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2018 DIGILAW 93 (JHR)

Mehmud Alam @ Mehmud Ansari v. Surendra Singh

2018-01-11

AMITAV K.GUPTA

body2018
ORDER : This appeal has been preferred for enhancement of the compensation award of Rs. 3,03,000/- (three lakhs and three thousand) awarded vide judgment/award of Motor Vehicle Accident Claim Tribunal Giridih in Motor Vehicle Claims Case No. 5 of 2008. 2. Mr. P.C. Sinha, learned counsel for the appellant has submitted that the Court below has assessed and accepted the income of the deceased at Rs. 4,500/- (four thousand five hundred) per month but has erred in not adding any amount towards future prospects of the income for assessing the actual income of the deceased. That the court below has not considered the ratio laid down in the case of Sarla Verma (Smt.) and Others vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121 , the Apex Court has elaborately discussed the question regarding the multiplier to be applied by taking into account the age of the deceased. That the deceased was aged 21 years hence, the multiplier applicable is 18 accordingly, the Court below has erred in applying the multiplier of 13. The deceased was a tailor and the Court below should have added 50% of the income as monthly income of the deceased for computing the total loss of dependency. 3. Learned counsel appearing for the respondent-the New India Assurance Company Limited, has contended that this case is of the year 2008, therefore, the Tribunal has passed the order, in accordance with settled legal position as applicable at that point of time. It is contended that no error has been committed by the Tribunal and the impugned order does not suffer from any illegality or infirmity warranting any interference by this Court. 4. Heard. There is no dispute regarding the income of the deceased assessed at Rs. 4,500/- (four thousand five thousand) per month. The Hon'ble Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi & Ors., (2017) 4 JLJR(SC) 275, has observed in para-61 - "in case the deceased was self-employed or on a fixed salary an addition of 40% of the established income should be made where the deceased is aged about 40 years". It has been observed that the multiplier is to be applied on the basis of the age of the deceased in terms of the judgment rendered in the case of Sarla Verma (supra). 5. It has been observed that the multiplier is to be applied on the basis of the age of the deceased in terms of the judgment rendered in the case of Sarla Verma (supra). 5. Thus, in view of the settled legal position, the income of the deceased is assessed by addition of 40% of monthly income of Rs. 4,500/- (four thousand five hundred) towards future prospects, i.e., Rs. 6,300/- (six thousand three hundred) per month, accordingly, the annual income of the deceased is calculated as Rs. 6,300 X 12 = Rs. 75,600/-. The deceased died a Bachelor, therefore, 50% of the income is deducted towards the personal expenses accordingly, the annual loss of dependency is computed at Rs. 38,000/- (rounded off). The deceased was aged 21 years, accordingly, the multiplier of 18 is applicable. The Court below has erred in applying the multiplier of 13 on the basis of the age of the parents of the deceased. Thus, the total loss of dependency is calculated at Rs. 38,000 X 18 = Rs. 6,84,000/- (six lakhs eighty four thousand) with interest in terms of the order of the Tribunal. Evidently, the Court below has awarded a meager amount of Rs. 2,000/- (two thousand) towards funeral expenses the same is enhanced and an amount of Rs. 15,000/- (fifteen thousand) and Rs. 25,000/- (twenty five thousand) respectively is awarded for funeral expenses and loss of estate. The court below has held that the driver of the offending vehicle did not have a valid driving licence, accordingly, the right to recovery has been given to the respondent-the New India Assurance Company Limited which does not require any interference by this Court. In view of the discussion made above, the respondent-the New India Assurance Company Limited, is directed to pay Rs. 6,84,000/- + Rs. 40,000=Rs. 7,24,000/- (seven lakhs twenty four thousand) less the amount, if any, already paid, along with interest as per the order of the Tribunal, by 31.3.2018, failing which, the respondent-the New India Assurance Company Limited shall be liable to pay interest @ 12% on the enhanced compensation amount from the date of this order. 6. Accordingly, the awarded compensation is enhanced to the extent as indicated above and the award is modified to that extent. 7. The appeal is, hereby, allowed.