Citation : 2025 Latest Caselaw 724 Gua
Judgement Date : 2 June, 2025
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GAHC010104012025
2025:GAU-AS:7152
THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : MACApp./229/2025
RELIANCE GENERAL INSURANCE CO. LTD,
HAVING ITS REGISTERED OFFICE AT 19 RELIANCE CENTER, WALCHAND
HIRACHAND MARG, BALLARD ESTATE, MUMBAI 400001 AND ONE OF ITS
BRANCH OFFICE AT BHANGAGARH, G.S. ROAD, GUWAHATI.
VERSUS
HIMADRI BHUYAN AND ANR
W/O SRI HIRANYA BHUYAN, R/O VILL. SATGHARIA, P.S. SIPAJHAR, PIN
784145, DIST. DARRANG, ASSAM.
2:MD. LUTFUR SHEIKH
S/O MD AKKACH ALI
R/O VILL. GHORASAL
P.S. SIPAJHAR
PIN 784145
DIST. DARRANG
ASSAM
For the Appellant(s) : Mr. K. K. Bhatta, Advocate
For the Respondent(s) : None appears.
Date of Hearing : 02.06.2025
Date of Judgment : 02.06.2025
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BEFORE
HONOURABLE MR. JUSTICE DEVASHIS BARUAH
JUDGMENT AND ORDER (ORAL)
Heard Mr. K. K. Bhatta, the learned counsel appearing on behalf of the appellant Insurance Company.
2. This is an appeal filed under Section 173 of the Motor Vehicles Act, 1988 challenging the judgment and award dated 06.02.2025 passed in MAC (Death) Case No.01/2022 by the Court of the learned Additional District Judge, Darrang, Mangaldai (for short 'the learned Trial Court') whereby an amount of Rs.31,01,000/- have been awarded as the just and fair compensation and further it was directed that the said amount shall carry interest @7.5% per annum from the date of filing of the case till the award and in the circumstance, there is delay on the part of the appellant Insurance Company in depositing the said amount, the said awarded amount shall carry interest @9% per annum from the date of the award till realization.
3. The learned counsel for the appellant Insurance Company submitted that there are two grounds of objection taken in the instant appeal. First, that without there being any proof as regards the income, the learned Trial Court adjudged the monthly income at Rs.20,000/- and accordingly, the judgment and award so passed is not in terms with Section 168 of the Motor Vehicles Act, 1988.
4. The second ground of objection so taken is on the question of imposition of interest on future prospects. The learned counsel for the Page No.# 3/7
appellant submitted that there are various judgments passed by the learned Coordinate Benches of this Court holding that there shall not be any interest on the future prospects. Taking into account those two grounds of objections, this Court finds it relevant to take note of the brief facts which led to the filing of the instant appeal.
5. On 17.10.2021, at about 10:20 PM, the son of the claimant while coming from Mangalgai towards his home by his motorcycle bearing Registration No.AS-01-EK-2847, a vehicle bearing Registration No.AS-13-AC- 0921 coming from the same direction dashed the motorcycle from the backside for which the claimant's son sustained grievous injuries and succumbed to his injuries. On the basis thereof, a claim proceedings was filed being MAC (Death) Case No.01/2022 before the learned Trial Court.
6. It is seen that in the said proceedings, the owner of the vehicle as well as the appellant Insurance Company filed their written statement wherein they denied that there was a rash and negligent driving on the part of the offending vehicle. It is however relevant to take note of that in the written statement filed by the owner, he had duly stated that the driver of the offending vehicle had a valid driving license and the vehicle was also insured with the appellant Insurance Company which was valid from 09.03.2021 to the midnight of 09.03.2022. On the basis of the pleadings, five issues were framed which being relevant are reproduced herein under:
"(i) Whether the claim petition is maintainable?
(ii) Whether the accident occurred due to rash and negligent driving of vehicle bearing registration No.AS-13-AC-0921 (Maximo)?
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(iii) Whether vehicle bearing registration No.AS-13-AC-0921 (Maximo) was insured with opposite party No.2 Reliance General Insurance Company Ltd. at the time of accident?
(iv) Whether claimant is entitled for compensation and if so, to what relief/reliefs the claimant is entitled?
(v) To what amount the claimant is entitled and who will be liable to pay the amount?"
