New India Assurance Company Ltd. vs Smt. Durgesh Kumari and Others

Rajes Kumar, J.—Heard Sri Arun Kumar Shukla, learned counsel for the appellant and Sri M.N. Siddiqui, appearing on behalf of the claimant-respondents. With the consent of the learned counsel for the parties, the Appeal is being disposed of at the admission stage itself.

The appellant is the insurer of the truck, bearing registration No. UP-78-BT-5877, which was involved in the accident. On 3.6.2011, when one Sachin Verma along with his friend, Sachin Katiyar was going for morning walk, both have been hit by the aforesaid truck as a result of which both died on the spot. This Appeal arises from the claim petition filed by the parents of Sachin Verma, who died in the accident. The Tribunal by the impugned judgment awarded a compensation at Rs. 3,59,000/-.

Learned counsel for the appellant submitted that the multiplier applied for determining the amount of compensation is not correct and as such the quantum of compensation is excessive. He further submitted that the age of the deceased was about 19 years and the age of mother was 39 years and the father was aged about 41 years. The Tribunal erred in applying the multiplier of 18, having regard to the age of the deceased, relying upon the decision of the two Judges'' Division Bench of the Apex Court in the case of Amrit Bhanu Shali and Others Vs. National Insurance Co. Ltd. and Others, : (AIR 2012 SC (Civil)1954), while in the case of U.P. State Road Transport Corporation and Others Vs. Trilok Chandra and Others, , a three Judges'' Bench of the Apex Court has held that if the deceased is a bachelor and his dependents are his parents, the age of parents shall be relevant for the choice of the multiplier. The said judgment has been followed by another Division Bench of the Apex Court, in the case of National Insurance Company Ltd. Vs. Shyam Singh and Others, . He submitted that in the case of Amrit Bhanu Shali & others v. National Insurance Co. Ltd. & others (supra), while observing that the selection of multiplier is based on the age of the deceased and not on the basis of the age of the parents, the Division Bench of the Apex Court has not considered the ratio laid down by the three Judges'' Bench decision of the Apex Court in the case of UPSRTC and others v. Trilok Chandra and others (supra).

Learned counsel for the claimant-respondents submitted that there is no error in the impugned judgment of the Tribunal as it is based on the decision of the Apex Court in the case of Amrit Bhanu Shali & others v. National Insurance Co. Ltd. & others (AIR 2012 SC (Civil) 1954) (supra). He further submitted that in case if the average age of parents is to be taken as 40 years, the multiplier of 14 has to be applied in accordance with the decision of the Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, as a result of which there will be difference in the amount of compensation of Rs. 54,000/= only.

I have considered rival submissions and perused the record.

In the present case, the only dispute is with regard to number of multiplier. The Tribunal has applied multiplier of 18 times, having regard to the age of the deceased. There is no dispute that the deceased was unmarried and the parents are the only dependents. The sole question in the present case is whether the multiplier is to be applied on the basis of the age of the deceased or on the basis of the average age of the parents.

In the case of UPSRTC and others v. Trilok Chandra and others (supra), three Judges Bench of the Apex Court has held that the selection of multiplier cannot, in all the cases, be solely dependent on the age of the deceased. If the deceased is bachelor and his dependents are his parents, the age of the parents would also be relevant in the choice of multiplier. The two Judges'' Bench of the Apex Court, in the case of National Insurance Company Ltd. Vs. Shyam Singh and Others, , has followed the decision of three Judges'' Bench decision of the Apex Court in the Case of UPSRTC and others v. Trilok Chandra and others (Supra) and further following the decision of the Apex Court in the case of New India Assurance Co. Ltd. Vs. Charlie and Another, and yet another decision of the Apex Court in the case of Oriental Insurance Co. Ltd. Vs. Syed Ibrahim and Others, , has held that in the case of death of a bachelor where the parents are the dependents, the age of the parents or the age of the deceased, whichever is higher, will be taken for the purposes of applying the multiplier.

In the case of Amrit Bhanu Shali & others v. National Insurance Co. Ltd. & others (supra), the two Judges Bench of the Apex Court, while observing in paragraph 17 of the judgment that the selection of the multiplier is based on the age of the deceased and not on the basis of the age of the dependents, has not considered the decision of the three Judges'' Bench of the Apex Court in the case of UPSRTC and others v. Trilok Chandra and others and the other judgments of the Apex Court, referred hereinabove.

In view of the aforesaid facts and circumstances, I am of the view that the view taken by the three Judges'' Bench of the Apex Court in the case of UPSRTC and others v. Trilok Chandra and others (supra) has to be followed and as such in the present case, the multiplier applicable would be on the basis of the average age of the parents and, therefore, in view of the decision of the Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , the multiplier of 15, instead of 18, has to be applied.

Both the learned counsel, that is, learned counsel for the appellant and the learned counsel for the claimants-respondent are agree that if the multiplier of 15 is to be applied, there will be a difference of Rs. 54,000/= in the total amount of compensation awarded by the Tribunal. After reducing Rs. 54,000/-, the total amount of compensation would come to Rs. 3,05,000/-.

Accordingly, the Appeal is allowed in part. The order of the Tribunal, dated 31.1.2013, passed by the Motor Accident Claims Tribunal, Kanpur Dehat, is modified to this extent only. The Tribunal is directed to allocate the aforesaid amount of compensation amongst the dependents of the deceased, in accordance with law.

The appellant is directed to deposit the entire re-determined amount of compensation along with the interest within one month from today and the Tribunal shall release the amount of compensation to the dependents within a month thereafter. Any amount already deposited shall be given due adjustment. The office is directed to remit back the statutory amount deposited to the concerned Tribunal within four weeks.