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National Ins Co. Ltd., Nellore Dist vs S Noorjahan, Nellore Dist 5 Others
2024 Latest Caselaw 9165 AP

Citation : 2024 Latest Caselaw 9165 AP
Judgement Date : 4 October, 2024

Andhra Pradesh High Court - Amravati

National Ins Co. Ltd., Nellore Dist vs S Noorjahan, Nellore Dist 5 Others on 4 October, 2024

                                         1
                                                                       (RNT,J& VN,J
                                                         M.A.C.M.A.NO.1710 OF 2016)

        THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI

            THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY

MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEALNO:1710 of 2016


JUDGMENT:

(per Hon'ble Sri Justice Ravi Nath Tilhari)

Heard Sri V.Veerabhadra Chary, learned Standing counsel

appearing for the appellant-Insurance Company as well as

Sri K.Diwakara Reddy, learned counsel representing Sri C.Subodh,

learned counsel appearing for the respondents 1 to 5/claimants.

2. This appeal under Section 173 of the Motor Vehicles Act

1988, (in short 'M.V.Act'), has been filed by the appellant-National

Insurance Company Limited (in short 'Insurance Company'), challenging

the Award, dated 04.01.2016, passed in M.V.O.P.No.1153 of 2009 by the

Principal Motor Accidents Claims Tribunal-cum-Principal District Judge,

Nellore (in short 'the Tribunal).

3. The claimants/respondents 1 to 5 filed M.V.O.P.No.1153 of

2009 under Section 166 of the M.V.Act (in short 'MVOP') for

compensation of Rs.62,99,000/- for the death of one Sk. Md.Abdul Umar

(hereinafter referred as 'deceased') in the motor accident, which occurred

on 05.06.2009 at about 3.30 pm., near Navalur Panchayat Office, on the

old Mahabalipuram Road, on the left side of the road towards

Kelampakkam, due to rash and negligent driving of the driver of the

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

TATA ACE Truck bearing No.PY-01-AJ-3384 (offending vehicle), which

at high speed, hit the deceased from his backside, causing grievous

injuries, to which, he succumbed on the same day at hospital. The

deceased was aged about 26 years and was working as Associate

Consultant (Software Engineer) in Polaris Software Lab Limited, Polaris

House, Chennai, and drawing salary of Rs.31,269/- per month. The

deceased was an Income Tax assessee. He was unmarried. The

claimants 1 to 5 are the mother, father, two sisters and brother of the

deceased.

4. The 6th respondent herein, respondent No.1 in MVOP, is the

owner of the offending vehicle.

5. The appellant herein, 2nd respondent in MVOP, National

Insurance Company Limited filed written statement denying the material

averments of the claim petition and submitting that the claimants be put

to the strict proof of the averments of the claim petition. The accident

occurred due to the negligence of the deceased himself, while walking on

the road and thus, the deceased contributed in taking place of the

accident. There was no rash and negligent driving on the part of the

driver of the offending vehicle. Liability of the insurance company was

restricted to the terms and conditions of the policy. The driver of the

TATA ACE truck was not possessing valid driving license to drive

transport vehicle, though he was having license to drive Light Motor Non-

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

transport Vehicle and Motorcycle with Gear. The vehicle was not having

Fitness Certificate. The Insurance-Company is not liable to pay

compensation. The claim was highly excessive and out of proportions.

6. The Tribunal framed the following issues for consideration :

"1. Whether the accident took place only due to rash and negligent driving of TATA ACE Truck bearing registration No.PY-01-AJ-3384 or whether the deceased had also contributed in taking place of the accident ?

2. Whether the petitioners are entitled to claim compensation, if so, how much amount and from which of the respondents?

3. To what relief?"

7. I.A.No.1715/2010 filed by the Insurance-Company under

Section 170 of the MV Act was allowed by an order, dated 16.11.2010.

8. On behalf of the claimants, 1st claimant was examined as

P.W.1. They also examined eye-witness as P.W.2, Medical Officer as

P.W.3 and the Senior Manager of Polaris Software Lab Limited as P.W.4

and an Advocate, who translated the documents from Tamil to English as

P.W.5. Exs.A1 to A14 and Exs.C1 to C3 were got marked.