7. On behalf of the claimant, two witnesses were examined. The appellant Insurance Company cross-examined these two witnesses but the appellant Insurance Company or even the owner did not adduce any evidence. On the basis of the evidence, the learned Trial Court while deciding the Issue No.(ii) came to a finding that on account of rash and negligent driving of the driver of the offending vehicle bearing Registration No.AS-13-AC-0921, the accident took place which resulted in the death of the claimant's son.
8. The Issue Nos. (iii) and (iv) related to the quantum. The learned Trial Court decided the income of the claimant's son on the basis that the claimant's son had just passed the Bachelor of Technology four months prior to his death and there were prospects that he could earn salary Rs.50,000/- to Rs.60,000/-.
9. Be that as it may, the learned Trial Court taking into account the judgment of the Supreme Court in the case of Basanti Devi and Another Vs. Divisional Manager, The New India Assurance Company Ltd. and Others
reported in MANU/SC/1333/2021 came to a finding that the income of the deceased would be Rs.20,000/-. On the basis thereof, applying the law as well settled, the learned Trial Court arrived at a finding that the total loss of Page No.# 5/7
dependency was Rs.21,60,000/-. Further taking into account the judgment of the Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi and Others reported in (2017) 16 SCC 680, the learned Trial
Court arrived at a finding that the claimant would be entitled to an amount of Rs.8,64,000/- on the question of future prospect. Further taking into account the various conventional heads, the learned Trial Court arrived at a finding that amounts of Rs.44,000/-, Rs.16,500/- and Rs.16,500/- would be awarded towards loss of consortium, loss of estate and funeral expenses respectively and accordingly, arrived at a figure that the just and fair compensation would be Rs.31,01,000/-.
10. It is further seen that the learned Trial Court further awarded an interest @7.5% per annum from the date of filing of the case till the date of the award and if there is delay, the simple interest would be computed @9%. At paragraph No.41 of the said judgment, the learned Trial Court further observed how the amount is also to be paid.
11. This Court having perused the impugned judgment and order is of the opinion that the findings so arrived at by the learned Trial Court in respect to the income of the claimant's son, appears to be proper and requires no interference taking into account that the said decision so arrived at by the learned Trial Court is based upon the judgment of the Supreme Court in the case of Basanti Devi (supra).
12. This Court however finds it relevant to take note of that the learned Trial Court while imposing the interest @7.5% did not stipulate within which period the 7.5% interest per annum would be applicable towards the award and when 9% would be awarded.
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13. Taking into account that the instant appeal was filed within the period of limitation, and vide this judgment, this Court proposes to dispose of the present proceedings, the interest which would be payable to the claimant would be @7.5%, if the same is deposited within 6 (six) weeks from the date of the present judgment.
14. This Court also takes note of that the learned Trial Court while awarding the interest did not take into consideration that the award so passed included an amount of Rs.8,64,000/- which was on future prospects as well as the decisions passed by this Court wherein it was observed that there shall be no interest on future prospect.
15. Considering the above, this Court although is not inclined to interfere with the amount so awarded by the learned Trial Court, however would like to modify that the awarded amount only to the extent that there shall not be any interest on future prospects.
16. Taking into account the above, this Court disposes the instant appeal with the following observations and directions:
(i) The claimant who is the respondent No.1 herein shall be entitled to an amount of Rs.31,01,000/- which would be the just and fair compensation as awarded by the learned Trial Court.
(ii) The claimant would be entitled to cost of the proceedings of Rs.5,000/-.
(iii) The claimant would be entitled to interest @7.5% from the date of filing of the claim petition on the amount of Rs.23,42,000/-. There shall be Page No.# 7/7
no interest on the future prospects.
(iv) This Court makes it clear that if the said amount is not deposited by 07.07.2025 before the learned Trial Court, the claimant would be entitled to interest @9% from the date of filing of the claim petition on the amount of Rs.23,42,000/-.
(v) Upon deposit of the said amount by the appellant Insurance Company, the learned Trial Court shall apply the same in terms with paragraph 41 of its judgment and order dated 06.02.2025 and further remit the remaining amount in favour of the claimant only by way of bank transfer.
(vi) This Court further observes that upon proof of deposit of the awarded amount before the learned Trial Court being placed before the Registry, the statutory deposit of Rs.25,000/- be released.
JUDGE
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