Calcutta High Court (Appellete Side)

Srabani Chakraborty & Ors vs The National Insurance Company ... on 16 August, 2023

16.08.2023
 Ct. 654
 D/L 11
  ab/kb

                    IN THE HIGH COURT AT CALCUTTA
                      CIVIL APPELLATE JURIDICTION
                            APPELLATE SIDE

                             FMA 1681 of 2018
                                    With
               IA No. CAN 1 of 2018(Old No. CAN 8863 of 2018)

                         Srabani Chakraborty & Ors.
                                    -Vs-
               The National Insurance Company Limited & Anr.


             Mr. Saidur Rahaman
                                        ... for the appellants-claimants

             Mr. Rajesh Singh,
             Mrs. Sucharita Paul
                      ... for the respondent no.1-insurance company

This appeal is preferred against the judgment and

award dated 27th July, 2017 passed by the learned

District Judge-cum-Judge, Motor Accident Claims

Tribunal, Dakshin Dinajpur at Balurghat in MAC Case

No. 326 of 2001 granting compensation of Rs.

14,76,900/- in favour of the claimants under Section

166 of the Motor Vehicles Act, 1988.

The brief fact of the case is that on 23rd July,

2001 the victim along with others boarded the vehicle

bearing registration No. WB-61/1150 (Maxi Taxi) and

when the said vehicle reached near Sisu Uddyan

(opposite to Sitala Kali Mandir) at about 9.40 a.m. an

explosion occurred inside the said vehicle and the

victim sustained severe burn injuries due to such

explosion. The other co-passengers also sustained burn

injuries. The victim was taken to Balurghat Sadar

Hospital for treatment. Later he was removed to

S.S.K.M. Hospital at Kolkata for better medical

management where he succumbed to his injuries and

died on 27th July, 2001. On account of sudden demise

of the victim, the claimants being the widow, son and

daughter filed application for compensation. Initially the

claimants filed application under Section 163A of the

Motor Vehicles Act. By an order of this Court dated 4th

March, 2013 passed in FMA 924 of 2005, such

application of the claimants under Section 163A of the

Act was allowed to be converted to an application under

Section 166 of the Motor Vehicles Act. After such

conversion, the application has been proceeded under

Section 166 of the Motor Vehicles Act.

The claimants in order to establish their case

examined five witnesses and produced documents,

which have been marked as Exhibits 1 to 5

respectively.

The respondent no. 1-insurance company did not

adduce any evidence.

Since the respondent no.2-owner of the offending

vehicle did not contest the claim application, service of

notice of appeal upon the said respondent is dispensed

with.

Upon considering the materials on record and the

evidence adduced on behalf of the claimants, Learned

Tribunal granted compensation of Rs.14,76,900/- in

favour of the claimants under Section 166 of the Motor

Vehicles Act.

Being aggrieved by and dissatisfied with the

impugned judgment and award, the claimants have

preferred the present appeal.

Mr. Saidur Rahaman, Learned Advocate for the

appellants-claimants submits that the claimants are

entitled to an amount equivalent to 15% of the annual

income of the victim towards future prospect as well as

general damages in view of decision of Hon'ble Supreme

Court passed in National Insurance Company

Limited versus Pranay Sethi and Others reported in

2017 ACJ 2700. He further submits that the interest

on the compensation amount is granted as a default

clause, however, the interest of the compensation

amount should be granted from the date of filing of the

claim application till actual payment. In light of his

aforesaid submissions, he prays for modification and/or

enhancement of compensation amount.

In reply to the contention raised on behalf of the

appellants-claimants, Mrs. Sucharita Paul, learned

advocate led by Mr. Rajesh Singh, learned advocate for

insurance company opposes such prayer for

enhancement.

Having heard the Learned Advocates for the

respective parties following issues have fallen for

consideration.

Firstly, whether the claimants are entitled to an

amount equivalent to 15% of the annual income of the

deceased towards future prospect.

Secondly, whether the claimant is entitled to

general damages under the conventional heads of loss

of estate, loss of consortium and funeral expenses to

the tune of Rs. 70,000/-.

Lastly whether the claimant is entitled to interest

on the compensation amount from the date of filing of

the claim application till actual payment.

With regard to the first issue, admittedly the

victim at the time of accident was 54 years of age and

was Assistant Headmaster of Safanagar High School.

Following the observation in Pranay Sethi (supra), the

claimants are entitled to an amount equivalent to 15%

of the annual income of the deceased towards future

prospect.

So far as the general damages are concerned

following the observation of Hon'ble Supreme Court in

Pranay Sethi (supra) the claimants are entitled to

general damages under the conventional heads of loss

of estate, loss of consortium and funeral expenses to

the tune of Rs.15,000/-, Rs.40,000/- and Rs.15,000/-

respectively.

Coming to the last issue relating to the interest on

compensation amount, it is found that the interest has

been granted by the learned Tribunal as a default

clause. From the impugned Order of the Learned

Tribunal there is no reason assigned for not granting

interest on compensation from the date of filing of the

claim application. Ordinarily when a claim succeeds the

claimant is entitled to interest on compensation from

the date of filing of the claim application. In view of the

above, the claimants are entitled to interest at the rate

of 6% per annum from the date of filing of the claim

application on the compensation amount.

Other factors have not been challenged.

Bearing in mind the above factors, calculation of

compensation is made hereunder:

Calculation of Compensation

Monthly income Rs.16,675/-

       Annual income                         Rs.2,00,100/-
       (Rs.16,675/- x 12)
       Add: 15% of the annual income         Rs.30,015/-
            towards future prospect
                                             Rs.2,30,115/-
       Less: 1/3rd towards personal          Rs.76,705/-
            and living expenses

                                             Rs.1,53,410/-
       Multiplier 11                         Rs.16,87,510/-
       (Rs.1,53,410/- x 11)
       Add: General damages                  Rs.70,000/-
       Loss of estate: Rs.15,000/-
       Loss of consortium: Rs.40,000/-
       Funeral expenses: Rs.15,000/-
       Total amount                          Rs.17,57,510/-

Thus, the claimants are entitled to compensation

of Rs.17,57,510/- together with interest at the rate of

6% per annum from the date of filing of the claim

application till payment. It is informed that the

claimants have already received an amount of

Rs.14,76,900/- in terms of order of the Learned

Tribunal. Accordingly, the claimants are entitled to

balance amount of compensation of Rs.2,80,610/-

together with interest @ 6% per annum from the date of

filing of the claim application till payment. The

claimants are also entitled to interest on the

compensation amount of Rs.14,76,900/- (granted by

the learned Tribunal) at the rate of 6% per annum from

the date of filing of the claim application till deposit was

made before the learned Tribunal.

Respondent no.1-insurance company is directed

to deposit the balance amount of compensation and the

interest as indicated above by way of a cheque before

the Learned Registrar General, High Court, Calcutta

within a period of six weeks from date.