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2010 DAILYLAW 3872 (ALL)

SURESH YADAV AND ANOTHER v. THE ORIENTAL INSURANCE COMPANY LTD. AND ANOTHER

FAFO/1754/2010 · 2026-09-08

Sandeep Chaudhary Joint Registrar Judicial

Public Interest Litigationbody2010

Judgment text

Extracted from the PDF above. The PDF is authoritative.

HIGH COURT OF JUDICATURE AT ALLAHABAD FIRST APPEAL FROM ORDER No. - 1754 of 2010 Court No. - 54 HON'BLE ANIL KUMAR-X, J. 1. Case called out in the revised call. None is present on behalf of insurance company to oppose this appeal. 2. Heard Sri Sharve Singh, learned Senior Advocate, assisted by Smt. Neerja Singh, learned counsel for the appellant. 3. Learned counsel for the appellant submitted that the deceased, Sonu Yadav, aged about 20 years, was a pillion rider on a motorcycle and was proceeding on Kanpur Road near the Water Tank, within the jurisdiction of Police Station Cantt, District Allahabad, on 14.5.2006. At about 3:00 P.M., he was knocked down by Truck No. UP-70-AT-8128, which was being driven rashly and negligently. 4. The learned Tribunal, considering the age of the deceased as 22 years at the time of his death, assessed his income at Rs.3,000/- per month. After deducting one-third towards his personal expenses and applying the multiplier of 11, the learned Tribunal computed the loss of dependency at Rs.2,64,000/-. It further awarded Rs.2,000/- towards funeral expenses and, accordingly, granted total compensation of Rs.2,66,000/-. The liability to pay the compensation was fastened upon the Insurance Company with the right to recover the same from the owner, on the ground that the driver of the offending vehicle did not possess a valid and effective driving licence on the date of the accident, as the same had expired prior to the accident. 5. It was lastly contended that the compensation awarded by the learned Tribunal is on the lower side and requires reassessment by taking the income of the deceased at Rs.6,000/- per month. Learned counsel further submitted that the guidelines laid down by the Hon'ble Supreme Court in National Versus Counsel for Appellant(s) : Neerja Singh, Sharve Singh Counsel for Respondent(s) : Mithilesh Kumar Tiwari, Vinod Kumar Kushwaha Suresh Yadav And Another .....Appellant(s) The Oriental Insurance Company Ltd. And Another .....Respondent(s) Insurance Co. Ltd. Vs. Pranay Sethi and Others, (2017) 16 SCC 680, should also be applied while reassessing the compensation. 6. Heard learned counsel for the parties and perused the record. 7. This Court does not find any infirmity in the finding recorded by the learned Tribunal regarding the accident and the liability. However, it is significant to note that no amount towards future prospects has been added to the income of the deceased. The addition of future prospects is an integral part of just compensation in cases of death arising out of motor vehicle accidents, as held by the Hon'ble Supreme Court. 8. Considering the age of the deceased and the material available on record, this Court finds it appropriate to reassess the compensation as follows: i. Annual income : Rs.36,000/- (Rs.3,000/- × 12) ii. Addition towards future prospects @ 30% : Rs.10,800/- iii. Total annual income : Rs.36,000/- + Rs.10,800/- = Rs.46,800/- iv. Income after deduction of one-third towards personal expenses : Rs.31,200/- v. Multiplier applicable : 11 vi. Loss of dependency : Rs.31,200/- × 11 = Rs.3,43,200/- vii. Funeral expenses : Rs.2,000/- Total compensation : Rs.3,45,200/- 9. In view of the above, appellant/ claimant is entitled to a total compensation of Rs.3,45,200/- along with rate of interest at the rate of 6% per annum in terms of Rule 220-A of U.P. Motor Vehicles Rules, which shall be indemnified by the insurer of the offending vehicle. 10. Accordingly, the appeal is allowed. The impugned award passed by the learned Tribunal is modified to the aforesaid extent. 11. It is further directed that if any amount has already been paid by the Insurance Company pursuant to the award of the learned Tribunal, the same shall be adjusted towards the total amount payable under this judgment. The Insurance Company shall deposit the enhanced amount of compensation before the concerned Tribunal within a period of two months from the date of this order; it shall further be released by the learned Tribunal within four weeks after the deposit of the said amount in favour of the claimants/parents, FAFO No. 1754 of 2010 2 each of whom shall directly receive 50%-50% in their respective savings bank accounts in cash. (i) The claimants are hereby directed to provide their savings bank account details, having R.T.G.S. facility, within four weeks from today to the learned Tribunal. (ii) The said amount shall be transferred to the savings bank accounts of the claimants by way of passing a judicial order, so that the differential amount may be transferred directly from the account of the Tribunal to the accounts of the claimants, after completing the necessary formalities, if any. September 9, 2026 Mukesh FAFO No. 1754 of 2010 3 (Anil Kumar-X,J.) Digitally signed by :- MUKESH SRIVASTAVA High Court of Judicature at Allahabad