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

9. The Insurance Company examined an official of R.T.A,

Meenambakkam, Chennai as R.W.1 and its Assistant Manager as R.W.2.

Exs.B1 to B5 and Exs.X1 & X2 were got marked.

10. The Tribunal recorded the finding that the accident occurred

due to rash and negligent driving of the driver of the offending vehicle i.e.,

TATA ACE Truck and the deceased died due to injuries in the said

accident. It was also recorded that there was no contributory negligence

on the part of the deceased. The Tribunal also recorded that though the

driver was not possessing valid license to drive TATA ACE Truck, but

was possessing driving license to drive i.e., Light Motor (Non-transport)

Vehicle and Motorcycle with Gear.

11. On the point of compensation, the Tribunal recorded that the

monthly salary of the deceased was Rs.29,474/- which was arrived after

deducting Conveyance Allowance of Rs.800/-, Medical Reimbursement

of RS.875/-, Ullas Trust contribution of Rs.50/-, Exigency Fund

contribution of Rs.50/- and Polaris Club subscription of Rs.20/-

(Rs.1,795/-) from the Gross salary of Rs.31,269/-. The deceased being

unmarried, 50% of the income was deducted towards his personal and

living expenses. The age of the deceased was considered as 26 and the

multiplier of '17' was applied. Rs.25,000/- towards funeral expenses and

Rs.5,000/- towards transport expenses were added. In total, the petition

was allowed for an amount of Rs.27,65,785/- with interest @ 7.5 % per

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

annum, from the date of petition till the date of deposit. The insurance

company was held liable to pay compensation to the third party. The

respondents 1 & 2 were jointly and severally held liable to pay the

compensation amount.

12. Learned counsel for the appellant-insurance company

submitted that though the ground was taken in the appeal that driver was

having driving license to drive the Light Motor non-transport vehicle, and

he was driving the Light Motor Vehicle of transport, and as such, the

driving license was not valid and consequently, the insurance-company

was not liable to pay compensation, but as per the settled law, the driving

license of Light Motor Vehicle for non-transport holds drive good to

transport vehicle of the same category i.e., Light Motor Vehicle, and on

the said ground, the liability of the insurance company to make payment

of compensation cannot be denied, he is not pressing such ground.

13. On the point of just compensation to the

respondents/claimants, the submission advanced by the learned counsel

for the appellant is that the deceased was appointed in the company on

23.06.2008 (as per Ex.A11) and the date of accident is 05.06.2009. He

submitted that within a short span of one year of his appointment, he died

Consequently, no interest could be granted on the future prospects. He

submitted that nothing has been deducted towards Professional Tax,

though Professional Tax is to be deducted @ Rs.200/- per month.

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

14. Learned counsel for the respondents/claimants submitted

that the compensation as awarded by the Tribunal is not just and fair

compensation, which is inadequate and not as per the settled law. He

submitted that the deduction, which has been made by the Tribunal is not

correct. He submitted that the Tribunal awarded future prospects

@30%, which should be @ 40% as the deceased was below 40 years of

age and was a Software Engineer. The income tax deduction @ 30% is

unjust. Once the proof of salary was filed, the Tribunal ought to have

presumed that the payment was after deductions of the income tax. He

further submitted that the amount awarded under conventional heads is

not as per law and nothing has been awarded towards loss of

Consortium.

15. Learned counsel for the claimant/respondents relied upon

the following judgments:-

i) Rahul Sharma and Another V. National Insurance Company Limited and Others1

ii) Nagappa V. Gurudayal Singh and Others2

iii) Magma General Insurance Co. Ltd. V. Nanu Ram Alias Chuhru Ram and others3

iv) United India Insurance Company Limited V. Satinder Kaur Alias Satwinder Kaur and Others4

(2021) 6 SCC 188

(2003) 2 SCC 274

(2018) 18 SCC 130

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

16. We have considered the submissions advanced by the

learned counsels for the parties and perused the material on record.

17. The following points arise for our consideration and

determination:-

1. Whether the Tribunal has awarded just and fair compensation to the respondents/claimants in the light of the submissions advanced by the learned counsels or the compensation awarded is excessive or inadequate ?

