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2008 DIGILAW 254 (JK)

National Insurance Co. Ltd. v. Bashir Ahmad Wani

2008-06-06

BASHIR AHMAD KIRMANI

body2008
1. One Iqbal Ahemd wani a 20 years old Second Year Engineering Student, died in a vehicular accident at Chadoora on 12.03.2003 involving a vehicle insured with appellant company, whereupon his parents, brothers and sisters claimed compensation which was awarded by MACT Budgam on 29.06.07 to the tune of Rs.5.30 lacs with interest at 9% p.a. from date of claim i.e. 6.5.03 till its realization and also funeral expenses. 2. Feeling aggrieved, appellant Insurance Company challenges the same on the ground that the award is exorbitantly over quantified as the deceased was only a student. During submissions their counsel while further elucidating contents of appeal has also contended that MACT below was wrong in fixing the monthly income of deceased at Rs. 5000/- as there was no evidence to support the same and also erred in holding brothers and sisters of deceased entitled to compensation which is not justified in circumstances of the case. In response counsel for respondent-beneficiaries has defended the impugned award by stating that the same was well founded in fact and law because the deceased even though a non earning person was a Second year Engineering Student and had bright future protects as observed by Ld. MACT and his case could not be confined within the prescribed notional income reckonable in such cases under law. 3. I have heard learned counsel and considered the matter. Perusal of impugned award reveals that MACT below has based its findings on two factors; first, that petitioner was from an agriculturalist family and as such while helping his parents in agricultural operations was contributing towards the family income considerably, and secondly, that as a Second year Engineering student his case required to be considered on a different pedestal because within couple of years he would be an accomplished engineer and earning lots. Both the aspects however appear to be questionable; first one because no evidence has even be quoted by Ld. MACT as perhaps there was none to indicate that the deceased boy was helping parents in agricultural pursuits which otherwise also would be unbelievable because an engineering student undergoing studies in a residential institute would not be under taking agricultural operations along with his parents and the second one because it appears to suffer from an unreasonable stretch of argumentation having roots in perhaps the element of compassion that Ld. presiding officer of MACT below appears to have felt for the deceased boy and his family while death of a young boy with some promise certainly creates a feeling of sympathy with the family, but that should not have swayed the Ld. P.O into passing an award without requisite legal/factual basis particularly in view of the prescribed and acknowledged principle that in case of non earning persons the compensation is required to be reckoned on basis of notional income of Rs.15000/- per annum. It would be appropriate to notice at this stage that awarding of compensation "under M.V. Act is provided for mainly to cater to the needs of families those might have become destitute after death of their bread winners; and is not a compensation in linguistic sense of the word due to which it has to be confined within the meaning given by it by provisions/schedules of M.V.Act and accordingly the impugned award calls for modification in so far as quantifying the amount of compensation is concerned. 4. Accordingly, the appeal is partially allowed and the amount of compensation payable under impugned award is reduced to a lump sum of Rs. 3.50 lacs including interest whatever payable. The said amount be paid by appellant company to the beneficiaries within a period of six weeks from now whereafter they would have to suffer an interest 6% p.a. thereupon. Disposed of.