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2025 DAILYLAW 7944 (ALL)

ASHA LATA AND OTHERS v. THE NEW INDIA ASSURANCE CO. LTD. AND OTHERS

FAFO/2187/2003 · 2025-05-13

Vipin Chandra Dixit

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Judgment text

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Neutral Citation No. - 2025:AHC:79644 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 2187 of 2003 Appellant :- Asha Lata And Others Respondent :- The New India Assurance Co. Ltd. And Others Counsel for Appellant :- A.L. Jaiswal,Sharve Singh Counsel for Respondent :- Aijaz Ahmad Khan Hon'ble Vipin Chandra Dixit,J. Heard Sri Sharve Singh, learned counsel for the appellants and Mr. Aijaz Ahmad Khan, learned counsel for the Insurance Company-respondent no.1. No one is present for respondent no.2, who is owner of the truck. This first appeal from order has been filed by the appellants-claimants for enhancement of compensation under Section 173 of Motor Vehicle Act against the judgment and award dated 14.5.2003 passed by Additional District Judge, Court No.14/Motor Accident Claims Tribunal, Allahabad in M.A.C.P. No.799 of 1999 (Asha Lata Agarwal & others vs. Ramesh Jaiswal and another), by which compensation of Rs.5,02,764/- alongwith 7% interest has been awarded to the claimants on account of death of Mahendra Kumar Agarwal in a road accident on 29.8.1999. It is submitted by learned counsel for the appellants that the Claims Tribunal has not awarded any amount towards future prospects and only Rs.7500/- has been awarded towards non-pecuniary damages. Income and multiplier have not been disputed by the appellants. No other ground has been pressed by learned counsel for the appellants. On the other hand, learned counsel for Insurance Company-opposite party No.1 submits that compensation awarded by the Claims Tribunal is just and proper and no ground is made out for enhancement of compensation. Considered the submissions of learned counsel for the parties and perused the record. Admittedly, deceased Mahendra Kumar Agarwal died in a road accident on 29.8.1999. The accident was occurred on account of rash and negligent driving of driver of bus bearing No. UP70 E-8535. The deceased was working on the post of Messenger in Indian Air Force and was getting salary of Rs.5,628/- per month. The age of the deceased was 53 years at the time of accident. The Claims Tribunal has rightly applied the multiplier of '11'. The Claims Tribunal has erred in not awarding future prospects and only Rs.7500/- has been awarded for non-pecuniary damages, whereas the claimants-appellants are entitled for 15% future prospects and Rs.70,000/- for non-pecuniary damages as per judgment of Hon'ble Apex Court in the case of National Insurance Company Ltd. vs. Pranay Sethi reported in 2017(4) T.A.C. 673. The compensation awarded by the Claims Tribunal is liable to be enhanced which is being reassessed as under:- 1) Monthly income = Rs.5,628/- 2) Annual income = Rs. 5,628/- X 12 + Rs.67,536/- 3) Future prospects (15%) = Rs.10,130/- 4) Total annual income = Rs.67,536/- + Rs.10,130/- =Rs.77,666/- 5) Deduction towards personal expenses(1/3rd) = Rs.77,666/- - Rs.25,888/- =Rs.51,778/- 6) Multiplier applicable (11) =Rs.51,778/- x 11 = Rs.5,69,558/- 7) Non-pecuniary damages =Rs.70,000/- Total = Rs.5,69,558/- + Rs.70,000/- = Rs.6,39,558/- In view of aforesaid discussion, the appeal filed by claimants is hereby partly allowed and award of the Claims Tribunal is modified and compensation is enhanced from Rs.5,02,764/- to Rs.6,39,558/-. The claimants-appellants are also entitled for 6% interest on enhanced amount from the date of judgement and award of Claims Tribunal i.e. 14.5.2003. The New India Assurance Company Limited- respondent no.1 is directed to pay enhanced amount alongwith interest to the claimants-appellants within two months from today. No order as to costs. Order Date :- 14.5.2025 P.P. Digitally signed by :- POONAM PATEL High Court of Judicature at Allahabad