DHANMANTI DEVI AND OTHERS v. NEW INDIA INSURANCE COMPANY LTD. AND ANOTHER
FAFO/2789/2010 · 2025-05-13
Vipin Chandra Dixit
body2025
DailyLaw.ai
[ 2025 DAILYLAW 51352 (ALL) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 51352 (ALL) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
Neutral Citation No. - 2025:AHC:79123 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 2789 of 2010 Appellant :- Dhanmanti Devi And Others Respondent :- New India Insurance Company Ltd. And Another Counsel for Appellant :- Lal Chandra Sahu Counsel for Respondent :- Aditya Singh Parihar Hon'ble Vipin Chandra Dixit,J. Heard Sri Lal Chandra Sahu, learned counsel for the claimants-appellants and Sri Aditya Singh Parihar, learned counsel appearing on behalf of respondent Insurance Company. No one is present on behalf of respondent no. 2/owner of the vehicle. This first appeal from order has been filed by the claimants-appellants for enhancement of compensation against the judgment and award dated 12.07.2010, passed by Motor Accident Claim Tribunal/Additional District Judge, Court No. 10, Bareilly, in M.A.C.P. No. 854 of 2008 (Smt. Dhanmanti Devi vs. New India Assurance Company Ltd. and another) by which compensation of Rs. 18,21,400/- along with 6% interest has been awarded on account of death of Ram Saran aged about 35 years, who died in a road accident occurred on 29.10.2008. It is submitted by learned counsel for the claimants-appellants that the compensation awarded by the claims tribunal is in lower side. The deceased was a government employee working on the post of Lekhpal and was getting salary of Rs. 15,000/-. Nothing has been awarded towards future prospects and only Rs. 7,000/- was awarded towards non pecuniary damages, whereas, the claimants-appellants are entitled for 50% future prospects and Rs. 70,000/- for non pecuniary damages as per 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 the claims tribunal has erred in deducting 1/3rd towards personal expenses of the deceased ignoring the fact that there are seven dependents on the income of the deceased and as per law laid down by 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.), the deduction would be 1/5th. No other ground has been pressed by the learned counsel for the claimants-appellants. On the other hand learned counsel appearing on behalf of respondent Insurance Company has not disputed the aforesaid legal arguments raised by learned counsel for the appellants. Considered the submissions of learned counsel for the parties and perused the record.
It is admitted fact that the deceased was working as Lekhpal and died on account of injuries received in the road accident on 29.10.2008. The age of the deceased as per
postmortem report was 35 years at the time of accident and the claims tribunal had calculated compensation accepting the monthly income of the deceased as Rs. 14,175/- per month, after deducting 1/3rd towards personal expenses and by applying the multiplier of 16 had awarded Rs. 18,21,400/-. The claims tribunal has erred in not awarding any amount towards future prospects whereas, the claimants-appellants are entitled for 50% future prospects and Rs. 70,000/- for non pecuniary damages as per judgment of Hon'ble Apex Court in the case of Pranai Sethi (supra). Record shows that there are seven dependents on the income of the deceased and the claims tribunal has also erred in deduction 1/3rd towards personal expenses, whereas, deduction would be 1/5th in view of law laid down by Hon'ble Apex Court in the case of Sarla Verma (supra). The monthly income of Rs. 14,175/- and multiplier was not disputed by any party. Considering the rival submissions of learned counsel for the parties, the compensation awarded by the Motor Accident Claims Tribunal is reassessed as follows :-
1. Monthly Income : Rs. 14,175/-
2. Annual Income : Rs. 14,175/- x 12 = Rs. 1,70,100/-
3. Future prospects : (50%) = Rs. 85,050/-
4. Total annual income : Rs. 1,70,100/- + Rs. 85,050/- = Rs. 2,55,150/-
5. Deduction towards personal expenses (1/5) : Rs. 2,55,150/- - Rs. 51,030/- = Rs. 2,04,120/-
6. Multiplier applicable (16) : Rs. 2,04,120/- x 16 = Rs. 32,65,920/-
7. Non-pecuniary damages : Rs.70,000/- Total : Rs. 32,65,920/- + Rs. 70,000/- = Rs. 33,35,920/- In view of above discussion, the first appeal from order is hereby partly allowed and award of the Claims Tribunal is modified and compensation awarded by the Claims Tribunal is enhanced from Rs. 18,21,400/- to Rs. 33,35,920/-.
The claimants-appellants are also entitled for interest at the rate of 4% on the enhanced amount from the date of award of the claims tribunal i.e. 12.07.2010. The respondent Insurance Company is directed to pay enhanced amount along with interest to the claimants within two months from today. No order as to costs. Order Date :- 14.5.2025 sailesh Digitally signed by :- SAILESH PRAJAPATI High Court of Judicature at Allahabad