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Madhya Pradesh High Court · body

2007 DIGILAW 795 (MP)

Padma Joshi v. Dr. Syed Abrar Ali Hajmi

2007-07-26

S.S.JHA, SUSHMA SHRIVASTAVA

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Judgment ( 1. ) THIS appeal is filed by the claimants for enhancement of compensation awarded by the Claims Tribunal and prayer to fasten the liability upon the insurance company. ( 2. ) DECEASED Chandrashekhar Prasad joshi died in an accident during the use of motor vehicle on 29. 1. 1998. After his death, claimants who are widow, son and daughters, had filed an application before the Claims Tribunal for award of compensation of Rs. 64,77,092 with interest. Application was opposed and after conclusion of evidence, the Claims Tribunal held that the offending jeep dashed against the truck, which was driven by non-applicant no. 1 in a rash and negligent manner. This finding pertaining to rash and negligent driving by the non-applicant No. 1, driver of the said vehicle is not challenged in the appeal. This appeal is confined to quantum of compensation as well as liability of the insurance company. ( 3. ) AS regards question of liability of the insurance company, this question has recently been answered by the Apex Court in the case of Oriental Insurance Co. Ltd. v. Meena Variyal, 2007 ACJ 1284 (SC)and it is held that the passenger travelling in a car met with an accident then in the event of his death insurance company is not liable to indemnify the insured as there is no contract between the insurance company and owner of the vehicle to indemnify the passenger travelling in the vehicle. Since question of liability is adjudicated by the Apex Court we affirm the finding of the Claims Tribunal that the insurance company is not liable to indemnify the insured for payment of compensation to legal representatives of the deceased. ( 4. ) LEARNED counsel for the appellants submitted that the last pay certificate of the deceased is exhibited as Exh. P14 before the Claims Tribunal. Learned counsel for the appellants submitted that Claims Tribunal committed grave error in determining the income of the deceased at Rs. 13,200 only and the dependency is determined at rs. 10,376. Counsel for the appellants submitted that deceased was getting monthly pay, additional pay and dearness allowance amounting to Rs. 18,198. He submitted that Claims Tribunal erred in not taking into account additional pay and dearness allowance in computing monthly income of the deceased. Learned counsel for the appellants further submitted that the total carry-home salary of the deceased was around Rs. 18,198. He submitted that Claims Tribunal erred in not taking into account additional pay and dearness allowance in computing monthly income of the deceased. Learned counsel for the appellants further submitted that the total carry-home salary of the deceased was around Rs. 30,000 per month and Claims tribunal ought to have determined the dependency on the carry-home salary at the time of his death, i. e. , Rs. 30,000 and ought to have determined the dependency at Rs. 20,000 per month. It is further contended by the appellants that the age of the deceased was 45 years at the time of accident and the Claims Tribunal has applied multiplier of 8 instead of 15. ( 5. ) LEARNED counsel appearing for the electricity Board supported the award and submitted that compensation awarded is just and proper. ( 6. ) AS regards quantum of compensation is concerned, additional pay and dearness allowance is the monthly income of the deceased which in the round figure is around rs. 18,000 per month and, therefore, deducting 1/3rd amount towards the personal expenditure of the deceased, dependency of claimants is determined at Rs. 12,000 per month. The yearly dependency of the claimants is determined at Rs. 1,44,000. According to the claimants deceased was 45 years of age at the time of accident, therefore, it is presumed that deceased was above 45 years of age and appropriate multiplier is 13. In this case and on applying the multiplier of 13 to Rs. 1,44,000 compensation is determined at Rs. 18,72,000. Claimants will also be entitled for further sum of Rs. 18,000 under various heads such as loss to estate, funeral expenses, loss of consortium, etc. Thus, total compensation is determined at Rs. 18,90,000. Claimants will be entitled for interest at the rate of 6 per cent on the enhanced amount of compensation from the date of filing of the appeal. ( 7. ) APPEAL succeeds in part. There shall be no order as to costs. The enhanced amount of compensation shall be kept in a fixed deposit in a nationalised bank and the claimants will be entitled for interest on the amount of compensation kept in a fixed deposit. It is clarified that against the said fixed deposit no loan will be permissible. There shall be no order as to costs. The enhanced amount of compensation shall be kept in a fixed deposit in a nationalised bank and the claimants will be entitled for interest on the amount of compensation kept in a fixed deposit. It is clarified that against the said fixed deposit no loan will be permissible. Claimants will be at liberty to apply to the Claims Tribunal for disbursement of the amount of compensation kept in fixed deposit on disclosing their need, which shall be decided by the Claims Tribunal on its merits. It is further clarified that amount kept in the fixed deposit shall be renewed from time to time so as to earn maximum amount of interest. The condition imposed by the Claims Tribunal that if the amount of compensation is not deposited within a period of three months claimants will be entitled to higher interest at the rate of 12 per cent is set aside as this condition is onerous. ( 8. ) AS regards the amount kept in the fixed deposit is concerned, by order of the claims Tribunal the amount be renewed from time to time. We hope and trust that owner Electricity Board will deposit the entire amount of compensation, if not deposited so far, within a period of two months from the date of communication of this order. Orders accordingly.