Manju Sharma And ANR. v. Ashwani And ORS.





IN THE HIGH COURT OF PUNJAB & HARYANA

AT CHANDIGARH **** FAO No.4857 of 2018 (O&M) Date of Decision: 22.05.2019 Manju Sharma and another Appellants

Versus

Ashwani and others Respondents CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN

Present:

Mr. Ishan Cooner, Advocate for the appellants.

Mr. Neeraj Khanna, Advocate for the respondents.

**** AVNEESH JHINGAN, J (Oral):

The legal representatives of Amarjeet Sharma (deceased) are in appeal against award dated 06.09.2017 passed by the Motor Accident Claims Tribunal, Chandigarh [for brevity 'the Tribunal'] seeking enhancement of compensation awarded under Section 166 of the Motor Vehicles Act, 1988 [for brevity 'the Act']. The driver, owner and insurer (i.e. IFFCO TOKIO General Insurance Company Ltd.) of Car bearing registration No. HR-01F0692 [hereinafter referred to as 'offending vehicle'] have been arrayed as respondents No.1 to 3 respectively in the appeal. The factum of accident is not disputed. A motor vehicular accident took place on 07.10.2016. The accident proved fatal for Amarjeet Sharma, aged 56 years. The accident was result of the

 rash and negligent driving of the offending vehicle. The owner, driver and insurer of the offending vehicle were held jointly and severally liable to pay the compensation.

In the claim proceedings, it was proved that the deceased was working as a Senior Accountant with Postal Department and his salary was
74,487/- per month. After deduction of income tax payable, salary of the deceased was considered as
7,80,691/-; 1/3rd deduction for self-expenses was made, as the deceased was survived by two dependents and multiplier of '9' was applied considering the age of the deceased. The Tribunal awarded a sum of
48,09,149/- alongwith interest @ 6% per annum if amount is paid within three months and in case of default interest @ 8% per annum. The amount awarded included
25,000/- for funeral expenses and
1,00,000/- for loss of consortium.

Three-fold issues involved in the present appeal are :- • that no future prospects have been awarded;

• the Tribunal erred in awarding conditional interest and • amounts awarded under the conventional heads be made as per decision of the Supreme Court in National Insurance Company Limited Vs. Pranay Sethi and others AIR 2017 SC 5157.

Heard learned counsel for the parties, perused the paper book and relevant documents placed on record. Learned counsel for the appellants contends that the deceased was in the age group of 50-60 years and was a

 Government Servant, the grievance is that no future prospects have been awarded and the Tribunal erred in awarding the conditional interest.

Learned counsel for the insurer argues that amounts awarded under the conventional heads be made as per decision of the Supreme Court in Pranay Sethi's case (supra). There is no challenge to the loss of dependency i.e.
46,84,149/- calculated by the Tribunal. In consonance with the decision of the Supreme Court in Pranay Sethi's case (supra), 15% future prospects are awarded i.e.
46,84,149 x 15% =
7,02,622/-. As the quantum of compensation is being revisited, it would be appropriate that amounts under the conventional heads be awarded as per decision of the Supreme Court in Pranay Sethi's case (supra). The claimants are entitled to
15,000/- each for funeral expenses and for loss of estate.
40,000/- are awarded to the widow for loss of consortium.

The net effect is that amount of
1,25,000/- awarded under the conventional heads is reduced by
55,000/-. The award dated 06.09.2017 is modified to the extent that amount of
48,09,149/- is enhanced by
6,47,622/-. The Tribunal erred in awarding conditional interest. The Supreme Court in National Insurance Co. Ltd. Vs. Keshav Bahadur and others (2004) 2 SCC 370, held as under:-
 

 

     

 



       

   


   

 



  

    

     

     

  !"

 #  $  

   % 

 



  

 

 

     &




  !'

   

      & 


          

      

   

    

    

                  

#   

   



 &

    

 !     



      





 

  

      !

  

 

  

#  



 



&

   

    



 &

  #  

&

  



 

&       

& #   

!"

        

  &

(  

   





&







 

   

  

   

  

   & 


  ! Taking into consideration various aspects including the banks' interest rates prevalent at relevant time, claimants are held entitled to the enhanced amount alongwith interest @ 7.5% per annum.

The appeal is partly allowed.

[AVNEESH JHINGAN] JUDGE May 22, 2019  $% %

1. Whether speaking/ reasoned :

Yes

2. Whether reportable :

No