1. This appeal has been preferred against the judgment and award dated 27.05.1998 passed by the Motor Accident Claims Tribunal, Morvi in M.A.C.P. No.11/1994 whereby, the claim petition was allowed in part and respondents, original claimants, were awarded total compensation of Rs.9,11,800/- along with interest at the rate of 15% per annum from the date of application till its realization with proportionate costs.
2. The aforesaid claim petition came to be filed in connection with the vehicular accident that took place on 22.07.1993 on the Morvi – Rajkot Highway involving a Matador bearing registration No.GRP 2699. In the said accident, Kanjibhai Mohanbhai Patel expired. Therefore, the legal heirs preferred the aforesaid claim petition, which came to be allowed in part, by way of the impugned award.
3. The appellant-Insurance Company has challenged the award mainly on the ground that the amount awarded under the respective heads are disproportionate and contrary to the evidence on record. It has been contended that the Tribunal has also erred in awarding interest at the rate of 15% per annum and penal interest at the rate of 18% per annum. It is, therefore, submitted that compensation awarded by the Tribunal deserves to be reduced.
4. Though served, none appears on behalf of respondents-original claimants.
5. Heard learned counsel for the appellants. It appears from the record that while calculating dependency benefit, the Tribunal has considered the monthly income at Rs.5,000/- and has adopted the unit based system by considering total 12 units and adopting the multiplier of 12. However, I find that the calculation made by the Tribunal while computing loss of dependency is erroneous and contrary to the principle laid down by the Apex Court in the case of Sarla Verma v. Delhi Road Transport Corporation, (2009) 6 S.C.C. 121.
6. The evidence on record shows that the deceased was lastly drawing monthly salary of Rs.2,057/- when he was removed from service in the year 1990. Considering the age of deceased at the time of accident, a rise of 30% in income is to be considered in view of the principle rendered in Sarla Verma's case (supra). Accordingly, the monthly income of the deceased would come to Rs.2,800/-, by considering his monthly income at the round figure of Rs.2,100/-. A deduction of 1/4th is to be made in view of the decision rendered in Sarla Verma's case (supra). Hence, the monthly loss of dependency would come to Rs.2,100/- and annual loss of dependency Rs.25,200/-. So far as the multiplier adopted by the Tribunal is concerned, the same is on the lower side since the appropriate multiplier would be 14 considering the age of deceased at the time of accident. Thus, by adopting the multiplier of 14, the total amount under the head of loss of dependency would come to Rs.3,52,800/-. The Tribunal has awarded Rs.6,04,800/- under the said head and hence, the excess amount is required to be refunded to the Insurance Company.
7. So far as the amounts awarded under the other heads are concerned, I find the same to be just, legal and appropriate and also in consonance with the evidence on record. Hence, I find no reasons to disturb the impugned award so far as the amounts awarded under the other heads are concerned. Accordingly, I confirm the total amount of Rs.3,07,000/- awarded under the other heads, viz. Rs.2.50 Lacs awarded under the head of medical expenses, Rs.25,000/- towards pain, shock and suffering, Rs.5,000/- towards attendant charges, Rs.2,000/- towards nutritious food, Rs.10,000/- towards conveyance charges, Rs.10,000/- towards conventional amount and Rs.5,000/- towards funeral expenses .
8. However, so far as the rate of interest is concerned, I find the same to be on the higher side. In my opinion, it would be appropriate to award interest at the rate of 12% per annum considering the situation which prevailed at the relevant point of time. Thus, in all, the claimants are entitled to get Rs.6,59,800/- along with interest at the rate of 12% per annum.
9. For the foregoing reasons, the appeal is partly allowed. The impugned award is modified to the extent that the respondents, original claimants, shall be entitled for total compensation of Rs.6,59,800/- [Rupees Six lacs fifty nine thousand eight hundred only] along with interest at the rate of 12% per annum [Twelve per cent] from the date of application till its realization with proportionate costs. The excess amount of Rs.2,52,000/- shall be refunded to the appellant- Insurance Company along with interest at the rate of 3% per annum. The impugned award stands modified to the above extent. The appeal stands disposed of accordingly. No order as to costs.
[K. S. JHAVERI, J.] Pravin/*