New India Assurance Company Limited vs Anita & Ors

FAO-1929-2016 (O&M) -1-


IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
226

FAO-1929-2016
Date of Decision:- 30.10.2026


M/s New India Assurance Company Ltd.
...Appellant


Versus

Anita and others
...Respondents

CORAM:- HON’BLE MRS. JUSTICE AMARJOT BHATTI

Present:- Mr. Rajneesh Malhotra, Advocate
for the appellant.

Mr. Rajesh Lamba, Advocate,
Ms. Monisha Lamba, Advocate and
Mr. Vinod Kumar, Advocate for respondents No.1 and 2.

Service of respondent No.3 dispensed with
vide order dated 06.10.2016.
*
AMARJOT BHATTI, J.
1. Appellant/New India Assurance Company Limited filed
present appeal against impugned award dated 16.12.2015 passed by learned
Motor Accident Claims Tribunal, Faridabad (for short ‘the Tribunal ’)
vide which excess amount of compensation has been awarded on account
of death of Ashok Mandal in a motor vehicular accident.
2. Brief facts of the case are that the claimants i.e. Anita (wife)
and Baby Sejal (minor daughter through her mother) filed claim petition
under Section 166 of Motor Vehicles Act, 1988 for grant of compensation
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FAO-1929-2016 (O&M) -2-


on account of death of Ashok Mandal. On the fateful day of 12.04.2014,
Ashok Mandal was going on foot on the kacha path. At about 11:30 P.M.
when he reached near railway bridge Ajji Colony, Ballabhgarh the
offending truck bearing registration No.HR-55-J-8119 driven by
respondent No.1 Suresh Chand rashly and negligently came at a high speed
and hit Ashok Mandal from behind. The victim received multiple injuries
including head injury and died. The respondent No.1 had stopped the
vehicle at short distance, but on seeing the condition of victim, he fled
away along with the vehicle. The accident was witnessed by Soran Singh
who had noted down the registration number of offending vehicle.
Regarding this accident FIR No.231 dated 13.04.2014 was registered under
Section 279, 304-A of IPC at Police Station City Ballabhgarh. The
postmortem was conducted at B.K. Hospital Faridabad. At the time of
accident the deceased victim was 40 years of age. He was working as
labourer at Anaj Mandi, Ballabhgarh and was earning Rs.15,000/- per
month. He was sole bread winner of the family. The claimants suffered
great loss on account of untimely death of Ashok Mandal. Hence the
present claim petition.
3. The respondents No.1 and 2 filed their joint written statement
denying the factum of accident allegedly caused by respondent No.1 while
driving truck No.HR-55-J-8119. There was no fault on the part of
respondent No.1. The claim petition is not maintainable. The said truck was
duly insured with respondent No.3 and the insurance policy was valid from
13.11.2013 to 12.11.2014. Respondent No.1 was having valid effective
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FAO-1929-2016 (O&M) -3-


driving license and he was driving the vehicle by following traffic rules. In
case any compensation is awarded by the Tribunal, then it is the insurance
company which is liable to pay the same. On merits of the case, the facts
were denied for want of knowledge. The quantum of compensation claimed
by the claimants is highly exaggerated. It was submitted that claim petition
filed by claimants may kindly be dismissed with cost.
4. The insurance company filed written statement taking
preliminary objections that claim petition is filed by the claimants in
collusion with respondents No.1 & 2 and the police authorities. The
insurance company further raised the objection that respondent No.1 was
driving the offending vehicle in violaltion of terms and conditions of
insurance policy. He was not having valid driving license nor he was
having proper documents. Again on merits the accident was denied. The
other facts detailed in the claim petition were further denied for want of
knowledge. The contents of FIR were also denied. By denying all the facts
narrated in the claim petition, it was submitted that the claim petition filed
against insurance company may kindly be dismissed.
5. From the pleadings of the parties, following issues were
framed by the Tribunal on 08.04.2015 :-
1 Whether the accident in question took place on account
of rash and negligent driving on the part of respondent No.1
while driving offending vehicle No.HR-55-J-8119, resulting
into death of Ashok Mandal? OPP
2. If issue No.1 is proved, whether the petitioners are
entitled to compensation. If so how much and from whom?
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OPP
3. Whether respondent no. 1 was not holding a valid and
effective driving licence and respondent No.2 has violated the
terms and conditions of insurance policy? OPR3
4. Relief.
6. In order to prove the claim petition, claimants examined PW-1
Soran Singh, Anita stepped into the witness box as PW-2. Thereafter,
learned counsel for claimants closed the evidence on behalf of claimants
after tendering document Exhibit P-3 on 25.08.2015.
7. In order to rebut the case of claimants, no oral evidence was
led by respondents No.1 and 2. After tendering documents i.e. Exhibit R-1
to Exhibit R-6, learned counsel closed the evidence on behalf of
respondents No. 1 and 2 on dated 01.09.2015.
8. Learned counsel for respondent No.3 tendered into evidence
documents Exhibit R-7 to R-10 and closed the evidence on behalf of
respondent No. 3 on 20.10.2015.
9. After hearing the arguments advanced by learned counsel for
the parties, claim petition filed by claimants was allowed by passing
impugned Award dated 16.12.2015, as detailed therein.
Feeling aggrieved of this Award, present appeal been

