JUDGMENT : RAM KRISHNA GAUTAM, J. 1. This First Appeal From Order under Section 173 of Motor Vehicle Act, 1988, has been filed by United India Insurance Co. Ltd. through Divisional Manager, H.K. House, Delhi Road, Meerut, against Smt. Rekha Singh and three others, claimants, as well as Raj Pal Goswami, respondent, challenging the legality and validity of judgment and Award dated 21.8.2010 passed by Motor Accident Claims Tribunal/Additional District Judge, Court No. 11, Meerut, in M.A.C.P. No. 217 of 2009, Smt. Rekha Singh and Others vs. Raj Pal Goswami and Others, with this contention that the judgment is based on perverse findings of facts and is contrary to law as well as precedents. 2. The appellant-Insurance Company moved an application u/s 170 of the Motor Vehicle Act, 1988, which was allowed by the Tribunal vide order dated 8.10.2009 thereby the appellant has, without prejudice to the provisions contained in sub-section 2 of Section 149 of the Motor Vehicle Act, right to contest the claim on all grounds that are available to the insured owner. Deceased was employed as Senior Auditor in Sahkari Samiti, Panchayat Vibhag, Ghaziabad, and as per evidence on record his monthly salary was Rs. 13542/- but the Tribunal erred in calculating compensation on the basis of his gross salary of Rs. 16,752/- per month, which was absolutely illegal. The deductions towards Provident Fund was Rs. 3150/- and Rs. 60/- towards Insurance resulted in net monthly income of Rs. 13542/- and as such the amount of compensation awarded on the basis of gross income of the deceased was excessive. The proof of age of deceased to be 55 years on the date of accident was not filed before the Tribunal, whereas the multiplier of 8 after taking into account the age of the deceased to be 55 years has been made. First information report of the accident was lodged against unknown vehicle and that too after two days of the accident. Postmortem examination on the dead body was not conducted, hence, the accident resulting death of deceased because of the accident made by the alleged offending vehicle No. U.P. 15Y 5312 was not proved. PW-2 himself has denied to be a friend of the deceased and of PW-1. PW-1 has stated on oath that PW-2, Kanak Singh, was not present at the time of accident, hence there were material contradictions in the testimonies of PW-1 and PW-2. PW-2 himself has denied to be a friend of the deceased and of PW-1. PW-1 has stated on oath that PW-2, Kanak Singh, was not present at the time of accident, hence there were material contradictions in the testimonies of PW-1 and PW-2. This too was not taken into consideration. Award of interest at the rate of 6% per annum was highly excessive, hence this appeal. 3. Heard Sri Ajay Singh, learned counsel for the appellant and Sri Yogendra Pal Singh, learned counsel for respondent nos. 1 to 4. 4. Claim petition u/s 166 of the Motor Vehicle Act was filed before the Motor Accident Claims Tribunal, Meerut, by Smt. Rekha Singh, wife of Rame Singh, Himani Singh and Bhawna Singh, daughters of Rame Singh and Digvijay Singh, son of Rame Singh, against Raj Pal Goswami, owner of Car bearing registration no. U.P. 15Y 5312 and United India Insurance Co. Ltd. Insurer of the vehicle, which was validly insured from 5.4.2006 to 4.4.2007, with this contention that on 20.2.2007 at about 2.00 P.M. in the vicinity of village Udalheri at Manglore-Deoband Road, P.S. Manglore, Roorkee, Haridwar, a car bearing registration no. U.P. 15Y 5312 owned by Raj Pal Goswami being driven rashly and negligently caused the accident resulting in death of Rame Singh, husband and father of the claimants, respectively. The car was validly and effectively insured by United India Insurance Co. Ltd. and at the time of accident, it was being driven within the terms of the insurance policy by a driver having valid and effective driving license. Deceased Rame Singh was aged about 55 years at the time accident and was working as Senior Auditor at Sahkari Samiti, Panchayat Vibhag, Ghaziabad. His salary was Rs. 16,752/- per month, hence a claim of Rs. 33,25,000/- was made against opposite parties. 5. Owner of the vehicle in his written statement admitted himself to be registered owner of the car bearing registration no. U.P. 15Y 5312, which was validly and effectively insured by United India Insurance Company Limited on the date, time and place of above accident. Insurance Cover Note No. 234643 was valid for a period from 5.4.2006 to 4.4.2007. This car was being driven by a driver having valid and effective driving license within the term of insurance policy, hence compensation, if any, was to be born by the above mentioned Insurance Company. 