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2016 DIGILAW 1384 (HP)

Neelam Jha v. Abha Food Industries

2016-07-15

MANSOOR AHMAD MIR

body2016
JUDGMENT : Mansoor Ahmad Mir, J. Challenge in this appeal is to the judgment and award dated 31.1.2011, made by the Motor Accident Claims Tribunal, Una, H.P., in MAC Case No. 10 of 2010, titled Smt. Neelam Jha and another versus Mr. Abha Food Industries Prop and others, for short “the Tribunal”, whereby compensation to the tune of Rs.5,14,000/- alongwith interest @ 8% per annum, came to be awarded in favour of the claimants and against respondents No. 1 and 2, hereinafter referred to as “the impugned award”, for short. 2. Mr. Subhash Sharma, Advocate, for respondent No. 3 stated at the Bar that respondent No. 3 Sher Singh has died during the pendency of the appeal. His statement is taken on record. He has produced the copy of death certificate of Sher Singh, across the Board, made part of the file. 3. Owner of the motor cycle No. UP-23-6402 is neither proper party nor necessary party because award has been passed against the owner of the Scooter No. PB-10BT-7631. Thus, there is no need to bring the legal representatives of respondent No. 3 on record. 4. Claimants, by the medium of this appeal, have questioned the impugned award on the ground of adequacy of compensation. 5. Thus, the only issue to be determined in this appeal is whether the amount awarded is adequate or otherwise. The answer is in negative for the following reasons. 6. Admittedly, deceased was an employee and drawing salary to the tune of Rs.11,500/- as held by the Tribunal in para 14 of the impugned award. One half was to be deducted towards his personal expenses, keeping in view the 2nd Schedule attached to the Motor Vehicles Act, for short “the Act, read with Sarla Verma and others versus Delhi Transport Corporation and another reported in AIR 2009 SC 3104 and upheld in Reshma Kumari and others versus Madan Mohan and another, reported in 2013 AIR SCW 3120. 7. Keeping in view the age of the deceased read with Munna Lal Jain and another versus Vipin Kumar Sharma and others reported in 2015 AIR SCW 3105, the multiplier is to be applied according to the age of the deceased. 8 The Tribunal has fallen in an error in applying the multiplier of “14”. The multiplier of “15” is applicable in view of the judgments referred to supra. 9. 8 The Tribunal has fallen in an error in applying the multiplier of “14”. The multiplier of “15” is applicable in view of the judgments referred to supra. 9. It appears that the Tribunal has awarded interest @8% per annum. However, interest @ 7.5% was to be awarded for the following reasons. 10. It is a beaten law of the land that the rate of interest should be awarded as per the prevailing rates, in view of the judgments rendered by the Apex Court in cases titled as United India Insurance Co. Ltd. and others versus Patricia Jean Mahajan and others, reported in (2002) 6 SCC 281 ; Satosh Devi versus National Insurance Company Ltd. and others, reported in 2012 AIR SCW 2892; Amrit Bhanu Shali and others versus National Insurance Company Limited and others reported in (2012) 11 SCC 738 ; Smt. Savita versus Binder Singh & others, reported in 2014, AIR SCW 2053; Kalpanaraj & others versus Tamil Nadu State Transport Corpn., reported in 2014 AIR SCW 2982; Amresh Kumari versus Niranjan Lal Jagdish Pd. Jain and others, reported in (2015) 4 SCC 433 , and Mohinder Kaur and others versus Hira Nand Sindhi (Ghoriwala) and another, reported in (2015) 4 SCC 434 , and discussed by this Court in a batch of FAOs, FAO No. 256 of 2010, titled as Oriental Insurance Company versus Smt. Indiro and others, being the lead case, decided on 19.06.2015. 11. Accordingly, the interest @7.5% is awarded. 12. Thus, it is held that the claimants have lost the source of dependency to the tune of Rs.5500x12x15= Rs.9,90,000/-. The claimants are also entitled to compensation under the two heads as under:- (i) Loss of estate : Rs.10,000/- (ii) Funeral expenses : Rs.10,000/- Total Rs.10,10,000/- Thus, in all the claimants are entitled to Rs. 10,10,000 alongwith interest at the rate of 7.5% per annum, from the date of claim petition till its realilsation. 13. The insurer is directed to satisfy the award and is directed to deposit the amount within eight weeks from today. On deposit, the Registry is directed to release the awarded amount in favour of the claimants, through payees’ cheque account or by depositing the same in their bank accounts, strictly in terms of the conditions contained in the impugned award. 14. Viewed thus, the appeal is allowed, the impugned award is modified and the compensation is enhanced, as indicated hereinabove. On deposit, the Registry is directed to release the awarded amount in favour of the claimants, through payees’ cheque account or by depositing the same in their bank accounts, strictly in terms of the conditions contained in the impugned award. 14. Viewed thus, the appeal is allowed, the impugned award is modified and the compensation is enhanced, as indicated hereinabove. 15. Send down the record forthwith, after placing a copy of this judgment.