Punjab-Haryana High Court
National Insurance Company Ltd vs Ram Dulari & Ors on 26 April, 2023
Neutral Citation No:=2023:PHHC:061406
FAO-2790-2017(O&M) -1-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
FAO-2790-2017(O&M)
Reserved on:-19.4.2023
Date of Pronouncement:-26.4.2023
National Insurance Company Ltd.
...Appellant
Versus
Ram Dulari @ Nirmala Devi and others
...Respondents
CORAM: HON'BLE MR.JUSTICE H.S.MADAAN
Present: Mr.Sumit Gupta, Advocate
for the appellant.
Mr.Lovish Rattan, Advocate
for respondents No.1 to 10.
Mr.Rozer Kumar Aggarwal, AAG, Punjab
for respondents No.13 and 14.
****
H.S. MADAAN, J.
1. Briefly stated, facts of the case are that on account of death of
Sham Sunder in a motor vehicular accident, which took place on
15.3.2014 in the area between Lamma Pind to Chaughiti statedly on
account of rash and negligent driving of bus bearing registration No.PB-
02-BH-9795 (hereinafter referred to as the offending bus) of Punjab
Roadways, Amritsar-II, Kilometer Scheme, Amritsar Roadways Depot-II
by its driver Kulwinder Singh, legal representatives of deceased, namely
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Ram Dulari @ Nirmala Devi and 9 others, all residents of village Biswa,
Police Station Jaitapur, District Behrich (Bihar) at present resident of C/o
Kewal Singh Da Khu, Chaughiti, Tehsil and District Jalandhar had
brought a claim petition under Section 166 of the Motor Vehicles Act,
1988 (hereinafter referred to as the Act) against respondents i.e.
Kulwinder Singh - driver, Avtar Singh - owner, General Manager, Punjab
Roadways, Amritsar-II, Kilometer Scheme, Amritsar Roadways Depot-II,
Amritsar as well as Director Transport, Chandigarh and National
Insurance Company Ltd. Amritsar - insurer of the offending bus before
Motor Accident Claims Tribunal, Jalandhar (hereinafter referred to as the
Tribunal).
2. After contest the claim petition was accepted by the Tribunal
and vide award dated 19.1.2017 compensation of Rs.15,02,000/- was
granted as per the details below:
Heads of Claim Tribunal
Sr.No. Amount(Rs)
1. Annual Income Rs.1,02,000/-
2. Future Prospectus @ 50% Rs.51000/-
3. Total annual income Rs.1,53000/-
4. Deduction 1/2. Rs.76,500/-
5. Multiplicand (annualized) 76,500/-
6. Multiplier 76,500 x 18=13,77,000/-
7. Loss of estate 1,00,000/-
8. Funeral expenses 25,000/-
Total Rs.15,02,000/-
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The compensation was payable with interest @ 7.5% per
annum from the date of filing of the claim petition till actual realization.
The liability of respondents No.1, 2 and 5 to pay the amount of
compensation to claimants/petitioners No.1, 2 and 8 to 10 was held to be
joint and several.
3. This award left the respondent No.5 - insurance company
aggrieved and it has approached this Court by way of filing the present
appeal praying that the same be accepted, the impugned award be set
aside and the appellant - insurance company be absolved of its liability to
pay compensation to the claimants.
4. Notice of the appeal was given to the respondents and
respondents No.1 to 10 as well as 13 and 14 have put in appearance
through counsel.
5. I have heard learned counsel for the parties besides going
through the record.
6. In this case, the Tribunal in view of the pleadings of the
parties considering the facts and circumstances of the case as well as
evidence brought on record by the contestants has returned a clear finding
that respondent No.1 Kulwinder Singh was author of the accident in
which Sham Sunder had lost his life on account of rash and negligent
driving of the offending bus, as such claimants No.1 and 2 being parents
of the deceased and claimants No.8 to 10 being minor siblings of the
deceased were found entitled to claim compensation from the driver,
owner and insurance company of the bus in question.
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7. For the purpose of assessing the compensation payable, the
Tribunal has taken the age of deceased to be 18 years and his monthly
income to be Rs.8,500/- on the basis of statement of PW3 Nachhatar
Singh. However, the other plea of the claimants that he was selling
vegetable and fruits and earning income therefrom was not found to be
established, as such was rejected.
8. However, I find that the evidence adduced by the claimants
that deceased was earning Rs.8,500/- per month by working in the fields
of Kewal Singh at his well installed in their fields and entire maintenance
work of agriculture does not deserve to be doubted more particularly
when PW3 Nachhatar Singh categorically deposed in that regard. The
Tribunal while taking income of the deceased to be Rs.8,500/- per month
and annual income Rs.1,02,000/- has allowed an addition of 50% towards
future prospects. However, the Tribunal fell in error in doing so. In view
of the ratio of authority National Insurance Company Limited Versus
Pranay Sethi and Ors., 2017(4) RCR(Civil)1009, when the deceased was
below 40 years, 40% of the established income is to be added towards
future prospects. Doing that the annual income of the deceased is taken as
Rs.1,42,800/-(11900 x 12).
9. Since the deceased was a bachelor, 50% of the amount is to
be deducted in terms of the ratio of authority Smt.Sarla Verma and
others Versus Delhi Transport Corporation and Anr., 2009(3)
RCR(Civil)77. Doing that the annual dependency of claimants comes out
to Rs.71,400/-.
10. The Tribunal has used multiplier of 18, which keeping in
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view the age of the deceased has been properly used. Doing that the
compensation payable comes out to Rs. 71,400 x 18 = 12,85,200/-.
11. Under the conventional head loss of estate, the Tribunal has
awarded Rs.1 lakh and under the head funeral expenses the Tribunal has
further awarded a sum of Rs.25,000/-.
12. However, as per the latest judgment Shri Ram General
Insurance Co. Ltd. Versus Bhagat Singh Rawat & Ors., Civil Appeal
Nos.2410-2412/2023 [@ SLP[C] Nos.11669-11671/2020], the claimants
are to be granted a sum of Rs.40,000/- in total under the head loss of
consortium. The claimants are further entitled to get Rs.15,000/- as
funeral expenses and Rs.15,000/- for loss of estate.
13. Doing that the compensation comes out to be Rs.13,55,200/-
(12,85,200 + 40,000 + 15,000 + 15,000).
14. The Tribunal has wrongly awarded compensation of
Rs.15,02,000/-. The same is reduced to Rs.13,55,200/-. The liability to
pay this amount is joint and several of respondents No.1, 2 and 5. The
claimants No.1, 2, 8 to 10 would be entitled to get interest @ 7.5% per
annum from the date of filing of the claim petition till actual realization on
the amount of Rs. 13,55,20 /-. Other terms and conditions in the original
award shall remain the same. The apportionment of compensation as well
as manner of payment shall remain the same as directed by the Tribunal in
the award. However, the amount payable to them shall stand reduced
proportionately. The excess amount if received by claimants be returned
by them otherwise the appellant - insurance company shall be entitled to
recover it by filing an execution application before the Tribunal.
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With such modification, the appeal is allowed partly with
costs.
26.4.2023 (H.S.MADAAN)
Brij JUDGE
Whether reasoned/speaking : Yes/No
Whether reportable : Yes/No
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