GAUHATI HIGH COURT ISSUES ORDER ON NEW INDIA ASSURANCE COMPANY V/S SRI BIPUL BARUAH AND ORS.

GUWAHATI, India, Sept. 30 -- Gauhati High Court issued the following order on Aug. 29:

1. Heard Mr. R. Goswami, learned counsel for the appellant Insurance Company. Also heard Mr. G. Choudhury, learned counsel, appearing on behalf of respondent No. 1/claimant.

2. This appeal under Section 173 of the Motor Vehicle Act, 1988, has been preferred by the appellant Insurance Company against the judgment & award, dated 16-03-2022, passed by the learned Additional Member No. 2, Motor Accident Claim Tribunal, Tinsukia, in MAC. Case No. 68/2017, whereby, a compensation amount of Rs. 13,14,600/- was awarded along with interest at the rate of 6% per annum to be paid to the respondent No. 1/claimant from the date of filing of the claim petition till realisation of the same on account of the death of the claimant's son late Arun Baruah in a motorcycle accident which occurred on 02-10-2014 at about 8.30am.

3. Mr. Goswami, learned counsel for the appellant Insurance Company, at the very outset, has made it clear that the factum of the accident and liability of the insurer/appellant Insurance Company, is not in dispute. The only contention urged by the appellant Insurance Company in this appeal is with regard to the deduction made towards personal and living expenses of the deceased.

4. Mr. Goswami, learned counsel for the appellant Insurance Company, has further submitted that the learned Motor Accident Claims Tribunal, Tinsukia, deducted one-third of the income of the deceased, whereas, it is the case of the appellant Insurance Company that the deceased was a bachelor and only the mother was dependant on him and therefore, the correct deduction should be 50% in view of the law laid-down by the Hon'ble Supreme Court in the case of Sarla Verma & ors. v. Delhi Transport Corporation & anr., reported in (2009) 6 SCC 121.

5. Mr. Goswami, learned counsel for the appellant, has, accordingly, submitted that the father of the deceased has not been treated as a dependant and therefore, as per the ratio laid down by the Hon'ble Supreme Court in Sarla Verma(supra); 50% of the income is required to be deducted towards the personal expenses of the deceased. It is the further case of the appellant Insurance Company that one-third deduction is applicable only in cases where the deceased had a spouse and children dependant on him.

6. Per contra, Mr. Choudhury, learned counsel for the respondent No. 1/claimant, while relying on paragraph No. 26 of the decision rendered by the Hon'ble Supreme Court in the case of Sarla Verma (supra), has submitted that the principle as laid down by the Hon'ble Supreme Court in Sarla Verma(supra) is merely a guideline and not an inflexible rule.

7. In support of his submissions, Mr. Choudhury, learned counsel for the respondent No. 1/claimant, has placed reliance on the decisions of the Hon'ble Supreme Court rendered in the case of Magma General Insurance Company Ltd. v. Nanu Ram alias Chuhru Ram & ors., reported in (2019) 1 Supreme 262 and New India Assurance Company Ltd. v. Smt. Somwati & ors., reported in (2020) 4 Supreme 667, to contend that even one-third deduction could be permissible depending on the facts of the case.

*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=zDLovBVSUw02H8XukOjXfHwf3N6fRzSMOeDXIXhmZHxwXvacEGSEitS%2F88p9Nzyg&caseno=MACApp./136/2023&cCode=1&cino=GAHC010154052022&state_code=6&appFlag=)

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