Allahabad High Court
National Insurance Company ... vs Smt. Anjum And 9 Others on 5 July, 2021
Bench: Kaushal Jayendra Thaker
HIGH COURT OF JUDICATURE AT ALLAHABAD
?Court No. - 37
Case :- FIRST APPEAL FROM ORDER No. - 555 of 2021
Appellant :- National Insurance Company Limited
Respondent :- Smt. Anjum And 9 Others
Counsel for Appellant :- Komal Mehrotra
Counsel for Respondent :- Satya Deo Ojha
Hon'ble Dr. Kaushal Jayendra Thaker,J.
1. Heard Shri Komal Mehrotra, learned counsel for the appellant and Shri Satya Deo Ojha, learned counsel for the respondents-claimants.
2. This appeal, at the behest of the Insurance Company, challenges the judgment and award dated 17.12.2020 passed by Motor Accident Claims Tribunal, Siddharthnagar (hereinafter referred to as 'Tribunal') in Claim Petition No. 129 of 2018 awarding a sum of Rs.14,40,880/- with interest at the rate of 7% to the heirs of deceased.
3. It is submitted that the accident took place on 02.01.2018 at around 09.00 a.m. when the deceased was going from his home towards Badhni, when he reached in front of Dr. Sarafuddin house suddenly a truck No.HR 55 M 307 which was rashly and negligently driven by its driver came from behind and hit the deceased. The deceased got gravely injured and died during the course of treatment.
4. It is submitted that after 10 months after to lodging of the FIR a claim petition was filed by the claimants-respondents, claiming a compensation of Rs.72,80,000/- alleging in the claim petition that the deceased was 30 years of age and was earning Rs.18,000/- per month through farming and working as a carpenter.
5. It is further submitted by Shri Komal Mehrotra that there are four minors between the age group of 1 to 10 and as such they have to be counted astwo forming and there are three majors and as such the total dependents would be five and will fall within the bracket of 1/4 where dependent family member are 4 to 6 in numbers.
6. As against this, Shri Satya Deo Ojha, learned counsel for respondent has vehemently submitted that young widow of 29 years of age has lost her husband and she has four children. It is submitted that the rate of interest granted is also in the lower-side. It is further submitted that as per the judgment in the case of National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050, the addition of 10% every three years has not also been given and lump sump Rs.70,000/- is awarded and, therefore, it is submitted that this Court should not interfere with the quantum awarded.
7. The tribunal has considered the grant of compensation holding that the deceased was in the age group of 30-35 years. He was a non-salaried person was engaged in farming and working as a carpenter. The tribunal considered his income to be Rs.6,000/-p.m and added the amount of future loss at 40% and deducted 1/5th for his personal expenses. The deceased was held to be 30 years of age the tribunal applied multiplier of 17 and granted Rs.70,000/- by way of non pecuniary damages and total compensation of Rs.14,40,880/- with 7.5% interest was awarded by the tribunal.
8. Learned Advocate for claimants has submitted that in whatever manner we calculate the amount, it cannot be said that the amount of Rs.14,40,880/- is on higher side. It is submitted that the income of the deceased is considered to be Rs.6,000/- per month though he had his own business and the multiplier of 17 has been granted, even if 1/4 or 1/5 is deducted the amount when calculated would be same and therefore, the submission of Shri Mehrotra that 1/4 should be deducted be not accepted. The amount is ordered with 7% rate of interest which is on lower side.
9. In this backdrop let us see evaluate the income in view of the judgment of National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050 and Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121 and, the recalculation would be as follows:
i. Income Rs.6,000 x 12=72000/-p.a.
ii. Percentage towards future prospects : 40% namely Rs.28,800/-
iii. Total income : Rs.72,000+28,800 = Rs.100800/-
iv. Income after deduction of 1/4 : Rs. 75600/-
v. Multiplier applicable : 17
vi. Loss of dependency: Rs.75,600 x 17 = Rs.12,85,200/-
vii. Amount under non pecuniary heads : Rs.70,000/- & Rs.30,000/- for other two minor children.
viii. In addition to that, Rs.30,000/- is granted under the head of additional pecuniary damages for the four minor children.
ix. Total compensation : Rs.12,85,200 + Rs.70,000 + Rs.60,000=14,15,200/-
10. 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 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."
11. No other grounds are urged orally when the matter was heard.
12. In view of the above, the appeal is partly allowed and oral counter claim is allowed. Judgment and decree passed by the Tribunal shall stand modified to the aforesaid extent. The respondent-Insurance Company shall deposit the amount within a period of 12 weeks from today with interest at the rate of 7.5% from the date of filing of the claim petition till the amount is deposited. The amount already deposited be deducted from the amount to be deposited.
13. The lower court record be sent back, if here, to the tribunal for disbursement.
Order Date :- 5.7.2021 /A.N. Mishra
