High CourtsSingle Bench(2013) 12 RAJ CK 0078

National Insurance Company Limited vs Smt. Kiran @ Kanchan Devi and Others

Rajasthan High Court · Decided on 13 December 2013 · Citation: (2014) 1 WLN 506

HON’BLE JUDGES
Arun Kumar Mishra, J
RESULT
Partly Allowed
CASE NUMBER
Civil Misc. Appeal No. 584/2007

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Judgment

12 paragraphs · 790 words

Arun Bhansali, J.—This appeal is directed against judgment and award dt. 22.06.2006 passed by Motor Accident Claims Tribunal, Ratangarh Camp Sujangarh (''the Tribunal''), whereby, for the death of one Sanjay, the Tribunal has awarded a sum of Rs. 6,75,000/- alongwith interest @ 6% per annum from the date of filing application for compensation (''the application'') i.e. 07.01.2004. The facts in brief may be noticed thus: on 18.09.2003 at about 09.30 PM the deceased Sanjay was riding on a motor cycle as a pillion rider with Dharmchand from Ringas to Sikar, when the motor cycle collided with a Jeep, resulting in death of both Sanjay and Dharmchand.

2.

The application for compensation was filed by the parents of Sanjay before the Tribunal, inter alia, with the averments that he was aged about 25 years and was earning about Rs. 5,000/- per month working as mechanic and involved in repairing of scooter and motor cycle. The compensation of Rs. 4,20,000/- was claimed. The application was opposed by the Insurance Company by filing reply.

3.

The Tribunal after considering the evidence led by parties, came to the conclusion that the accident occurred on account of rash and negligent driving by driver of the Jeep, which resulted in, the death of both Sanjay and Dharmchand.

4.

While considering the issue relating to the award of compensation, the Tribunal took the daily income of the deceased @ Rs. 100/- i.e. Rs. 3,000/- per month and enhanced to Rs. 6,000/- per month on account of future prospectus and deducted 1/3 towards his personal expenses and applied a multiplier of 14 and awarded a sum of Rs. 6,72,000/- under the head of loss of income and the sum of Rs. 2,000/- towards funeral expenses, Rs. 1,000/- as costs and as such total awarded a sum of Rs. 6,75,000/-.

5.

It is submitted by the learned counsel for the appellant-Insurance Company that the award of compensation even if the income of the deceased is taken at Rs. 3,000/- per month is contrary to the law laid down by the Hon''ble Supreme Court in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, regarding the award of future prospectus and deduction. It was further submitted that the award of 9% interest in case of default in payment of compensation within a period of two months in place of 6% interest is contrary to the law laid down by the Hon''ble Supreme Court in National Insurance Co. Ltd. Vs. Keshav Bahadur and Others, .

6.

On the other hand, the learned counsel for the respondent supported the award impugned. It was submitted that the Tribunal has not awarded any sum for mental agony, loss of love and affection on account of death of young son to the parents and, therefore, the amount awarded is just and proper in the facts and circumstances of the case.

7.

I have considered the rival submissions.

8.

The law on determination of grant of compensation is well settled in view of judgment of Hon''ble Supreme Court in the case of Sarla Verma (supra), wherein the future prospectus upto the age of 40 years has been indicated at 50% and for a unmarried son deduction provided is half, so far as the multiplier is concerned the multiplier applied is in consonance with the law laid down.

9.

In that view of the matter, the claimants would be entitled to the following sum under the head of loss of income i.e.:- (3000 + 1500 = 4500 -2250 = 2250 x 12 x 14) = 3,78,000/-. So far as the award of amount for loss of love and affection and mental agony is concerned keeping in view that the deceased was 25 years young person, the claimants would be entitled to a sum of Rs. 20,000/- each towards loss of love and affection. Further awarding a sum of Rs. 2,000/- towards funeral expenses is also on the lower side, which is also enhanced to Rs. 7,000/-.

10.

Consequently, the claimants would be entitled to a sum of Rs. 4,25,000/- as compensation alongwith interest @ 6% from the date of filing the application i.e. 07.01.2004.

11.

The direction of enhanced rate of interest on default i.e. 9% being contrary to law laid down by the Hon''ble Supreme Court in Keshav Bahadur (supra) cannot be sustained and the same is, therefore, set aside.

12.

Consequently, the appeal is partly allowed. The award passed by the Tribunal is modified to the extent that claimants would be entitled to a sum of Rs. 4,25,000/- alongwith interest @ 6% from the date of filing of application i.e. 07.01.2004 till the date of payment. The amount of compensation be paid to the claimant within a period of three months. No costs.