New India Assurance Co. Ltd. vs B. Vanlalsawia and Another

S.K. Kar, J.—It is decided that petition may be disposed of at the motion stage itself. This is a petition under Articles 226/227 of the Constitution of India by New India Assurance Company Limited, Aizawl Branch. Aizawl, against respondent No. 1 claimant Shri B. Vamalsawia and another, intended to challenge the award of the MACT, Aizawl, awarding sum of Rs. 1,59,000 (rupees one lakh fifty nine thousand) only on the occasion of death of a minor male child, aged about 9 years, on 22.11.2001 involving vehicle No. MZ-01/4891.

The claim petition was contested before learned Tribunal and on hearing both parties Tribunal assessed the award on the basis of notional income of Rs. 15,000 (Rupees fifteen thousand) per annum. Learned Tribunal further allowed additional sum on count of funeral expenses and ''conventional amount'', making the total award of Rs. 1,59,000 (rupees one lakh fifty nine thousand) only with 12% interest p.a. from the date of petition.

Referring to the views expressed by this High Court earlier Id. lawyer for the petitioner contended that in a similar case this High Court granted a sum of Rs. 75,000 only inclusive of all counts including no fault. On the other hand learned counsel for the respondent No. 1 claimant has contended that Hon''ble Allahabad High Court in similar cases of deaths of minor children aged between 5 to 12 years awarded Compensation ranging from Rs. 1,50,000 to 2,25,000 defending on facts given therein.

Giving my considerations to the contentions of both sides I am to express my view that there is no hard and fast rule in assessing quantum of compensation in such cases of death of minor children. In assessing the quantum just compensation to be awarded. But sometimes a distinction is made when there is death of the only male child or where the child is a industrious and intelligent student with bright future prospects or he was engaged in some other profitable works etc. etc.

It will be admitted that the amount of compensation on the basis of case-laws cited has not gone down Rs. 75,000 inclusive of ''no fault'' and other counts. However, it is agreed at the bar that inviting the ''conventional amount'' was not properly explain by Ld. Tribunal below and particularly if Section 163-A of M.V. Act'' 88 was applied, there is nothing in scheduled II of Motor Vehicle Act 1988 as amended update) to speak on any ''conventional amount''. Be that as it may, it was pleaded that the child was lone male child of the family and loss in that event is definitely serious loss to the family of respondent No. 1. But then, it is widely appreciated that in case of assessment of quantum of compensation the Tribunals or the courts, as a matter of fact, are in the habit of adhering to some short of guess works, if not conjectures.

In conclusion thereof, taking a middle line in this case, even if the no fault is doubled it will be a sum of Rs. 1,00,000 (Rupees one lakh) only learned lawyer for the petitioner submitted that going beyond one lakh will be much on the higher side in view of the decision of this court given earlier. But then, I would re-assess the just compensation at Rs. 1,20,000 (rupees one lakh twenty thousand, inclusive of all claims) and the impugned award would stand modified accordingly.

Interest: It was held by Hon''ble Apex Court in H.S. Ahammed Hussain and Another Vs. Irfan Ahammed and Another, reiterating its view expressed earlier reported as Smt. Kaushnuma Begum and Others Vs. The New India Assurance Co. Ltd. and Others, as follows :

"Earlier, 12% was found to be the reasonable rate of simple interest. With a charge in economy and the policy of the Reserve Bank of India the interest rate has been lowered. The nationalised banks are now granting interest @ 9% for fixed deposits for one year. We, therefore, direct that the compensation amount fixed hereinbefore shall bear interest at the rate of 9% p.a. from the date of the claim made by the appellants."

Thus the interest rate granted by learned Tribunal is stands also reduced to 9% p.a. simple interest instead of 12% p.a. etc.

Petition is partly allowed. Judgment and award, of Tribunal would stand amended and modified as indicated.