NEW INDIA ASSURANCE CO LTD Vs. ANITA SURI

JUDGEMENT

(1.) The above two appeals arise out of the award dated 24th September, 1997 whereby the claimants were awarded a compensation of Rs. 4,42,000/- and the liability of the insurance company was held to be unlimited and the insurance company was directed to pay the entire compensation. The insurance company has preferred the appeal assailing the award on the ground that its liability has wrongly been held to be unlimited whereas the claimants have assailed the award on the ground that compensation awarded was inadequate.

(2.) The accident in this case had taken place on 23rd December, 1980 resulting into death of Vinay Kumar Suri, who was going in his car No. DHD 7466 and was hit from behind at red light by truck No. DLL 7494.

(3.) The deceased was a businessman and to prove his income not only oral testimony was adduced but Income Tax Returns for Assessment Years 1978-79, 1979-80, 1980-81 and 1981-82 were produced. The total annual income (pre-tax) for Assessment Years 1978-79 was Rs. 28,335/- and for the years 1981-82 it was Rs. 38,980/-. The learned Tribunal considered the monthly income of the deceased at Rs. 2,800/- on the basis of average of the different assessment years and calculated the compensation on the basis of this income. The Tribunal applied a multiplier of 18 and deducted Rs. 560/- as the amount towards own expenses of the deceased. The deceased has left behind widow, two minor daughters and parents. The learned Tribunal relied upon the ratio of UP State Road Transport Corporation & Ors. reported in I (1996) ACC 592 SC for calculating just and fair compensation in this case. The Tribunal also awarded Rs. 10,000/- towards loss of expectations of life and thus granted total compensation of Rs. 4,42,000/-.