Smt. Rekha And Others V. New India Assurance Co. Ltd. And Another

FAFO/806/2001

AI Insights

This case involves an appeal by the claimant, Smt. Rekha and others, against the judgment and award of the Motor Accident Claims Tribunal, Kanpur Dehat, which initially awarded Rs.2,43,000 as compensation for a motor vehicle accident. The appeal contested the Tribunal's decision not to grant compensation under the head of future loss of income, despite the accident occurring under the Motor Vehicles Act, 1939, which was in effect at the time. The appellants argued for a reevaluation of the compensation based on the deceased's income and the applicable legal precedents for calculating future loss of income. The respondents defended the Tribunal's original decision, asserting that the compensation awarded was just and based on the evidence presented. The High Court, after reevaluating the compensation based on updated legal standards and precedents, modified the Tribunal's award significantly.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 687637 (HC-KANPUR DEHAT)
• Appeal Type: Others
• Pronouncement Date: 05-11-2019
• Assessment Year: misc
• Other Referred Cases: National Insurance Company Limited Vs. Pranay Sethi and Others, Sarla Verma Vs. Delhi Transport Corporation
• Laws Referred To: Motor Vehicles Act, 1939, National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050, Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: DEEPAK JAISWAL; SHREESH SRIVASTAVA
• Keywords: Compensation; Future loss of income; Interest Rate; Motor Accident Claim; Multiplier
• Section: 364

Judgement Text

"Court No. - 33 Case :- FIRST APPEAL FROM ORDER No. - 806 of 2001 Appellant :- Smt. Rekha And Others Respondent :- New India Assurance Co. Ltd. And Another Counsel for Appellant :- Deepak Jaiswal,Shreesh Srivastava,Shreesh Srivastava Hon'ble Dr. Kaushal Jayendra Thaker,J. 1. Heard learned counsel for the appellant, and learned counsel for the respondents and perused the judgment and order impugned. 2. This appeal, at the behest of the claimant, has been preferred against the judgment and award dated 31.03.2001 and 10.04.2001 passed by Ist Additional District Judge/Motor Accident Claims Tribunal, Kanpur Dehat (hereinafter referred to as 'Tribunal') in Motor Accident Claim Petition No.364 of 1999 awarding a sum of Rs.2,43,000/- with interest at the rate of 12% as compensation. 3. Learned counsel for the appellant, challenges the appeal on the grounds that the accident had taken place in the year when the old Act i.e. Motor Vehicles Act, 1939 was in vogue but no amount under the head of future loss of income was granted though the law was well settled even in those days. 4. The aforesaid submission has been vehemently objected by learned counsel for the respondent as according to him, the Tribunal had awarded just compensation as per the evidence led before it. 5. While going through the record, it is clear that the tribunal has considered the matter by considering the age of the deceased to be 26 years working as a mason being married giving the multiplier of the applicable to family namely dependents. 6. May that as it may be, the quantum will have to be reevaluated. The income of the deceased as it transpires from the judgment itself and as the evidence led was Rs.3000/- per month as per the income tax returns. Learned counsel has contended that it should be at least reevaluate that rate just because the income tax return was not proved and they were xerox copy, the tribunal has not considered the same even if we consider the income as Rs. 3,000/- per month. It would 36,000/- per year. To which as the deceased was 26 years of age, 40% of his income requires to be added for future loss of income in view of the decision of the Apex Court in National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050 which would bring the figure to Rs.36000 + Rs.14,400 = Rs.50,400/-. Out of which 1/4th requires to be deducted as personal expenses of the deceased, hence, the annual datum figure available to the family is Rs.12,600/-. As the deceased was in the age bracket of 26-30 years, the applicable multiplier would be 17 in view of the decision in Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121. In addition to that, Rs.70,000/- is granted towards conventional heads as it is matter of 1999. Hence, the claimants are entitled to a total sum of Rs.6,42,600 (i.e. Rs.50,400 – Rs.12,600) x 17 + Rs.70,000 =7,12,600/-. 7. The rate of interest will have to be 9% in view of the judgment of the Division Bench of Lucknow Bench in F.A.F.O. No. 199 of 2017 (National Insurance Company Limited Vs. Lavkush and another) decided on 21.3.2017 which has been followed by this Court time and again and which will enure for the benefit of the appellants. 8. In view of the above, the appeal is partly allowed. Judgment and decree passed by the Tribunal shall stand modified to the aforesaid extent. The amount be deposited with interest at the rate of 9% from the date of filing of the claim petition till the decision of the Tribunal and 6% thereafter till the amount is deposited. The amount be deposited within a period of 12 weeks from today. The amount already deposited be deducted from the amount to be deposited. 9. This Court is thankful to both the counsels to see that this very old matter is disposed of. Order Date :- 5.11.2019 A.N. Mishra "