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2025 DAILYLAW 10741 (ALL)

SMT. KALAWATI AND OTHERS v. THE NEW INDIA ASSURANCE COMPANY LTD. AND ANOTHER

FAFO/1777/2010 · 2025-05-11

Vipin Chandra Dixit

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Judgment text

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Neutral Citation No. - 2025:AHC:77339 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 1777 of 2010 Appellant :- Smt. Kalawati And Others Respondent :- The New India Assurance Company Ltd. And Another Counsel for Appellant :- Sharve Singh Hon'ble Vipin Chandra Dixit,J. 1. Heard Sri Sharve Singh, learned counsel for the appellant and Sri Komal Mehrotra, learned counsel appearing on behalf of respondent no.1 Insurance Company. No one is present on behalf of respondent no.2, who is owner of the truck. 2. This First Appeal From Order has been filed on behalf of the claimants- appellants under section 173 of Motor Vehicle Act for enhancement of compensation against the judgment and award dated 26.03.2010 passed by Motor Accident Claims Tribunal/Additional District and Sessions Judge, Court No.10, Allahabad in MACP No.156 of 1997 titled as "Smt. Kalawati and others Vs. Prahlad and another" by which compensation of Rs.1,34,500/- along with 6% interest has been awarded on account of death of Sheetla Prasad, who died in a road accident on 21.09.1990. 3. It is submitted by learned counsel for the claimants-appellants that the compensation awarded by the Claims Tribunal is too meager. The age of the deceased was 21 years at the time of accident and the Claims Tribunal had applied the multiplier of 13 on the age of the claimants, who are parents of the deceased whereas law has been settled by Hon'ble the Apex Court in the case of Sarla Verma (Smt.) & Ors. Vs. Delhi Transport Corporation & Anr., (2009) 6 SCC 121 that multiplier would be applicable on the age of the deceased. In the present case, age of the deceased was 21 years and as such, multiplier of 18 would be applicable. It is further submitted that nothing has been awarded toward future prospects whereas claimants are also entitled for 40% future prospects. No other ground has been pressed by learned counsel for appellant. 4. Sri Komal Mehrotra, learned counsel appearing on behalf of Insurance Company submits that admittedly, the deceased was unmarried and the Claims Tribunal has erred in deducting 1/3 towards personal expenses of the deceased whereas deduction would be 1/2 in view of judgment of Hon'ble the Apex Court in the case of Sarla Verma (Supra). It is further submitted that compensation awarded by Claims Tribunal is almost just and proper and no ground of enhancement is made out. 5. Considered the submissions of learned counsel for the parties and perused the records. 6. As per the case of the claimants, deceased was aged about 21 years and had earned Rs.2400/- per month. The claimants had not adduced any evidence in respect of income of the deceased. The income has rightly been assessed by the Claims Tribunal as Rs.15,000/- per annum as provided under IInd Schedule of Motor Vehicle Act. So far as multiplier is concerned, age of the deceased was 21 years and as such, the Claims Tribunal has wrongly applied the multiplier of 13 whereas appropriate multiplier would be 18 on the age of the deceased in the light of the judgment of Hon'ble the Apex Court in the case of Sarla Verma (supra). The claimants are also entitled for 40% future prospects and Rs.30,000/- for non- pecuniary damages in the light of judgment of Hon'ble the Apex Court in the case of National Insurance Company Limited v. Pranay Sethi, reported in (2017) 4 T.A.C. 673. 7. In view of above discussions, the present First Appeal From Order is partly allowed and the compensation awarded by the Motor Accident Claims Tribunal is reassessed as follows :- (i) Annual Income = Rs.15,000/- (ii) Future Prospects (40%) = Rs.6,000/- (iii) Total annual income = Rs. 15,000/- + Rs.6,000/ = Rs. 21,000/- (iii) Deduction toward personal expenses (1/2) = Rs.10,500/- (iv) Multiplier applicable (18) = Rs.10,500/- x 18 = Rs. 1,89,000/- (v) Non-pecuniary damages = Rs. 30,000/- Total : Rs.1,89,000/- + Rs. 30,000/- = Rs. 2,19,000/- 8. Accordingly, the First Appeal From Order is partly allowed. The compensation awarded by the Claims Tribunal is enhanced from Rs.1,34,500/- to Rs. 2,19,000/-. The claimants-appellants are also entitled for interest at the rate of 4% on the enhanced amount from the date of award of Claims Tribunal i.e. 26.03.2010. 9. The Insurance Company is directed to pay the enhanced amount along with interest within a period of two months from today. 10. No order as to costs. Order Date :- 12.5.2025 Sumit S Digitally signed by :- SUMIT SRIVASTAVA High Court of Judicature at Allahabad