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The New India Assurance Co. Ltd vs Smt. Varsha Sandeep Sabale And Ors
2024 Latest Caselaw 4 Bom

Citation : 2024 Latest Caselaw 4 Bom
Judgement Date : 2 January, 2024

Bombay High Court

The New India Assurance Co. Ltd vs Smt. Varsha Sandeep Sabale And Ors on 2 January, 2024

Author: Abhay Ahuja

Bench: Abhay Ahuja

2024:BHC-AS:47


                                                          1            First Appeal No. 853 of 2018.doc


                                  IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                          CIVIL APPELLATE JURISDICTION

                                                FIRST APPEAL NO.853 of 2018


                  THE NEW INDIA ASSURANCE CO. LTD.,                         )
                  Divisional Office, Station Road, Near Parvati             )
                  Multiplex, Rajaram Road, Kolhapur - 416 601               )...APPELLANT

                                    Vs.

                  1.       SMT. VARSHA SANDEEP SABALE               )
                           Age 30 years, Occupation Nil             )
                                                                    )
                  2.     MASTER UDAY SANDEEP SABALE                 )
                         Age 6 years, Occupation Nil                )
                                                                    )
                  3.     KUM. MUKTA SANDEEP SABALE                  )
                         Age 2 years, Occupation Nil                )
                                                                    )
                  4.     SHRI. MARUTI BHIMAJI SABALE                )
                         Age 62 years, Occupation Nil               )
                                                                    )
                  5.     SOU. SANJANA MARUTI SABALE                 )
                         Age 57 years, Occupation Nil               )
                                                                    )
                  6.     KUM. SUNANDA MARUTI SABALE                 )
                         Age 27 years, Occupation Education         )
                                                                    )
                  All R/o. At Post Dimbe, Taluka Ambegaon,          )
                  District Pune.                                    )
                                                                    )
                  7.     SHRI. TANAJI B. GAIKWAD                    )
                         Age Major, Occupation Business             )
                         306, A HSG Society, Malwadi,               )
                         A/P. Pulachi Shiroli, Taluka Hatkananagale )
                         District Kolhapur                          )


                  AVK                                                                              1 of 23


                 ::: Uploaded on - 02/01/2024                     ::: Downloaded on - 03/01/2024 08:50:42 :::
                                        2            First Appeal No. 853 of 2018.doc


 8.       SHRI ARVIND VASANT BUJARE                      )
          Age Major, Occupation Driver                   )
          R/o. Kasaarwada, Taluka Radhanagari            )
          District Kolhapur                              )...RESPONDENTS


 Mr.Ketan Joshi, Advocate for the Appellant.
 Mr.Yuvraj Narvankar, Advocate for the Respondents No.1 and 4 to 6.


                               CORAM       :    ABHAY AHUJA, J.

                   RESERVED ON             :    25th JULY, 2023
                   PRONOUNCED ON           :    2nd JANUARY, 2024


 JUDGMENT :

1. This Appeal has been filed under section 173 of the Motor Vehicles

Act, 1988 (the "M.V. Act") challenging the judgment and award dated 4 th

September, 2015 passed by the Motor Accident Claims Tribunal, Kolhapur

(the "Tribunal") in Motor Accident Claim Petition No.644 of 2013 partly

allowing the Claim Petition of the Respondents No. 1 to 6 and jointly and

severally directing the Appellant and the Respondent No.7 to deposit an

amount of Rs.59,69,913/- inclusive of amount of compensation under 'no-

fault' liability along with interest thereon at the rate of 9% per annum

from the date of filing of the petition till realization. The Tribunal further

held that out of the total compensation, (i) Rs.15,00,000/- to be paid to

AVK 2 of 23

Respondent No.1. Out of it, 50% amount to be kept in fixed deposit

scheme in her name in any nationalized bank of her choice for a period of

five years, (ii) Rs.15,00,000/- to be paid to Respondent No.2. Out of it

75% amount to be kept in fixed deposit scheme in his name in any

nationalized bank till he attains majority, (iii) Rs.15,00,000/- to be paid to

Respondent No.3. Out of it, 75% amount to be kept in fixed deposit

scheme in her name in any nationalized bank till she attains majority, (iv)

Rs.5,00,000/- each to be paid to Respondents No. 4 and 5, (v)

Rs.4,00,000/- to be paid to Respondent No.6 and (vi) the balance amount

and interest to be paid to all Respondents No.1 to 6 equally.

