UNITED INDIA INSURANCE COMPANY LTD., THROUGH ITS DIVISIONAL MANAGER, DIVISIONAL OFFICE, TIMBER HOUSE, SHIMLA Vs. MOTOR ACCIDENT CLAIMS TRIBUNAL-II, MANDI, H.P., THROUGH ITS PRESIDING OFFICER AND ORS.

JUDGEMENT

(1.) THIS appeal by the Insurance Company is directed against the judgment of a learned Single Judge of this Court, dated 8.5.2007, whereby the learned Single Judge upheld the award of the learned Motor Accident Claims Tribunal -II, Mandi, dated 17.11.2004, whereby he awarded a sum of Rs.10,76,040/ - as compensation to the claimants. Briefly stated, the facts of the case are that deceased Duni Chand was working as Sepoy in the Indian Army. He joined the Indian Army in the year 1995 and unfortunately died in an accident, which took place on 11.12.1997. The only dispute is with regard to the quantum of compensation. Normally, in writ petitions or in appeals arising out of writ petitions, this Court would not have gone in detail about the quantum of compensation, but, in view of the law laid down by the Apex Court in United India Insurance Company versus Shila Datta and others,, (2011) 10 SCC 509, wherein the Apex Court has now clearly held that the Insurance Company is entitled, as a matter of right, to challenge the quantum of compensation, we have gone into this aspect of the matter.

(2.) THE Tribunal took the income of the deceased at more than Rs. 9,000/ - per month, which was totally erroneous and incorrect, and on this basis, awarded the amount of compensation. The Insurance Company challenged this award and the learned Single Judge found that the basic pay of deceased Duni Chand was Rs. 930/ - per month. The learned Single Judge also took into consideration the fact that the salary in the Armed Forces had been revised and the revised pay scale was of Rs. 3020/ - w.e.f. 1.1.1996 and taking into consideration the allowances, the salary could be taken at Rs. 4,000/ - per month. Taking into consideration the future prospects, the total income was taken at Rs.6,000/ - per month and after deducting Rs. 1,000/ - for personal expenses, the dependency was assessed at Rs.5,000/ - per month and the total compensation was assessed at Rs. 10,50,000/ -.

(3.) IN Sarla Verma (Smt.) and others versus Delhi Transport Corporation and another, : (2009) 6 SCC 121, the Apex Court laid down as a rule of thumb that if a person is in earnest employment, 50% of his salary should be added to the actual salary income of the deceased and if this is done in the present case, approximately, the salary of deceased Duni Chand works out between Rs.5,000 -5,100/ -.