For Pronouncement on :06.10.2021
Court No. - 37
Case :- FIRST APPEAL FROM ORDER No. - 1418 of 2021 (FIRST APPEAL FROM ORDER DEFECTIVE No.956 of 2010) Appellant :- Smt. Sanju And Ors.
Respondent :- Th New India Assurance Co. Ltd. And Anr.
Counsel for Appellant :- S.D. Ojha Counsel for Respondent :- Arun Prakash
Hon'ble Dr. Kaushal Jayendra Thaker,J. Hon'ble Dinesh Pathak,J.
1. Heard Sri S.D. Ojha, learned counsel for the appellant and Sri Arun Prakash, learned counsel for respondent and perused the judgment and order impugned.
2. This appeal, at the behest of the claimants, challenges the judgment and award dated 30.1.2010 passed by Motor Accident Claims Tribunal/ District Judge, Mau (hereinafter referred to as 'Tribunal') in M.A.C.No.158 of 2006 awarding a sum of Rs.3,49,500/- with interest at the rate of 9% as compensation.
3. The accident is not in dispute. The issue of negligence decided by the Tribunal is not in dispute. The respondents have not challenged the liability imposed on them. The only issue to be decided by the Court is, the quantum of compensation awarded.
4. It is submitted by learned counsel for the appellant that the deceased was 28 years of age at the time of accident and was in Job of Decorator engaged in Saudi Arabia. He came to India. This fateful accident occurred on 4.12.2006. He was survived by his widow, son, brother and mother. His income was considered by the Tribunal to be Rs.2,500/- per month which according to the counsel for the appellant is on the lower side and should be considered at least Rs.25,000/- per month. It is further submitted that the Tribunal has not granted any amount towards future loss of income of the deceased which should be granted in view of the decisions titled National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050 and Chandra & Others Vs. The Branch Manager, the Oriental Insurance Company Limited and another ( Civil Appeal No.5635 of 2021 decided on 9.9.2021) . It is further submitted that the amount granted under non-pecuniary damages are on the lower side and it should be as per the decision in Pranay Sethi (Supra).
5. As against this, learned counsel for the Insurance Company has submitted that the award does not require any interference as the date of accident is 4.12.2006 and the decision of the Tribunal is prior to the judgment of National Insurance Company Limited Vs. Pranay Sethi and Others, 2017 0 Supreme (SC) 1050 and therefore the Tribunal has not committed any error in not granting the future loss of income.
6. Heard the learned counsels for the parties and considered the factual data. This Court finds that the accident occurred on 4.12.2006 causing death of Ram Patal @ Brijesh Maurya who was 28 years of age at the time of accident. The Tribunal has assessed his income to be Rs.30,000/- per year which according to this Court, in the year of accident, would be at least Rs.15,000/- per month looking to his vocation. To which as the deceased was in the age bracket of 26-30, 40% of the income will have to be added in view of the decision of the Apex Court in Pranay Sethi (Supra). The amount under non- pecuniary heads should be at least Rs.70,000/- in view of the decision in Pranay Sethi (Supra) as every three years 10% be added to Rs.70,000/-. In view the facts and circumstances of the case, this Court feels no interference is called for as far as deduction of personal expenses is concerned.
7. The total compensation payable is recalculated and is computed herein below:
i. Annual Income Rs.1,80,000/-
ii. Percentage towards future prospects : 40% namely Rs.72,000/-
iii. Total income : Rs.1,80,000 + 72,000/- = Rs.2,52,000/-
iv. Income after deduction of 1/3rd towards personal expenses : Rs.1,68,000/-
v. Multiplier applicable : 17
vi. Loss of dependency: Rs.1,68,000 x 17 = Rs.28,56,000/-/-
vii. Amount under non pecuniary heads : Rs.70,000/-
viii. Total compensation : Rs.29,26,000/-
8. As far as issue of interest is concerned, I am in agreement with learned counsel for the appellant that the interest should be as per the repo rate of those days, hence, from the date of the filing of the claim petition till the award, the interest would be at the rate of 7.5% and thereafter during the pendency of appeal till the amount is deposited, it would be 6%.
9. No other grounds are urged orally when the matter was heard.
10. In view of the above, the appeal is partly allowed. Judgment and decree passed by the Tribunal shall stand modified to the aforesaid extent. The respondent-Insurance Company shall deposit the amount within a period of 12 weeks from today with interest at the rate of 7.5% from the date of filing of the claim petition till award and 6% thereafter till the amount is deposited. The amount already deposited be deducted from the amount to be deposited.
10. On depositing the amount in the Registry of Tribunal, Registry is directed to first deduct the amount of deficit court fees, if any. Considering the ratio laid down by the Hon'ble Apex Court in the case of A.V. Padma V/s. Venugopal, Reported in 2012 (1) GLH (SC), 442.
11. In view of the ratio laid down by Hon'ble Gujarat High Court, in the case of Smt. Hansaguti P. Ladhani v/s The Oriental Insurance Company Ltd., reported in 2007(2) GLH 291, total amount of interest, accrued on the principal amount of compensation is to be apportioned on financial year to financial year basis and if the interest payable to claimant for any financial year exceeds Rs.50,000/-, insurance company/owner is/are entitled to deduct appropriate amount under the head of 'Tax Deducted at Source' as provided u/s 194A (3) (ix) of the Income Tax Act, 1961 and if the amount of interest does not exceeds Rs.50,000/- in any financial year, registry of this Tribunal is directed to allow the claimant to withdraw the amount without producing the certificate from the concerned Income- Tax Authority. The aforesaid view has been reiterated by this High Court in Review Application No.1 of 2020 in First Appeal From Order No.23 of 2001 (Smt. Sudesna and others Vs. Hari Singh and another) while disbursing the amount.
12. Fresh Award be drawn accordingly in the above petition by the tribunal as per the modification made herein. The Tribunals in the State shall follow the direction of this Court as herein aforementioned as far as disbursement is concerned, it should look into the condition of the litigant and the pendency of the matter and apply the judgment of A.V. Padma (supra). The same is to be applied looking to the facts of each case.
Order Date :-6.10.2021/Mukesh