1. In connection with the vehicular accident that occurred on 12.03.2005 involving the vehicles (Ambassador car ) bearing registration No. GJ4V3303 in which Hasanbin Umarbin died, the legal heirs of the deceased filed M.A.C.P. No.263/2005 u/s. 163A of the M.V. Act before the Motor Accident Claims Tribunal (Aux), FTC No.2, Jamnagar. The said claim petition came to be disposed of by judgment and award dated 15.01.2007 whereby, the claim petition was partly allowed and respondents no.1 to 5, original claimants, were awarded total compensation of Rs.5,13,500/ along with interest at the rate of 7.5% per annum from the date of application till its realization with proportionate costs. Against the said award, the present appeal has been preferred.
2. It has been contended on behalf of appellant Insurance Company that the Tribunal has erred in not deducting the personal expenses while calculating the income of the deceased. Reliance has been placed on a decision of the Apex Court in the case of National Insurance Company Ltd. v. Gurumallamma and another, (2009) 16 S.C.C. 43 and in the case of National Insurance Co. Ltd. v. Shyam Singh & Ors., AIR 2011 SC 3231..
3. Heard learned counsel for the respective parties.
Considering the facts of the case and the principle laid down in Gurumallamma's case (supra) and Shyam Singh's case (Surpa), the formula stipulated in the Second Schedule to Section 163A of the Act is required to be followed for computing compensation. In other words, in a proceeding u/s. 163A of the Act, the amount of compensation is to be determined as per the method specified in the Second Schedule. Thus, by following the method specified in the Second Schedule, the total compensation would come to Rs.1,68,000/ after deducting 1/3rd amount towards personal expenses of the deceased. Hence, the excess amount of Rs.1,68,000/ is required to be refunded to the appellant Insurance Company.
5. For the foregoing reasons, the appeal is partly allowed. The impugned award passed by the Tribunal is modified to the extent that respondents no.1 to 5, original claimants, shall be entitled for total compensation of Rs.3,45,500/ only along with interest and costs as awarded by the Tribunal. The excess amount of Rs.1,68,000/ shall be refunded to the appellant Insurance Company. The impugned award stands modified to the above extent. The appeal stands disposed of accordingly.
[K.S. JHAVERI, J.] /phalguni/