Research › Search › Judgment

J&K High Court · body

2017 DIGILAW 55 (JK)

National Insurance Co. Ltd. v. Shanti Devi

2017-02-07

RAMALINGAM SUDHAKAR

body2017
JUDGMENT : 1. The Appeal is of the year 2009. 2. It is a case of fatal accident. 3. The Appellant-Insurance Company has filed the appeal challenging the quantum of compensation granted in this case by the Motor Accidents Claims Tribunal, Jammu vide award dated 30.08.2008. 4. In this case, accident happened on 22.04.2002. Subash Chander aged 50 years old, Manager in the Jammu Central Co-operative Bank died in a road accident. He was survived by his wife, two minor daughters, father and mother. The widow is stated to be no more and mother also died. Presently, two minor daughters and father alone are surviving. 5. The issue of negligence on the part of the driver of the offending vehicle insured with the Insurance Company and liability of the owner and the Insurance Company to compensate the claimants is not in dispute. The plea taken in the appeal is that the quantum of compensation is excessive as the income of the deceased has been calculated erroneously. 6. Per Contra, learned counsel for the respondents-claimants stated that a meager amount has been granted towards consortium to widow and no amount has been granted for loss of love and affection to the two children and parents and no amount has been granted towards loss of estate. 7. In this case, the Tribunal, on the basis of salary certificate which gives the details of income of the deceased, has taken the income of the deceased as Rs. 18738/- per month and multiplied into 2 which comes to Rs. 37,476/- and by deducting 1/3rd as the personal expenses of the deceased, the amount of monthly dependency of the petitioners comes to Rs. 24,984/-. The annual dependency of the petitioners comes to Rs.2,99,808/- (Rs. 24984x12= Rs. 2,99,808/-). Adopting 8 as the multiplier, the Tribunal has granted the following compensation along with interest @7.5% per annum from the date of filing of claim petition till final payment is made:- 1. For loss of dependency Rs.23,98,400/- 2. For consortium to widow. Rs. 15,000/- 3. For funeral expenses. Rs. 15,000/- Total Rs. 24,28,400/- 8. Mr. Gupta, learned counsel for the appellant pleaded that the method adopted by the Tribunal for fixing the income of the deceased is totally inappropriate. Rightly so, because as per the salary certificate, there was no deductions towards the income tax and that has to be calculated as per the documents. For funeral expenses. Rs. 15,000/- Total Rs. 24,28,400/- 8. Mr. Gupta, learned counsel for the appellant pleaded that the method adopted by the Tribunal for fixing the income of the deceased is totally inappropriate. Rightly so, because as per the salary certificate, there was no deductions towards the income tax and that has to be calculated as per the documents. Further more, on the death of 50 years old Bank Manager of Jammu Central Co-operative Bank, the future income at the best can be taken as 30% in terms of para 24 of judgment rendered by Hon’ble Supreme Court in case titled Sarla Verma v. Delhi Transport Corpn. And Anr., reported in 2009 (6) SCC 121 . The monthly income of the deceased is as follows:- 1. Basic Pay Rs. 13560/- 2. DA Rs. 4112/- 3. House Rent Rs. 881/- 4. Medical allowance Rs. 185/- Total salary Rs. 18738/- Deductions: (i) C.P. Fund Rs.1356/- (ii) Loan against Provident Fund Rs. 300/- (iii) LIC Rs. 286/- (iv) Festival advance Rs. 1000/- (v) Consumer loan Rs. 300/- (vi) Conveyance allowance Rs. 2250/- Total deductions. Rs. 5,492/- Net payable salary. Rs. 13,245/- After deducting 1/4th towards personal expenses of the deceased (Rs.13245x1/4th=Rs. 3311/-) comes to Rs.9934/- (Rs. 13245-3311=Rs. 9934/-). By adding 30% as future prospects, it comes to Rs. 12914/- per month. Adopting 13 as multiplier which is applicable to the age group of 46 to 50 years in terms of para 42 of Sarla Verma’s case (supra), the just compensation is as follows:- Annual loss of dependency Rs. 20,14,584/-. In addition to the above, Rs. 15,000/- granted by the Tribunal towards the loss of consortium is confirmed. Two minor daughters will be entitled to Rs.25,000/- each for loss of love and affection to the father and the father will be entitled to Rs. 25,000/- for loss of love and affection. Rs. 15,000/- towards funeral expenses awarded by the Tribunal is confirmed. Rs. 15,000/- is also granted to the claimants towards loss of estate. 9. The award of the Tribunal is modified and the claimants are entitled to the following compensation:- S.No. Heading Award of the Tribunal Modified award 1. For loss of Dependency Rs. 23,98,400/- Rs. 20,14,584/- 2. For loss of Consortium. Rs. 15,000/- Rs. 15,000/- 3. For loss of love and affection to two minor children. Nil Rs. 50,000/- 4. For loss of love and affection to the father Nil Rs. For loss of Dependency Rs. 23,98,400/- Rs. 20,14,584/- 2. For loss of Consortium. Rs. 15,000/- Rs. 15,000/- 3. For loss of love and affection to two minor children. Nil Rs. 50,000/- 4. For loss of love and affection to the father Nil Rs. 25,000/- 5. For loss of estate Nil Rs. 15,000/- Total Rs. 24,28,400/- Rs. 21,19,584/- Interest @ 7.5% p.a. awarded by the Tribunal stands confirmed. The apportionment of the compensation shall be in the following manner. It is stated that the father has already received Rs. 1.00 lakh. So the balance amount that becomes due and payable to the two daughters shall be paid to them equally along with interest as afore stated. 10. The appeal is partly allowed. The appellant-Insurance Company to withdraw the excess amount, if any, after settling the claim.