National Insurance Co. Ltd vs Urmial Devi And Ors

The National Insurance Company has preferred this appeal against the award dated 23.02.2017 in Title (M.V.) Case No.97/14 passed by District

Judge-XIV-cum-Motor Accident Claim Tribunal, Dhanbad whereby the claimants have been awarded compensation to the tune of Rs.7,04,000/-

(after deducting Rs.50,000/- under section 140 of the M.V. Act as ad-interim compensation) along with interest @6% per annum from the date of

filing of the claim application till its realisation in the name of plaintiff no.1 Urmial Singh within 60 days from the date of order failing which the

plaintiffs would be at liberty to take legal recourse.

Learned counsel for the appellant Mr. Amresh Kumar appearing for National Insurance Company Limited has assailed the impugned award on the

ground that the award is bad in law as there is a complete violation of terms and conditions of the insurance policy. The goods vehicle has been used

to carry passenger. Learned counsel for the appellant has thus submitted that entire liability ought to have been shifted upon the owner of the

offending vehicle.

Learned counsel for the appellant has submitted that future prospect to the tune of 50% has been wrongly computed by the learned Tribunal though

the deceased Tikait Singh was a daily wage earner with a monthly income of Rs.4,500/-, as such, without having any fixed source of income or

permanent income the Tribunal has wrongly granted future prospect, as such, there shall be deduction in the quantum.

Learned counsel for the claimants Mr. Santosh Kumar Jha has submitted that though the claimants have not preferred any appeal before this Court

for enhancement of the award but in view of judgment passed by the Apex Court in the case of Ranjana Prakash & Ors. vs. Divisional Manager &

Anr.; 2011 14 SCC 639, para-8, this Court of appeal should not reduce the compensation amount when admittedly the computation of compensation

has not been done correctly by the Tribunal. Para-8 of the said judgment is profitably quoted hereunder:

“8. Where an appeal is filed challenging the quantum of compensation, irrespective of who files the appeal, the appropriate course for

the High Court is to the examine the facts and by applying the relevant principles, determine the just compensation. If the compensation

determined by it is higher than the compensation awarded by the Tribunal, the High Court will allow the appeal, if it is by the claimants and

dismiss the appeal, if it is by the owner/insurer. Similarly, if the compensation determined by the High Court is lesser than the compensation

awarded by the Tribunal, the High Court will dismiss any appeal by the claimants for enhancement, but allow any appeal by the

owner/insurer for reduction. The High Court cannot obviously increase the compensation in an appeal by the owner/insurer for reducing

the compensation, nor can it reduce the compensation in an appeal by the claimants seeking enhancement of compensation.â€​

The Apex Court has held where an appeal is filed challenging the quantum of compensation irrespective of who files the appeal, the appropriate

course for the High Court is to examine the fact and by applying the relevant principles, determining just and fair compensation. If the compensation,

determined by it is higher then the compensation awarded by the Tribunal, the High Court will allow the appeal if it is by the claimant and dismiss the

appeal, if it is by the owner or by the insurer.

In the present case admittedly the amount under the conventional head has not been rightly paid by the learned Tribunal in view of the judgment

passed by the Apex Court in the case of National Insurance Company Limited vs. Pranay Sethi & Ors. as reported in (2017) 16 SCC 68 0where in

stead of Rs.70,000/- only Rs.35,000/- has been given, as such, there shall be enhancement of Rs.35,000/- but since the future prospect has been

calculated on the higher side which will reduce the same and it will not lead to major changes in the compensation amount, as such, in that view of the

matter considering the compensation to be just and proper this Court is not inclined to interfere with the same and accordingly, the instant appeal is

hereby disposed of.

The amount already deposited by the Insurance Company shall be disbursed in favour of the claimants, if any amount is due against the Insurance

Company, they will pay the same to the claimants within 90 days from today.

The Registrar General of this Court is directed to refund/reimburse the statutory amount of Rs. 25,000/- deposited at the time of filing of the appeal

within a period of four weeks from the date of filing of the requisition by learned counsel for the appellant.