6. Insurance Cover Note No. 234643 was valid for a period from 5.4.2006 to 4.4.2007. This car was being driven by a driver having valid and effective driving license within the term of insurance policy, hence compensation, if any, was to be born by the above mentioned Insurance Company. 6. Written statement was filed by United Insurance Company denying the accident, as above, and further stated that the car was being plied against the terms and conditions of insurance policy. 7. On the basis of pleadings of the parties the Tribunal framed the following issues: 1. Whether on 20.2.2007 at 2.00 P.M. in the vicinity of Village Udalheri at Manglore- Deoband Road, P.S. Manglore, Roorkee, (Haridwar), Car No. U.P. 15Y 5312 owned by opposite party no. 1 was driven rashly and negligently caused death of Rame Singh, husband and father of the petitioners, respectively, in accident? 2. Whether the offending vehicle Car No. U.P. 15Y 5312 owned by opposite party no. 1 was insured by opposite party no. 2, United India Insurance Co. Limited at the time of the accident and was being driven by the driver having valid driving license in accordance with the terms and conditions of the insurance policy concerned? If so its effect? 3. Whether the petition is bad for non-joinder of necessary parties? 4. To what amount of compensation the petitioners are entitled and from whom? 8. Statements of PW-1, Smt. Rekha Singh and PW-2, Kanak Singh, were recorded. Certified copies of the F.I.R. of Case Crime No. 71 of 2007 along with documentary evidence were filed. PW-1, Rekha Singh, and PW-2, Kanak Singh, were examined and the impugned Award was passed to the tune of Rs. 10,64,028/- along with interest at the rate of 6% per annum from the date of filing of the petition i.e. 12.2.2009 till the actual payment was made. 9. PW-1, Rekha Singh, and PW-2, Kanak Singh, were examined and the impugned Award was passed to the tune of Rs. 10,64,028/- along with interest at the rate of 6% per annum from the date of filing of the petition i.e. 12.2.2009 till the actual payment was made. 9. Copy of the F.I.R. of Case Crime No. 71 of 2007 for the offences punishable under Sections 279, 337, 338, 304A, and 427 I.P.C. reveals that for an accident, which occurred on 22.2.2007 at 2.00 P.M. in the vicinity of village Udalheri at Manglore-Deoband Road, P.S. Manglore, Roorkee, Haridwar, at about 3 Kms away from the police station was got registered upon the report u/s 154 Cr.P.C. submitted at P.S. Manglore, Roorkee (Haridwar) by Smt. Rekha Singh, wife of Rame Singh, resident of 75/12, Purva Wali Ganesh Puri, Roorkee, Haridwar, and this accident was reported to be caused by an unknown vehicle being driven rashly and negligently and dashing the motorcycle of her husband, bearing registration no. U.A. 08C 7867, in which she herself and her husband were badly injured. Her husband died during course of treatment, and the motorcycle was badly damaged. In this report Smt. Rekha Singh has stated that she and her husband Rame Singh, son of Balak, while going on motorcycle bearing registration no. U.A. 08C 7867 were on their way from Roorkee to Village Chonda Heri and when they reached within the area of village Udalheri, a car, being driven rashly and negligently, dashed the above motorcycle, from backside, resulting in grievous injury to Rame Singh and the complainant herself was badly injured. Kanak Singh, son of Tuggal Singh, resident of Village Sherpur, P.S. Haridwar, District Haridwar, was present on the spot and many others had witnessed the accident. Kanak Singh took the injured in his own car to Roorkee, where he was got them medically examined and due to grievous injuries, Rame Singh was referred to Jaswant Rai Hospital, Meerut, and on the way to Meerut he succumbed to the injuries at Khatauli. His last rites was performed at his village and then the accident was reported at Police Station. Thereafter case crime no. 71 of 2007 was investigated. In the site plan place of accident has been shown to be at point 'X'. The motorcycle was on its lane when Indica Car came from its lane towards eastern side and dashed the motorcycle. Thereafter case crime no. 71 of 2007 was investigated. In the site plan place of accident has been shown to be at point 'X'. The motorcycle was on its lane when Indica Car came from its lane towards eastern side and dashed the motorcycle. Hence, as per principle of res-ipsa-loquitor this site map itself reveals that the accident was result of rash and negligent driving of the car in question. Investigation