{"id":62619,"date":"2008-09-24T00:00:00","date_gmt":"2008-09-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/oriental-vs-pahadbhai-on-24-september-2008"},"modified":"2015-08-03T14:57:40","modified_gmt":"2015-08-03T09:27:40","slug":"oriental-vs-pahadbhai-on-24-september-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/oriental-vs-pahadbhai-on-24-september-2008","title":{"rendered":"Oriental vs Pahadbhai on 24 September, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Oriental vs Pahadbhai on 24 September, 2008<\/div>\n<div class=\"doc_author\">Author: H.K.Rathod,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nFA\/3855\/2008\t 11\/ 11\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nFIRST\nAPPEAL No. 3855 of 2008\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 9835 of 2008\n \n\n \n=========================================================\n\n \n\nORIENTAL\nINSURANCE CO LTD - Appellant(s)\n \n\nVersus\n \n\nPAHADBHAI\nLAKHABHAI PARMAR &amp; 2 - Defendant(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nKK NAIR for\nAppellant(s) : 1, \nNone for Defendant(s) : 1 -\n3. \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE H.K.RATHOD\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 24\/09\/2008 \n\n \n\nORAL\nORDER<\/pre>\n<p>1.\tHeard<br \/>\nlearned advocate Mr. K.K. Nair appearing on behalf of appellant ?<br \/>\nOriental Insurance Company Limited.\n<\/p>\n<p>2.\tThe<br \/>\nappellant ?  Insurance Company has challenged award passed by Motor<br \/>\nAccident Claims Tribunal, Nadiad in Motor Accident Claim Petition<br \/>\nNo.253 of 2002 Exh.33 dated 13th September 2007. The<br \/>\nClaims Tribunal has awarded Rs.2,90,000\/- with 9% interest in favour<br \/>\nof respondent claimant.\n<\/p>\n<p>3.\tLearned<br \/>\nadvocate Mr.Nair raised contention that Claims Tribunal has committed<br \/>\ngross error while considering the notional income Rs.1500\/- for<br \/>\nfuture prospective income which has been taken into account and<br \/>\nlooking to age of claimant 65 years wrongly applied 15 multiplier and<br \/>\ndeceased was unmarried aged 22 years old even though 1\/3 has deducted<br \/>\nfor a personal expenses, but, according to him, claimants are<br \/>\nentitled only 1\/3 dependency not 2\/3.\n<\/p>\n<p>4.\tLearned<br \/>\nadvocate Mr. Nair relied upon decision of Apex Court reported in JT<br \/>\n2008 (2) SC 33 in case of Ramesh Singh &amp; Anr. v. Satbir Singh &amp;<br \/>\nAnr., where, Apex Court has considered age of deceased 22 years and<br \/>\nfather&#8217;s age 55 years and mother&#8217;s age 52 years and 8 multiplier has<br \/>\nbeen applied.\n<\/p>\n<p>5.\tLearned<br \/>\nadvocate Mr. Nair also relied upon decision of Apex Court in case of<br \/>\n<a href=\"\/doc\/1386998\/\">New India Assurance Company Limited v. Smt. Shanti Pathak and Ors.,<\/a><br \/>\nreported in 2007 (9) Scale 216, where, Apex court has considered age<br \/>\nof deceased 25 years and accordingly, considering the age of mother<br \/>\n65 years and father is also more than 65 years, 5 multiplier has been<br \/>\napplied.\n<\/p>\n<p>6.\tLearned<br \/>\nadvocate Mr. Nair also relied upon the decision of Apex Court in case<br \/>\nof <a href=\"\/doc\/1180502\/\">Maharashtra State Road Transport Corporation v. Lalnipuii<\/a> reported<br \/>\nin 2007 ACJ 561 ?  Para 11, where, Apex Court has considered that<br \/>\nchoice of ?  whether multiplier depends upon age of the claimants<br \/>\nand not on the age of the deceased where parents are the claimants.\n<\/p>\n<p>7.\tExcept<br \/>\nthat no other contention has been raised by learned advocate Mr.<br \/>\nNair.\n<\/p>\n<p>8.