Smt. Asha and Others vs Ram Awadh and Others

Rajeev Gupta, C.J.—This is claimants'' appeal for enhancement of the compensation awarded by the Additional Motor Accident Claims Tribunal, Korba (for short ''the Tribunal'') vide award dated 2nd August, 2005, passed in Claim Case No. 35/2004. As against the compensation of Rs. 49,60,000/- claimed by the appellants/claimants, unfortunate widow, minor children and mother of deceased Pramod Tiwari, by filing a claim petition u/s 166 of the Motor Vehicles Act, for his death in the motor accident on 18th July, 2003, the Tribunal awarded a total sum of Rs. 7,64,540/- as compensation alongwith interest @ 9% per annum from the date of filing of the claim petition till the date of actual payment.

The Tribunal on a close scrutiny of the entire evidence led before it held that deceased Pramod Tiwari died on account of the injuries sustained by him in the motor accident on 18th July, 2003; the accident occurred due to rash and negligent driving of the driver of the offending vehicle Truck bearing registration No. CG-04G/2216; as the above offending vehicle Truck on the date of the accident was insured with the Oriental Insurance Company Limited and the Insurance Company could not establish any breach of the policy conditions, the Insurance Company was liable to pay compensation to the claimants.

As the respondents have not filed any appeal against the award, the above findings recorded by the Tribunal have now attained finality.

The Tribunal assessed the income of the deceased at Rs. 6,167/- per month and Rs. 74,004/- per annum. By deducting 1/3rd of Rs. 74,004/-towards the personal expenses of the deceased, the claimants'' dependency was assessed at Rs. 49,336/- per annum. By multiplying the annual dependency of Rs. 49,336/- with the multiplier of 15, the compensation was worked out to Rs. 7,40,040/-. By awarding further sum of Rs. 24,500/- under other heads, the Tribunal awarded a total sum of Rs. 7,64,540/- as compensation to the claimants for the death of deceased Pramod Tiwari in the motor accident. The Tribunal further directed payment of interest on the above amount of compensation of Rs. 7,64,540/- @ 9% per annum from the date of filing of the claim petition till the date of actual payment.

Shri R.S. Patel, learned Counsel for the appellants submitted that the Tribunal has erred in assessing the income of the deceased at Rs. 6,167/- per month by taking into consideration only his basic salary and ignoring the dearness allowance which he was getting regularly; and in awarding low compensation of Rs. 7,64,540/- only.

Shri Sudhir Agrawal and Shri P. Dutta, learned Counsel for respondent No. 3, the Oriental Insurance Company Limited, the insurer of the offending vehicle Truck, on the other hand, contended that the Tribunal has awarded excessive sum of Rs. 7,64,540/-.

Respondent No. 3-The Oriental Insurance Company Limited, filed the cross-objections in the appeal alongwith an application for condonation of the delay in filing the cross-objections. As permission u/s 170 of the Motor Vehicles Act was neither obtained by the Insurance Company nor granted by the Tribunal to contest the claim on all available defences, the cross-objections were dismissed following the dictum of the Apex Court in the case of National Insurance Co. Ltd. v. Nicolletta Rohtagi and others, 2003 (3) T.A.C. 293 (S.C.), vide order dated 11th April, 2011.

Now we shall examine as to whether the compensation of Rs. 7,64,540/- awarded by the Tribunal is just and proper compensation in the facts and circumstances of the present case.

Deceased Pramod Tiwari was working as Driver in South Eastern Coalfields Limited. The Tribunal has assessed the income of the deceased at Rs. 16,167/- per month on the basis of his salary slip Ext. D/1. The salary slip Ext. D/1 no doubt reveals the basic salary of the deceased at Rs. 6,167/- per month, but in addition it also mentions that he was getting dearness allowance of Rs. 3,305/- every month. The Tribunal apparently has fallen into error in not taking into consideration the above amount of Rs. 3,305/- which the deceased was getting every month as dearness allowance. We, therefore, propose to recompute the compensation taking the income of the deceased at Rs. 6,167/- + Rs. 3,305/- = Rs. 9,472/-, which for the sake of convenience is rounded off to Rs. 9,000/- per month.

By deducting the usual 1/3rd of Rs. 9,000/- towards the personal expenses of the deceased, the claimants'' dependency is assessed at Rs. 6,000/ - per month and Rs. 72,000/- per annum.

Considering that deceased Pramod Tiwari, according to the evidence of his widow Smt. Asha Tiwari, was aged about 40-42 years, on the date of the accident, in our opinion, multiplier of 14 would be appropriate in the present case, in view of the dictum of the Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, wherein multiplier of 14 has been prescribed for the age group between 41-45 years.

By multiplying the annual dependency of Rs. 72,000/- with the multiplier of 14 the compensation works out to Rs. 10,08,000/-. The claimants are further entitled to receive Rs. 5,000/- towards funeral expenses; Rs. 5,000/- for loss of estate; and Rs. 5,000/- for loss of consortium to the widow. The claimants, thus, become entitled to receive a total sum of Rs. 10,23,000/- as compensation for the death of deceased Pramod Tiwari in the motor accident.

For the foregoing reasons, the appeal filed by the appellants/ claimants for enhancement of the compensation is allowed in part. The compensation of Rs. 7,64,540/- awarded by the Tribunal is enhanced to Rs. 10,23,000/-. The enhanced amount of compensation of Rs. 2,58,460/- shall carry interest @ 6% per annum from the date of filing of the claim petition till the date of actual payment.

Respondent No. 3 the Oriental Insurance Company Limited is granted three months'' time for depositing the total sum of Rs. 2,58,460/-alongwith interest due thereon @ 6% per annum from the date of filing of the claim petition till the date of actual payment, before the concerning Claims Tribunal. No order as to costs.