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2025 DAILYLAW 9873 (ALL)

SMT. RAJ KUMARI SRIVASTAVA AND OTHERS v. ORIENTAL INSURANCE CO. LTD. AND ANOTHER

FAFO/3542/2006 · 2025-05-20

Vipin Chandra Dixit

body2025

Judgment text

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Neutral Citation No. - 2025:AHC:85722 Court No. - 48 Case :- FIRST APPEAL FROM ORDER No. - 3542 of 2006 Appellant :- Smt. Raj Kumari Srivastava And Others Respondent :- Oriental Insurance Co. Ltd. And Another Counsel for Appellant :- Sharve Singh,A.L. Jaiswal Hon'ble Vipin Chandra Dixit,J. Heard Sri Sharve Singh, learned counsel for the appellants and Sri Ajay Singh, learned counsel appearing on behalf of respondent Insurance Company. No one is present on behalf of respondent no. 2, who is owner of the vehicle. This first appeal from order has been filed under Section 173 of the Motor Vehicle Act, 1988 by the claimants-appellants for enhancement of compensation against the judgment and award dated 15.09.2006, passed by Additional District Judge, Court No. 14/Motor Accident Claim Tribunal, Allahabad, in M.A.C.P. No. 545 of 2000 (Smt. Raj Kumari and others vs. Smt. Shail Kumari and another) by which compensation of Rs. 8,26,200/- along with 6% interest has been awarded to the claimants on account of death of Kailash Shankar, who died in a road accident occurred on 21.06.2000. It is submitted by learned counsel for the claimants-appellants that the compensation awarded by the claims tribunal is in lower side. it is further submitted that the deceased was Junior Engineer in Irrigation Department and his monthly income was Rs. 15,000/- and the claims tribunal has erred in accepting monthly income of the deceased as Rs. 13,800/-. The age of the deceased was 57 years and the claims tribunal has erred in applying the multiplier of 8, whereas, the multiplier of 9 would be applicable in view of 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 claims tribunal has also erred in deducting 1/3 towards personal expenses of the deceased ignoring the fact that there was five dependents on the income of the deceased and deduction would be 1/4th. Lastly, it is submitted that nothing has been awarded towards future prospects and only Rs. 7,000/- has been awarded for non pecuniary damages, whereas, the claimants are entitled for 15% future prospects and Rs. 40,000/- for non pecuniary damages. On the other hand, learned counsel appearing on behalf of respondent Insurance company has submitted that the claims tribunal has awarded a very just and reasonable compensation to the claimants. The monthly income of Rs. 13,800/- was rightly accepted by the claims tribunal after deducting HRA etc. Considered the rival submissions of learned counsel for the parties and perused the record. It is admitted fact that the deceased Kailash Shankar was working as Junior Engineer in Irrigation Department. The salary certificate filed and relied by the claimants discloses the monthly income of the deceased as Rs. 14,640/- and after deduction of HRA etc. Rs. 13,800/- was accepted as monthly income of the deceased. The income accepted by the claims tribunal is based on evidence and there is no illegality. The claims tribunal has erred in deducting 1/3 towards personal expenses and had applied multiplier of 8, whereas the age of the deceased was 57 years and there were five dependents on the income of the deceased, as such, the deduction would be 1/4 and multiplier of 9 would be applicable in view of law laid down by Hon'ble Apex Court in the case of Sarla Verma (supra). The claimants-appellants are also entitled for 15% future prospects and Rs. 40,000/- 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. In view of above, the compensation awarded by the Motor Accident Claims Tribunal is reassessed as follows :- 1. Monthly Income : Rs. 13,800/- 2. Annual Income : Rs. 13,800/- x 12 = Rs. 1,65,600/- 3. Future prospects : (15%) = Rs. 24,840/- 4. Total annual income : Rs. 1,65,600/- + Rs. 24,840/- = Rs. 1,90,440/- 5. Deduction towards personal expenses (1/4) : Rs. 1,90,440/- - Rs. 47,610/- = Rs. 1,42,830/- 6. Multiplier applicable (9) : Rs. 1,42,830/- x 9 = Rs. 12,85,470/- 7. Non-pecuniary damages : Rs. 40,000/- Total : Rs. 12,85,470/- + Rs. 40,000/- = Rs.13,25,470/- 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. 8,26,200/- to Rs. 13,25,470/-. 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. 15.09.2006. 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 :- 21.5.2025 sailesh Digitally signed by :- SAILESH PRAJAPATI High Court of Judicature at Allahabad