2. Whether the interest was liable to be awarded on entire amount of compensation or excluding the future prospects, and at what relief ?

ANALYSIS :-

POINT No.1 :-

(I) Just and Fair Compensation :-

18. It is a well settled in law that the claimants are entitled for

just and reasonable compensation, which should neither be a bonanza

nor a pittance. Effort must be made to determine the just compensation.

(2021) 11 SCC 780

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

In New India Assurance Company Ltd., V. Yogesh Devi and Others5,

the Hon'ble Apex Court held that the claimants are entitled for just and

reasonable compensation in a motor vehicles accident claim. It referred

to the case of State of Haryana and another V. Jasbir Kaur and

others6 , wherein it was held that "the compensation must be "just" and it

cannot be a bonanza: not a source of profit ; but the same should not be a

pittance".

(II) Income :-

19. So far as the deduction under the head of professional tax is

concerned, we find force in the submission of the learned counsel for the

appellant that professional tax of Rs.200/- per month, which comes to

Rs.2,400/- per annum, was required to be deducted. We accordingly,

deduct the professional tax out of the gross income. It is settled in law

that the net income for computation of compensation is gross income

less tax deductions.

Deduction of Income Tax :-

20. The Tribunal has deducted 30% towards income tax. In the

case of Vimal Kanwar and Ors. Vs Kishore Dan and Ors., 7 the

Hon'ble Apex Court held that in the absence of any evidence that the

2012 ACJ 702

(2003) 7 SCC 484

(2013) 7 Supreme Court Cases 476

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

income tax on the estimated income of the employee was not deducted

from salary of the employee during the particular month or the financial

year. It is presumed that the salary paid to the deceased as per the last

pay certificate was paid in accordance with law i.e., by deducting the

income tax on the estimated income of the deceased by that month or

the financial year. The Hon'ble Apex Court in Vimal Kanwar (supra) held

as under in paras 22 to 25 as under:

"22. The third issue is "whether the income tax is liable to be deducted for determination of compensation under the Motor Vehicles Act"

23. In Sarla Verma (Supra), this Court held "20. Generally the actual income of the deceased less income tax should be the starting point for calculating the compensation." This Court further observed that "24.....Where the annual income is in taxable range, the word "actual salary" should be read as "actual salary less tax". Therefore, it is clear that if the annual income comes within the taxable range income tax is required to be deducted for determination of the actual salary. But while deducting income-tax from salary, it is necessary to notice the nature of the income of the victim. If the victim is receiving income chargeable under the head "salaries" one should keep in mind that under Section 192 (1) of the Income-tax Act, 1961 any person responsible for paying any income chargeable under the head "salaries" shall at the time of payment, deduct income-tax on estimated income of the employee from "salaries" for that financial year. Such deduction is commonly known as tax deducted at source ('TDS' for short). When the employer fails in default to deduct the TDS from employee salary, as it is his duty to deduct the TDS, then the penalty for non-deduction of TDS is prescribed under Section 201(1A) of the Income-tax Act, 1961. Therefore, in case the income of the victim is only from "salary", the presumption would be that the employer under Section 192 (1) of the Income-tax Act, 1961 has deducted the tax at source from

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

the employee's salary. In case if an objection is raised by any party, the objector is required to prove by producing evidence such as LPC to suggest that the employer failed to deduct the TDS from the salary of the employee.

However, there can be cases where the victim is not a salaried person i.e. his income is from sources other than salary, and the annual income falls within taxable range, in such cases, if any objection as to deduction of tax is made by a party then the claimant is required to prove that the victim has already paid income tax and no further tax has to be deducted from the income.