2. By an order dated 9th July, 2018 in Civil Application No. 770 of

2016 in the said appeal, a delay of 53 days caused in filing the appeal was

condoned. Vide order of this Court dated 1 st March, 2019, the appeal was

admitted.

3. The brief facts in this matter are as follows. That on 26 th July, 2013

at about 2:30 a.m. to 3:00 a.m., Sandeep Maruti Sabale was proceeding

from Shiroli to Kolhapur on his Hero Honda motorcycle bearing

registration No. MH-09/BD-7133. When he reached near the spot of the

AVK 3 of 23

accident, one Tavera car bearing registration No. MH-10/AG-0885 owned

by Respondent No.7, duly insured with the Appellant and driven by

Respondent No.8, came in high speed, rashly and negligently, and gave a

dash to the motorcycle of Sandeep Maruti Sabale, thereby he fell down

and sustained multiple injuries and died before treatment. Since the

accident took place due to rash and negligent driving of Respondent No.8,

he was prosecuted by MIDC Shiroli Police vide C.R. No.85/2013 and

ultimately after investigation, he has been chargesheeted.

4. The Respondents No. 1 to 6 claimed to be the legal heirs and

dependents of the deceased Sandeep Maruti Sabale who was 33 years of

age at the time of the accident. The deceased was serving as Sub-Inspector

in State Excise Department of the State of Maharashtra and was earning a

salary of Rs.25,000/- per month. The Respondents No. 1 to 6 have claimed

that due to his demise they have sustained pecuniary as well as non-

pecuniary loss and claimed a compensation of Rs.76,72,500/- from the

Appellant and Respondents No. 7 and 8 under various heads.

5. The Appellant and the Respondent No.8, driver, filed their written

statements denying all the allegations. They denied the involvement of the

AVK 4 of 23

offending Tavera vehicle in the accident. Further they contended that

assuming that the offending Tavera vehicle was involved in the said

accident, the accident did not take place due to the rash and negligent

driving of Respondent No.8. They further denied the age, service, salary

and future prospects of the deceased and submitted that the claim is false,

excessive and sought for it to be dismissed. The Respondent No.7 being

the owner of the offending Tavera vehicle, despite opportunity did not file

his Written Statement.

6. The Tribunal examined the Affidavit of Respondent No.1, the

examination of Witness No.2, Sanjay Jaysing Patil, Dy. Superintendent

State Excise, Kolhapur who proved service book and relevant documents

and salary certificate of deceased, certified copies of police papers such as

wardi report, spot panchnama, complaint, inquest panchnama, post

mortem report, death certificate, chargesheet against Respondent No.8

driver, First Information Report (FIR) and certified statements of witnesses

examined by the Investigating Officer during the course of investigation.

7. The Tribunal held that the claim of the Respondent No.1 that the

accident was caused due to the rash and negligent driving of the offending

AVK 5 of 23

Tavera vehicle is duly corroborated through the contents of complaint,

chargesheet and statements of eye witnesses examined by the

Investigating Officer. After due investigation, the police station at MIDC

Shiroli submitted a chargesheet against the Respondent No.8 driver for

offence punishable under Sections 279, 304-A of the Indian Penal Code,

1860 (IPC) and for offences punishable under Sections 184 and 134(1)(b)

