has elapsed, the amount be deposited in the Saving Bank Account of claim....
The main legal point established in the judgment is the determination of the quantum of compensation in a motor accident case, including the calculation of the deceased's income, future loss of incom....
Point of law: The Tribunal had awarded interest at the rate of 12% p.a. but the same had been too high a rate in comparison to what is ordinarily envisaged in these matters. The High Court, after mak....
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