National Insurance Company Limited vs Uma Shanker (Dead) through L.Rs. and Others

This is an appeal against the award dated 13.8.1999 passed by First Motor Accident Claims Tribunal, Dabra, District Gwalior in Claim Case No. 1/98.

Facts briefly stated are that on 27.9.1997 the deceased Paritosh Bhatnagar was travelling on Yamaha motorcycle bearing registration No. MP-07-KC-792, when he met with an accident with a jeep bearing registration No. MP-07-H-4876 coming from the opposite side. As a result of the said accident Paritosh died and his father, mother, minor brother and minor sister filed the aforesaid claim case before the Tribunal for compensation. As the jeep was insured with the appellant, the Tribunal awarded a sum of Rs. 2,24,600 as compensation to the claimants by the impugned award against the appellant. Aggrieved by the impugned award the appellant has filed this appeal.

Mr. B.N. Malhotra, learned Counsel for the appellant submitted that the deceased was unmarried and the age of the mother of the deceased was fifty years while the age of the deceased Paritosh was 25 years, and, therefore, as per the second schedule of the Motor Vehicles Act, 1988, (for short, ''the Act'') a multiplier of 11 should have been adopted for working out the loss of dependency, but the Tribunal has adopted a multiplier of 17.

We find force in the submission of Mr. Malhotra. Since, the deceased was unmarried and the mother of the deceased was more than 50 years of age at the time of death of the deceased a multiplier of 11 was applicable as per the provisions of Second Schedule of the Act.

Mr. M.P. Agarwal, learned Counsel for respondent Nos. 1 to 4, who has filed cross-objections on behalf of the respondents submitted that the Tribunal has not considered the future prospects of increments in the salary of the deceased while adjudging the compensation and has only taken into consideration the fixed salary of Rs. 1,000 of the deceased. He further submitted that in addition to the salary, the deceased was also earning Rs. 2,000 per month towards tuition fees but the Tribunal has taken into account only Rs. 600 as tuition fees earned by the deceased every month. He submitted that as per the statement of the mother of the deceased before the Tribunal the deceased was earning Rs. 2,000 per month from tuitions and nothing has been put to her in cross-examination to suggest that the deceased was not earning Rs. 2,000 per month from tuitions. He further submitted that some witnesses have stated before the Tribunal that they were paying Rs. 600 per month to the deceased for tuition but this was the statement of only some of the witnesses who were paying tuition fees to the deceased.

We find from the evidence before the Tribunal that only a certificate has been produced before the Tribunal to show that the deceased was earning a salary of Rs. 1,000. In the said certificate there was no mention whatsoever that the deceased was entitled to any increment in the salary. The said certificate produced before the Tribunal also does not show that he was not on a regular pay scale. In absence of any definite proof that the job of the deceased was stable and that he was entitled to increments on the salary, we cannot award on any sum towards increments in the salary of the deceased in future.

But we find that there is evidence of mother of the deceased that deceased was earning Rs. 2,000 per month from tuitions and the fact that other witnesses have also stated that they were paying Rs. 600 per month to the deceased for such tuitions would no be conclusive that the deceased was not earning more that Rs. 600 from tuitions every month. Considering the evidence of the mother of the deceased that the deceased was earning tuitions fees of Rs. 2,000 per month in addition to his salary of Rs. 1,000 and considering the fact that the mother''s evidence has not been shaken in cross-examination, we are inclined to accept that the deceased was earning Rs. 2,000 per month in addition to his salary of Rs. 1,000 per month.

If 1/3 rd of salary is taken as spent on the deceased, the loss of dependency for his parents and his minor brother and sister worked out at Rs. 2,000 per month and Rs. 24,000 per year. Adopting the multiplier of 11, the compensation for loss of dependency works out to Rs. 2,64,000. To this we add Rs. 5,000 towards loss of love and affection, Rs. 5,000 towards loss of estate and Rs. 2,000 for funeral expenses and the total compensation comes to Rs. 2,76,000. The Tribunal has awarded a total compensation of Rs. 2,64,600 with interest at the rate of 12% per annum. The compensation over and above the compensation of Rs. 2,64,600 awarded by the Trinubal will carry interest at the rate of 6% per annum calculated from the date of application before the Tribunal. The aforesaid enhanced amount of compensation with interest will be deposited with the Tribunal within two months from today.

The appeal and the cross-objections are allowed to the extent indicated above.