| |
CDJ 2026 Jhar HC 064
|
| Court : High Court of Jharkhand |
| Case No : M.A. No. 263 of 2014 |
| Judges: THE HONOURABLE CHIEF JUSTICE MR. M.S. SONAK |
| Parties : Rajo Devi & Another Versus Sanjay Kumar Jain & Others |
| Appearing Advocates : For the Appellants: Prabhat Kumar Sinha, Diwakar Jha, Mayank Maridul, Advocates. For the Respondents: Manish Kumar, Advocate. |
| Date of Judgment : 20-02-2026 |
| Head Note :- |
Comparative Citation:
2026 JHHC 5179,
|
| Summary :- |
1. Statutes / Acts / Rules / Orders Mentioned:
-
2. Catch Words:
- compensation, dependency, multiplier, loss of love and affection, loss of estate, funeral expenses, interest, insurance, tribunal, appeal, enhancement, apportionment
3. Summary:
The claimants appealed for enhanced compensation following the death of Prakash Yadav in a road accident. The Tribunal had awarded Rs. 2,56,800 based on a conservative income estimate and multiplier of 17. The Court found the income should be Rs. 2,500 per month, future prospects at 40%, and the deduction for personal expenses should be 1/4th, not 1/3rd. Applying the correct multiplier of 16 as per Sarla Verma, the dependency compensation rises to Rs. 5,04,000. Additional amounts for loss of love, estate, and funeral expenses total Rs. 1,90,000. Consequently, total compensation is fixed at Rs. 6,94,000 with interest at 6% from the claim petition date, and specific apportionment among dependents. The order also directs prompt payment and clarifies responsibility for any delay.
4. Conclusion:
Appeal Allowed |
| Judgment :- |
|
1. Heard the learned counsel for the parties.
2. This is a claimants’ appeal seeking enhancement of compensation.
3. By the impugned judgment and award, the Tribunal has directed the 3rd respondent-Insurance Company to pay compensation of Rs. 2,56,800/- to the claimants on account of death of Prakash Yadav, the husband and the father of the claimants.
4. There is no dispute about Prakash meeting with the fatal accident on 03.09.2003 on account of involvement of the insured vehicle. Prakash's widow (C.W.4) and at least three other witnesses have deposed to Prakash being a cultivator / agriculturist earning Rs.2500/- to Rs. 3000/- per month. There was no reason to reject this evidence only because no documentary proof was produced. There was no serious cross-examination on this aspect and even otherwise, determining the income of Rs. 2500/-, as claimed by the claimants, is reasonable.
5. The Tribunal has taken Prakash's income, based upon the prevalent minimum wages. Here again, the Tribunal has held that Prakash must have been working for only 20 days in a month and determined the monthly income at Rs. 1800/-. Such estimate is excessively conservative. Learned counsel for the claimants pointed out that since Prakash was a cultivator and agriculturist, even the minimum wages rate should have been multiplied by 26 days.
6. On due consideration of the evidence on record, Prakash's monthly income will have to be determined at Rs. 2,500/- per month. The tribunal forgot to make any addition towards future prospects. Since Prakash was not a salaried person, future prospects will have to be taken at 40% and his yearly income will have to be taken at Rs. 42,000/-.
7. The Tribunal has deducted 1/3rd towards Prakash's personal expenses. However, since there were four dependents, this deduction would be only 1/4th and accordingly, his contribution towards the dependents will have to be taken at Rs. 31,500/-.
8. The Tribunal applied the multiplier of 17, even though Prakash was 32 years old at the time of the accident. Learned counsel for the Insurance Company is justified in contending that, in terms of the law laid down in Sarla Verma (Smt) & Ors. Vs. In Delhi Transport Corporation & Anr((2009) 6 SCC 121), the correct multiplier is 16, not 17. This means that compensation towards dependency would come to Rs. 5,04,000/-.
9. In addition, the Tribunal has awarded meagre amounts towards loss of love and affection, loss of estate and funeral expenses. In terms of the law laid down in Sarla Verma (supra), National Insurance Company Limited Vs. Pranay Sethi & Ors., Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram and others: this compensation would amount to Rs. 40,000/- per dependent (towards consortium), Rs. 15,000/- towards loss of estate, and Rs. 15,000/- towards funeral expenses. Thus, an addition of Rs. 1,90,000/- would be due.
10. This means that total compensation payable to the claimants would come to Rs. 6,94,000/-, as against the award of only Rs. 2,56,800/-. The fact that the claimants had prayed for compensation of only Rs. 3,00,000/- is quite irrelevant because it is the duty of the Tribunal and this Court to determine “just compensation”. The position that the compensation need not be restricted to the claim made is well settled in the case of V. Pathmavathi and Others Versus Bharthi Axa General Insurance Co. Ltd. and Another(2026 SCC OnLine SC 158),.
11. The Tribunal has not awarded any interest from the date of the claim petition. Interest at the rate of 6% per annum has been awarded only if the Insurance Company fails to pay the awarded amount within a month from the date of award. Accordingly, it is directed that the Insurance Company shall pay interest at the rate of 6% per annum from the date of the claim petition until actual payment.
12. Learned counsel for the Insurance Company states that the compensation in terms of the impugned award is already paid. Accordingly, the Insurance Company is directed to pay the difference based on the enhanced compensation amount, now determined, within two months to the appellants. Such an amount should be directly deposited in the Bank accounts of the appellants and 4th and 5th respondents, i.e. Rahul Kumar Yadav and Anup Kumar Yadav. Learned counsel for the appellants must inform the Insurance Company of the Bank details, along with the proof of identity, so that the Insurance Company can deposit the amounts directly into their Bank accounts.
13. Insofar as the apportionment is concerned, 60% of the compensation should be given to Prakash’s widow, Rajo Devi, and the balance 40% amount should be apportioned equally between the daughter, Arti Kumar and the two sons, Rahul Kumar Yadav and Anup Kumar Yadav.
14. The enhanced compensation amount should be paid within two months; failing which, it shall carry interest at 9%. The difference between 6% and 9% will have to be borne by the officials of the Insurance Company because of their delay; the public exchequer cannot be made to suffer. If necessary, this additional amount will have to be deducted from the salary of the official responsible for the delay.
15. Usually, in such matters, the Insurance Companies are very reluctant to assign responsibility to any official. Therefore, it is directed that if no responsibility can be placed on any official, then the Divisional Manager of the New India Assurance Company Limited (R-3) will be responsible and have to make payments from his personal salary.
16. The order made for ‘pay and recover’ is not disturbed, since that is not even challenged before this Court. The Insurance Company, therefore, will be at liberty to take such steps as it may be advised in this regard.
17. The appeal is disposed of in the above terms. No costs.
18. All concerned must act on an authenticated copy of this order.
|
| |