24. In the present case, none of the respondents brought to the notice of the Court that the income-tax payable by the deceased Sajjan Singh was not deducted at source by the employer-State Government. No such statement was made by Ram Avtar Parikh, PW-2 an employee of Public Works Department of the State Government who placed on record the Last Pay Certificate and the Service Book of the deceased. The Tribunal or the High Court on perusal of the Last Pay Certificate, have not noticed that the income tax on the estimated income of the employee was not deducted from the salary of the employee during the said month or Financial Year. In absence of such evidence, it is presumed that the salary paid to the deceased Sajjan Singh as per Last Pay Certificate was paid in accordance with law i.e. by deducting the income-tax on the estimated income of the deceased Sajjan Singh for that month or the Financial Year. The appellants have specifically stated that Assessment Year applicable in the instant case is 1997-1998 and not 1996-1997 as held by the High Court. They have also taken specific plea that for the Assessment Year 1997-1998 the rate of tax on income more than 40,000/- and upto Rs. 60,000/- was 15% and not 20% as held by the High Court. The aforesaid fact has not been disputed by the respondents.

25. In view of the finding as recorded above and the provisions of the Income-tax Act, 1961, as discussed, we hold that the High Court was wrong in deducting 20% from the salary of the deceased towards income-tax, for calculating the compensation. As per law, the presumption will

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

be that employer-State Government at the time of payment of salary deducted income-tax on the estimated income of the deceased employee from the salary and in absence of any evidence, we hold that the salary as shown in the Last Pay Certificate at Rs. 8,920/- should be accepted which if rounded off comes to Rs. 9,000/- for calculating the compensation payable to the dependent (s)."

21. In ICICI Lombard General Insurance Co. Ltd. v.

Dasari Nagalakshmi8, a coordinate Bench of this Court observed on

the point of deduction of income tax as per the slab applicable from time

to time in different financial years, that certain exemptions like HRA,

Transport allowance, medical reimbursements, Home loans/study loans

etc., are provided under the Income Tax Act. In that scenario, it would be

difficult to visualize the amount of tax payable by the deceased as a lot of

it would depend on the tax planning and exemptions claimed by the

individual.

22. Consequently, the deduction @30% of the income tax as

deducted by the Tribunal is not justified and we set aside the same.

Other deductions :-

23. We have perused Ex.A12-Salary Certificate. The deductions

of Rs.1,245/- made are under different heads i.e., PF-1125/-, Ullas Trust-

MACMA.No.36 of 2024, APHC, decided on 18.12.2023

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

50/-, Exigency Fund-50/- and Polarc Club-20/-. The said deduction of

Rs.1,245/- as deducted by the Tribunal cannot be made.

24. As such, from the gross salary, the amount of Professional

Tax is to be deducted only, to arrive at established income, which shall

come to Rs.31,269/-200/- = Rs.31,069/- per month.

(III) Future Prospects :-

25. The Tribunal has not awarded any amount towards future

prospects. The Claimants are entitled for future prospects and also

entitled for interest on the entire compensation amount.

26. On the point of future prospects, the Hon'ble Apex Court in

National Insurance Company Limited V. Pranay Sethi and

Others9 has held as under :

"59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.

(2017)16 SCC 680

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

59.4. In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component."

27. Considering the nature of the job of the deceased as a

Associate Consultant (Software Engineer) and the age of the deceased

i.e., about 26 years, we are of the view that the claimants are entitled for

the future prospects @40%, on the monthly income of the deceased, in

addition, in view of the Pranay Sethi's case (supra). Accordingly, we

grant the same.

(IV) Dependants :-

28. The deceased was a bachelor. The respondents 1 to

5/claimants are mother, father, one major married sister, brother and

unmarried minor sister. The number of dependents may have some

relevance in deducting the personal expenses of the deceased. The

Tribunal has deducted 50% towards personal expenses.

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

29. In Sarla Verma (supra), the question No.(ii) framed

therein was as under:

"(ii) Whether the deduction towards personal and living expenses of the deceased should be less than one-fourth (1/4th) as contended by the appellants, or should be one-

third (1/3rd) as contended by the respondents ?"

30. In Sarla Verma(supra), the Hon'ble Apex Court answered

the said question in paras 14 and 15, which are as follows:

"14. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardized deductions. Having considered several subsequent decisions of this court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependant family members is 4 to 6, and one- fifth (1/5th) where the number of dependant family members exceed six.

15. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent/s and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependent. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependents, because they will either be independent and earning, or married, or be dependant on the father. Thus even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where family of the bachelor is large and dependant on the income of the deceased, as in a case where he has a widowed

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

mother and large number of younger non-earning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two- third.

