IN THE HIGH COURT OF ALLAHABAD
KAUSHAL JAYENDRA THAKER, AJAI TYAGI, JJ.
Mushtaq Ahmad and Another - Appellants
Versus
Riyaz Khan and Others - Respondents
First Appeal From Order No. 1877 of 2008
Decided On : 18-05-2022
Motor Vehicles Act - Compensation - Sections 163A, 166 & 140 - 13. The aforesaid features equally apply to the contentions urged on behalf of the claimants as regards the rate of interest. 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 making a substantial enhancement in the award amount, modified the interest component at a reasonable rate of 7.5% p.a. and we find no reason to allow the interest in this matter at any rate higher than that allowed by High Court.
Fact of the Case:
The appeal challenges the judgment and award passed by the Motor Accident Claims Tribunal/Additional District Judge, Court No.2, Bulandshahr, awarding compensation under Sections 163A, 166 & 140 of the Motor Vehicles Act, 1988.
Finding of the Court:
The court found that the Tribunal erred in considering the matter under Section 166 of the Act instead of Section 163A, leading to incorrect assessment of compensation. The court modified the compensation amount and the rate of interest based on relevant legal provisions and precedents.
Issues: The issues included incorrect consideration of the claim under Section 166 instead of Section 163A, assessment of future loss of income, and the applicable rate of interest.
Ratio Decidendi: The court held that the Tribunal's consideration of the claim under Section 166 instead of Section 163A was erroneous, leading to incorrect assessment of compensation. The court also applied the legal principle from a previous judgment to determine the appropriate rate of interest.
Final Decision: The appeal was partly allowed, and the judgment and decree passed by the Tribunal were modified. The respondent-Insurance Company was directed to deposit the modified amount with interest as directed. The court also provided directions for the disbursement and investment of the compensation amount.
JUDGMENT :
Kaushal Jayendra Thaker, J.
1. Heard Sri Nigamendra Shukla, learned counsel for the appellants and Sri Amitanshu Gour, learned Advocate, appearing for Sri S.B.L. Gour, learned counsel for the respondent.
2. This appeal, at the behest of the claimants, challenges the judgment and award dated 20.2.2008 passed by the Motor Accident Claims Tribunal/Additional District Judge, Court No.2, Bulandshahr (hereinafter referred to as 'Tribunal') in Motor Accident Claim Case No.246 of 1999 awarding a sum of Rs.2,90,000/- as compensation with interest at the rate of 6%.
3. It is an admitted position of fact that the accident occurred on 28.5.1999. The claim petition was filed under Sections 163 A, 166 & 140 of the Motor Vehicles Act, 1988 (hereinafter referred to as 'Act'). The evidence was led and only in the year 2007 the claimants deleted Section 166 and 140 of the Act which was much after the evidence was recorded. Only heading of section was corrected and nothing was corrected in the body of the claim petition, namely, income of the deceased was Rs.6,000/-per month and the monetary loss claimed was Rs.20,000/- which was beyond the scope of Section 163A of the Act. After the pleadings were over, the evidence was closed and the matter was fixed for arguments, the Tribunal recast the issues and framed five issues. One of them was regarding negligence. Had the Tribunal considered the matter only under Section 163A, there was no question of deciding the issue of negligence. The Tribunal has considered the matter as if it was a matter under Section 166 of the Act and, therefore, once the Tribunal decides the matter under Section 166 and not under Section 163 A of the Act by deciding issue of negligence, it was under an obligation to decide the future loss of income.
4. The accident took place on 28.5.1999. The deceased-Isttyak was 25 years of age at the time of accident. The Tribunal considered his income to be Rs.2400/-per month, deducted 1/3rd towards personal expenses of the deceased, granted multiplier of 15 on the basis of age of parents and has granted Rs.2,000/- under non pecuniary damages.
5. It is submitted by learned counsel for the appellants that the deceased was earning Rs.3300/-per month and the Tribunal has erred in not considering the same. It is further submitted that the Tribunal has not granted any amount under the head of future loss of income. It is further submitted that the Tribunal has granted multiplier of 15 considering the age of the parents of the deceased which is bad and it should be 18 as the deceased was in the age bracket of 21 to 25.
6. It is lastly submitted by learned counsel for the appellants that the amount awarded under non-pecuniary heads and interest, awarded by the Tribunal or on the lower side and are required to be enhanced.
7. As against this, learned counsel for the respondent has contended that the income which has been considered by the Tribunal is just and proper as there was no income proof. It is further submitted by learned counsel for the respondent that non grant of future loss of income and multiplier of 15 granted by the Tribunal are just and proper. is just and proper. It is also contended by learned counsel for the respondent that the deceased being bachelor, the deduction towards personal expenses of the deceased would be 1/2.
8. Having heard learned counsel for the parties, income of the deceased, even in the year of accident can be considered to be at least Rs.3000/-per month looking the fact that he was mason by profession. As the petition was under Section 163 A of Motor Vehicles Act, 1988, future prospects cannot be given was the submission of learned counsel for respondent but, in this case, the Tribunal has considered the claim petition as one under Section 166 of Motor Vehicles Act as originally filed. This is clear from the order passed in 2008 when after evidence was led the Tribunal recast the issues and decided the issue of negligence which it could not do so if it had
National Insurance Co. Ltd. Vs. Mannat Johal and Others
Smt. Hansaguri P. Ladhani v/s The Oriental Insurance Company Ltd.
AI
The main legal point established in the judgment is the correct application of the relevant sections of the Motor Vehicles Act, 1988, and the appropriate assessment of compensation and interest based....
The main legal point established in the judgment is the proper assessment of income and calculation of compensation in motor accident claim cases, based on relevant legal provisions and precedents.
The main legal point established in the judgment is the application of Sections 166 and 163A of the Motor Vehicles Act, 1988 in determining the compensation for a fatal accident, and the adjustment o....
The main legal point established in the judgment is the need to consider the deceased's income, future prospects, and personal expenses in assessing the quantum of compensation awarded in motor accid....
Purpose of keeping compensation is to safeguard interest of claimants.
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