\tIn<br \/>\nthis case, accident occurred on 19th January 2002 at about<br \/>\n17-05 hours while going to Jamnagar Gurudwara on Indira Marg Road.<br \/>\nThe vehicle involved in accident is Truck No.GTP-7911. The deceased<br \/>\nwas admitted in GG Hospital, Jamnagar as an indoor patient and died<br \/>\non 20th January 2002 at about 00-30 hours. The claim<br \/>\npetition was filed by claimant claiming Rs.5 lacs. The Insurance<br \/>\nCompany has filed reply Exh.14 and raised several contentions not<br \/>\naccepting liability. The police case was registered vide I-CR No.38<br \/>\nof 2002 before Jamnagar City Division Police Station. The affidavit<br \/>\nof applicant claimant Pahadbhai Lakhabhai Parmar was filed vide<br \/>\nExh.27. Thereafter, certain documents i.e. complaint, panchnama,<br \/>\ninquest panchnama, PM Note and Report of P.I. and school leaving<br \/>\ncertificate of deceased were produced on record. It is necessary to<br \/>\nnote that no documentary or oral evidence has been produced by<br \/>\nInsurance Company before Claims Tribunal and vide Exh.31, oral<br \/>\nevidence was closed by Insurance Company. Vide Exh.16, issues were<br \/>\nframed by Claims Tribunal and come to conclusion that opponent No.1<br \/>\nis held negligence because of rash and negligent driving with<br \/>\nexcessive speed. Learned advocate Mr. Nair has not raised any<br \/>\ncontention about issue of negligence. School Leaving Certificate vide<br \/>\nExh.26 deceased&#8217;s birth date 1st June 1980 and accident<br \/>\noccurred on 19th January 2002. Therefore, deceased was<br \/>\naged about 22 years. The Claims Tribunal has considered age of father<br \/>\n50 years and age of mother 45 years and also considering<br \/>\ncross-examination of respondent claimant. The age of father is 65 to<br \/>\n70 years and considering both i.e. age of claimant and age of<br \/>\ndeceased, Claims Tribunal has applied 15 multiplier. The income<br \/>\nRs.2,000\/- proved by the claimant on the basis of oral evidence but<br \/>\nno documentary evidence was produced by claimant in support of<br \/>\nincome. According to claimant, Exh.27, deceased was working in Nirma<br \/>\nFactory receiving salary of Rs.4,000\/-, but, on the date of accident,<br \/>\ndeceased was went for recruitment of police force, but, while<br \/>\nreturning, accident occurred and he died. However, Claims Tribunal<br \/>\nhas considered that in absence of cogent evidence for income,<br \/>\nnotional income Rs.1500\/- was assessed and considering future<br \/>\nprospective income, Claims Tribunal has considered Rs.3,000\/- and<br \/>\nthereafter, 1\/3rd has been deducted which comes to<br \/>\nRs.2250\/- and net dependency comes to Rs.1500\/- and 15 multiplier has<br \/>\nbeen applied and Rs.2,70,000\/- is considered as future dependency<br \/>\nloss, Rs.10,000\/- loss of expectation of life and Rs.10,000\/- being a<br \/>\nfuneral expenses for going to take dead body in their village. In<br \/>\nall, Rs.2,90,000\/- has been awarded with 9% interest.\n<\/p>\n<p>9.\tBefore<br \/>\nthis Court, an advocate of Insurance Company has raised various<br \/>\ncontentions as if that Insurance Company is standing in queue of<br \/>\nowner. These are the contentions which must have to be raised by<br \/>\nowner not by Insurance Company. The Insurance Company is entitled to<br \/>\nchallenge or raised contention within a meaning of Section 149(2) of<br \/>\nM.V. Act. The Insurance Company is duty bound to indemnify the owner<br \/>\naccording to terms and conditions of Insurance Policy.\n<\/p>\n<p>10.