resulted in submission of charge-sheet against driver of car Vijendra on 16.4.2007. OPW1, Rajeev Agarwal, was investigator of Insurance Company. Death of Rame Singh, aged about 55 years, having his wife Smt. Rekha Singh, daughters Himani Singh and Bhawna Singh and son Digvijay Singh as his dependents, his death owing to this accident by car of Raj Pal Goswami being driven rashly and negligently by his driver Vijendra have been reported by this investigator. Death certificate of the deceased was on record. Eyewitness account of PW-2, Kanak Singh, was on the record, which is to the effect that this accident was result of rash and negligent driving of Indica car bearing registration no. U.P. 15Y 5312 and both the persons on the motorcycle were injured in this accident, whereas Rame Singh was given medical aid but under treatment he died. PW-1, Smt. Rekha Singh, in her testimony has proved this accident owing to rash and negligent driving of the car concerned, hence the accident was result of rash and negligent driving of the car, which was validly and effectively insured by United India Insurance Company, causing grievous injuries and subsequently death of the deceased Rame Singh and the claimants being his dependents have been proved by the evidence adduced on record. 10. The amount of compensation, as has been assailed, is to be taken into consideration. The salary certificate of deceased Rame Singh reveals that his pay in the month of January, 2007 was Rs. 16752/- and deduction was Rs. 3210/- whereas net salary in hand was Rs. 13542/- and the Tribunal has awarded the compensation on the ground of total gross salary of Rs. 16752/- which was not the cash in hand salary. 11. Hon'ble Apex Court in Asha vs. United India Insurance Co. Ltd. 2008 (2) SCC 774 in paragraph no. 8 has propounded as under: "8. Lastly, it was submitted that the salary certificate shows that the salary of the deceased was Rs. 8,632. 16752/- which was not the cash in hand salary. 11. Hon'ble Apex Court in Asha vs. United India Insurance Co. Ltd. 2008 (2) SCC 774 in paragraph no. 8 has propounded as under: "8. Lastly, it was submitted that the salary certificate shows that the salary of the deceased was Rs. 8,632. It was submitted that the High Court was wrong in taking the salary to be Rs. 6,642/-. It was submitted that the High Court was wrong in deducting the allowances and amounts paid towards L.I.C. society charges and H.B.A. Etc. We are unale to accept this submissions also. The claimants are entitled to be compensated for the lss suffered by them. The loss suffered by them is the amount, which they would have been receiving at the time when the deceased was alive. There can be no doubt that the dependents would only be receiving the net amount less 1/3rd for his personal expenses. The High Court was therefore right in so holding." 12. Thus, the dependency for award of compensation is to be taken into consideration the salary, which is net salary in the hand. Admittedly, the net salary of the deceased in the hand was Rs. 13,542/- hence by multiplying the same by 12 comes to Rs. 1,62504/- as the annual salary in hand of the deceased. After deducting 1/3rd of his own expenses i.e. Rs. 54,168/- the amount, which was being spent over the claimants- family of the deceased comes to Rs. 1,08,336/- and after multiplying it by factor 8 for the age group of 55 years, it comes to Rs. 8,88,688/- the statutory compensation for funeral expenses of Rs. 2000/- for loss of estate Rs. 2500/- and Rs. 5000/- for loss of consortium of claimant no. 1, Smt. Rekha Singh, the total will come to Rs. 8,76,188/-. Hence, the amount of Rs. 8,76,188/- is to be given to the claimants by the O.P. No. 2, United India Insurance Company with joint liability of owner of offending vehicle owned by O.P. No. 1. The interest at the rate of 6% per annum from the date of filing of the claim petition i.e. 12.2.2009 to actual date of payment is to be paid by the Insurance Company. Out of the total amount, Rs. One Lac each will be paid to claimant-respondent nos. The interest at the rate of 6% per annum from the date of filing of the claim petition i.e. 12.2.2009 to actual date of payment is to be paid by the Insurance Company. Out of the total amount, Rs. One Lac each will be paid to claimant-respondent nos. 2, 3 and 4, namely, Himani Singh, Bhawna Singh and Digvijay Singh and the remaining amount will be paid to the claimant Smt. Rekha Singh. The compensation previously paid as well statutory deposit in this appeal is to be adjusted towards the award. 13. The appeal is allowed partly. Award be prepared accordingly.