of the Motor Vehicles Act. The Tribunal therefore held that the prosecution

of Respondent No.8 driver for the said accident was caused only because

of the rash and negligent driving of Respondent No.8. The Tribunal relied

on case law wherein Courts have held that when driver of offending

vehicle is facing criminal trial prima facie it can be presumed that, he was

responsible for the accident. The Tribunal recorded that no evidence was

adduced on behalf of the Appellant and Respondents No. 7 and 8. The

Tribunal held that it was incumbent on the part of the Respondents No. 7

and 8 to prove as to where the offending Tavera vehicle was at the

relevant time of the accident. The Tribunal held that there was no

contrary evidence to show what the Respondents No. 7 and 8 have done

after knowing that the offending Tavera vehicle and Respondent No.8

have allegedly been falsely involved in the case of the accident. Therefore

the Tribunal held that the accident in question took place due to rash and

AVK 6 of 23

negligent driving of the offending Tavera vehicle by Respondent No.8

driver, which was owned by Respondent No.7 and duly insured with the

Appellant. The Tribunal further held that undisputedly the insurance

policy of the offending Tavera vehicle was in force on the date of the

accident. The Tribunal held that the Respondents No. 1 to 6 were entitled

to get compensation under Section 166 of the Motor Vehicles Act.

8. On the issue of quantum of compensation, the Tribunal determined

the same keeping in mind the guidelines laid down by the Hon'ble

Supreme Court in the decisions in the cases of State of Haryana and

another v. Jasbir Kaur and others 1 and Rajesh and other v. Rajbeer Singh

and other2 and Sanobanu Nazirbhai Mirza v. Ahmedabad Municipal

Transport Service3.

9. The Tribunal held that undisputedly, the date of birth of the

deceased Sandeep was 12/12/1980 and therefore his age on the date of

the accident was 32 years and in view of the observations in the case of

Sarla Verma v. Delhi Transport Corporation and others 4 multiplier of 17

would be applicable. The Tribunal held that the deceased was having 1 III(2003)ACC 90 (SC) 2 2013 ACJ 1403 3 2013 ACJ 2733 4 2009 ACJ 1298 (Supreme Court)

AVK 7 of 23

remaining service of 25 years and was in permanent government

employment and therefore as per the ratio laid down in the case of Vimal

Kumar and others v. Kishore Dan and others5, in the Tribunal's opinion

50% of amount of income of the deceased is to be added towards future

prospects in order to assess his monthly income. After adding 50% to his

monthly income and deducting income tax from the deceased's annual net

income, the Tribunal calculated annual loss of income to be Rs.4,27,052/-.

Considering the strength of dependency of six members, the Tribunal held

that 1/4th amount is required to be deducted from the deceased's annual

income towards personal expenditure of deceased and calculated actual

loss of dependency to come to Rs.3,20,289/-. The Tribunal then applied

the multiplier of 17 to said actual loss of dependency and held that the

total loss of income and dependency comes to Rs.54,44,913/-. The

Tribunal held that in addition in view of the ratio laid down in the case of

Rajesh and other v. Rajbeer Singh and other(supra) , the Respondents No.1

to 6 are entitled to get an amount of Rs.1,00,000/- towards loss of

consortium to Respondent No.2, Rs.2,00,000/- towards love and affection,

Rs.25,000/- towards funeral expenses, Rs.1,00,000/- towards loss to

estate, Rs.1,00,000/- towards loss of care and guidance for minor

5 2013 (3) T.A.C. 6(Supreme Court)

AVK 8 of 23

children. The Tribunal therefore held that the Respondents No.1 to 6 were

entitled to get compensation of Rs.56,69,913/- inclusive of amount paid

under no fault liability, if any, along with interest @ 9% from the date of

filing of the Petition till the date of realization to be paid in the manner

mentioned in paragraph 1 hereinabove by the Appellant and the

Respondent No.7 owner, jointly and severally.

10. The Respondents No.1 to 6 accepted the compensation awarded by

the Tribunal and did not challenge the award.

11. Aggrieved and dissatisfied by the Impugned Judgment and Award

partly allowing the Claim Petition of the Respondents No. 1 to 6 and

awarding a sum of Rs.56,69,913/- including amount of 'no-fault' liability,

if any, loss of consortium, loss of love and affection, funeral expenses, loss

to estate, loss of care and guidance for minor children from the Appellant

and Respondent No.7 who were held to be jointly and severally liable to

pay the compensation amount with interest at the rate of 9% from the

date of the petition till realization of the entire amount, the Appellant has

preferred this Appeal as mentioned above.

