Research › Browse › Judgment

Madhya Pradesh High Court · body

1996 DIGILAW 205 (MP)

Dwarika And Anr. v. Gurupal Kaur And Ors.

1996-02-14

S.K.DUBEY, S.SINGH

body1996
JUDGMENT S.K. Dubey, J. 1. This appeal under Section 110-D of the Motor Vehicles Act, 1939, has been filed by the claimants for enhancement of compensation awarded in Claim Case No. 37 of 1983 vide award dated 12.8.1985 by the Motor Accidents Claims Tribunal, Bilaspur. 2. The claimants are the parents of the deceased Rajendra, a young man of 25 years, who died in motor accident. An amount of Rs. 5,26,000/- was claimed as compensation on the averment that the deceased had a bright career, he was holding the post of Sarpanch and was a student of law and Secretary of the College Union. From agriculture he was earning Rs. 20,000/- per annum after deducting the expenses on agriculture. The Tribunal after deducting the personal living expenses of the deceased determined the dependency at the rate of Rs. 1,500 per year and by applying multiplier of 16 awarded an amount of Rs. 24,000/- as compensation with interest at the rate of 6 per cent per annum. 3. Mr. Ravish Agarwal, the learned Counsel for the appellants took this Court through evidence and contended that the deceased was having a bright career, his agricultural income from the land 19.23 acres of Rs. 14,000/- after deducting the expenses of agriculture has been fixed on lower side looking to the area of irrigated land, the income from the agriculture land could not have been less than Rs. 20,000. Even if yearly income is considered as Rs. 14,000/- after deducting 1/3rd personal living expenses of the deceased, the dependency would come to Rs. 9,440/- per year wherein if a multiplier of 15 is applied the amount of compensation would come to Rs. 1,41,600/- for which the claimants were entitled with interest at the rate of 12 per cent per annum from the date of application till realisation. 4. Mr. T.C. Naik, learned Counsel for the respondent No. 3, submitted that the Tribunal on evidence adduced determined the dependency and awarded compensation which do not call for any interference. It is also submitted that the claimants are the parents, hence, the multiplier cannot be more than 8. The liability of the insurance company is limited to the extent of Rs. 50,000/- in accordance with Section 95(2)(b)(i) of the Act. 5. It is also submitted that the claimants are the parents, hence, the multiplier cannot be more than 8. The liability of the insurance company is limited to the extent of Rs. 50,000/- in accordance with Section 95(2)(b)(i) of the Act. 5. After hearing counsel we are of the opinion that the dependency determined by the Tribunal is on the lower side as admittedly the deceased was not only a student but also was Sarpanch and was carrying on agriculture over 19.23 acres of irrigated land. Therefore, in no case the agricultural income could have been less than Rs. 20,000/-; after deducting the expenses of Rs. 6,000/- the earning of the deceased would come to Rs. 14,000/-wherein a deduction of 50 per cent of the personal living expenses is to be made as he was Sarpanch and was also a student of law and was involved in social activities, the dependency would come to Rs. 7,000 per year and by applying the multiplier of 8, considering the age of the parents, compensation would come to Rs. 56,000. On that the appellants would be entitled to interest at the rate of 12 per cent per annum from the date of the application till the date of realisation. However, as this appeal was filed in the year 1985 and has come up for hearing in the year 1996, for no fault of the respondents. Therefore, it would be enough to burden the respondent/insurance company. Therefore, the ends of justice would be met if the insurance company is directed to pay the amount to the extent of its statutory liability of Rs. 50,000/- with interest at the rate of 12 per cent per annum from the date of application till the date of the award and six years interest of the period of appeal. 6. Accordingly, this appeal is allowed in the manner indicated above. We direct the insurance company to deposit the amount under award so modified by us with accrued interest as directed within a period of two months. Of course the insurance company shall be entitled to adjust the amount which has been deposited. The appellants shall be free to recover the balance amount under the modified award from the owner and driver with interest at the rate of 12 per cent per annum as directed. Costs of this appeal are to be borne by the insurance company. Counsel's fee Rs. The appellants shall be free to recover the balance amount under the modified award from the owner and driver with interest at the rate of 12 per cent per annum as directed. Costs of this appeal are to be borne by the insurance company. Counsel's fee Rs. 500/-, if pre-certified.