Bombay High Court
Rambhau Jagannath Bhagwat And Ors vs Tata Aig General Insurance ... on 5 August, 2021
Bench: R. G. Avachat
FA.124-18.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
FIRST APPEAL NO.124 OF 2018
TATA AIG General Insurance
Company Ltd., through its Manager -
Kirti M. Ballal,
r/o. Pune, c/o. TATA AIG General
Insurance Company Ltd.
3rd Floor, The Orion,
5, Koregaon Park Road,
Pune ..Appellant
Vs.
Rambhau Jagannath Bhagwat,
Age : 51 years, Occ. Agri.
r/o. Shirasgaon, Tq.Kopargaon,
Dist.Ahmednagar
and others ..Respondents
----
Mr.S.S.Patil, Advocate i/b. Mr.R.H.Dahat, Advocate for appellant
Mr.A.V.Patil, Advocate i/b. Mr.S.S.Chapalgaonkar, Advocate for
respondent nos.1 to 5
----
CORAM : R.G. AVACHAT, J.
DATE : AUGUST 05, 2021
ORDER :-
Heard.
2. The challenge in this appeal is to the award dated
23.05.2016 passed by learned Member, Motor Accident Claims
2 FA.124-18
Tribunal, Kopargaon, Dist. Ahmednagar in M.A.C.P. No.44 of
2013. By the impugned award, the appellant-insurance
company and owner of the vehicle involved in the accident,
have been directed to pay jointly and severally, a sum of
Rs.12,90,000/- with 9% interest thereon from the date of the
claim petition to the date of payment of the entire amount to
respondent nos.1 to 5, legal representatives of the deceased
Yogesh. The appeal has, basically, been filed on the question
of quantum.
3. Mr.S.S.Patil, learned counsel appearing for the
appellant-insurance company, would submit that the deceased
died bachelor. The claimants are parents and siblings of the
deceased. While awarding compensation, the Tribunal, instead
of deducting half of the annual income of the deceased,
deducted 1/4th thereof on account of personal expenses, which
the deceased would have incurred for self, had he been alive.
According to learned counsel, the Tribunal also erred in making
addition of 50% of income of the deceased towards future
prospects, while it should not have been more than 40%.
3 FA.124-18
Learned counsel also urged for reducing the rate of interest to
7% per annum from 9% per annum, granted by the Tribunal.
Learned counsel, therefore, urged for interference with the
impugned award in the light of his submissions.
4. Learned counsel for the respondents-claimants
supports the impugned award. He has reiterated the reasons
given by the Tribunal.
5. In paragraphs 31 and 32 of the judgment in the case
of Sarla Verma (Smt.) and ors. Vs. Delhi Transport Corporation
and anr., (2009) 6 SCC 121, it has been observed as under:-
31. 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
dependent 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
4 FA.124-18
they will either be independent and earning, or
married, or be dependent on the father.
32. Thus even if the deceased is survived by
parents and siblings, only the mother would be
considered to be a dependent, 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 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."
6. The deceased died bachelor. The claimants are his
parents and siblings. There is no evidence in justification for
departing from the aforesaid observations in Sarla Varma's
(supra) case.
ADDITION ON ACCOUNT OF FUTURE PROSPECTS :-
7. The deceased was working as a Welder in the
workshop of one Kisan Burhade. Kisan Burhade, lateron,
closed down his workshop. As such, the deceased did not have
a permanent job. In paragraph 59.4 of the Constitution Bench
judgment of the Apex Court in the case of National Insurance
5 FA.124-18
Company Limited Vs. Pranay Sethi and ors., (2017)16 SCC
680, it has been observed as under :-
"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."
The deceased was below 40 years of age. He did not have a
permanent job. Forty per cent of his established income should
warrant towards addition on account of future prospects.
8. In view of the above, the amount of compensation
granted by the Tribunal needs to be reworked out as under:-
Particulars Figures in
Rupees
Income of deceased per annum 60,000
(Rs.5,000/- per month x 12 months)
Addition of 40% towards future + 24,000
prospects (deceased being below 40 (plus)
years of age)
84,000
6 FA.124-18
Deduction of 50% amount, as - 42,000
deceased died bachelor, towards (minus)
personal expenses which deceased
would have incurred for self had he
been alive
42,000
Applying multiplier of 18, amount of + 7,56,000
compensation on account of loss of (plus)
dependency (Rs.42,000 x 18)
Addition on account of funeral + 1,25,000
expenses and mental shock and (plus)
sufferings, already granted by the
Tribunal
Amount of compensation 8,81,000
9. Interference with the impugned award needs to be
made to the extent stated above. The rate of interest awarded
by the Tribunal is not interfered with.
10. In the result, the appeal partly succeeds. The
amount of compensation payable to the claimants shall be
Rs.8,81,000/- with 9% interest thereon from the date of the
claim petition, until the amount is deposited. The appeal
stands disposed of accordingly.
[R.G. AVACHAT, J.]
KBP
7 FA.124-18
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
CIVIL APPLICATION NO.7447 of 2021
IN FIRST APPEAL NO.124 OF 2018
Rambhau Jagannath Bhagwat
and ors. ..Applicants
Vs.
TATA AIG General Insurance
Company Ltd. and anr. ..Respondents
----
Mr.A.V.Patil, Advocate i/b. Mr.S.S.Chapalgaonkar, Advocate for
applicants
Mr.S.S.Patil, Advocate i/b.Mr.R.H.Dahat, Advocate for
respondent no.1
----
CORAM : R.G. AVACHAT, J.
DATE : AUGUST 05, 2021
ORDER :-
The amount deposited in this Court be paid to the
applicants/claimants in terms of the modified award and
balance be returned to the appellant - insurance company, if
any. The application is disposed of accordingly.
[R.G. AVACHAT, J.]
KBP