AVK 9 of 23

12. The Appellant has challenged the Impugned Judgment and Award

essentially on two grounds (A) the alleged involvement of the offending

Tavera vehicle bearing registration No. MH-10-AG-0885 in the accident

and (B) on the quantum of compensation.

13. On the first issue of alleged involvement of the offending Tavera

vehicle, the Appellant submitted that the Tribunal failed to appreciate that

the Wardi report lodged on the date of the accident was by a person who

was not a witness to the accident and the FIR was lodged on 13 th August,

2013 which was 15 days after the accident which goes to show that there

is a possibility of the offending Tavera vehicle being falsely implicated in

the accident. That the Tribunal failed to appreciate that the Appellant as

well as the Respondent No.8 driver categorically denied the involvement

of the offending Tavera vehicle in their Written Statements and therefore

the Tribunal ought to have framed an issue and opportunity of leading

evidence should have been given to the Appellant to rebut the allegation

and contention regarding the alleged involvement of the offending Tavera

vehicle. That the Tribunal erred in solely relying on the statement of the

Respondent No.1 and the police documentary record to come to a

conclusion on the involvement of the offending Tavera vehicle. That the

AVK 10 of 23

Tribunal ought to have appreciated that it was the duty of the

Respondents No.1 to 6 to examine the eye witnesses to the accident

named in the charge-sheet and without any cross examination on this

point the Tribunal has erred in holding that the offending Tavera vehicle

was involved in the accident.

14. Mr. Ketan Joshi, learned Advocate for the Appellant, submitted that

the Tribunal ought to have appreciated that the Hon'ble Supreme Court

and High Courts in several judgments have reiterated the basic principle

that the burden is on the claimant to prove the accident involvement and

negligence by leading cogent evidence and that in the present matter the

claimants have failed to prove the involvement of the vehicle by leading

cogent evidence and therefore the burden never shifted on to the

Appellant. Mr. Joshi further submitted that the Respondents No.1 to 6

have relied only on the police papers and they have not examined the

Investigating Officer nor the five eye witnesses whose statements were

recorded before the police to prove the involvement of the vehicle. Mr.

Joshi relied upon the judgments of this Court in the cases of Kalpana

Kothari v. Santosh Jangam6 and New India Assurance v. Laxman s/o

Dadarao Karpe and others7 in support of his contentions. 6 2020(2) Mh.L.J. 561.

AVK 11 of 23

15. On the issue of quantum of compensation, it was contended on

behalf of the Appellant that the Tribunal ought to have considered that the

Respondents No.4 and 5 being father and mother of the deceased

respectively were doing agricultural work and Respondent No.6 being the

sister of the deceased was married a year back and the Tribunal wrongly

calculated the deduction towards dependency to be 3/4th and it should

have been only 2/3rd keeping in mind the widow and the two minor

children of the deceased. It was further contended that the Tribunal ought

to have appreciated that the age of the deceased was 33 years and

therefore the Tribunal ought to have considered the multiplier of 16

instead of 17 which was wrongly applied by the Tribunal. Learned counsel

for the Appellant relied on the decisions of the Hon'ble Supreme Court in

the cases of Sarla Verma v. Delhi Transport Corporation (supra) , Reshma

Kumari v. Madan Mohan8 and National Insurance v. Pranay Sethi9 in

support of his contention. That the general damages of Rs.5,25,000/- was

on the higher side. That the Tribunal failed to consider the decision of this

Court in the case of New India Assurance v. Alpa Shah10 where it was held

that future prospects cannot be granted as a matter of right and that no

cogent evidence was adduced to avail the benefit of future prospects and 8 2013(9) SCC 65 9 2017 (16) SCC 680.

 10 2014(2) Mh.L.J.17


 AVK                                                                          12 of 23






therefore the Tribunal erred in granting future prospects to Respondents

No.1 to 6.

16. Mr. Joshi concluded by submitting that as far as the compensation

granted under the other heads/non-pecuniary damages, the same should

be granted in accordance with the judgments of the Hon'ble Supreme

Court in the cases of National Insurance v. Pranay Sethi (supra) , Magma

General Insurance v. Nanu Ram11and New India Assurance v. Somwati12.

