Santosh Kumar and Anr vs Prem Kumar and Ors

G.P. MITTAL, J

The Appellants who are the brother and sister of deceased Manoj impugn a judgment dated 05.08.2011 whereby a compensation of Rs. 1,73,400/- was awarded in favour of the Appellants for the death of Manoj in a motor accident which occurred on 23.12.2007. During inquiry before the Motor Accident Claims Tribunal (the Claims Tribunal), it was claimed that the deceased was working in a shoe factory in village Ranhola Delhi and was earning Rs. 39,000/- per annum. The Claims Tribunal held that the Minimum Wages of an unskilled worker at the time of the accident were Rs. 3516/-. The Claims Tribunal relied on a report of the Supreme Court in Gobald Motor Service Ltd. and Another Vs. R.M.K. Veluswami and Others, a report of the Karnataka High Court in A. Manavalagan v. A. Krishnamurthy & Ors., 2005 ACJ 1992; and a judgment of this Court in Keith Rowe v. Prashant Sagar & Ors. MAC APP.601/2007 decided on 15.01.2010 to hold that 15% of the deceased''s income could be taken as loss to estate. After making a provision towards loss of love and affection and funeral expenses, the overall compensation of Rs. 1,73,400/- was awarded.

Although, the Claims Tribunal proceeded to award a compensation u/s 166 of the Motor Vehicles Act (the Act) (as is evident from the opening paragraph of the impugned judgment), yet a perusal of the Claim Petition would reveal that the same was filed u/s 163-A of the Act.

Section 163-A of the Act envisages grant of compensation to the legal heirs or the victims as indicated in the Second Schedule of the Act.

Section 163-A of the Act is extracted hereunder:-

"Section 163-A. Special provisions as to payment of compensation on structured formula basis -

(1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorized insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be."

In MAC APP.304/2009 titled New India Assurance Co. Ltd. v. Pitamber & Ors., decided on 23.01.2012 this Court noticed the judgment of this Court in 4 decided on 01.09.2008; Oriental Insurance Company Limited v. Om Prakash & Ors., 1 (2009) ACC 148; Jagdish & Anr. v. Madhav Raj Mishra and Anr. MAC APP.190/2011 decided on 19.04.2011; Oriental Insurance Company Limited v. Anita Devi & Ors., 2011 (5) AD (Delhi) 138, decided on 10.05.2011; and the Supreme Court judgment in Deepal Girishbhai Soni and Others Vs. United India Insurance Co. Ltd., Baroda, and opined that the compensation in a Claim Petition u/s 163-A of the Act would be payable strictly as per the structured formula.

The judgment of the Karnataka High Court in A. Manavalagan (supra) and of this Court in Keith Rowe (supra) would not govern the grant of compensation u/s 163-A of the Act.

Thus, the compensation payable as per the structured formula would be Rs. 4,68,000/- (39,000/- x 2/3 x 18). As per the Second Schedule, the Appellants would be further entitled to a sum of Rs. 2,000/- towards funeral expenses and Rs. 2,500/- towards loss to estate.

Thus, the Appellants are entitled to a compensation of Rs. 4,72,500/- as against Rs. 1,73,400/- awarded by the Claims Tribunal.

The compensation thus stands enhanced by Rs. 2,99,100/- which shall carry interest @ 7.5% per annum from the date of filing of the Petition till the date of payment.

Respondent No.3 New India Assurance Company Limited is directed to deposit the enhanced amount along with interest with UCO Bank, Delhi High Court, New Delhi in the name of the Appellants within six weeks.

The enhanced compensation along with interest shall be payable to the Appellants in equal proportion. 60% of the compensation along with proportionate interest shall be held in fixed deposit for a period of three years in UCO Bank, Delhi High Court, New Delhi and rest of the amount along with proportionate interest shall be released to the Appellants forthwith. The Appeal is allowed in above terms.