Md. Tabib And Ors vs Md. Moinullah Khan And Ors

The Claimants are the appellants before this Court. They have preferred this appeal for enhancement of the award dated 11.09.2017 passed in Title

(M.V) Claim Case No.150/15 passed by learned District Judge-VIII-cum-MACT, Dhanbad whereby the claimants have been awarded a

compensation to the tune of Rs.490500/- along interest @6% per annum from the date of filing of the claim application i.e. 22.05.2015 till its

realization.

Learned counsel for the appellants has further submitted that the learned Tribunal has not considered the future prospect to the tune 40% of the

income nor paid amount of Rs.70,000/- under conventional heads i.e. funeral expenses as Rs.15,000/-, loss of estate as Rs.15,000/- and loss of

consortium as Rs.40,000/- in view of the judgment passed by the Apex Court in the case of National Insurance Company Limited vs. Pranay Sethi &

Ors. as reported in (2017) 16 SCC 680. Learned counsel for the appellants has submitted that the Tribunal has only granted Rs.4500/- under the

conventional head i.e. funeral expenses as Rs.2000/- and loss of estate as Rs.2500/-.

Learned counsel for the appellants has further submitted that though the interest has been granted by the learned Tribunal @6% per annum but it

ought to have been @7.5% per annum in view of the judgment passed by the Apex Court in the case of Dharmpal and Sons vs. UP State Road

Transport Corporation; 2008 (4) JCR 79 SC

Learned counsel for the Insurance Company has opposed the same but on legal question he has submitted that Apex Court has already passed order

in the case of Pranay Sethi (supra) as well as Dharmpal (supra). Learned counsel for the Insurance Company has further submitted that owner of the

offending vehicle has violated the terms and conditions of the insurance policy, as such, right to recover the same has been granted by the learned

Tribunal in favour of the Insurance Company from the owner, as such, this Court may observe that whatever the amount is enhanced by this Court,

the same shall also be recovered from the owner of the offending vehicle.

Learned counsel for the owner of the offending vehicle has submitted that owner has not filed any Miscellaneous Appeal assailing the impugned

award as once the right of recovery is there, he has nothing to say on this legal question.

Heard learned counsel for the appellants and learned counsel for the respondents. Considering the admitted fact of the case, the enhancement is being

made in view of the judgment passed by the Hon'ble Apex Court as referred above. As such, the amount under the conventional head is enhanced to

Rs.70,000/- instead of Rs.4500/- in view of the judgment of Pranay Sethi (supra) and interest is enhanced @7.5% instead of 6% from the date of

filing of the application. Accordingly, calculation is made as under:-

Annual Income- Rs. 54000/-

Deduction towards personal and living expenses @50% - Rs.27000/-

Total income after deduction - Rs.27000/-

Future Prospect @40% -Rs.10800/-

Thus the income becomes Rs.37,800/-

As the deceased was in the age group of 18, as such multiplier of 18 is used which comes to Rs.6,80,400/- (Rs.37,800 x 18) and conventional head of

Rs.70,000/- which comes to Rs.7,50,400/- (Rs.6,80,400 + Rs.70,000).

As such, Rs. 7,50,400/- along with interest @7.5% per annum from the date of filing of the claim application i.e. 22.05.2015 is awarded to the

claimants.

Accordingly, the appeal is hereby allowed.

However, the right of recovery as granted by the learned tribunal against the owner shall remain intact. The Insurance company has every right to

recover the total compensation amount including the amount enhanced by this Court from the Owner of the offending vehicle.

The Insurance Company is directed to satisfy the awarded amount within a period of 60 days from the date of receipt of a copy of this order failing

which the Tribunal shall proceed against the Insurance Company.