The New India Assurance Company Ltd., Hazaribagh, issuing office, Ramgarh Branch, represented through its Dy. Manager and duly constituted attorney and In- charge, T.P. Claims Hub and The New India Assurance Company Ltd., Ranchi Division, Jharkhand V. Rajeev Kumar Singh and Sanjeev Kumar Singh and Anil Kumar Gupta and Jogendra Kumar

C.O./5/2022

AI Insights

The case involves an appeal by the New India Assurance Company Ltd. against an award of compensation to the claimants, Rajeev Kumar Singh and Sanjeev Kumar Singh, for a motor vehicle accident. The original compensation awarded was Rs.24,04,536, which was later adjusted to Rs.23,10,799 by the insurance company based on their calculations. The High Court's earlier decision had already set the compensation amount, which the insurance company contested on grounds including incorrect vehicle identification and the commercial nature of the vehicle without a valid permit. However, these grounds were rejected, and the court directed the insurance company to deposit the adjusted compensation amount with interest.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798291 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 08-04-2024
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: YOGESH MODI
• Assessee Lawyers: GANESH JHA; JITESH KUMAR
• Keywords: Commercial vehicle; Compensation; Income Tax Return; Valid permit; Motor Vehicle Accident Claims Tribunal

Judgement Text

" IN THE HIGH COURT OF JHARKHAND AT RANCHI M.A. No.296 of 2017 ---- The New India Assurance Company Ltd., Hazaribagh, issuing office, Ramgarh Branch, represented through its Dy. Manager and duly constituted attorney and In- charge, T.P. Claims Hub. The New India Assurance Company Ltd., Ranchi Division, Jharkhand. …. …. Appellant(s) Versus 1. Rajeev Kumar Singh 2. Sanjeev Kumar Singh 3. Anil Kumar Gupta 4. Jogendra Kumar …. …. Respondent(s) With Cross Objection No. 05 of 2022 1. Rajeev Kumar Singh 2. Sanjeev Kumar Singh Versus 1. The New India Assurance Company Limited, Hazaribagh. 2. Anil Kumar Gupta 3. Jogendra Kumar ---- CORAM: HON’BLE MR. JUSTICE RAJESH KUMAR ---- For the Appellant(s) : Mr. Ganesh C. Jha, Adv. [in M.A. No.296 of 2017] Mr. Jitesh Kumar, Adv. [in C.O. No.05 of 2022] For the Respondent(s) : Mr. Jitesh Kumar, Adv. [in M.A. No.296 of 2017] Mr. Yogesh Modi, Adv. [in M.A. No.296 of 2017] Mr. Ganesh C. Jha, [in C.O. No.05 of 2022] ---- 14/Dated: 08th April, 2024 1. Heard the learned counsel for the parties. 2. The present appeal has been filed by the Insurance Company. The order dated 17.01.2020 is quoted hereinbelow:- “Heard, learned counsel for the appellant. Appellant- The New India Assurance Company Ltd. has preferred this appeal against the award dated 14.02.2017 passed by the learned Presiding Officer, Motor Vehicle Accident Claims Tribunal (M.V.A.C.T.) Hazaribag in Claim Case No.108 of 2013, whereby the claimants have been awarded compensation to the tune of Rs.24,04,536/-, along with interest @ 6% per annum from the date of framing of issues i.e. on 14.01.2016 payable within 30 days, failing which the award amount shall carry interest @ 9% per annum. Learned counsel for the appellant has assailed the impugned award on the ground that the learned Tribunal has wrongly calculated the compensation instead of Rs.24,04,536/- the amount ought to have been Rs.23,10,799/- as per the chart furnished by him which is quoted hereunder:- Page | 2 M.A. No.296 of 2017 With C.O. No.05 of 2022 Income Tax (2012-2013) Gross Income- Rs.3,32,082/- Deduction under Chapter VI(A) Rs.12,100/- Total Income Rs.3,19,982/- Income Tax Payable Rs.14,418/- Rs.3,05,564/- 1/3rd Deduction Rs.1,01,855/- Rs.2,03,709/- x 11 as multiplier of 55 yrs. = Rs.22,40,799/- Conventional Head Rs.22,40,799/-+ Rs.70,000/- = Rs.23,10,799/- The aforesaid amount shall carry interest in accordance with law. Learned counsel for the appellant has submitted that the award is also bad in law as the police case was registered against the Pick-Up Van No.JH-01J7559 but the charge-sheet was registered against another vehicle. This