EXECUTIVE ENGINEER MECH Vs. PUSHPABEN CHANDRAKANT

JUDGEMENT

(1.) WHILE deciding the first Civil Application No. 641 of 1994 made in the present appeal, the Division Bench of this Court (Coram: B. N. Kirpal, C. J. (as His Lordship then was) and R. K. Abichandani, J.) observed as under:

(2.) ASSAILING the impugned judgment and award dated 14. 12. 1993 of M. A. C. T. (Main), Jamnagar in Claim Case No. 193 of 1983, learned counsel Mr. S. K. Shah submitted that the insurance company, respondent No. 5 herein, was required to be saddled with the liability to the extent of Rs. 50,000/- in terms of the policy of insurance and the quantum of compensation was required to be reduced by applying multiplier lower than 15 in view of the age of 35 years of the deceased at the time of accident. He also pointed out that the Tribunal was pleased to award interest at the rate of 15% on the amount of compensation, even as the claimant had claimed interest at the rate of 12%. It was also pointed out that while the Tribunal had itself come to the conclusion that the deceased could have contributed Rs. 30,000/- per year to the claimants, it had based its calculation on yearly dependency benefit of Rs. 36,000/ -. Therefore, it was, on that basis, submitted that the quantum of compensation was on the higher side and required to be suitably modified. Learned counsel relied upon Division Bench judgment of this Court in Jethabhai Bhimabhai and others V/s. Mer Pola Rina and others [1996 (2) G. L. H. 434] to submit that the proper multiplier would have been 12 in the case where the deceased was aged 35 years. Learned counsel also relied upon judgment of the Supreme Court in Kaushnuma Begum and others V/s. New India Assurance Co. Ltd. and others [2001 ACJ 428] in support of the submission that interest was required to be reduced to 9%. In that judgment, it was observed that, earlier, 12 per cent was found to be the reasonable rate of simple interest; but, with a change in economy and the policy of the Reserve Bank of India, the interest rate has been lowered. The nationalised banks are now granting interest at the rate of 9 per cent on Fixed Deposits for one year. Therefore, it was directed that interest at the rate of 9 per cent per annum should be paid to the appellants in the facts of that case.

(3.) LEARNED counsel Mr. Shalin Mehta, appearing for respondent No. 5, the insurance company, fairly conceded that the liability of insurance company was required to be increased to the extent of 50,000/- in view of the express provisions of Section 95 of the erstwhile Motor Vehicles Act, 1939.