SMT. SAROJ AND OTHERSversusSMT. NATTHI AND ANOTHER

         HIGH COURT OF JUDICATURE AT ALLAHABAD

          FIRST APPEAL FROM ORDER No. - 3694 of 2010

Smt. Saroj And Others
                                                            .....Appellant(s)
                                  Versus
Smt. Natthi And Another
                                                          .....Respondent(s)

Counsel for Appellant(s)                       :    Satya Deo Ojha
Counsel for Respondent(s)                      :    Rahul Sahai

Court No. - 54
                     HON'BLE ANIL KUMAR-X, J.

1. Heard Sri S.D. Ojha, learned counsel for appellant and Sri Rahul Sahai,
learned counsel for respondent.

2. The present appeal has been filed by the appellant-claimant seeking
enhancement of the compensation awarded by the learned Tribunal by
judgment and award dated 23.11.2010, passed by the learned Additional
District Judge, Court No. 9/Motor Accident Claims Tribunal, Meerut, in
Motor Accident Claim No. 964 of 2009.

3. The brief facts pleaded in the claim petition are that on 17.07.2009 at
about 03:00 P.M., the deceased Bhagwat Singh was going to Haridwar for
taking bath in Tempo No. UP-15 AT-2056. When the said Tempo reached
about 7 kilometres before Bijnor, the driver of the Tempo, due to rash and
negligent driving, overturned the vehicle on the road. In the said accident,
Bhagwat Singh, Vikas and Sonu sustained injuries. Bhagwat Singh sustained
grievous injuries and died on the spot.

4. The learned Tribunal, after considering the evidence available on record,
recorded a finding that the accident had occurred due to rash and negligent
driving of the Tempo driver. The learned Tribunal assessed the notional
income of the deceased at Rs.15,000/- per annum and, applying the
provisions of the Second Schedule to Section 163-A of the Motor Vehicles
Act, determined the compensation. Accordingly, a total compensation of
Rs.1,79,500/- was awarded in favour of the claimants along with interest at
the rate of 6% per annum.

Arguments on behalf of the Appellant
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5.   Learned counsel for the appellant submitted that the compensation
awarded by the learned Tribunal is on the lower side and does not represent
just and reasonable compensation. It was submitted that the income of the
deceased has been assessed inadequately at Rs.15,000/- per annum by
treating the same as notional income, whereas, considering the facts and
circumstances of the case, the income of the deceased ought to have been
assessed at Rs.3,000/- per month. It was further submitted that appropriate
addition towards future prospects ought to have been made while
determining the income of the deceased. Learned counsel also submitted that
the compensation under the non-pecuniary heads ought to have been
awarded in accordance with the principles laid down by the Supreme Court
in National Insurance Co. Ltd. v. Pranay Sethi and Others, 2017 LawSuit
(SC) 1093.

Arguments on behalf of the Respondent-Insurance Company

6. Learned counsel for the respondent-Insurance Company supported the
award passed by the learned Tribunal and submitted that the compensation
awarded is just and proper. It was submitted that the learned Tribunal has
rightly assessed the notional income of the deceased at Rs.15,000/- per
annum and has correctly determined the compensation in accordance with
the Second Schedule to Section 163-A of the Motor Vehicles Act. It was
further submitted that there is no justification for making any further
enhancement in the compensation and the appeal is liable to be dismissed.

Conclusion

7. On the question of quantum of compensation, having heard learned
counsel for the parties and perused the impugned judgment and award, I find
that the compensation awarded by the learned Tribunal requires
reassessment.The accident took place in the year 2009. The learned Tribunal
has assessed the notional income of the deceased at Rs.15,000/- per annum.
In the facts and circumstances of the case, such assessment cannot be
considered to be just and reasonable. The income of the deceased ought to
have been assessed by treating him as a casual labourer. Accordingly, his
monthly income is taken at Rs.3,000/-, which comes to Rs.36,000/- per
annum.

8. The deceased was aged about 34 years at the time of the accident and
was survived by five dependents, namely, his wife and four minor children.
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In view of the age of the deceased, an addition of 40% towards future
prospects is liable to be made. After such addition, the annual income comes
to Rs.50,400/-. Since the deceased was survived by five dependents,
deduction of one-fourth towards his personal and living expenses would be
appropriate. The remaining amount of Rs.37,800/- per annum would
constitute the annual contribution towards the maintenance of the
dependents. Applying the multiplier of 16, applicable to the age group of 31
to 35 years, the loss of dependency comes to Rs.6,04,800/-.

9.   So far as the non-pecuniary heads are concerned, this Court considers it
appropriate to award Rs.15,000/- towards loss of estate, Rs.15,000/- towards
funeral expenses and Rs.40,000/- towards loss of consortium, in accordance
with the principles laid down by the Constitution Bench in National
Insurance Company Limited v. Pranay Sethi. The said amounts are being
taken at the aforesaid figures without making any subsequent 10%
enhancement.

10. Accordingly, the compensation is reassessed as under:

Sl. No.   Particulars                 Amount
1. Annual income (Rs.3,000 × 12) : Rs.36,000/-
2. Addition towards future prospects @ 40% : Rs.14,400/-
3. Annual income after future prospects : Rs.50,400/-
4. Deduction towards personal expenses @ 1/4 : Rs.12,600/-
5. Annual loss of dependency : Rs.37,800/-
6. Multiplier : 16
7. Loss of dependency : Rs.6,04,800/-
8. Loss of estate : Rs.15,000/-
9. Funeral expenses : Rs.15,000/-
10. Loss of consortium : Rs.40,000/-

Total Compensation of Rs. 6,74,800/-/-

11.    In view of the above, appellant/ claimant is entitled to a total
compensation of Rs.6,74,800/- along with rate of interest at the rate of 6%
per annum which shall be indemnified by the insurer of the offending
vehicle.

11. Accordingly, the appeal is allowed. The impugned award passed by the
learned Tribunal is modified to the aforesaid extent.

12. It is further directed that if any amount has already been paid by the
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                                    Insurance Company pursuant to the award of the learned Tribunal, the same
                                    shall be adjusted towards the total amount payable under this judgment. The
                                    Insurance Company shall deposit the enhanced amount of compensation
                                    before the concerned Tribunal within a period of two months from the date
                                    of this order; it shall further be released by the learned Tribunal within four
                                    weeks after the deposit of the said amount in favour of the claimants/parents,
                                    each of whom shall directly receive 50%-50% in their respective savings
                                    bank accounts in cash.

                                    (i) The claimants are hereby directed to provide their savings bank account
                                    details, having R.T.G.S. facility, within four weeks from today to the learned
                                    Tribunal.

                                    (ii) The said amount shall be transferred to the savings bank accounts of the
                                    claimants by way of passing a judicial order, so that the differential amount
                                    may be transferred directly from the account of the Tribunal to the accounts
                                    of the claimants, after completing the necessary formalities, if any.

                                    September 25, 2026
                                    Mukesh
                                                                                              (Anil Kumar-X,J.)




Digitally signed by :-
MUKESH SRIVASTAVA
High Court of Judicature at Allahabad