17. On the other hand Mr. Yuvraj Narvankar, learned counsel for the

Respondents No. 1 to 4 and 6, submitted that substantial documentary

evidence in the form of Wardi report, Spot Panchnama, Inquest

Panchnama, post-mortem report, chargesheet, FIR, statements of

witnesses, etc. was produced to establish the involvement of the vehicle.

Mr. Narvankar submitted that on the contrary and as recorded by the

Tribunal in paragraph 8 of its order, no evidence was adduced by the

Appellant and Respondent No.8 to prove the alleged non-involvement of

the vehicle. Mr. Narvankar submits that it is a consistent judicial view that

the initial burden on the claimants to prove the involvement of the vehicle

11 2018(18) SCC 130 12 2020(9) SCC 644

AVK 13 of 23

is discharged when a reference is made to the police documents including

the FIR and the charge-sheet and the onus of proof then shifts on the

insurance company or the owner of the vehicle to rebut the presumption

drawn by virtue of the police papers. Mr. Narvankar submitted that in fact

in the Written Statement filed on behalf of the Respondent No.8 driver, the

involvement of the vehicle was admitted. He further submitted that the

proceedings under the provisions of the Motor Vehicles Act are summary

in nature and the burden of proof required in these cases cannot be

equated with the burden of proof required in a criminal trial.

18. On the issue of quantum of compensation, Mr. Narvankar submitted

that the deceased was working as a Sub-Inspector in the State Excise

Department and was 32 years of age at the time of the accident which fact

has been deposed to by his employer whose evidence was unshaken in the

cross examination. Mr. Narvankar submits that the multiplier of 16 would

be applicable to the present case in the light of the decision in the case of

Sarla Verma v. Delhi Transport Corporation and others (supra) . Mr.

Narvankar also agrees that the compensation granted under the other

heads/non-pecuniary will have to be in accordance with the decisions in

the cases of National Insurance v. Pranay Sethi (supra) , Magma General

AVK 14 of 23

Insurance v. Nanu Ram (supra) and New India Assurance v. Somwati

(supra).

19. I have heard Mr. Joshi, learned counsel for the Appellant and Mr.

Narvankar, learned counsel for the Respondents No. 1 to 4 and 6 and with

their able assistance, I have perused the papers and proceedings in the

matter and considered the rival submissions.

20. On the first issue being the alleged involvement of the offending

Tavera vehicle bearing registration No. MH-10-AG-0885 in the accident,

the Tribunal has clearly held that the claim of the Respondent No.1 that

the accident was caused due to the rash and negligent driving of the

offending Tavera vehicle is duly corroborated through the contents of

complaint, chargesheet and statements of eye witnesses examined by the

Investigating Officer. The Tribunal also held that there was no contrary

evidence to show what the Respondents No. 7 and 8 have done after

knowing that the offending Tavera vehicle and Respondent No.8 have

allegedly been falsely involved in the case of the accident.

21. In this regard, this Court has examined the decision of the Tribunal,

the Written Statements of the Appellant and the Respondent No. 8 driver,

AVK 15 of 23

cause of death certificate of deceased and the police papers being the FIR,

Jawab, Panchnama, Inquest Panchnama, Accident Report, Arrest form,

Tapas tipan and Chargesheet in the matter. From the police papers it is

clear that the death of Sandeep Maruti Sabale was caused by the

offending Tavera vehicle bearing registration No. MH-10/AG-0885 giving

a dash to his motorcycle bearing registration No.MH-09-BD-7133 from

behind and then one of the wheels of the offending Tavera vehicle passing

over the head of the deceased Sandeep Maruti Sabale.

22. The Appellant and the Respondent No.8 have clearly been unable

to produce any evidence to the contrary.