\t\tLearned<br \/>\nadvocate Mr. Nair submitted that application for permission under<br \/>\nSection 170 of MV Act is granted by Claims Tribunal. Therefore,<br \/>\nInsurance company is entitled to challenge quantum before Claims<br \/>\nTribunal and this Court. The Insurance Company is having permission<br \/>\nunder Section 170 raised contention about quantum awarded by Claims<br \/>\nTribunal, but, before the Claims Tribunal, an advocate Mr. Divyeshwar<br \/>\nwho was appearing on behalf of Insurance Company has not raised any<br \/>\ncontention in respect to quantum. The issues were framed vide Exh.16<br \/>\nby Claims Tribunal and Tribunal has considered the arguments of both<br \/>\nsides. Learned advocate Mr. Dave appearing on behalf of Insurance<br \/>\ncompany before Claims Tribunal and according to his submissions made<br \/>\nby learned advocate Mr. Dave for Insurance Company at page 7 that in<br \/>\nabsence of cogent evidence from respondent claimant, Claims Tribunal<br \/>\nshall have to consider notional income Rs.15000\/- per year and 15<br \/>\nmultiplier is to be applied and according to advocate of Insurance<br \/>\nCompany, Rs.75,000\/- being a loss of dependency, Rs.10,000\/- for loss<br \/>\nof expectation of life and Rs.3,000\/- for funeral expenses. In all,<br \/>\nit comes to Rs.88,000\/- with 7.5% interest. So, it was the<br \/>\nsubmissions of advocate of Insurance Company with 15 multiplier that<br \/>\ncan be applied in these facts of case. Now, learned advocate Mr. Nair<br \/>\nrelying upon three decisions of Apex Court and made legal submissions<br \/>\ncontrary to the submissions which were made by advocate of Insurance<br \/>\nCompany before Claims Tribunal. An advocate of appellant appeared<br \/>\nbefore Claims Tribunal admitted that 15 multiplier may be applied.<br \/>\nNow, advocate before this court raising contention relying upon three<br \/>\ndecisions of Apex Court as referred above and contended that only 8<br \/>\nmultiplier is to be applied looking to the age of claimant. However,<br \/>\ncontention raised by learned advocate Mr. Dave on behalf of Insurance<br \/>\nCompany that deceased was unmarried, therefore, 2\/3rd is<br \/>\nto be deducted as a personal expenses.\n<\/p>\n<p>11.\t\tAfter<br \/>\nperusing the award in question, Claims Tribunal has considered<br \/>\nRs.2,000\/- income against suggestions of Rs.4,000\/-, then, it<br \/>\nreducing to Rs.1500\/- per month and prospective income comes to<br \/>\nRs.4500 ?  Rs.2250 which comes to Rs.1500\/- dependency after<br \/>\ndeducting 1\/3rd amount being a personal expenses from<br \/>\nRs.2250\/- future prospect.\n<\/p>\n<p>12.\t\tLearned<br \/>\nadvocate Mr. Nair submitted that deceased was unmarried, therefore,<br \/>\n2\/3rd dependency is not available to the claimant. The<br \/>\nview taken by Apex Court in case of <a href=\"\/doc\/35549\/\">Bijoy Kumar Dugar v.<br \/>\nBidyadhar Dutta and others<\/a><br \/>\nreported in AIR<br \/>\n2006 SC 1255,<br \/>\nwhere, the Apex Court has considered that when deceased is a young<br \/>\nboy of 24 years old, was unmarried and claimants were his father and<br \/>\nmother, the dependency has to be calculated on the basis<br \/>\nthat within two or three years the deceased would have married and<br \/>\nraised family and the monthly allowance he was giving to his parents<br \/>\nwould have been cut down, thus, 1\/3rd amount is to be<br \/>\ndeducted instead of 2\/3rd. The relevant observations made<br \/>\nby Apex Court in Para 8 is quoted as under :\n<\/p>\n<p>\t?S8.