National Insurance Co. Ltd. vs Ram Prasad and Others

G.P. Mittal, J.—The Appeal is directed against a judgment dated 27.02.2012 passed by the Motor Accident Claims Tribunal(the Claims Tribunal) whereby a compensation of Rs. 7,79,000/- was awarded in favour of the Respondents No. 1 to 3. In addition, a further sum of Rs. 30,000/- was awarded towards counsel''s fee. It may be noticed that the Claim Petition filed u/s 166 of the Motor Vehicles Act (the Act) was converted u/s 163A of the Act. It is no longer res integra that in a Claim Petition u/s 163A of the Act, compensation has to be awarded strictly as per the structured formula given in Schedule II to the Act. This Court in ''Anarkali & Anr. v. Raj Kumar & Anr.'' (MAC APP. 341/2012) decided on 11.04.2012 while relying on The Oriental Insurance Co. Ltd. etc. Vs. Hansrajbhai V.Kodala and Others etc. etc., , Deepal Girishbhai Soni and Others Vs. United India Insurance Co. Ltd., Baroda, and The Oriental Insurance Company Limited Vs. Meena Variyal and Others, held that in a Petition u/s 163A of the Act, there is a cap of Rs. 40,000/- on the income and the compensation for non-pecuniary damages has also to be in consonance with the Second Schedule. The loss of dependency in this case thus comes to Rs. 4,53,333/- ( Rs. 40,000/- x 2/3 x 17).

The Respondents No. 1 to 3 would be further entitled to a sum of Rs. 5,000/- towards loss of consortium, Rs. 2,000/- towards loss to estate and Rs. 2,500/- towards funeral expenses. Thus, the overall compensation is reduced from Rs. 7,79,000/- to Rs. 4,62,833/-.

The Claims Tribunal while disposing of the Claim Petition awarded a sum of Rs. 30,000/- towards counsel''s fee. This Court in ''ICICI Lombard General Insurance Co. Ltd. v. Kanti Devi & Ors.'' (MAC. APP. 645/2012) through which a number of Appeals were decided on 30.07.2012, interpreted the Rules for awarding the costs while deciding a Claim Petition. The counsel''s fee is payable only in terms of Rule 1 read with Rule 1A and Rule 9 of Chapter 16 Volume 1 of the Delhi High Court Rules and subject to filing the certificate of fee. No such certificate has been filed by the counsel for the Respondents(Claimants). The order with regard to the payment of counsel fee is, therefore, set aside.

By an order dated 25.05.2012 while issuing notice of the Appeal, the execution of the award was stayed subject to deposit of 60% of the award amount along with upto date interest. If there is any shortfall, the same shall be made up by the Appellant Insurance Company. If the amount has been deposited in excess, the same shall be refunded to the Appellant Insurance Company.

The amount held payable to the Respondents No. 1 to 3(Claimants) shall be disbursed to them in the proportion as directed by the Claims Tribunal.

The Appeal is allowed in above terms.

Pending Applications stand disposed of. No costs.