Court has perused the case-diary and the documents and found this ground to be obnoxious as there is careless on the part of the Investigating Officer, the offending vehicle Pick-Up Van No.JH-01J-7559 which is mentioned in the FIR, which is mentioned in the release order of the Chief Judicial Magistrate as well as report submitted by the investigator of the Insurance Company and also in the report of the motor vehicle inspector, as such, this ground is not sustainable which is accordingly rejected. Learned counsel for the appellant has further submitted that though other documents have been brought on record but the route permit has not been brought on record as the vehicle was insured under the commercial vehicle, as such, notice may be issued to the owner. Under the aforesaid circumstances, let notice be issued to all the respondents-claimants as well as owner and driver of the offending vehicle for both process i.e. under registered cover with A/D as well as under ordinary process for which requisites etc. must be filed by 24.01.2020. In the meantime, the Insurance Company is directed to deposit Rs.20,00,000/- along with interest 7.5% from the date of filing of the claim application within a period of 90 days. If such, amount is deposited the learned Tribunal shall not proceed in the Execution Case and after due notice and proper verification the same shall be disbursed to the claimants-respondents after taking an affidavit before the learned Tribunal that claimants have already put their appearance in the present Miscellaneous Appeal i.e. M.A. No.296 of 2017 before the High Court. Put up this case after receipt of service of notice.” 3. Thus, the quantum has already been decided by the co-ordinate Bench of this Court. Thus, the claimant is entitled for Rs.23,10,799/- with the interest of 7.5% from the date of filing of the application. 4. The Insurance Company has taken the plea that the vehicle in question was a commercial vehicle and was being run without valid permit. It has also been pointed out that the income of the deceased was not personal income rather it was an income of a business and as such there is no loss of income to the family. Page | 3 M.A. No.296 of 2017 With C.O. No.05 of 2022 5. Learned counsel for the claimant has opposed the prayer of the appellant- Insurance Company and it has been submitted that the order of this Hon’ble Court as quoted hereinabove has become final and that has not been challenged and as such the claimant is entitled for the above compensation amount with 7.5 % interest as ordered by the Court. 6. So far as the Cross Objection being C.O. No.05 of 2022 is concerned, on instruction of the client, the learned counsel has submitted that he is not pressing the present cross objection. Accordingly, the present cross objection is hereby disposed of. 7. So far as the loss of present income is concerned, it has been submitted that it is settled law that the income from the property becomes personal income, if skill is added to the property. Personal income means use of a skill of the deceased. In the present case, the business has been earned by the deceased and there is an income tax return also. 8. In view of above discussion, this Court finds no reason to interfere with the order dated 14.02.2017 passed by the learned Presiding Officer, Motor Vehicle Accident Claims Tribunal (M.V.A.C.T.), Hazaribag in Claim Case No.108 of 2013. Accordingly, the present miscellaneous appeal is hereby disposed of directing the Insurance Company to deposit Rs.23,10,799/- with 7.5 % interest from the date of filing of the application. 9. The office is directed to remit the statutory amount to the Tribunal to be released in favour of the claimant or the Insurance Company depending upon the facts and circumstances of the case. The Tribunal will take into consideration that the awarded amount already paid to the claimant. Interest will not be charged with said amount. 10. With above observations and directions, the present appeal is hereby disposed of. (Rajesh Kumar, J.) Amar/A.S.K./- Uploaded "