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2025 DAILYLAW 39970 (ALL)

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

FAFO/3573/2009 · 2025-04-21

Vipin Chandra Dixit

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Judgment text

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Neutral Citation No. - 2025:AHC:59847 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 3573 of 2009 Appellant :- Smt. Duwasia And Others Respondent :- The New India Assurance Company Ltd. And Another Counsel for Appellant :- Sharve Singh Counsel for Respondent :- Ajay Singh,Bhagawati Singh Hon'ble Vipin Chandra Dixit,J. 1. Heard Sri Sharve Singh, learned counsel for the appellants and Sri Ajay Singh, learned counsel for respondent no.1- New India Assurance Company Ltd. No one is present on behalf of respondent no.2, who is owner of the vehicle. 2. This first appeal from order under Section 173 of the Motor Vehicle Act, 1988 has been filed on behalf of the claimants-appellants for enhancement of compensation against the judgment and award dated 22.08.2009 passed by Additional District and Sessions Judge/ Motor Accident Claim Tribunal, Court No.9, District Allahabad in C.P. No.241 of 2001 (Smt. Duwasia and others Vs. Bhagwati Singh and another), by which, compensation of Rs.2,50,000/- alongwith 6% interest has been awarded in favour of the claimants/ appellants on account of death of Om Prakash, aged about 30 years. The liability has been fixed upon the respondent no.1 being insurer of offending vehicle. 3. It is submitted by learned counsel for the claimants-appellants that compensation awarded by the Claims Tribunal is too meager. The claimants have fully proved the income of the deceased as Rs.5,000/- per month and the Claims Tribunal has erred in accepting Rs.2,000/- as monthly income of the deceased. It is further submitted that there are six dependents on the income of the deceased and the Claims Tribunal has erred in deducting 1/3rd towards personal expenses of the deceased in place of 1/4th. It is further submitted that nothing has been awarded towards future prospects and only Rs.7,000/- was awarded for non-pecuniary damages, whereas claimants are entitled for 40% future prospects and Rs.70,000/- for non-pecuniary damages. 4. On the other hand, Sri Ajay Singh, learned counsel appearing for respondent no.1 submits that the compensation awarded by the Claims Tribunal is just and proper and no ground for enhancement is made out. It is further submitted that the claimants have failed to prove the income of the deceased and the Claims Tribunal has rightly assessed the income as Rs. 2,000/- per month. Lastly, it is submitted that age of the deceased was 45 years as per the postmortem report and the Claims Tribunal has erred in applying the multiplier of 16, whereas the multiplier of 14 would be applicable as provided by the Hon'ble Apex Court in the case of Smt. Sarla Verma vs. D.T.C. reported in 2009 (2) T.A.C. 677 (S.C.). 5. Considering the rival submissions of learned counsel for the parties and perused the record. 6. As per the claim petition the income of the deceased was Rs.5,000/- but the claimants have failed to produce any authentic evidence to prove the income of the deceased. The accident was occurred in the year 2000 and, as such, the income of the deceased is accepted Rs.3,000/- per month in view of law laid down by the Hon'ble Apex Court in the case of Laxmi Devi & Others vs Mohammad Tabbar & Another reported in 2008 (2) T.A.C. 394 (S.C.). The Claims Tribunal has also erred in deducting 1/3rd towards personal expenses ignoring the fact that there are six dependents and as such in view of the judgment of Hon'ble Apex Court in the case of Smt. Sarla Verma (supra) deduction would be 1/4th. The Claims Tribunal has also erred in not awarding any amount towards future prospects and since the age of the deceased was accepted in between 40-45 years, the claimants are entitled for 25 % future prospects and Rs.70,000/- for non- pecuniary damages in view of the judgment of the Hon'ble Apex Court in the case of National Insurance Company Ltd. vs. Pranay Sethi reported in 2017 (4) T.A.C. 673. The Claims Tribunal has also erred in applying the multiplier of 16, whereas appropriate multiplier would be 14 as per the judgment in Smt. Sarla Verma (supra). 7. In view of above, the compensation awarded by the Motor Accident Claims Tribunal is reassessed as follows :- 1. Monthly Income : Rs. 3,000/- 2. Annual Income : Rs. 3,000//- x 12 = Rs. 36,000/- 3. Future prospects : (25%) = Rs.9,000/- 4. Total annual income : Rs. 36,000/- + Rs. 9,000/- = Rs.45,000/- 5. Deduction towards personal expenses (1/4th) : Rs. 45,000/- - Rs. 11,250/- = Rs. 33,750/- 6. Multiplier applicable (14) : Rs.33,750/- x 14 = Rs. 4,72,500/- 7. Non-pecuniary damages : Rs. 70,000/- Total : Rs. 4,72,500/- + Rs. 70,000/- = Rs. 5,42,500/- 8. The first appeal from order is hereby partly allowed and award of the Claims Tribunal is modified and compensation is enhanced from Rs. 2,50,000/- to Rs.5,42,500/-. The claimants-appellants are also entitled for interest at the rate of 6% on the enhanced amount from the date of award of Claims Tribunal i.e. 22.08.2009. 9. The respondent No.1- The New India Assurance Company Ltd. is directed to pay enhanced amount as well as interest to the claimants within two months from today. Order Date :- 22.4.2025 Radhika Digitally signed by :- RADHIKA VISHWAKARMA High Court of Judicature at Allahabad