NATIONAL INSURANCE CO LTD Vs. RAM PRASAD

JUDGEMENT

(1.) THE Appeal is directed against a judgment dated 27.02.2012 passed by the Motor Accident Claims Tribunal(the Claims Tribunal) whereby a compensation of Rs.7,79,000/- was awarded in favour of the Respondents No.1 to 3. In addition, a further sum of Rs.30,000/- was awarded towards counsel's fee.

(2.) IT may be noticed that the Claim Petition filed under Section 166 of the Motor Vehicles Act (the Act) was converted under Section 163-A of the Act. It is no longer res integra that in a Claim Petition under Section 163-A of the Act, compensation has to be awarded strictly as per the structured formula given in Schedule II to the Act. This Court in 'Anarkali & Anr. v. Raj Kumar & Anr.' (MAC APP. 341/2012) decided on 11.04.2012 while relying on Oriental Insurance Company v. Hansrajbhai v. Kodala, (2001) 5 SCC 175, Deepal Girishbhai Soni v. United India Insurance Company Limited, (2004) 5 SCC 385 and Oriental Insurance Company Limited v. Meena Variyal (2007) 5 SCC 428 held that in a Petition under Section 163-A of the Act, there is a cap of Rs.40,000/- on the income and the compensation for non-pecuniary damages has also to be in consonance with the Second Schedule. The loss of dependency in this case thus comes to Rs.4,53,333/- (Rs.40,000/- x 2/3 x 17).

(3.) BY an order dated 25.05.2012 while issuing notice of the Appeal, the execution of the award was stayed subject to deposit of 60% of the award amount along with upto date interest. If there is any shortfall, the same shall be made up by the Appellant Insurance Company. If the amount has been deposited in excess, the same shall be refunded to the Appellant Insurance Company.