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New India Assurance Company Ltd v. Shanti Pathak

New India Assurance Company Ltd
v.
Shanti Pathak

(Supreme Court Of India)

Civil Appeal No. 2926-2927 Of 2007 (Arising Out Of Slp (C.) No. 20101-02 Of 2005, 3957 Of 2006) With C.A. No. 2928 Of 2007 | 10-07-2007


Dr. Arijit Pasayat, J.

Civil Appeal Nos.2926-2927 of 2007 (Arising out of SLP (C.) Nos.20101-02 OF 2005)

1. Leave granted.

2. Challenge in this appeals is to the legality of the judgment rendered by a Division Bench of Uttranchal High Court dismissing the appeal filed before it under Section 173 of the Motor Vehicles Act, 1988 (in short the Act). The Motor Accidents Claims Tribunal/Addl. District Judge, F.T.C. Nainital (hereinafter referred to as the tribunal) awarded a sum of Rs.4,10,000/- in favor of the respondents 1 and 2 (hereinafter referred to as the claimants).

3. The background facts which are almost undisputed essentially are as follows:

4. On 11.11.2002 Hem Pathak (hereinafter referred to as the deceased) who was at the relevant point of time 25 years of age lost his life in a vehicular accident. He was traveling in Jeep No.UP 03/0805. The said jeep had a collision with truck bearing No.UP 20A-8491. Since the truck was the subject matter of insurance, the parents of the deceased filed a Claim Petition. The Tribunal as noted above awarded Rs.4,10,000/-. Since the age of the deceased was 25 years, multiplier of 17 was applied. The Tribunal referred to various decisions of this Court for quantifying the amount as Rs.4,10,000/-.

5. Before the High Court it was contended by the appellant that the multiplier to be adopted is to be determined on the age of the claimants and not on the age of the deceased, which was to be taken as the basis for working out the compensation. The High Court did not find any substance in this plea. It was held that no permission had been granted to the insurer to contest its claim. It was submitted that it is a clear case of contributory negligence and the quantum of compensation should be suitably divided. The High Court did not find any substance in this plea also.

6. In support of the appeal, learned counsel for the appellant submitted that both the trial Court and the High Court failed to notice the age of the claimants which was relevant and not the age of the deceased.

7. Considering the income that was taken, the foundation for working out the compensation cannot be faulted. The monthly contribution was fixed at Rs.3,500/-. In the normal course we would have remitted the matter to the High Court for consideration on the materials placed before it. But considering the fact that the matter is pending since long, it would be appropriate to take the multiplier of 5 considering the fact that the mother of the deceased is about 65 years at the time of the accident and age of the father is more than 65 years. Taking into account the monthly contribution at Rs.3,500/- as held by the Tribunal and the High Court, the entitlement of the claim would be Rs.2,10,000/-. The same shall bear interest @ 7.5% p.a. from the date of the application for compensation. Payment already made shall be adjusted from the amount due.

8. The appeal is disposed of accordingly with no order as to costs.

(With C.A.No2928/07 @ SLP (C) No.3957 of 2006)

9. In the instant case the age of the deceased was 52 years as per the post mortem report, and the multiplier thus has to be 8 instead of 13 as adopted by the Tribunal and upheld by the High Court. The rate of interest awarded does not need any interference. The monthly income has to be taken as Rs. 11,684/- and one-third has to be deducted therefrom for personal expenses. Thus, the annual loss of income comes to Rs.93,939/-. The same is rounded to Rs.93,000/-. The entitlement for loss of income comes to Rs.7,44,000/-. The other amounts awarded by the Tribunal totaling Rs.29,500/- remain unaltered. Thus the claimant is entitled to Rs.7,73,500 along with interest at the rate fixed by the Tribunal. The payment already made shall be adjusted.

10. The appeals are allowed to the aforesaid extent with no order as to costs.

Advocates List

For the Appellant S.L. Gupta, B.K. Sharma, Goodwill Indeevar, Advocates. For the Respondents G.E. Vahanvati, SG, Binu Tamta, B.K. Prasad, P.N. Puri, Kuldip Singh, R.K. Pandey, Sanjay Katyal, T.P. Mishra, Debasis Misra, Advocates.

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE DR. JUSTICE ARIJIT PASAYAT

HON'BLE MR. JUSTICE P.K. BALASUBRAMANYAN

HON'BLE MR. JUSTICE D.K. JAIN

Eq Citation

(2007) 10 SCC 1

[2007] 8 SCR 237

AIR 2007 SC 2649

2007 (5) ALLMR (SC) 423

2007 ACJ 2188

(2007) 6 MLJ 707 (SC)

2007 (4) PLJR 110

2007 (3) RCR (CIVIL) 593

(2008) 149 PLR 784

2007 (9) SCALE 216

LQ/SC/2007/880

HeadNote

A. Motor Vehicles Act, 1988 — S.3(1) — Compensation — Computation of — Multiplier — Age of claimants — Noti. S.161A — Held, in view of pendency of matter since long, multiplier of 5 considering fact that mother of deceased was about 65 years at time of accident and age of father was more than 65 years, instead of multiplier of 17 applied by Tribunal and High Court, and taking into account monthly contribution at Rs.3,500/- as held by Tribunal and High Court, entitlement of claim would be Rs.2,10,000/- which shall bear interest @ 7.5% p.a. from date of application for compensation B. Motor Vehicles Act, 1988 — S.166 — Rate of interest — Held, rate of interest awarded does not need any interference C. Motor Vehicles Act, 1988 — S.166 — Computation of compensation — Monthly income — Held, monthly income has to be taken as Rs. 11,684/- and one-third has to be deducted therefrom for personal expenses. Thus, annual loss of income comes to Rs.93,939/-. Same is rounded to Rs.93,000/-