Full Judgment Text
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
FIRST APPEAL NO. 771 OF 2015
National Insurance Company Limited,
Akola, through its Divisional Manager,
R/o. M.G.Road, Opp. Open Air Theater,
Akola . APPELLANT
...VERSUS...
1] Chandraprabha wd/o Sudhakar Kubde,
aged 40 years, Occ. Student.
2] Prafulla Sudhakar Kubde,
aged 25 years, Occ. Student,
R/o. Kumbhari, Tq. & Distt. Akola.
3] Kamlesh A. Agarwal,
aged Adult, Occ. Owner of Truck
bearing No. MP09KA9816
R/o. Gore Apartment, Jalaram Society,
Amankha Plot, Shastri Nagar, Akola,
Tq. And Distt. Akola. . RESPONDENTS
Shri C.A.Anthony, Advocate for appellant.
Shri S.D.Chopde, Advocate, for R1 and 2.
CORAM: R. K. DESHPANDE, J.
th
DATE : 10 MARCH, 2016 .
ORAL JUDGMENT
1] In Motor Accident Claim Petition No. 138 of 2013
filed under Section 163A of the Motor Vehicles Act, the
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Tribunal has awarded total compensation of Rs. 5,71,800/
together with interest at the rate of 8.50% per annum from
the date of filing of the petition till its actual realization. This
award dated 30.04.2015 passed by the Motor Accident
Claims Tribunal is the subject matter of challenge in this
appeal by the National Insurance Company Limited.
2] The learned counsel for the appellant Shri
Anthony submits that the Tribunal has committed an error in
awarding 30% additional compensation on account of loss of
future prospects and has also committed an error in awarding
compensation of Rs.1,00,000/ on account of consortium,
Rs.25,000/ towards funeral expenses and Rs.10,000/
towards loss of love and affection. He further submits that
the Tribunal has awarded interest at the rate of 8.50% per
annum which should not have been more than 7.5%. He has
relied upon the decision of the Apex Court in the case of
Smt. Sarla Verma & ors vrs. Delhi Transport Corporation &
Anr reported in AIR 2009 SC 3104 and the another decision
of the Apex Court in case of Dharampal and others vrs. U.P.
State Road Transport Corporation reported in 2008 ACJ
2041.
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3] Shri Chopade, the learned counsel appearing for
the respondents/claimants has relied upon the decision of the
Apex Court in case of Smt. Sarla Verma, cited supra, and
has urged that the Tribunal was right in awarding the
compensation on account of future prospects and under non
pecuniary heads. He has supported the decision of the
Tribunal.
4] The point for determination is as under;
Whether the Tribunal was right in awarding
compensation under the heads of loss of future
prospects and non pecuniary damages and the
interest at the rate of 8.5%?
5] The claim petition is under Section 163A of the
Motor Vehicles Act and it will be governed by the structured
formula of compensation provided in the second schedule
under the said Act. The second schedule provides the
general damages in addition to compensation on account of
funeral expenses – Rs. 2000/, on account of loss of
consortium – Rs.5000/, on account of loss of estate –
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Rs.2500/ and on account of medical expenses not
exceeding Rs.15,000/ upon production of bills. The second
schedule does not include the award of compensation on
account of loss of future prospects. Hence 30% additional to
the income considered by the Tribunal cannot be sustained.
6] The decision of the Apex Court in Smt. Sarla
Verma's case, cited supra, was on the provision of Section
166 of the Motor Vehicles Act, which makes the claimant
entitled to a just compensation and the Apex Court has made
it clear in paragraph 20 of the said decision that it was not
dealing with the case under Section 163A of the Motor
Vehicles Act, thereby meaning that the ratio laid down in the
said decision is applicable only to the cases under Section
166 of the Motor Vehicles Act. Unless there is an
amendment to the provisions of section, namely Section
163A of the M.V.Act, it would not be permissible for the
Tribunal to award the amount over and above one which is
prescribed under the head of non pecuniary damages. The
Tribunal has, therefore, committed an error in granting
funeral expenses of Rs.25,000/ and Rs.10,000/ on account
of love and affection which are not in conformity with the
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provision of second schedule.
7] So far as the award of interest at the rate of
8.5% is concerned, the decision of the Apex Court in
Dharampal's case, cited supra, the Apex Court has held that
the the rate of 7.5% would be appropriate rate of interest.
Hence, the Tribunal Committed an error in awarding the
interest at the rate of 8.5%.
8] In the result, the first appeal is party allowed and
consequently, the award passed by the Motor Accident
Claims Tribunal impugned in this appeal needs to be
modified as under;
The claimants would be entitled to compensation
of Rs.3,36,000/ towards loss of dependency. In addition to
it, the claimants would be entitled to Rs.2000/ towards
funeral expenses, Rs.5,000/ towards loss of consortium,
Rs.2,500/ towards loss of estate and thus, the total
compensation payable is arrived at Rs.3,45,500/. The
medical expense bills were not produced and hence, there is
no question of awarding any compensation on this count.
The claimants would be entitled to interest at the rate of 7.5%
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per annum on the total amount of compensation with effect
from the date of filing of the claim petition till its realization.
9] The appellant Insurance Company has
deposited Rs.6,40,645 in this Court. The Registrar (Judicial)
shall accordingly calculate the amount payable to the
claimants in terms of this judgment and shall permit the
claimants (respondent nos. 1 and 2) to withdraw the same
with proportionate interest accrued thereon. The balance
amount, if any, shall be refunded to the appellant Insurance
Company along with proportionate interest, if any, accrued
thereon. No order as to costs.
JUDGE
Rvjalit
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