Mahronnisha & ors. vs New India Assurance Company and Anr.

On going through the application for condonation of delay, we are satisfied that the appellant was prevented by sufficient cause from filing the appeal within time.

The delay of 151 days in filing the appeal (as per report of the Stamp Reporter) is condoned.

The appeal be registered and proceeded with.

The application for condonation of delay being C.A.N. 422 of 2015 is, thus, disposed of.

This appeal is against a Judgment and Award dated 26th September, 2012 in an application filed by the appellant/claimants under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the death of Md. Kaimuddin in a road traffic accident caused by a vehicle no. WB-37/6508 covered by a policy of insurance issued by the New India Assurance Company Ltd. (hereinafter referred to as the respondent-insurer) and owned by one Rajendra Prasad.

The learned Tribunal on analysis of the evidence it arrived at the conclusion that the accident had been caused by reason of laches and/or negligence on the part of the offending vehicle owned by the respondent-owner and covered by a policy of insurance issued by the respondent-insurer.

In the claim application filed by the appellant-claimants, the appellant-claimants claimed that the deceased victim had income of Rs. 4,000/- per month at the time of his death. In support of their claim that the deceased victim had income of Rs. 4,000/- per month at the time of his death, the appellant-claimants relied on the income tax return filed by the deceased victim prior to his accidental death. It appears that the deceased victim filed income tax return for the Assessment Year 2005-2006 claiming that he had total annual income of Rs. 49,473/-. The income of the deceased victim being non-taxable he was not required to actually pay any tax.

From the income tax return it is apparent that the same was filed on 8th April, 2005 long before his accidental death.

In the absence of any material to show that income had been inflated, there was no reason for the learned Tribunal to proceed on the basis that the victim had income of Rs. 36,000/-, that is Rs. 3,000/- per month and not Rs. 49,000/- and odd as claimed by the appellant-claimants. On the date on which the deceased victim filed his return he could not possibly have known that he would meet his end in a short while within two years, and that too in a road traffic accident. There was no reason for him to increase his income. The award is modified by awarding compensation as follows :

Yearly income

Rs. 49473/-

Less: ⅓rd towards personal expenses

Rs. 16491/-

Rs. 32,982/-

The multiplier comes to 16 (Rs. 32982/- x 16)

Rs. 527712/-

Add: Loss of estate

Rs. 2500/-

Add: Funeral expenses

Rs. 4000/-

Rs. 534212/-

In addition to the above amount, the widow shall be entitled to Rs. 5,000/- towards loss of consortium.

The awarded amount shall carry interest at the rate of 9% per annum payable from the date of filing of the claim application till full payment to the claimant appellants. The interest is to be computed as per reducing balance, if applicable. The balance awarded amount shall positively be released and/or paid to the appellant-claimants in equal share within 45 days from the date of receipt of a certified copy of this order.

The appeal is disposed of accordingly.

Tribunal/Lower Court records shall forthwith be sent down to the court below.

Photostat certified copy of this order, if applied for, be expeditiously supplied to the learned Advocates appearing for the parties, subject to compliance of requisite formalities.