Allahabad High Court
SMT. PREM WATI AND OTHERSversusNEW INDIA INSURANCE CO. LTD. AND OTHERS
- Decided
Holding
The appeal is allowed; the compensation is enhanced to Rs.1,34,750 (after 50% contributory negligence deduction) with interest, while affirming the Tribunal's income assessment and contributory negligence finding.
Summary
The appellant, Smt. Prem Wati and others, appealed against the award of compensation for the death of Ram Sevak in a motor vehicle accident, contending that the deceased's income was understated and that the 50% deduction for contributory negligence was unwarranted. The trial Tribunal had assessed the deceased's annual income at Rs.21,000, applied a multiplier of 15, and reduced the loss of dependency by 50% due to the deceased's alleged negligence, resulting in a total award of Rs.1,12,000. The High Court affirmed the Tribunal's assessment of income and the finding of 50% contributory negligence but recalculated the loss of dependency by adding 25% for future prospects, arriving at a gross compensation of Rs.2,69,500. After applying the 50% contributory negligence deduction, the Court ordered a net compensation of Rs.1,34,750 plus 9% interest per annum. The appeal was allowed, the award was modified accordingly, and the insurer was directed to pay the enhanced amount within two months.
Issues considered
- Whether the deceased's annual income should be Rs.21,000 or Rs.72,000 as claimed by the claimants.
- Whether a 50% deduction for contributory negligence of the deceased is justified.
- Whether an addition for future prospects (25%) should be made in calculating loss of dependency.
- Whether the compensation under non‑pecuniary heads must be awarded as per the Second Schedule to Section 163‑A of the Motor Vehicles Act.
Legislation cited
- Motor Vehicles Act — s. 163-A
Subjects
- motor accident
- compensation
- loss of dependency
- contributory negligence
- multiplier
- future prospects
- loss of consortium
- funeral expenses
- Motor Vehicles Act
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
FIRST APPEAL FROM ORDER No. - 765 of 2003
Smt. Prem Wati And Others
.....Appellant(s)
Versus
New India Insurance Co. Ltd. And Others
.....Respondent(s)
Counsel for Appellant(s) : Ram Singh
Counsel for Respondent(s) : Aditya Singh Parihar
Court No. - 54
HON'BLE ANIL KUMAR-X, J.
1. Heard Sri Ram Singh, learned counsel for appellant and Sri Aditya Singh
Parihar, learned counsel for respondent.
2. The First Appeal From Order has been filed by the claimant-appellants
against the judgment and decree dated 21.09.2002 passed by the learned
Additional District Judge, IXth, Bareilly in MACP No.739 of 1999, seeking
enhancement of the compensation awarded by the learned Tribunal.
3. The brief facts pleaded in the claim petition are that on 19.10.1999 at
about 01:15 A.M., when the deceased Ram Sevak was going on his
motorcycle on Faridpur-Shahjahanpur Road near village Simra, within the
jurisdiction of Police Station Fatehganj Purvi, District Bareilly, the driver of
vehicle No. 50-JO-R-1151, due to rash and negligent driving, hit the said
motorcycle. In the said accident, Ram Sevak, who was riding the
motorcycle, sustained injuries and died.
4. The learned Tribunal, after considering the evidence available on record,
assessed the age of the deceased at 45 years. Although the claimants had
claimed that the deceased was earning Rs.6,000/- per month, the learned
Tribunal assessed his annual income at Rs.21,000/-. After deducting one-
third towards his personal and living expenses, the annual contribution
towards the dependents was determined at Rs.14,000/-.
5. Applying the multiplier of 15, the loss of dependency was calculated at
Rs.2,10,000/-. However, the learned Tribunal also recorded a finding that the
deceased himself was responsible to the extent of 50% for the accident and,
accordingly, deducted 50% of the aforesaid amount, reducing the loss of
FAFO No. 765 of 2003
2
dependency to Rs.1,05,000/-.The learned Tribunal further awarded
Rs.5,000/- towards loss of consortium and Rs.2,000/- towards funeral
expenses. Thus, the total compensation was determined at Rs.1,12,000/-
together with interest of 9% per annum.