23. The Appellant's claim that the Wardi report lodged on the date of

the accident was by a person who was not a witness to the accident and

the FIR was lodged 15 days after the accident which goes to show that

there is a possibility of the offending Tavera vehicle being falsely

implicated in the accident is not supported by any evidence, particularly

when the charge-sheet is filed against Respondent No.8 driver of the

offending Tavera vehicle after the investigation of the involvement of the

offending Tavera vehicle in the accident. In fact, in Paragraph 12 of the

AVK 16 of 23

Written Statement of Respondent No.8 driver, he has alleged that the

accident was caused due to the rash and negligent driving of the deceased

and that it was the deceased who dashed the offending Tavera vehicle,

thereby admitting the involvement of the offending Tavera vehicle in the

accident. Further, it is clear from Paragraph 8 of the Impugned Judgment

that although the Appellant and Respondent No.8 came up with the

defence of non-involvement of the offending vehicle, they did not step into

the witness box to deny the involvement of the offending Tavera vehicle in

the accident nor did they prove that the offending Tavera vehicle was

elsewhere at the time of the accident. Therefore the Appellant's claim that

the denial in the Written Statements of the Appellant and the Respondent

No.8 ought to have been considered and an opportunity of leading

evidence ought to have been given to them is not borne out by their

conduct before the Tribunal.

24. It would be relevant here to quote the decision of the Hon'ble

Supreme Court in the case of N.K.V. Bros (P) Ltd. v. M. Karumai Ammal

and others13 wherein it has been held that Accident Claim Tribunals must

take special care to see that innocent victims do not suffer and drivers and

13 1980 A.C.J. 435

AVK 17 of 23

owners do not escape liability merely because of some doubt here or some

obscurity there. Save in plain cases, culpability must be inferred from the

circumstances where it is fairly reasonable. The Court should not succumb

to niceties, technicalities and mystic maybes.

25. It would also be important to refer to the decision of the Hon'ble

Supreme Court in the case of Rajwati alias Rajjo and Others v. United

India Insurance Company Ltd. and Others 14 the relevant paragraphs of

which are quoted as under:

"19. Similarly, in the case of Kusum Lata v.Satbir15, this Court observed that it is well known that in a case relating to motor accident claims, the claimants are not required to prove the case as it is required to be done in a criminal trial. The Court must keep this distinction in mind.

20. It is well settled that Motor Vehicles Act, 1988 is a beneficial piece of legislation and as such, while dealing with compensation cases, once the actual occurrence of the accident has been established, the Tribunal's role would be to award just and fair compensation. As held by this Court in Sunita v. Rajasthan State Transport Corporation16 and Kusum Lata (supra), strict rules of evidence as applicable in a criminal trial, are not applicable in motor accident compensation cases, i.e., to say, "the standard of proof to be borne in mind must be of preponderance of probability and not the strict standard of proof beyond all reasonable doubt which is followed in criminal cases".

14 2022 SCC OnLine SC 1699 15(2011) 3 SCC 646

16 (2020) 13 SCC 486.

AVK 18 of 23

26. In the light of the above, I am of the view that the Tribunal is

correct in holding that the accident was caused due to the rash and

negligent driving of the offending Tavera vehicle by Respondent No.8

which was owned by the Respondent No.7 and duly insured with the

Appellant which insurance policy was in force at the time of the accident

and that the Respondents No.1 to 6 were entitled to get compensation

under Section 166 of the Motor Vehicles Act.

27. On the issue of quantum of compensation, the Tribunal held that

since the age of the deceased on the date of the accident was 32 years and

in view of the observations in the case of Sarla Verma v. Delhi Transport

Corporation and others (supra) multiplier of 17 would be applicable. The

learned counsel for the Appellant has contended that the Tribunal ought

to have considered the multiplier of 16 instead of 17 which was wrongly

applied by the Tribunal. On this issue, the date of birth of the deceased

was 12th December, 1980 and the accident occured on 26 th July, 2013.

Therefore, on the date of the accident his age was 32 years and 7 months.

In the light of the decisions in the Sarla Verma v. Delhi Transport

Corporation and others (supra) and National Insurance v. Pranay Sethi

(supra), he would fall within the age group of 31 to 35 years and

AVK 19 of 23

therefore multiplier 16 will be applicable and not multiplier 17 as held by

the Tribunal.