preferred by appellant-Insurance Company.
10. Learned counsel for insurance company has argued present
appeal on issue No.2 regarding quantum of compensation awarded by the
Tribunal. It is pointed out that income of the deceased victim was assumed
as Rs.6,000/- per month. Without considering his age as 40 years
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mentioned in the claim petition, the learned Tribunal increased the monthly
income considering future prospects to the extent of 50%. Otherwise the
deduction on the basis of personal expenditure as well as multiplier applied
by the Tribunal are not disputed. It is further objected that excessive
amount has been awarded on conventional heads which requires
recalculation. The compensation awarded by the Tribunal is excessive and
it is not as per the settled proposition of law.
11. On the other hand, learned counsel representing claimants
argued that the compensation awarded by the Tribunal is just and
reasonable. Deceased Ashok Mandal was sole bread winner of the family.
He was working at Anaj Mandi, Ballabhgarh and was earning Rs.15,000/-
per month. The aforesaid factual position is confirmed in the testimony of
his wife Anita PW-2. There is no merit in the appeal preferred by the
appellant insurance company and the same deserves dismissal.
12. I have considered the arguments and have gone through the
record carefully. In the case in hand, claimants have not filed any appeal
against the quantum of compensation awarded by the Tribunal. While
passing the award, the Tribunal has granted compensation to the tune of
Rs.13,05,000/- along with interest as detailed therein. Considering the
minimum wages prevailing in the year 2014, the Tribunal assumed the
income of deceased victim as Rs.6,000/- per month. However, while
considering the future prospects, the Tribunal increased the income by 50%
which is not in consonance with the settled proposition of law. Otherwise,
the deduction on account of personal expenditure as well as multiplier has
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been correctly applied. It is also rightly pointed out by learned counsel
representing appellant insurance company that the compensation awarded
under conventional heads is also towards higher side. Therefore, relying
upon the ratio of judgment in “ Smt. Sarla Verma and others Vs Delhi
Transport Corporation and another ”, cited in 2009 ACJ 1298 Supreme
Court of India, Rajesh and others versus Rajbir Singh and others,
cited in (2013) 15 SC and “ National Insurance Co. Ltd. Vs Pranay
Sethi ”, cited in (2017) 16 SCC 680, the compensation awarded by the
tribunal requires recalculation, which is as under :-
The income of deceased victim is taken as Rs.6,000/- per
month. Considering his age as 40 years and he being self-employed, the
increase in income, considering future prospects as 25%, comes out to be
Rs.7,500/- per month (Rs.6,000+Rs.1,500=Rs.7,500/-) and the annual
income comes out to be Rs.90,000/-. The family members dependent on the
rd
deceased victim were wife and the minor daughter, therefore 1/3 income
is deducted towards personal expenditure and the dependency of the family
comes out to be Rs.60,000/-. By applying multiplier of 15, the amount of
compensation comes out to be Rs.9,00,000/-. Both claimants are granted
compensation for loss of consortium to the tune of Rs.40,000/- each, for
loss of estate Rs.15,000/-, funeral expenditure Rs.15,000/- and the total
amount of compensation comes out to be Rs.10,10,000/-.
13. In the light of this, the excess amount of compensation comes
out to be Rs.2,95,000/-. The insurance company is entitled to recover the
same in lump sum, in case the aforesaid amount was already deposited.
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FAO-1929-2016 (O&M) -7-


With this observation the findings on issue No.2 and relief clause are
accordingly modified by accepting present appeal.
14. The appeal preferred by the appellant-Insurance Company is
accordingly allowed.
15. Pending application(s), if any, also stands disposed of
accordingly.
16. Copy of this judgment be sent to concerned Tribunal for
necessary information.

30.10.2026 (AMARJOT BHATTI)
Sunil Devi
JUDGE

Whether speaking/reasoned: Yes/No
Whether reportable: Yes/No
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