-1- IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL CIVIL CIVIL APPELLATE JURISDICTION APPELLATE JURISDICTION APPELLATE JURISDICTION FIRST FIRST FIRST APPEAL NO.1631 OF 2006 APPEAL NO.1631 OF 2006 APPEAL NO.1631 OF 2006 The Oriental Insurance Co. Ltd. ...Appellant vs. Smt.Laxmi Shankar Hulwan & Ors. ...Respondents Mr.S.S.Vidyarthi for the Appellant Mr.S.G.Thorat for Respondent Nos.1,2,5 and 6 CORAM: CORAM: CORAM: A.S.OKA,J. A.S.OKA,J. A.S.OKA,J. DATE DATE DATE : MARCH 28, 2008. : MARCH 28, 2008. : MARCH 28, 2008. ORAL JUDGMENT: ORAL JUDGMENT: ORAL JUDGMENT: 1. Heard Advocate for the Appellant and the Advocate for the contesting Respondents. By an order dated 26th July 2006, notice is issued only as regards the applicability of multiplier and grant of interest. 2. The challenge by the Appellant-insurer is to the Judgment and Award dated 25th April 2006 passed by the learned Member of the Motor Accident Claims Tribunal. The claim petition under section 166 of the Motor Vehicles Act,1988 arises out of a fatal accident occurred on 26th June 1998 causing death of one Shankar. The first Respondent is the widow of the deceased and the second Respondent is the minor son of the deceased. The fifth and sixth Respondents are respectively the brother and father of deceased. After recording the finding of negligence against the driver of the vehicle insured with the Appellant, the tribunal fixed the -2- compensation amount at Rs.3,42,000/- with interest at the rate of 12% p.a. The tribunal applied multiplier of 13. 3. The submission of the Advocate for the Appellant is that as the age of the deceased was 45 years, multiplier of 13 could not have been applied and the same is on the higher side. The second contention is that as the accident occurred in the year 1998, there is no justification for granting interest at the rate of 12% p.a. and the interest could not have exceeded 7.5% p.a. 4. The learned Advocate for the contesting Respondents supported the impugned Judgment and Award by pointing out that there are cases where in case of a deceased of 45 years, the Apex Court has applied multiplier of 13 or more. 5. I have carefully considered the submissions. The Apex Court has held that the higher multiplier of 18 is normally applied in Indian conditions to the age group of 18 to 24 years. In case of deceased in the age group of 32 to 34, the Apex Court has applied multiplier of 13 and for the deceased in the age group of 38-39, the Apex Court has applied the multiplier of 12. Considering the fact that the age of the deceased was 45 years, multiplier of 10 deserves to be awarded. There is no dispute regarding multiplicand which is taken at Rs.24,000/- per year. Thus, the compensation payable -3- to the Respondents will be Rs.2,40,000/-. In addition to that, a sum of Rs.25,000/- has been awarded as the usual amount. Thus, the total compensation payable will be Rs.2,65,000/-. 6. Now, coming to the rate of interest, the accident is of the year 1998. In various decisions, the Apex Court has taken a judicial notice of the fact that interest rates considerably dropped down from the year 1996-97 onwards. Therefore, there is no justification for awarding the interest rate at 12% p.a. The rate of interest ought to have been fixed at 9% p.a. 6. In the impugned Award, it is noted that Respondents Nos.5 and 6 have not claimed any amount of compensation and they have stated in their written statement that the amount may be paid to the first and second Respondents. However, the learned Member of the tribunal has awarded some compensation to them which is required to be maintained. 7. Hence, I pass the following order : i) Appeal is partly allowed. ii) The total compensation payable will be Rs.2,65,000/- instead of Rs.3,42,000/- which will be inclusive of amount paid under the no fault liability. Interest -4- payable will be at the rate of 9% p.a. from 14th July 1998 till realisation of the amount. iii) Rest of the Award is confirmed. The learned Member of the tribunal while disbursing the amount will be at liberty to make consequential changes in the amounts payable to various parties on account of reduction of the compensation amount. iv) A sum of Rs.25,000/- deposited in this court by the Appellant shall be transferred to the concerned tribunal. v) There will be no order as to costs. vi) C.A.No.3205 of 2006 does not survive and the same is disposed of JUDGE JUDGE JUDGE