RAJASTHAN STATE ROAD TRANSPORT CORPORATION Vs. SIRAJ AHMED
LAWS(RAJ)-2004-5-50
HIGH COURT OF RAJASTHAN (AT: JAIPUR)
Decided on May 26,2004

RAJASTHAN STATE ROAD TRANSPORT CORPORATION Appellant
VERSUS
SIRAJ AHMED Respondents

JUDGEMENT

Gyan Sudha Misra, J. - (1.) JUDGMENT
(2.) THIS appeal has been preferred by Rajasthan State Road Transport Corpn. (for short 'R.S.R.T.C.') against the award of compensation passed by the Motor Accidents Claims Tribunal, Jaipur City, Jaipur, whereby a claim petition filed by respondent No. 1 was allowed and an award for Rs. 2,43,640 has been passed in favour of Siraj Ahmed, claimant respondent No. 1, as his right leg below the knee has been amputated on account of the accident caused by the bus owned and possessed by the appellant R.S.R.T.C. While determining the amount of compensation, the Tribunal has recorded that the income of the claimant-respondent was Rs. 2,400 per month which has obviously been affected on account of the grievous injury sustained by him in the accident and considering the fact that he has lost an important part of his body which is his leg, the sum of Rs. 2,43,640 has been awarded which includes the cost of treatment, loss of income as also on all other counts including conveyance expenses, food, etc. The amount determined by Tribunal is clearly in consonance with the provision of Second Schedule incorporated under the Motor Vehicles Act, 1988 as clause 5 of this Schedule clearly lays down the principle on the basis of which compensation has to be determined in case of permanent partial disablement and in case of non fatal accident. Clause 5 (a) of this Schedule lays down that in case of permanent total disablement, the amount payable shall be arrived at by multiplying the annual loss of income by the multiplier applicable to the age on the date of determining the compensation and in case of permanent partial disablement, such percentage of compensation which would have been payable in the case of permanent total disablement as specified in the case of permanent total disablement is payable. Applying this principle, it is clear that the amount determined by the Tribunal is not exorbitant in any manner as the respondent-claimant has sustained 60 per cent of the injury and, therefore, 60 per cent of his income comes to Rs. 1,440 and the age of the injured was 50 years on the date of the accident and, therefore, the appropriate multiplier to the income of the injured-claimant is 13 and when this is multiplied to 60 per cent of the income of claimant which is Rs. 1,440 per month, the amount which is arrived at is Rs. 2,24,640. To this amount, when the cost of treatment is added as also the other amount regarding future prospects, etc., the amount of Rs. 2,43,640 appears to be a reasonable amount of compensation awarded to the claimant-respondent. The impugned order, therefore, does not require interference of this court on any count. Learned counsel for the appellant, however, has drawn the attention of this court that the amount of interest awarded by the Tribunal is not fit to be sustained in view of the pronouncement of the Apex Court reported in P. J. Narayan v. Union of India, 2004 ACJ 452 (SC), whereby the learned Judges of the Supreme Court have been pleased to hold that insurance company is not liable to pay the interest on the amount awarded by the Tribunal. In the instant case, the insurance company is not the appellant but it is the R.S.R.T.C. which has appealed but that does not affect the principle laid down in regard to claim of interest. But besides this, it has to be accepted that the interest on the amount of compensation cannot be held payable even before the award of compensation is passed by the Tribunal. The question, however, still persists whether the interest on the amount can be paid from the date of award or not but the award of interest uniformly in all cases cannot be mechanically held payable even from the date of the award for the obvious reason that if the amount of compensation is kept in fixed deposit, the same is bound to fetch interest in the future and if the amount determined by the Tribunal is fully in consonance with the provisions of Motor Vehicles Act, 1988, which has laid down the method and manner as also the principle on the basis of which the amount has been determined and the same does not indicate payment of interest on the amount of compensation, the award of interest on the amount cannot be held payable unless of course there are special circumstances to justify the same or the principal amount of compensation is too meagre or abnormally low. Hence the award of interest on the amount of compensation in the instant case shall not be held payable by the appellant R.S.R.T.C. and the award to that extent shall stand set aside. Consequently, the amount of compensation determined by the impugned award is upheld but the interest awarded by the Tribunal shall stand set aside. The appeal preferred by the R.S.R.T.C subject to the aforesaid relief stands dismissed. Appeal dismissed.;


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