Arguments on behalf of the Appellant
6. Learned counsel for the appellant submitted that the compensation
awarded by the learned Tribunal is on the lower side. It was submitted that
the income of the deceased was wrongly assessed at Rs.21,000/- per annum,
whereas the claimants had claimed his income at Rs.6,000/- per month. It
was further submitted that the deduction of 50% on account of contributory
negligence of the deceased is not justified. Learned counsel further
submitted that the compensation is also required to be reassessed in
accordance with the principles laid down in National Insurance Company
Limited v. Pranay Sethi 2017 ACJ 2700, particularly with regard to the
deduction towards personal and living expenses, addition towards future
prospects and compensation under the non-pecuniary heads. It was,
therefore, submitted that the compensation awarded by the learned Tribunal
deserves to be enhanced by making appropriate reassessment under the
aforesaid heads.
Arguments on behalf of the Respondent-Insurance Company
7. Learned counsel for the respondent-Insurance Company supported the
impugned judgment and award and submitted that the accident had occurred
in the year 1999 and the learned Tribunal has rightly determined the
compensation by following the principles contained in the Second Schedule
to Section 163-A of the Motor Vehicles Act. It was further submitted that the
claimants failed to prove that the deceased was earning Rs.6,000/- per month
and, therefore, the learned Tribunal has rightly assessed his annual income at
Rs.21,000/-. It was, accordingly, submitted that no interference is warranted
in the impugned judgment and award.
Conclusion
8. Heard learned counsel for the parties and perused the impugned
judgment and award.
9. The finding recorded by the learned Tribunal with regard to the
contributory negligence of the deceased to the extent of 50% has not been
FAFO No. 765 of 2003
3
challenged and, therefore, the said finding does not call for any interference.
Likewise, the annual income of the deceased assessed at Rs.21,000/- is
found to be just and reasonable, particularly when the claimants failed to
establish the pleaded income of Rs.6,000/- per month. The said finding is
accordingly affirmed.
10. The deceased was aged about 45 years at the time of the accident.
While reassessing the compensation, an addition of 25% towards future
prospects is liable to be made. Thus, the annual income of the deceased
comes to Rs.26,250/-. After deducting one-third towards his personal and
living expenses, the annual contribution towards the dependents comes to
Rs.17,500/-. Applying the multiplier of 15, the loss of dependency comes to
Rs.2,62,500/-.
11. The compensation under the non-pecuniary heads is liable to be
awarded in terms of the Second Schedule to Section 163-A of the Motor
Vehicles Act, namely, Rs.5,000/- towards loss of consortium and Rs.2,000/-
towards funeral expenses.
12. Thus, the total compensation before applying the finding of
contributory negligence comes to Rs.2,69,500/-. Since the deceased himself
was held responsible to the extent of 50% for the occurrence, 50% of the
total compensation is liable to be deducted. Consequently, the amount
payable to the claimants comes to Rs.1,34,750/-.
Sl. No. Particulars Calculation Amount
a. Annual income : Rs.21,000/-
b. Future prospects @ 25% : Rs.21,000 × 25% = Rs.5,250/-
c. Annual income after future prospects : Rs.21,000 + Rs.5,250 =
Rs.26,250/-
d. Deduction towards personal expenses @ 1/3 : Rs.26,250 × 1/3 =
Rs.8,750/-
e. Annual loss of dependency : Rs.26,250 − Rs.8,750 = Rs.17,500/-
f. Multiplier : 15
g. Loss of dependency : Rs.17,500 × 15 = Rs.2,62,500/-
FAFO No. 765 of 2003
4
h. Loss of consortium : Rs.5,000/-
i. Funeral expenses : Rs.2,000/-
Total compensation : Rs.2,69,500/-
Deduction towards contributory negligence @ 50% Rs.2,69,500 × 50%
(-) Rs.1,34,750/-.
Net compensation payable : Rs.1,34,750/-
13. Accordingly, the claimants are entitled to Rs.1,34,750/- as
compensation. The remaining findings of the learned Tribunal, including the
finding regarding 50% contributory negligence, are affirmed.
14. In view of the above, appellant/ claimant is entitled to a total
compensation of Rs.1,34,750/- along with rate of interest at the rate of 9%
per annum, which shall be indemnified by the insurer of the offending
vehicle.
15. Accordingly, the appeal is allowed. The impugned award passed by the
learned Tribunal is modified to the aforesaid extent.
16. It is further directed that if any amount has already been paid by the
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
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