United India Insurance Company Ltd. v. Saroj Bala And ORS

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH FAO-551-2021 (O&M) Date of decision: 05.08.2021 UNITED INDIA INSURANCE COMPANY LTD.

..Appellant ASHOK KUMAR 2021.08.06 14:51 I attest to the accuracy and integrity of this document

Versus

SAROJ BALA AND ORS ..Respondents CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL

Present:

Mr. Sidhant Mehra, Advocate for the appellant. Mr. Bhisham Kumar, Advocate for respondent No.1 to 3. *** ANIL KSHETARPAL, J (Oral)
 

            

 

 

 

  

    The insurer of the offending vehicle has filed this appeal assailing the correctness of the award passed by the Motor Accidents Claims Tribunal, Panipat (in short 'the Tribunal').

The correctness of the award has been challenged on the ground that the Tribunal has erred in deducting 1/3 rd of the income of the deceased towards personal expenses. In this case, Mr. Ashish, aged about 24 years, died in an automobile accident on 25.10.2018. The claim petition was filed by the parents as well as his unmarried sister. The deceased's father is stated to be engaged in labour work. The deceased Ashish was the third child out of 4 children of Sh. Harish Kumar.

The learned counsel representing the insurer submits that as per the judgment passed by the Hon'ble Supreme Court in Sarla Verma and others Vs. Delhi Transport Corporation and another, 2009 (3) RCR

FAO-551-2021 (O&M) ASHOK KUMAR 2021.08.06 14:51 I attest to the accuracy and integrity of this document (Civil) 77, the Tribunal erred in deducting 1/3 rd of the income of the deceased towards personal expenses. He submits that unless exceptional circumstances come on record, the normal practice is to impose a cut off of 50% of the income.

The learned counsel representing respondent No.1 to 3(claimants) does not dispute the same.

Accordingly, the award passed by the Tribunal is modified to the extent that deduction to the extent of 1⁄2 of the income of the deceased shall be applied towards personal expenses. Hence, the amount is recalculated at Rs.13,61,550 [((8542 x 1⁄2) x 40% x 12 x 18) + 70,000)]. In view thereof, the appeal is partly allowed. The award passed by the Tribunal is modified and reduced to the extent of Rs.4,30,617/-. Consequently, the amount of the award shall now be read as Rs.13,61,550. All the pending miscellaneous applications, if any, are also disposed of.

05.08.2021 (ANIL KSHETARPAL) ashok JUDGE Whether speaking/reasoned : Yes/No Whether reportable : Yes/No