31. In Pranay Sethi (supra), the Constitutional Bench in Para

No.42 observed and held as under:

"42. In our view, the standards fixed by this Court in Sarla Verma on the aspect of deduction for personal living expenses in paras 30, 31 and 32 must ordinarily be followed unless a case for departure in the circumstances noted in the preceding paragraph is made out."

32. From the aforesaid judgment, it is evident that where the

deceased is married, the deduction towards personal and living

expenses of the deceased, should be 1/3rd. Where the number of

dependent family members is 2 to 3, 1/4th, where the number of

dependant family members is 4 to 6, and 1/5th where the number of

dependant family members exceed six. Where the deceased is a

bachelor, the deduction follows a different principle. In regard to

bachelors, normally, 50% is deducted as personal and living

expenses. Further, subject to evidence to the contrary, the father is

likely to have his own income and will not be considered as a

dependent and the mother alone will be considered as a dependent. In

the absence of evidence to the contrary, brothers and sisters will not

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

be considered as dependents, because they will either be independent

and earning, or married, or be dependant on the father. Thus, even if

the deceased is survived by parents and siblings, only the mother will

be considered as dependent and 50% will be treated as the personal

and living expenses of the bachelor and 50% as the contribution to the

family. However, where family of the bachelor is large and dependent

on the income of the deceased, as in a case where he has a widowed

mother and large number of younger non-earning sisters or brothers,

his personal and living expenses may be restricted to one-third and

contribution to the family will be taken as two-third.

33. Therefore, the deceased being bachelor, but father being

alive, the siblings would not be dependant on the deceased. In view of

the judgment of the Hon'ble Apex Court in Sarla Varma (supra), ½

(50%) is to be deducted, as mother is only the dependant.

(V) Conventional Heads :-

34. On the point of the conventional heads, as per the

judgments in National Insurance Company Limited V. Pranay Sethi

and Others,10Magma National Insurance Company Limited vs Nanu

Ram @ Chuhru Ram and Ors.,11Smt. Anjali and Others V. Lokendra

(2017) 16 SCC 680

(2018) 18 SCC 130

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

Rathod and Others,12United India Insurance Co. Ltd. vs. Satinder

Kaur @ Satwinder Kaur and Ors.,13and Rojalini Nayak and Others vs

Ajit Sahoo and Others 14 we award the enhanced amounts under the

Conventional Heads of loss of Consortium, loss of Estate and funeral

expenses, Rs. 48,400/- (per claimant) Rs. 18,150/-and Rs. 18,150/-

respectively as was awarded in Rojalini (Supra), which is with an

increase of 10% every three years.

35. The Claimants are thus entitled for the following amount as

just and fair compensation :-

S. No.                         Head                            Compensation Awarded

     1.                Net Annual Income                   Rs. 31,069/- x 12 = Rs. 3,72,828/-
                 (31,269 - 200/- = Rs. 31,069/-)

     2.                 Future Prospects                             Rs. 1,49,131/-
                                                              (i.e., 40% of the income)
                                                           Total (i.e., 1+2) = Rs. 5,21,959/-

     3.     Deduction towards personal expenditure                  Rs. 2,60,979/-
                           (i.e.1/2)

     4.                 Total Annual loss                           Rs. 2,60,979/-

5. Multiplier of 17 at the age of 26 years i.e. 17 x 2,60,979/- = Rs. 44,36,653/-

6. Conventional Heads:

           Loss of Consortium                                        Rs. 2,42,000/-
                                                                   (Rs. 48,400/- x 5)

           Loss of Estate                                            Rs. 18,150/-

           Funeral expenses                                          Rs. 18,150/-

     7.               Total Compensation                            Rs. 47,14,953/-


   (2022) SCC OnLine SC 1683

    (2021) 11 SCC 780

    2024 SCC OnLine SC 1901.

                                                                (RNT,J& VN,J
                                                  M.A.C.M.A.NO.1710 OF 2016)




36. Consequently, the compensation amount granted by the

Tribunal is enhanced from Rs.27,65,785/- to Rs.47,14,953/-.

