Judgments
Judgments
  1. Home
  2. /
  3. High Court Of Judicature at Allahabad
  4. /
  5. 2021
  6. /
  7. January

Smt Ganga Shree And Others vs M/S Nirma Credit And

High Court Of Judicature at Allahabad|21 December, 2021
|

JUDGMENT / ORDER

Court No. - 33
Case :- FIRST APPEAL FROM ORDER No. - 3182 of 2019
Appellant :- Smt. Ganga Shree And Others Respondent :- M/S Nirma Credit And Capital Ltd. Counsel for Appellant :- Rakesh Kumar Porwal Counsel for Respondent :- Sushil Kumar Mehrotra
Hon'ble Vipin Chandra Dixit,J.
1. Heard Sri Rakesh Kumar Porwal, learned counsel for appellants, Sri Sushil Kumar Mehrotra, learned counsel for respondent no.2 and perused the record. No one is present on behalf of respondent nos.1 and 3.
2. The present first appeal from order has been filed by the claimants-appellants for enhancement of compensation against the judgment and award dated 2.8.2002 passed by Motor Accident Claims Tribunal, Etawah in M.A.C.P. No.474 of 1999 (Smt. Ganga Shree and others Vs. M/s Nirma Credit & Capital Limited and others), by which compensation of Rs.1,10,000/- along with 9% interest has been awarded by the Claims Tribunal and the liability has been fixed upon the New India Insurance Company Limited/respondent no.2, insurer of offending vehicle.
3. It is submitted by learned counsel for claimants-appellants that deceased was aged about 55 years at the time of accident and was a Government Servant and as per salary certificate his monthly income was Rs.4,160/- but the Claims Tribunal without calculating the compensation as per Motor Vehicles Act as well as the law laid down by Hon'ble Apex Court in series of cases had awarded a lump sum amount of Rs.1,10,000/- along with 9% interest which is unreasonable and is in lower side.
4. It is further submitted by learned counsel for appellants that the Hon'ble Apex Court in the case of Smt. Sarla Verma Vs. Delhi Road Transport Corporation reported in 2009(2) TAC 677, has provided the multiplier of 11 for the age group of 51-55 years.
5. Lastly it is submitted that Claims Tribunal had not awarded any amount towards future prospects whereas the Hon'ble Apex Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi reported in 2017(4) T.A.C. 673, has provided the future prospects at the rate of 15% for the age group of 51-60 years and the claimants- appellants are also entitled for Rs.70,000/- for non-pecuniary damages.
6. Learned counsel for respondent no.2 has not disputed that Claims Tribunal has awarded a lump sum amount to the claimants without following the procedure provided under the Motor Vehicles Act.
7. The Hon'ble Apex Court in the case of Pranay Sethi (supra) has laid down the certain guidelines for calculating the just compensation. The relevant paragraph 61 is reproduced hereunder:-
"61. In view of the aforesaid analysis, we proceed to record our conclusions:
(i) The two-Judge Bench in Santosh Devi should have been well advised to refer the matter to a larger Bench as it was taking a different view than what has been stated in Sarla Verma, a judgment by a coordinate Bench. It is because a coordinate Bench of the same strength cannot take a contrary view than what has been held by another coordinate Bench.
(ii) As Rajesh has not taken note of the decision in Reshma Kumari, which was delivered at earlier point of time, the decision in Rajesh is not a binding precedent.
(iii) While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.
(iv) In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.
(v) For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paragraphs 30 to 32 of Sarla Verma which we have reproduced hereinbefore.
(vi) The selection of multiplier shall be as indicated in the Table in Sarla Verma read with paragraph 42 of that judgment.
(vii) The age of the deceased should be the basis for applying the multiplier.
(viii) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs. 15,000/-, Rs. 40,000/- and Rs. 15,000/- respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years."
8. The quantum of compensation has been re-assessed in view of law laid down by Hon'ble the Apex Court in the case of Pranay Sethi (supra).
9. In view of aforesaid discussion, the quantum of compensation has been reassessed as follows:-
1) Monthly income = Rs.4,160/-
2) Annual income = Rs.4,160/- X 12 = Rs.49,920/-
3) Future prospects (15%) = Rs.7,488/-
4) Total annual income = Rs.49,920/- + Rs.7,488/- =Rs.57,408/-
5) After deduction (1/3) = Rs.57,408/- - Rs.19,136/- =Rs.38,272/- towards personal expenses
6) Multiplier applicable (11) = Rs.38,272/- x 11 = Rs.4,20,992/-
7) Non-pecuniary damages = Rs.70,000/-
Total = Rs.4,20,992/- + Rs.70,000/- = Rs.4,90,992/-
10. In view of aforesaid discussion, the appeal filed by claimants- appellants is hereby partly allowed and award of the Claims Tribunal is modified and compensation awarded by the Claims Tribunal is enhanced from Rs.1,10,000/- to Rs.4,90,992/-. The New India Insurance Company Limited/respondent no.2 is directed to pay enhanced amount of Rs.3,80,992/- along with interest at the rate of 7% from the date of filing claim petition, within two months from today.
11. No order as to costs.
Order Date :- 21.12.2021/Kpy
Disclaimer: Above Judgment displayed here are taken straight from the court; Vakilsearch has no ownership interest in, reservation over, or other connection to them.
Title

Smt Ganga Shree And Others vs M/S Nirma Credit And

Court

High Court Of Judicature at Allahabad

JudgmentDate
21 December, 2021
Judges
  • Vipin Chandra Dixit
Advocates
  • Rakesh Kumar