Ranglal Saini And Ors vs Kamlesh Kumar Sharma And Ors

This appeal for enhancement of compensation is directed against the judgment and award dated 22.10.2016 passed by the Motor Accident Claims Tribunal No.2, Jaipur Metropolitan, Jaipur (for short 'the Tribunal'), whereby, the tribunal awarded a sum of Rs.5,52,000/- as compensation along with interest @ 7.5% per annum from the date of filing of the claim petition.

Learned counsel for the appellant has submitted that the tribunal committed an error in awarding lesser compensation.

The tribunal erred in assessing the income of the deceased as Rs.3,000/- per month. At the relevant time, prevalent rate of minimum wages fixed by the State was Rs.4,316/- per month, therefore, the income of the deceased should have been considered as Rs.4,316/-. The tribunal also erred in not awarding any amount towards future prospects of the deceased.

On the other hand, learned counsel for the respondents while opposing the appeal has contended that the tribunal erred in awarding higher compensation towards conventional heads.

I have considered the rival submissions made by the learned counsel for the parties and have perused the material available on record.

The claim-petition was filed by the appellants praying for compensation on account of death of Manju Devi in a motor vehicle accident which occurred on 03.04.2013. The tribunal took the income of the deceased as Rs.3,000/- per month. However, at the relevant time, prevalent rate of minimum wages fixed by the State was Rs.4,316/- per month, therefore, the income of the deceased is liable to be taken as Rs.4,316/- per month i.e. Rs.51,792/- per annum. Further, in view of the judgment of Hon'ble Apex Court in National Insurance Company Limited Vs. Pranay Sethi & Ors., reported in AIR 2017 SC 5157, an addition of 40% is liable to be added towards future prospect of the deceased, which comes to Rs.20,717/-. Thus, the income of the deceased comes to Rs.72,509/- (51,792+20,717). Keeping in view the number of dependents, one third of the said income is liable to be deducted towards personal expenses of the deceased.

Admittedly, the deceased was aged about 25 years at the time of accident. Thus, to work out the dependency of the claimants, multiplier of 18 would be applied. In this way, the amount of compensation comes to Rs.8,70,108/- (72,509x2/3x18). The claimants would be further entitled to receive a sum of Rs.70,000/- towards conventional heads. Thus, the total amount of compensation receivable by the claimants comes to Rs.8,70,108+70,000=9,40,108/-

Accordingly, this appeal is partly allowed. Impugned award dated 22.10.2016 is modified to the extent that the compensation amount receivable by the claimants is Rs.9,40,108/- instead of Rs.5,52,000/- as awarded by the Tribunal. Remaining terms and conditions of the award shall be the same. The Insurance Company shall deposit the enhanced amount along with the interest @ 7.5% per annum from the date of filing of the claim petition till date of payment with the Tribunal within a period of two months from today. It is ordered that the share of the enhanced amount of the compensation shall be invested in fixed deposit with a nationalised bank initially for a period of 2 years and the interest accrued thereon shall be paid to the claimants on monthly basis.