SMT. SAVITRI DEVI AND OTHERS v. NATIONAL INSURANCE CO LTD. AND ANOTHER
FAFO/1930/2006 · 2025-04-23
Vipin Chandra Dixit
body2025
DailyLaw.ai
[ 2025 DAILYLAW 32534 (ALL) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 32534 (ALL) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
Neutral Citation No. - 2025:AHC:69203 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 1930 of 2006 Appellant :- Smt. Savitri Devi And Others Respondent :- National Insurance Co Ltd. And Another Counsel for Appellant :- Ram Singh,P.K. Agarwal Counsel for Respondent :- Syed Mehdi Haider Zaidi Hon'ble Vipin Chandra Dixit,J. Heard Sri Ram Singh, learned counsel for the appellants and Mr Hasan Abbas, Advocate holding brief of Mr Syed Mehdi Haider Zaidi, learned counsel for the Insurance Company-respondent no.1. No one is present on behalf of respondent no. 2, who is the owner of the vehicle. This first appeal from order has been filed under Section 173 of Motor Vehicle Act, 1988 on behalf of the claimants-appellants for enhancement of compensation against the judgment and award dated 13.2.2006 passed by Special Judge (Anti- Corruption)/Motor Accident Claims Tribunal, Bareilly in M.A.C.P. No. 766 of 2004 (Smt. Savitri Devi and others vs. National Insurance Co. Ltd. and another), by which compensation of Rs.2,73,000/- along-with 6% interest has been awarded to the claimants-appellants and liability has been fixed upon respondent no. 1- National Insurance Company Ltd.. It is submitted by learned counsel for the appellant that the Claim Tribunal has erred in awarding a very meager amount of compensation in favour of claimants- appellants. It is further submitted that the deceased aged about 51 years was a Central Government employee but nothing has been awarded towards future prospects and only Rs. 9000/- for non pecuniary damages was awarded, whereas the claimants-appellants are entitled for 15% future prospects and Rs. 70,000/- for non pecuniary damages in view of law laid down by Hon'ble Apex Court in the case of National Insurance Company Ltd. vs. Pranay Sethi reported in 2017(4) T.A.C. 673. It is further submitted that Claims Tribunal has also erred in deducting 1/3rd amount on account of personal expenses of the deceased whereas there are six dependents of the deceased and as such, deduction would be 1/4 in view of law laid down by Hon'ble Apex Court in the case of Sarla Verma vs. Delhi Road Transport Corporation reported in 2009(2) TAC 677 (S.C.). On the other hand, learned counsel for Insurance Company-opposite party has not disputed the aforesaid legal position. He submits that compensation awarded by the Claims Tribunal is almost just and proper and no ground for enhancement is made out.
Considered the submissions of the learned counsel for the parties and peruse d the record. The deceased was a Governement employee and the Claims Tribunal had accepted monthly income of the deceased as Rs. 3116/- p.m. relying on the pay slip which was filed on behalf of claimants before the Claims Tribunal. The Claims Tribunal has erred in not awarding any amount towards future prospects and only Rs. 9000/- was awarded for non pecuniary damages whereas the claimants-appellants are entitled for 15% future prospects and Rs. 70,000/- for non pecuniary damages in view of the law laid down by the Apex Court in the case of Pranay Shetty (supra). The Claims Tribunal has also erred in deducting 1/3rd towards personal expenses ignoring the fact that there are six dependents of the deceased and deduction would be 1/4 as per law laid down by Hon'ble Apex Court in the case of Sarla Verma (supra). Considering the rival submissions of learned counsels for the parties, the compensation awarded to the appellants is liable to be enhanced. The compensation awarded by the Claims Tribunal is reassessed as below:- 1) Monthly income = Rs.3,116/- 2) Annual income = Rs. 3,116/- X 12= Rs.37,392/- 3) Future prospects (15%) = Rs.5,608/- 4) Total annual income = Rs.37,392/- + Rs.5608/- =Rs.43,000/- 5)Deduction towards personal expenses(1/4th)=Rs.43,000/- - Rs.10,750/-=Rs.32,250/- 6) Multiplier applicable (11) =Rs.32,250/- x 11 = Rs.3 ,54,750/- 7) Non-pecuniary damages =Rs.70,000/- Total = Rs.3,54,750/- + Rs.70,000/- = Rs.4,24,750/- In view of aforesaid discussion, the first appeal from order filed by claimants is hereby partly allowed and award of the Claims Tribunal is modified and compensation is enhanced from Rs.2,73,000/- to Rs.4,24,750/-. The claimants- appellants are also entitled for 6% interest on enhanced amount from the dated of award of Claims Tribunal i.e. 13.02.2006. The National Insurance Company Limited/opposite party is directed to deposit the enhanced amount Rs.1,51,750/- along with interest at the rate of 6% to the claimants-appellants, within two months from today before the concerned Motor Accident Claims Tribunal. The claimants are entitled to withdraw the entire deposited amount without furnishing any surety. No order as to costs.
Order Date :- 24.4.2025/PS
Digitally signed by :- POOJA SHARMA High Court of Judicature at Allahabad