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2018 DIGILAW 264 (GUJ)

NEW INDIA ASSURANCE CO. LTD v. KANCHANBEN WD/O JAYANTIBHAI M. PATEL

2018-01-25

BIREN VAISHNAV, M.R.SHAH

body2018
JUDGMENT : MR.JUSTICE M.R. SHAH, J. 1. Feeling aggrieved and dissatisfied with the impugned Judgment and Award passed by the learned Motor Accident Claim Tribunal (Main), Kheda, at Nadiad, passed in Motor Accident Claim Petition No. 1935 of 1993, by which the learned Tribunal has partly allowed the said claim petition preferred by the original claimants, and awarded a total sum of Rs.19,18,988/- towards compensation under different heads, the original opponent-Insurance Company has preferred the First Appeal. The learned Tribunal by the impugned Judgment and Award has awarded a total sum of Rs.18,18,988/- under different heads as under: Rs. 15,46,800/- Loss of dependency Rs. 02,87,178/- amount of gratuity Rs. 50,000/- earned leave salary Rs. 10,000/- Pain, shock and suffering Rs. 10,000/- consortium to widow Rs. 10,000/- conventional amount Rs. 5,000/- medical treatment, transportation cremation ceremony. Rs. 19,18,988/- Total. 1.1. As the issue involved in the present First Appeal is in a narrow compass, the entire facts leading to the present First Appeal are not narrated. 1.2. At the outset, it is required to be noted that, at the time of accident the deceased was in the pay-scale of Rs.4,575/- per-month and was getting a total sum of Rs. 8,970/- per-month. However, the learned Tribunal considered the income of the deceased at Rs.29,704/- considering the income what the deceased would have received at the time of retirement. Thereafter, the learned Tribunal considered the monthly income of the deceased at Rs.19,337/- per-month, and after deducting 1/3rd towards the expenses of the deceased and applying the multiplier of 10, the learned Tribunal, as such, considered the loss of dependency at Rs.15,46,800/-, the learned Tribunal also awarded Rs.2,87,178/- towards the loss of gratuity, Rs. 50,000/- towards earned leave salary and Rs.30,000/- under the conventional heads and Rs.5,000/- towards the medical treatment, transportation, cremation ceremony etc. 2. Feeling aggrieved and dissatisfied with the impugned Judgment and Award, in so far as, awarding Rs.15,46,800/- towards loss of dependency, the Insurance Company has preferred the present First Appeal. 3. Shri Vibhuti Nanavati, learned advocate appearing on behalf of the appellant-Insurance Company has vehemently submitted that, at the time of accident, the deceased was getting a total sum of Rs.8,970/- per-month towards salary and other allowances, emoluments etc., and therefore, while awarding the future loss of income, the learned Tribunal ought to have considered the income of the deceased at Rs.8,970/- per-month. 3.1. 3.1. It is submitted that, after adding 15% towards the future prospects as per the recent decision of the Hon’ble Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi And Ors., reported in (2017) 3 GLH 536, the claimants shall be entitled to the future loss of income. 4. On the other hand, Shri Patel, learned advocate appearing on behalf of the original claimants has, as such not disputed the above; however, has submitted that the learned Tribunal has materially erred in deducting 1/3rd towards personal expenses of the deceased. It is submitted that, looking to the number of claimants, the learned Tribunal ought to have deducted 1/4th towards the personal expenses of the deceased. He has also submitted that, looking to the age of the deceased, the learned Tribunal ought to have applied the multiplier of 11. Therefore, he has submitted that, the impugned Judgment and Award passed by the learned Tribunal is not required to be interfered with. 5. Heard learned advocates appearing for the respective parties at length. Considering the impugned Judgment and Award passed by the learned Tribunal, we have reappreciated the entire evidence on record. 5.1. Considering the material on record, it is not in dispute that the deceased at the time of accident was getting Rs.8,970/- per-month in all as salary and all other allowances and emoluments. However, the learned Tribunal has awarded the future loss of income considering the salary, which the deceased would have received at the time of his retirement. The aforesaid is decided by the Hon’ble Supreme Court in catena of decisions. As per the catena of decisions rendered by the Hon’ble Supreme Court, while awarding future loss of income, the income received by the deceased at the time of accident alone is required to be considered. Therefore, in the present case, the income of the deceased at the time of accident is required to be considered, which was Rs. 8,970/- per-month while considering the future loss of income / loss of dependency. Looking to the number of dependents, only 1/4th is required to be deducted towards the personal expense of the deceased, instead, 1/3rd is deducted by the learned Tribunal. 8,970/- per-month while considering the future loss of income / loss of dependency. Looking to the number of dependents, only 1/4th is required to be deducted towards the personal expense of the deceased, instead, 1/3rd is deducted by the learned Tribunal. As per the recent decision of the Hon’ble Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi And Ors.,(supra), and as the deceased at the time of accident was aged 52 years of age, 25.% of the income at the time of accident is required to be added towards future prospects. Under the circumstances, dependency benefit would come to Rs.7,737 per month i.e. Rs.92,844/- per annum. Applied the multiplier of 11, loss of dependency would come to Rs. 10,21,284/-. As per the recent decision of the Hon’ble Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi and ors (supra), the original claimants shall be entitled to a total sum of Rs.70,000/- under conventional heads. Under the circumstances, the original claimants shall be entitled to total sum of Rs.14,28,458/- under different heads as under: Rs. 10,21,280/- Loss of dependency Rs. 2,87,178/- amount of gratuity Rs. 50,000/- earned leave salary Rs. 70,000/- under conventional heads Rs. 14,28,458/- (After rounding of Rs.14,28,500/-) Total 6. In view of the above and for the reasons stated above, the present Appeal is partly allowed and the impugned Judgment and Award is hereby modified to the aforesaid extent and it is held that the original claimants shall be entitled to a total sum of Rs.14,28,500/- towards the compensation under different heads as aforesaid with interest thereon @ 9% per annum from the date of filing of the claim petition till realization. Present petition is partly allowed to the aforesaid extent. No costs. The amount of Rs.25,000/- deposited by the appellant Insurance Company at the time of preferring the Appeal is hereby directed to be transmitted to the learned Tribunal, if not transmitted so far. It goes without saying that, whatever amount deposited by the Insurance Company in excess of the aforesaid amount of compensation as per the present order, the appellant Insurance Company shall be permitted to get back the same either from the fixed deposits lying with the Tribunal and/or from the original claimants. 7. In view of disposal of the First Appeal, Civil Application No. 6964 of 2003 also stands dismissed. 7. In view of disposal of the First Appeal, Civil Application No. 6964 of 2003 also stands dismissed. The Registry is directed to return the R&P of the case to the learned Tribunal forthwith.