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Judgment
Since both these appeals have arisen out of the same judgment, hence are being taken up together for adjudication. AO No. 322/2008 has been preferred by the insurer challenging the impugned judgment on the ground that the deceased was a gratuitous passenger, while the AO No. 47/2009 has been moved by the claimant (father of the deceased) for enhancement of compensation.
Accident occurred on 19.10.2006 at 7.15 PM when Padam Bahadur, a youth of 20 years, boarding in a small truck no. UP20J-4486 was returning from Gopeshwar to Karnprayag after unloading the same. The vehicle was being driven by Arun Kumar Tyagi on the serpentine hilly tardy roads. Vehicle somehow skidded off from the road and fell in the deep ditch resulting in the death of its driver Arun Kumar Tyagi as well as the labourer Padam Bahadur, who were boarded in that vehicle and returning to home on the relevant date and time. Father of Padam Bahadur filed the petition claiming compensation of rupees fifteen lakhs, whereagainst learned Tribunal has granted rupees seventy two thousand only.
Learned Counsel of the insurer has argued that since Padam Bahadur was a gratuitous passenger, hence he was not covered under the insurance cover.
The Court is not inclined to accept this argument for the reason that it has not been denied by the insurance company that the truck was comprehensively covered and the insurer was the best source of evidence to prove the kind and nature of policy, if it was otherwise. So, the Court takes it for granted that the offending vehicle was covered under the comprehensive scheme of insurance.
As regards the quantum, notional income of the deceased has been accepted to be rupees fifteen thousand per year as per the norms contemplated in the Second Schedule of the Motor Vehicles Act.
It is pertinent to mention that such Second Schedule was inserted in the Act w.e.f. 14.11.1994, while in 2006, a Division Bench of this Court deeming the national income @ Rs. 15,000/- to be much lower had propounded the law that after passing of such a period, the notional income of every person should be taken by the Tribunal @ Rs. 100/- (hundred) per day.
Therefore, I accept the notional income to be rupees hundred. Thus, the annual income comes to rupees thirty six thousand. Since the deceased was a bachelor youth, therefore, after deducting one-half, his base in come for compensation comes to rupees eighteen thousand per year.
Learned Counsel of the insurance company has relied upon a Constitutional Bench judgment rendered in New India Assurance Company Ltd. v. Shanti Pathak (Smt.) and Others, (2007) 10 SCC 1, wherein the mother of the deceased was 65 years of age, while father was more than 65 years. The Tribunal had applied the multiplier on the age of deceased youth and it was upheld by the High Court. So, in these circumstances, the Hon?ble Supreme Court was of the view that the deceased had left behind his aged parents and the Court has to offset such a high multiplier and balance the same with the age expectancy of the claimants. So, the multiplier on the age factor of claimants, i.e. mother and father, was taken into account by the Hon?ble Apex Court.
So, in view of the law propounded by the Hon?ble Supreme Court, I am not inclined to interfere with the denomination of multiplier (7) applied in this case. Thus, applying this multiplier, the compensation is calculated as Rs. 18,000 X 7 = 1,26,000 (rupees one lakh twenty six thousand). Amount of Rs. 2000/- awarded on the score of cremation is not disturbed. Thus the total compensation comes out to Rs. 1,28,000/- (rupees one lakh twenty eight thousand). Claimant shall also be entitled to get simple interest @ 6 per cent per annum on this amount with effect from the date of institution of the claim petition.
Consequently, the AO No. 322/2008, preferred by the insurance company, is hereby dismissed, while A.O. No. 47/2009, preferred by the claimant, is allowed in above terms. The impugned award stands modified to the extent indicated above. The difference of the balance amount shall be deposited by the insurance company within six weeks. Compulsory statutory amount, along with the interest accrued on it, shall be remitted by the Registry to the Tribunal. Let the LCR be sent back.