\n<\/p>\n<p>\tThe deceased, a young boy of 24 years old, was unmarried and the<br \/>\n\tclaimants were his father and mother, the dependency has to be<br \/>\n\tcalculated on the basis that within two or three years the deceased<br \/>\n\twould have married and raised family and the monthly allowance he<br \/>\n\twas giving to his parents would have been cut down. Thus, in our<br \/>\n\tview, the MACT has awarded just and reasonable compensation to the<br \/>\n\tclaimants.??\n<\/p>\n<p>13.\t\tRecently,<br \/>\nthe Apex Court has considered the same in case of Bilkish<br \/>\nV.United India Insurance Co. Ltd. and Another<br \/>\nreported in 2008 ACJ 1357.\n<\/p>\n<p>Relevant observations made by apex court in Para 4 is reproduced as<br \/>\nunder, where, Apex Court has considered that incumbent was a bachelor<br \/>\nand he could not have spend more than 1\/3rd of his total<br \/>\nincome for personal use and rest of the  amount earned by<br \/>\nhim would certainly go to the family kitty.   Therefore, determining<br \/>\nthe  loss of dependency by  50%  was not correct. Therefore,  we<br \/>\nassess that he must be spending 1\/3rd towards personal use and<br \/>\ncontributing 2\/3rd of his  income to his family. Accordingly, lost of<br \/>\ndependency has been worked out on the basis of 2\/3rd not<br \/>\n1\/3rd.\n<\/p>\n<p>?S4.\n<\/p>\n<p>After hearing learned counsel for the parties,  we are of the opinion<br \/>\nthat the view taken by the High Court &amp; Tribunal is not correct.<br \/>\nThe incumbent  was a bachelor and he could not have spent more than<br \/>\n1\/3rd of his total income for personal use and rest of the  amount<br \/>\nearned by him would certainly go to the family kitty.   Therefore,<br \/>\ndetermining the  loss of dependency by  50%  was not correct.<br \/>\nTherefore,  we assess that he must be spending 1\/3rd towards personal<br \/>\nuse and contributing 2\/3rd of his  income to his family.<br \/>\nTherefore, we work out that Rs. 30,000\/- earned by him per annum.<br \/>\nThe loss of dependency was 2\/3rd i.e. Rs. 20,000\/- .  The multiplier<br \/>\nof  &#8217;11&#8217;  applied for loss of dependency was also not correct and as<br \/>\nper schedule appended to the  Motor Vehicles Act, 1988 it should  be<br \/>\n&#8217;12&#8217;.  Applying the multiplier of 12 the total loss of dependency<br \/>\nwill be Rs. 20,000\/-x 12 =  Rs. 2,40,000\/- and Rs, 10,000\/- towards<br \/>\nloss of estate &amp; funeral expenses, the total compensation comes<br \/>\nto Rs. 2,50,000\/- and  incumbent is entitled for interest @ 9\/% per<br \/>\nannum from the date of the petition.    The  appeal is allowed with<br \/>\nthe  aforesaid modification.  If any amount had already been paid to<br \/>\nthe claimant then that amount  may be deducted from the total amount.<br \/>\n Consequently, the appeal is allowed in part with no order as to<br \/>\ncosts.??\n<\/p>\n<p>14.\t\tTherefore,<br \/>\nconsidering the fact that father and mother aged about 65 to 70 years<br \/>\nas per their affidavit having only one son aged 22 years died all of<br \/>\nsudden, this being a jerk to the family and to father and mother,<br \/>\nthen, how they will maintain family at the age of 65 to 70 years<br \/>\nwithout any support of his son. Therefore, according to my opinion,<br \/>\nconsidering age 22 years is marriageable age and therefore, 1\/3rd<br \/>\ndeduction is perfectly justified considering the facts and<br \/>\ncircumstances of the case and it cannot consider to be unreasonable<br \/>\nin any manner.\n<\/p>\n<p>15.\t\tThe<br \/>\ncontention about 15 multiplier which has been applied looking to age<br \/>\nof claimant.\n<\/p>\n<p>16.