Orissa High Court
Branch Manager vs Chitaranjan Nayak And Others on 13 December, 2021
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.223 of 2017
Branch Manager, The New India
Assurance Company Limited .... Appellant
Mr. G.P. Dutta, Advocate
-versus-
Chitaranjan Nayak and Others .... Respondents
Mr. B.K. Nayak (3), counsel for Respondent Nos.1 and 2
CORAM:
SHRI JUSTICE B. P. ROUTRAY
ORDER
13.12.2021
Order No.
08. 1. Heard Mr. G.P. Dutta, learned counsel for the Appellant -
insurer and Mr. B.K. Nayak (3), learned counsel for the claimants -
Respondents Nos.1 & 2.
2. The present appeal by the insurer is directed against the
judgment dated 26th November, 2016 of the learned 1st MACT,
Nayagarh in MAC Case No.07 of 2014.
3. In the impugned judgment learned tribunal upon adjudicating
the dispute has granted compensation to the tune of Rs.6,09,000/-
along with interest @ 7% per annum from the date of filing of the
claim application, i.e. 7th March, 2014 to the claimants on account of
death of the deceased in the accident dated 30th December, 2013.
4. The deceased was a minor and student of 1st year 10+2 course,
on the date of accident. The claimants are the parents.
5. It is submitted by Mr. Dutta, learned counsel on behalf of
insurer - Appellant that, the learned Tribunal has deducted 1/3rd of the
notional income towards personal expenses, though as per the
decision in the case of National Insurance Company Ltd. v. Pranay
Sethi and Others (2017) 16 SCC 680, it is the established principle
that for every bachelor 50% has to be deducted towards personal
expenses. Accordingly, the future prospects should also be calculated.
6. Upon hearing learned counsel for the claimants - Respondents
and upon perusal of the impugned judgment it reveals that, the learned
Tribunal under issue No. II & III, has determined the notional
monthly income of the deceased at Rs.3000/- and deducted 1/3rd
towards personal expenses. Accepting the submission based on the
principle decided in the case of Pranay Sethi (Supra), if 50% is
deducted towards personal expenses, the annual income is to be
calculated at Rs.18000/- per anum and after adding future prospects to
the extent of 40% thereby, the amount comes to Rs.25,200/-. If '16'
multiplier is applied, the total amount comes to Rs.4,03,200/- and
adding Rs.40,000/- towards conventional heads, Rs.40,000/- towards
parental consortium thereto, the total amount comes to Rs.4,83,200/-.
7. Accordingly the compensation amount is modified to the above
extent and the insurer - Appellant is directed to deposit a sum of
Rs.4,83,200/- (Rupees four lakhs eighty three thousand two hundred)
only before the learned Tribunal along with 6% interest per annum
w.e.f. 7th March, 2014 within eight weeks from today; whereafter the
same shall be disbursed to the claimants - Respondents on the same
terms and proportions as directed by the learned Tribunal.
8. The statutory deposit made by the appellant before this court
along with accrued interest be refunded to the Appellant - insurer on
proper application and on production of proof of deposit of the
awarded amount with interest before the tribunal.
9. The appeal is accordingly disposed of.
10. An urgent certified copy of this order be issued as per rules.
( B.P. Routray)
Judge
M.K.Panda
