National Insurance Company Ltd. vs Mannat Johal

4. In these appeals, on one hand, the insurer of the offending vehicle has questioned the quantum of compensation so awarded, basically on the ground that while making assessment of pecuniary loss, the ex gratia amount received by the claimants from the employer of the deceased deserves to be deducted while, on the other hand, the claimants have questioned the reduction of the rate of interest by the High Court.

3,50,000/-. While asserting their dependency on the deceased, the claimants i.e., the parents, wife and children of the deceased claimed compensation against the driver, owner and insurer of the offending vehicle. The cause of 3 action being the same, these two claim petitions were consolidated, and were tried and decided together by way of the common award dated 27.01.2000. 5.3. Before the Tribunal, driver of the offending vehicle remained ex parte while its owner denied any negligence on part of the driver and rather alleged that the accident occured due to rash and negligent driving by the deceased. On the other hand, insurer of the offending vehicle denied the factum of the accident and also alleged that the driver of the offending vehicle did not possess a valid driving license.

5.4. On the pleadings, the Tribunal framed as many as 9 issues. After taking evidence, the Tribunal proceeded to determine the relevant issues in its impugned award dated 27.01.2000. The Tribunal decided the basic issues relating to the factum of accident and the responsibility for the same against the non-applicants while holding that the accident in question occurred due to rash and negligent driving of the offending oil tanker. The Tribunal also held that the wife and children of the deceased were dependent on him and further that the parents were marginally dependent on him.

5.6. Against the award so made by the Tribunal, the claimants in MACT Case No. 84 of 1996 preferred an appeal before the High Court of Punjab and Haryana, seeking enhancement of the amount of compensation, while the insurance company preferred two separate appeals questioning the findings in the award and seeking reduction of the amount of compensation. 5.7. The High Court, in its impugned judgment dated 06.07.2018, in the first place rejected the contentions urged on behalf of the insurer as regards the factum and cause of accident and affirmed the findings of the Tribunal. As regards quantum of compensation, the High Court proceeded to make enhancement over the amount awarded by the Tribunal with reference to the decisions in Pranay Sethi and Sarla Verma (supra). The High Court did not accept the basis of assessment of loss of income with reference to the likely 5 enhanced emoluments of deceased on his expected promotion and subsequent revision of pay-scale in the year 1996. The High Court, therefore, took the base annual emoluments at Rs. 3,21,801.60 and, while deducting Rs. 20,000/- towards income-tax, rounded off the figure to Rs. 3,00,000/-. The High Court, thereafter, provided for enhancement of 40% towards future prospects and then, looking to five number of dependents, deducted one-fourth towards personal expenses of the deceased. In this manner, the High Court arrived at the multiplicand of Rs. 3,15,000/- and, while applying the multiplier of 15 in view of the age of the deceased at 38 years, worked out the pecuniary loss at Rs. 47,25,000/-. The High Court further awarded Rs. 40,000/- towards loss of consortium, Rs. 15,000/- towards funeral expenses and Rs. 15,000/- towards loss to estate. Accordingly, the High Court assessed the total compensation at Rs, 47,95,000/- and rounded it up to Rs. 48,00,000/-. The High Court, however, allowed interest at the rate of 7.5% p.a., while holding that the respondents related with the offending vehicle were liable to make payment of compensation. As regards apportionment, the High Court allowed a sum of Rs. 26,00,000/- to the wife of the deceased; Rs. 8,00,000/- to the son of the deceased; Rs. 10,00,000/- to the daughter of the deceased; and Rs. 2,00,000/- each to the mother and father of the deceased.

11. The High Court, on the other hand, took the figure of the last drawn emoluments of the deceased and made the deduction towards income-tax. Thereafter, the High Court provided for future prospects at 40% and made the deduction of one-fourth towards personal expenses. In this manner, the High Court arrived at the figure of multiplicand at Rs. 3,15,000/-. On this multiplicand, the High Court applied the multiplier of 15 in view of the age of deceased at 38 years and hence, worked out the pecuniary loss at Rs. 47,25,000/-. As noticed, the High Court further awarded Rs. 40,000/- towards loss of consortium, Rs. 15,000/- towards funeral expenses, and Rs. 15,000/- towards loss to estate; and finally assessed the total compensation at Rs, 47,95,000/-, rounded up to Rs. 48,00,000/-.

14. The upshot of the discussion aforesaid is that in our view, the amount ultimately receivable by the claimants in terms of the judgment of the High Court remains that of just compensation and no case for interference is made out.

15. Accordingly, both these appeals fail, and are dismissed.