\t\tI<br \/>\nhave considered three decisions which has been relied upon by learned<br \/>\nadvocate Mr. Nair. The deceased was working in factory and on the<br \/>\ndate of accident, he was coming back from a recruitment procedure for<br \/>\npolice force. He was not unemployed as per evidence of father,<br \/>\ntherefore, this Court has considered the matter that whether total<br \/>\ncompensation which has been awarded by Claims Tribunal is reasonable,<br \/>\njust and proper or not, that is the object of Section 168 of MV Act<br \/>\nis to be considered by Claims Tribunal. So, looking to amount of<br \/>\ncompensation Rs.2,90,000\/- which has been awarded by Claims Tribunal<br \/>\nif it is invested in any nationalised bank looking to current rate of<br \/>\ninterest 7.5%, then, almost income of deceased received by claimants.<br \/>\nSo, the ultimate purpose to award compensation to see that the<br \/>\nclaimant may not remain without any source of income when bread<br \/>\nwinner died suddenly in the family. A jerk received by family may not<br \/>\nbe destroyed because of not having a help on financial side. This<br \/>\nbeing a help to family on financial side, so, family can survive and<br \/>\nmaintain the same in absence of son aged 22 years who died. [See<br \/>\n: 2005 (8) Scale 173 ?  K.I. Bindee and 2006 (11) GHJ 552]<\/p>\n<p>17.\t\tTherefore,<br \/>\naccording to my opinion, 15 multiplier which has been suggested by<br \/>\nlearned advocate Mr. Dave appeared on behalf of Insurance Company<br \/>\nbefore Claims Tribunal is reasonable, just and proper. Only different<br \/>\nwas that learned advocate Mr. Dave suggested 1\/3rd<br \/>\ndependency and Claims Tribunal has accepted 2\/3rd<br \/>\ndependency, for that, recent decision of Apex Court is applied in<br \/>\ncase of marriageable age, 1\/3rd deduction is legal and<br \/>\nvalid. Therefore, according to my opinion, contention which has been<br \/>\nraised by learned advocate Mr. Nair cannot be accepted in light of<br \/>\nthe facts that father and mother are aged about 65 to 70 years who<br \/>\nlost their son aged about 22 years who was working in factory and<br \/>\nexcept their son, no other heirs are available in family in absence<br \/>\nof their son, therefore, how they can maintain their lives and<br \/>\nfamily. Therefore, compensation Rs.2,90,000\/- awarded by Claims<br \/>\nTribunal is reasonable, just and proper which cannot consider to be<br \/>\nunreasonable, unjust and arbitrary in any manner. Therefore,<br \/>\ncontention raised by learned advocate Mr. Nair cannot be accepted and<br \/>\ntherefore, same are rejected.\n<\/p>\n<p>18.\t\tThere<br \/>\nis no substance in appeal. Accordingly, present appeal is dismissed.\n<\/p>\n<p>19.\t\tThe<br \/>\namount, if any, which has been deposited by Insurance Company before<br \/>\nregistry of this Court be transmitted to Claims Tribunal concerned<br \/>\nimmediately.\n<\/p>\n<p>20.\t\tIn<br \/>\nview of above order passed by this Court in appeal, no further order<br \/>\nis required to be passed in Civil Application. Accordingly, Civil<br \/>\nApplication is disposed of.\n<\/p>\n<p>[H.K.\n<\/p>\n<p>RATHOD, J.]<\/p>\n<p>#Dave<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Oriental vs Pahadbhai on 24 September, 2008 Author: H.K.Rathod,&amp;Nbsp; Gujarat High Court Case Information System Print FA\/3855\/2008 11\/ 11 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 3855 of 2008 With CIVIL APPLICATION No. 9835 of 2008 ========================================================= ORIENTAL INSURANCE CO LTD &#8211; Appellant(s) Versus PAHADBHAI LAKHABHAI PARMAR [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-62619","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Oriental vs Pahadbhai on 24 September, 2008 - Free Judgements of Supreme Court &amp; 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