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2023 Supreme(All) 2190

IN THE HIGH COURT OF ALLAHABAD
JASPREET SINGH, J.
New India Assurance Co. Ltd. - Appellant
Versus
Anil Kumar And Ors. - Respondents
FIRST APPEAL FROM ORDER NO. - 613 OF 2019.
Decided On : 14-07-2023

Advocates appeared:
For the Appellant : Anchal Mishra
For the Respondent: 51,Ravindra Pratap Singh

Headnote:(A) Motor Vehicles Act, 1988 - Sections 165, 166, 169, and 173 - Appeal challenging quantum of compensation awarded due to negligent driving resulting in death of a housewife - Tribunal awarded Rs. 7,45,000/- with 7% interest, which was disputed for method of calculating notional income and multiplier. (Paras 1, 4, 44)

(B) Compensation - It should be just and fair reflective of loss - Claims Tribunal's primary duty to ascertain adequate compensation - Personal expenses must be deducted, but must ensure it does not affect the justice of compensation awarded. (Paras 20, 21, 42)

(C) Notional income guidelines for homemakers were discussed, indicating importance of recognizing value of such contributions in household. (Paras 39-40, 41)

(D) Court concluded that appropriate income should be Rs. 5,000/- per month and ruled that the Tribunal erred in not making deductions, leading to recent recalculations amounting to Rs. 8,17,000/-; however, ultimately, upheld Tribunal's lower award of Rs. 7,45,000/- as just and fair without modification. (Paras 46, 47) (E)

Result: The appeal to enhance the compensation was dismissed.

Table of Content
1. details surrounding the fatal accident and victim's profile (Para 1 , 2 , 3)
2. tribunal's findings and contentions on appeal by insurance company (Para 4 , 5 , 6)
3. claimants' arguments against the tribunal’s findings regarding income and compensation (Para 7 , 8 , 9 , 10)
4. insurance company's rebuttal and limitations on appeal (Para 11 , 12)
5. legal framework and principles governing compensation claims under the motor vehicles act (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
6. court's power under cpc and rights of claimants and insurers (Para 21 , 22 , 23 , 24 , 25)
7. guidance on claims and quantum adjustments in appeals (Para 26 , 27 , 28)
8. court's duty to ensure just compensation and rebutting the appeal grounds (Para 29 , 30 , 31)
9. provisions regarding determination of notional income and multiplier effects (Para 32 , 33 , 34 , 35 , 36 , 37)
10. court's final assessment of compensation based on findings (Para 38 , 39 , 40 , 41 , 42 , 43 , 44)
11. judgment conclusion denying appeal and affirming tribunal's award (Para 45 , 46 , 47)

JUDGMENT

Jaspreet Singh, J.

The Insurance Company has come up in Appeal under section 173 of the MOTOR VEHICLES ACT , 1988 assailing the award dated 07.08.2019 passed in Claim Petition No. 81 of 2018 by Motor Accident Claims Tribunal/Additional District Judge, Court No. VI, District Barabanki solely assailing the quantum.

2. Sri Anchal Mishra, learned counsel for the appellant has submitted that upon the death of Smt. Sunita on 01.11.2016, a Claim Petition bearing No. 81 of 2016 came to be filed. The averments of the claim petition indicated that Smt. Sunita being the pillion rider was traveling along with her husband Anil Kumar on his motorcycle bearing No. UP 32HF 8507. While the said couple had reached near Makarpur Petrol Pump, P.S. Loni Katra, District Barabanki, the offending truck bearing No. UP 83 H 9611 being driven rashly and negligently hit the motorcycle, as a result, Smt. Sunita received grievous injuries and she died on the spot.

3. It was further pleaded that Smt. Sunita was a proficient housewife and was also running a Tea Stall and was able to earn Rs. 6,000/- per month from the said Tea Stall and she contributed towards the household work and that was valued at Rs. 3,000/- per month and consequently the loss was indicated as Rs. 9,000/- per month. The deceased was survived by her husband Anil Kumar, son Pramod Kumar and a daughter Ms. Priya.

4. The claim petition came to be contested and upon exchange of the pleadings, the Tribunal framed six issues. After considering the evidence both oral and documentary, the Tribunal returned a finding that the accident which caused the death of Smt. Sunita was on account of rash and negligent driving of a truck bearing No. UP 83 H 9611. It also held that the truck was duly insured with the New India Assurance Company Ltd. and its driver had a valid and subsisting driving license, however, while computing the compensation, the Tribunal adopted a notional income of Rs. 3,000/-per month upon which 25% was added for future prospects and considering that the age of the deceased as 40 years, a multiplier of 15 was adopted and thereafter a sum of Rs. 70,000/- towards loss of consortium, loss of estate, funeral expenses was added and thus a total sum of Rs. 7,45,000/- has been awarded in favour of the claimants-respondents along with 7% interest by means of the award dated 07.08.2019 which is under challenge.

5. The learned counsel for the Insurance Company has submitted that the Tribunal has erred on two counts:-

    (i) No deductions towards personal expenses has been made which is apparent from the manner in which the issue no. (vi) has been decided.

    (ii) The Tribunal has also erred in adopting an incorrect multiplier of 15 rather a multiplier of 14 ought to have been adopted.

6. It is further elaborated that since no proof was furnished for proving any income of the deceased, hence, even the notional income which has been taken is

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