The Allahabad High Court has ordered the payment of Rs 4,70,000 as compensation to the petitioner, reversing the order of the Motor Accident Claims Tribunal, Muzaffarnagar Authority.
The Division Bench of Justice Kaushal Jayendra Thaker and Justice Ajai Tyagi passed this order while hearing a petition filed by Anil Kumar and others.
The appeal has been preferred by the claimants-appellants against the order dated September 22, 2010 passed by Motor Accident Claims Tribunal, Muzaffarnagar in (Anil Kumar and others Vs. Mohammad Aarif and others), whereby the Tribunal awarded a sum of Rs 77,000 as compensation to the claimants with interest at the rate of 8% per annum from the date of order.
The claimants-appellants have preferred this appeal for enhancement of quantum.
The facts of the case are that a claim petition was filed before the Tribunal by the claimants-appellants with the averments that on February 6, 2009 deceased Upendra Kumar was going to school from his home at about 8:45 AM, when he was going through Bilari-Moradabad road then a truck came on the way, which was being driven very rashly and negligently by its driver and truck hit the deceased. In this accident, the deceased sustained fatal injuries and he died on the spot. Respondents filed their respective written statements. Tribunal after considering the evidence on record, awarded Rs 77,000 to the petitioner nos.1 & 2 who are deceased’s father and mother respectively.
Aggrieved mainly with the compensation awarded, the appellants preferred this appeal. In this matter, the accident is not in dispute. The issue of negligence has been decided in favor of the appellants herein. The Insurance Company has not challenged the liability imposed on it by the Tribunal. The only issue to be decided is the quantum of compensation.
This is a claimants appeal, claiming enhancement of award for the death of a child who was 15 years of age at the time of his death. Counsel for the appellants submitted that the deceased was a brilliant student and he had a very bright future. This aspect is not considered by the Tribunal.
It is also submitted by counsel for the appellants that the notional income of the deceased is taken Rs 15,000 per annum by the Tribunal. It is next submitted that the Tribunal has held that the contribution of the deceased towards his family was only assumed as 1/3rd of his income and in this way, the Tribunal has awarded only 1/3rd of his income as compensation, which is not just and proper.
Counsel for the Insurance Company submitted that the compensation awarded by the Tribunal is just and proper and the order passed by Tribunal also does not suffer from any such infirmity or illegality which may call for any interference by the court.
The Court relied judgment of the Apex Court which has decided the controversy and settled the law regarding the death of a child in Kurvan Ansari @ Kurvan Ali and another Vs. Shyam Kishore Murmu and another, 2021 (4) TAC 673 (Supreme Court). In this case, the Apex Court has stated that in spite of repeated directions, Scheduled-II of Motor Vehicles Act, 1988 is not yet amended. Therefore, fixing notional income of Rs 15,000 per annum for non earning members is not just and reasonable.
The Court held it is a fit case to increase the notional income by taking into account the inflation, devaluation of the rupees and cost of living.
The Apex Court took the notional income of the deceased at Rs 25,000 per annum, hence we are of the considered view that notional income of the deceased must be assumed Rs 25,000 per annum as he was non-earning member.
Accordingly, when the notional income is multiplied with applicable multiplier ‘15’ as prescribed in Schedule-II for the claims under Section 163-A of the Motor Vehicles Act, 1988, it comes to Rs 3,75,000 towards loss of dependency. The appellant father and mother are also entitled to a sum of Rs 40,000 each towards filial consortium and Rs 15,000 funeral expense.
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Hence, the appellant father and mother are entitled to the following amount towards compensation; (i) Loss of Dependency : 25,000 X 15 = Rs 3,75,000 (ii) Filial expenses: 40,000 X 2 = Rs 80,000 (iii) Funeral expenses: Rs 15,000 (iv) Total compensation: Rs 4,70,000
The Court observed that the Tribunal has awarded rate of interest as 8% per annum from the date of order and not from the date of filing the claim petition. The Tribunal has not assigned any reason for not awarding the interest from the date of filing the claim petition, which is unsustainable in the eyes of law.
The Court further held that in view of the latest decision of the Apex Court in National Insurance Co. Ltd. Vs. Mannat Johal and Others, 2019 (2) T.A.C. 705 (S.C.), the appellant father and mother shall be entitled to the rate of interest as 7.5% per annum from the date of filing the claim petition.
“In view of the above, the appeal is partly allowed. Judgment and award passed by the Tribunal shall stand modified to the aforesaid extent. The respondent-Insurance Company shall deposit the amount within a period of 8 weeks with interest at the rate of 7.5% from the date of filing of the claim petition till the amount is deposited. The amount already deposited be deducted from the amount to be deposited,”
-the Court ordered.