Jharkhand High Court
New India Assurance Co. Ltd. Branch ... vs Prity Kanaklata Marandi D/O Late Samuel ... on 5 March, 2025
Author: Gautam Kumar Choudhary
Bench: Gautam Kumar Choudhary
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M. A. No. 53 of 2016
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New India Assurance Co. Ltd. Branch Dhanbad at Katras Road, P.O.,
P.S. & Dist.-Dhanbad ... .... Appellant
Versus
1. Prity Kanaklata Marandi D/o Late Samuel Marandi and W/o
Bishwanath Tudu
2. Anthoni Marandi, S/o Late Samuel Marandi (Now Major), both
residing at Village Karkarbil Manjhi Tola, P.O & P.S.-Dumka
(Muffasil) Dist.-Dumka
3. Brahmadeo Yadav, S/o Bhairo Yadav, r/o Village & O.P. Barajore,
P.S. Jhaja, Dist.-Jamui (Bihar) Owner of Truck
4. Sunil Kumar Yadav, S/o Jhari Yadav, residing at Village & P.O.-
Gidhaur, P.S.-Lakshmipur, Dist.-Jamuri (Jamui-Bihar) Driver
(respondent No.2 is minor and is being represented through his sister
& guardian and next friend)
5. Baneshwar Murmu, S/o Late Som Murmu, R/o Village-Dunduaa,
P.O.& P.S.-Gopikandar, Dist.-Dumka
... .... Respondents
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CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY
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For the Appellant : Mr. Alok Lal, Advocate
Mr. Santosh Kumar, Advocate
For the Respondents : Mr. Mithlesh Singh, Advocate
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Oral Order
17 / Dated : 05.03.2025
1. The appellant- Insurance Company is in appeal against the judgment
of Award dated 27.08.2015 passed by learned MAC Tribunal No.III-
cum- District & Addl. Sessions Judge-III, Dumka, in Motor Accident
Claim Case No.31 of 2009 whereby and whereunder a compensation
amount of Rs.10,68,200/- has been awarded along with interest
@12% from the date of the order i.e. since 15.05.2009 and in the
event, the Award was not paid within 45 days, the interest @ 18% per
annum.
2. Learned counsel for the appellant- Insurance Company confines his
argument on the point of quantum of compensation awarded by the
learned Tribunal. It is argued that as per the case of the claimant(s),
he was a Class-IV employee of the University with salary of
Rs.5,996/- per month and the accident took place on 28.11.2007
when the salary was paid as per the 6th Pay Commission and despite
this, the learned Tribunal has computed the income by increasing
60% as per the 6th Pay Commission and took the salary of Rs.9600/-
per month.
3. It is further submitted that under the conventional head, a sum of
Rs.1,25,000/- has been awarded which is also not in accordance with
the judgment of Hon'ble the Apex Court in the case of National
Insurance Company Limited vs. Pranay Sethi, reported in (2017) 16
SCC 680 and further penal interest @ 18% per annum has been
awarded and the same is also not as per the settled law.
4. It is argued by the claimant that the salary of Rs. 5,996/- was not as
per 6th Pay Commission Report and, therefore, the Tribunal has
awarded compensation by adding further 30% as the pay increment
for 6th Pay Commission.
5. Having considered the submissions advanced on behalf of both sides,
I find merit in the argument of Mr. Santosh Kumar, learned counsel
for the Insurance Company, that the Tribunal was at liberty to either
compute the compensation by taking the salary of the deceased as per
6th Pay Commission or taking 30% enhancement as loss of earing
under the head of future prospect, but it was not entitled to add both,
thereby, computing the compensation for future loss of income at the
rate of 60%. There is further error in awarding compensation under
the conventional head of Rs.1,25,000/- which will be Rs.84,000/- and
the interest at the rate of 18% per annum.
6. In view of the settled law laid down by the Hon'ble Apex Court in
Pranay Sethi case (supra), taking 46 years as the age of the deceased,
Rs. 5996/- (round Rs.6000/-) as his monthly income, future prospect
of 30%, 1/3rd as the deduction on his personal living expense. Final
compensation of amount shall work out as under:
Annual income of the deceased Rs. 6,000X12= 72,000/-
Annual income + 30% future Rs. 72,000/-+ Rs.21,600/- =
prospect = Rs.93,600 /-
1/3rd as living and personal expense Rs. 31,200 /-
After deduction Rs. 62,400 /-
Multiplier of 14 as the age of the Rs.62,400/-X14=Rs.
deceased was 46 years at the time 8,73,600/
of accident
Conventional Head Rs. 84000/-
Total Rs. 9,57,600 /-
The Insurance company is liable to pay total compensation of
Rs.9,57,600/- with interest @ of 6% from the date of claim
application. Payment shall be made within one month from the date
of the order before the learned Tribunal and the same shall be
disbursed to the respective claimants on proper identification as per
the terms of disbursement decided by the Tribunal.
This Misc. Appeal is disposed of.
Pending I.A., if any, stands disposed of.
The statutory amount, which was deposited before this Court at
the time of filing of this appeal, shall be remitted to the Tribunal for
disbursement to the claimants, which will be adjusted against the
compensation amount.
(Gautam Kumar Choudhary, J.)
AKT/Sandeep