(VI) Interest :-

37. The Tribunal granted interest at the rate of @ 7.5% p.a. In

Kumari Kiran vs. Sajjan Singh and others,15 the Hon'ble Apex Court

set aside the judgment of the Tribunal therein awarding interest @ 6% as

also the judgment of the High Court awarding interest @7.5% and

awarded interest @ 9% p.a. from the date of the claim petition. In Rahul

Sharma & Another vs. National Insurance Company Limited and

Others,16the Hon'ble Apex Court awarded @ 9% interest p.a. from the

date of the claim petition. Also, in Kirthi and another vs. Oriental

Insurance Company Limited,17 the Hon'ble Apex Court allowed interest

@9% per annum.

38. The submission of the learned counsel for the appellant that

the interest is not to be awarded on the amount of future prospects

deserves rejection. In the Reliance General Insurance Company

(2015) 1 SCC 539

(2021) 6 SCC 188

(2021) 2 SCC 166

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

Limited V. Supreeth S V. B.Sakthivel and Others 18 the High

Court of Karnataka held, in Paragraphs 37 & 38 as under :

"37. The plea taken by the insurance company that it is not liable to pay interest on the future prospects, as the amount awarded under that head would be the future earnings of the deceased is not justifiable due to the reason that the claimants are not being paid the entire earnings of the deceased which he would have earned had he been alive. Cases where there is no proof in certainty regarding exact income, the Courts are taking notional income into consideration. Either applying appropriate multiplier as per the decision in Sarala Verma's case or taking percentage of the said income towards future prospects as per the decision in Pranay Sethi's case is on probabilities but not on exact figures. In no case, the claimants get the exact amount which the deceased would have earned had he been alive. In all cases the amount which the claimants would get for their livelihood through the deceased would be many times more than the actual amount awarded. That apart, the insurance companies are depositing the compensation years after the date of accident which is in clear violation of Section 149 of the Motor Vehicles Act, 1988.

38. Furthermore, award of amount as compensation is a one time procedure. Even if in the future course it is found that the deceased would have earned much more amount in the light of hike in his position and global opportunities, the Tribunals will not order payment of any further amount and insurance companies will not be made liable on that count. Such being the case, this Court is of the view that the insurance companies are liable to pay the awarded amount including the amount awarded under the head future prospects together with banking rate of interest which is prevalent during relevant time. Thus, we ultimately hold that, the insurance company cannot escape

MANU/KA/2654/2024

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

from the liability to pay interest on the future prospects.

39. We are of the view that the interest is awarded on the entire

amount of compensation. In the aforesaid judgments, the Hon'ble Apex

Court awarded interest on the compensation as determined including the

future prospects. Any judgment to the contrary has not been placed

before us.

40. Accordingly, the claimants are granted interest @ 9 % p.a.

from the date of the claim petition till realization on the entire amount of

compensation as determined.

(VII) Result :-

41. IN THE RESULT,

i) the appeal of Insurance Company is dismissed;

ii) The claimants/respondents are granted enhanced compensation of Rs.47,14,953/- as just and fair, with interest @ 9% per annum thereon from the date of claim petition till realization ;

iii) The appellant shall deposit the amount as aforesaid, adjusting the amount already deposited if any, before the Tribunal within one month;

iv) On such deposit being made, the claimants shall be entitled to withdraw the same in the proportion as per

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

the award, failing which the amount shall be recovered as per law ;

v) The costs throughout is made in favour of the claimants/respondent Nos.1 to 5, and as against the appellant.

No order as to costs.

As a sequel thereto, miscellaneous petitions, if any pending, shall also stand closed.

____________________ RAVI NATH TILHARI, J

__________________ NYAPATHY VIJAY, J

Date : .10.2024.

RPD.

(RNT,J& VN,J M.A.C.M.A.NO.1710 OF 2016)

THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI

AND

THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY

MOTOR ACCIDENT CIVIL MISCELLANEOUS

APPEAL NO: 1710 of 2016

DATE : 04.10.2024

RPD

 
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LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IDRC

 

LatestLaws Partner Event : IJJ

 
 
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