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2007 DIGILAW 459 (PAT)

Oriental Insurance Co. Ltd. v. Anita

2007-03-01

SYED MD.MAHFOOZ ALAM

body2007
Judgment Syed Md.Mahfooz Alam, J. 1. This Miscellaneous Appeal has been preferred by appellant-Oriental Insurance Company Limited against the judgment dated 2.2.2000 and award dated 21.2.2000 passed by Sri Ram Narayan Singh, 4th Additional District Judge-cum-Motor Vehicle Accident Claims Tribunal, Purnea in Compensation Claim Case No. 62 of 1998 whereby the Tribunal has awarded a total compensation of Rs. 5,96,732.00 to the claimants with interest at the rate of 12% per annum from the date of filing of the claim application till the date of realisation. 2. The only grievance raised by the learned Advocate of the appellant was that the claimants had preferred their claim under the provisions of Sec. 163A of the Motor Vehicles Act (hereinafter will be called "M.V. Act") which has got limited scope for computing compensation as Second Schedule attached with the Act provides that u/s. 163A the maximum annual income upon which compensation can be calculated cannot exceed beyond Rs. 40,000.00 and the learned Tribunal by computing the compensation on the basis of the annual income of the deceased at Rs. 48,936.00 has committed illegality. He submitted that unless the claimants bring down the annual income of the deceased notionally at Rs. 40,000.00, the claim application cannot be entertained. In support of his argument, the learned Advocate of the appellant has placed reliance upon the decision of Karnataka High Court given in the case of Sulochana and Others V/s. Karnataka State Road Transport Corporation, 2005 0 ACJ 849 . He has also placed reliance upon another decision of the same High Court given in the case of Guruanna Vadi and Another V/s. General Manager, Karnataka State Road Transport Corporation and Another, 2001 0 ACJ 1528 . 3. I have gone through both the decisions which clearly lay down law that the scope of Sec. 163A of the M.V. Act is very limited and any application for grant of compensation u/s. 163-A of the M.V. Act in respect of the victim whose annual income is beyond Rs. 40,000.00 is not tenable unless the maximum limit of income is brought down notionally to Rs. 40,000.00 per annum. 4. Thus, relying upon the above two decisions, I am of the opinion that the Tribunal has committed illegality in calculating the compensation on the basis of the annual income of the deceased fixing at Rs. 40,000.00 is not tenable unless the maximum limit of income is brought down notionally to Rs. 40,000.00 per annum. 4. Thus, relying upon the above two decisions, I am of the opinion that the Tribunal has committed illegality in calculating the compensation on the basis of the annual income of the deceased fixing at Rs. 48,936.00 which was not permissible under the Second Schedule attached with the M.V. Act. 5. It has been argued by the learned Advocate of the respondents that the Motor Vehicles Act is a beneficial legislation and its sole object is to provide relief to the family of the deceased whose death was caused in the motor vehicle accident and as such, the court should not strictly observe the provision of law as laid down under the Statute. In this regard the learned Advocate of the claimants-respondents has placed reliance upon the decision in United India Insurance Co. Ltd. V/s. Patricia Jean Mahajan and Others, AIR 2002 SC 2607 . 6. I feel difficulty in agreeing with the submission of the learned Advocate of the respondents in view of the fact that Sec. 163A of the M.V. Act has been introduced in the Act for extending the benefit to a chosen class of person whose annual income does not exceed Rs. 40,000.00. Under such circumstances, the scope of this section cannot be enlarged. I am further of the view that either for the Tribunal or for this Court, the only option is to limit the annual income of the deceased at Rs. 40,000.00 only and not beyond that. Under such circumstance I have no alternative but to reduce the annual income of the deceased at Rs. 40,000.00 per annum from Rs. 48,936.00 per annum as fixed by the Tribunal. Thus, after fixing the annual income of the deceased at Rs. 40,000.00 the calculation will be done in the following manner in order to determine the total compensation payable to the claimants: Annual Income of the deceased..... Rs. 40,000.00 1/3rd deducted towards personal expenses of the deceased... 40,000/3=13, 333.33 paise 2/3rd of 13,333.33 x 2=Rs.26,666.66 Rounded up=Rs.26,667.00 As the deceased was aged about 30 years at the time of accident as such multiplier of 18 is the correct multiplier in order to determine the total compensation. 7 Thus the annual income of the deceased amounting to Rs. Rs. 40,000.00 1/3rd deducted towards personal expenses of the deceased... 40,000/3=13, 333.33 paise 2/3rd of 13,333.33 x 2=Rs.26,666.66 Rounded up=Rs.26,667.00 As the deceased was aged about 30 years at the time of accident as such multiplier of 18 is the correct multiplier in order to determine the total compensation. 7 Thus the annual income of the deceased amounting to Rs. 26,667.00 is multiplied by multiplier of 18 the total compensation towards loss of dependency comes to Rs. 4,80,006.00. Upon this amount the claimants are entitled to get Rs. 2,000.00 towards funeral expenses, Rs. 5,000.00 towards loss of consortium and Rs. 2,500.00 towards loss of estate and thus, the total compensation payable to the claimants comes to Rs. 4,89,506.00 rounded up at Rs. 4,90,000.00 instead of Rs. 5,96,732.00. Accordingly, the quantum of compensation fixed by the Tribunal is ordered to be modified and the same is fixed at Rs. 4,90,000.00 which will be payable with interest at the rate of 12% per annum from the date of filing of application till the date of final payment. 8. In the result, this appeal is hereby dismissed with the above modification and the total compensation payable to claimants is fixed at Rs. 4,90,000.00 instead of Rs. 5,96,732.00. The amount will be payable with interest at the rate of 12% per annum, as ordered by the Tribunal. The appellant-Oriental Insurance Company Limited is directed to make payment of the award within two months after deducting the amount which has already been paid to the claimants earlier failing which the claimants will be entitled to realize the amount through the process of Court.