28. On the issue of deduction towards personal and living expenses, in

the light of Sarla Verma v. Delhi Transport Corporation and others(supra) ,

the Tribunal has held that one-fourth has to be deducted as the number of

dependent family members was six. Although the Appellant has submitted

that the Tribunal wrongly calculated the dependency to be 3/4 th and the

dependency ought to be calculated at 2/3 rd considering the widow and

two minor children only, the Appellant has not produced any

corroborative evidence regarding the non-dependency of the Respodents

No. 4 to 6. Therefore I do not consider it necessary to deal with this issue.

29. The basic salary of the deceased at the time of his death was

Rs.24,697/- per month and including 50% future prospects the same

comes to Rs.37,046/-. After deduction of 1/4 th expenses for personal

nature and income tax payable of Rs.17,500/- and after applying

multiplier of 16 the total amount payable under loss of income is

calculated to be Rs.51,24,624/-. On the Tribunal granting Rs.1,00,000/-

towards loss of consortium to Respondent No.2, Rs.2,00,000/- towards

AVK 20 of 23

love and affection, Rs.25,000/- towards funeral expenses, Rs.1,00,000/-

towards loss to estate, Rs.1,00,000/- towards loss of care and guidance for

minor children on the basis of the decision in the case of Rajesh and

others v. Rajbir Singh and others (supra), it is settled law that the loss of

estate, loss of consortium and funeral expenses has to be calculated in

accordance with the principles laid down in the decision in the case of

National Insurance v. Pranay Sethi (supra) where the Court has in

paragraphs 52 and 59.2 held that loss of estate, loss of consortium and

funeral expenses should be Rs.15,000/-, Rs.40,000/- and Rs.15,000/-

respectively and the same should be enhanced at the rate of 10% every

three years. Accordingly the loss of estate has to be calculated to be

Rs.16,500/- and not Rs.1,00,000/- as calculated by the Tribunal. The loss

of consortium has to be calculated at the rate of Rs.44,000/- for each of

the Respondents No.1 to 6 and not at Rs.1,00,000/- as calculated by the

Tribunal. Funeral expenses have to be calculated at Rs.16,500/- and not

Rs.25,000/- as calculated by the Tribunal.

30. In view of the above discussion and as per the calculation jointly

submitted by Mr. Joshi, learned counsel for the Appellant and Mr.

Narvankar, learned counsel for Respondents No. 1 to 4 and 6, this Court is

AVK 21 of 23

of the view that the Appellants are entitled to total compensation of

Rs.54,21,624/- as per the following calculation:

  Sr. No.     Particulars                     Amount

  1.          Basic Income                    Rs.24,697/-

  2.          50% future prospects            Rs.12,349/-

  3.          Annual (1+2 x12)                Rs.4,44,552/-

  4.          Less Income Tax payable         Rs.17,500/-

5. Less 1/4th deduction of expenses Rs.1.06,763/-

of personal nature

6. Total 3-4-5 Rs.3,20,289/-

7. Compensation on dependency Rs.3,20,289 X 16 = (multiplier of 16) Rs.51,24,624/-

8. Add loss of estate Rs.16,500/-

9. Add funeral expenses Rs.16,500/-

10. Loss of consortium (Rs.44,000/- Rs.2,64,000/-

x 6 claimants)

11. TOTAL COMPENSATION Rs.54,21,624/-

(7+8+9+10)

31. Accordingly, the Respondents No.1 to 6 are entitled to a total

compensation of Rs.54,21,624/- inclusive of amount of compensation

under 'no-fault' liability along with interest thereon at the rate of 9% per

annum to be paid by the Appellant and the Respondent No.7 jointly and

AVK 22 of 23

severally from the date of filing of the petition till realization, to be

distributed inter se amongst the Respondents No.1 to 6 in the manner and

proportion as mentioned in the judgment and award dated 4th September,

2015 of the Motor Accident Claims Tribunal, Kolhapur less the amount, if

any, already withdrawn.

32. The judgment and award dated 4th September, 2015 of the Motor

Accident Claims Tribunal, Kolhapur be modified to the above extent.

33. The appeal of the Appellant Insurance Company accordingly stands

dismissed. No order as to costs.




                                         (ABHAY AHUJA, J.)




 AVK                                                                          23 of 23



 

 
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