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TMI Blog2024 (7) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ,76,496/- allowing the tax deductions for the years 2012-13, 2013-14 and 2014-15. With respect to the income towards the heavy goods vehicles, an amount of Rs. 60,000/- has been added to the annual income - When a presumptive income is assessed at, for the purpose of tax as per Section 44-AE of the Income Tax Act, it may not be incorrect to demand a sum of Rs. 7,500/- a month in respect of the hypothecated goods vehicles, the said amount being the presumptive monthly income previous year whereupon tax was payable but the irony is that both the vehicles were purchased barely few months before the death of the deceased. As regards the periodical increment at the rate of 10% vis- -vis general damages in every three years, there is no quarrel over the legal position as held by the Apex Court in Pranay Sethi (supra), however, it shall be in respect of an amount of Rs. 70,000/- instead of Rs. 1,20,000/- which has been allowed by the learned Tribunal on the heads of consortium @ Rs. 40,000/- for each for the claimants. As regards the plea of Insurance Company that there was violation of policy conditions , as pleaded that the tanker was involved in transporting hazardous substance, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quies expenses at the rate of Rs. 20,000/-, the amount of compensation is reached at Rs. 30,88,592/- (instead of Rs. 33,58,657/-) which is payable along with interest @ 7% per annum usually being the lending rate. Hence, the Court is not in favour of enhancing the interest to 9% per annum so claimed by the appellants.The Court is also not in favour of any penal interest @ 9% per annum allowed by the learned Tribunal as the same is unwarranted. As a logical sequitur, the impugned award passed in M.A.C Case is hereby modified to the extent as aforesaid with a direction to the Insurance Company to deposit a sum of Rs. 30,88,592/- along with interest at the rate of 7% per annum from the date of claim application filed till its realization within eight weeks from today, whereafter, it shall immediately be disbursed in favour of the claimants. - JUSTICE R.K. PATTANAIK For the Appellants : Mr. Biswajit Mohanty, Advocate, Mr. Bijay Dasmohapatra, Advocate For the Respondents Mr. A. Das, Advocate for respondent No. 1 Mr. Bijay Dasmohapatra, Advocate for respondent No. 2 Mr. Biswajit Mohanty, Advocate for respondent Nos. 1 to 3 Mr. A. Das, Advocate for respondent No. 4 JUDGMENT 1. Since bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crement of 10% on general damages payable every three years in view of the Supreme Court dictum in National Insurance Co. Ltd. Vrs. Pranay Sethi AIR 2017 SC 5157. Apart from above, it is contended that a lower rate of interest of 7% instead of normal lending rate @ 9% has been allowed on the amount of compensation, which is also required to be corrected. With the above submission, Mr. Mohanty claims for higher compensation than the assessed sum of Rs. 33,58,657/-. 5. Mr. Das, learned counsel for the owner of the offending truck submits that the vehicle was insured with the insurer and hence, the Insurance Company is to cover the risk and indemnify him with respect to the accident dated 28th July, 2016. 6. Mr. Dasmohapatra, learned counsel for Insurance Company referring to the facts pleaded in appeal filed from their side submits that the learned Tribunal, despite evidence on record that the deceased met with an accident involving an unknown vehicle, held it otherwise and saddled the liability on the insurer of the truck bearing registration No. OR-06G-8473, which is admittedly insured with them on the date of the accident. It is, hence, submitted by Mr. Dasmohapatra that there has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lidly insured on the date of accident, the Insurance Company is liable to pay the compensation indemnifying the owner and accordingly, computed a sum of Rs. 33,58,657/- payable to the claimants with interest at the rate of 7% per annum from the date of filing of the claim application i.e. 8th March, 2017 till its realization. The aforesaid decision is under challenge by the claimants and also the Insurance Company, one seeking for enhancement and the other, denying the liability all together and the quantum of compensation, in case, the first plea failed. 9. Learned Tribunal calculated the annual income of the deceased at Rs. 1,53,861/- taking into account the ITR of four years, such as, 2011-12, 2012-13, 2013-14 and 2014-15 marked as Exts. 13, 13/1, 13/2 and 13/3, wherein, the gross total incomes were shown as Rs. 85,960/-, Rs. 1,45,630/-, Rs. 1,98,235/- and Rs. 1,85,620/- respectively, which according to Mr. Mohanty, ought to have been by considering the last of the three financial years only. It is contended that the annual income with the ITR deductions for the year 2012-13, 2013-14 and 2014-15 would have been at Rs. 1,76,496/- which has been calculated by learned Tribunal for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hypothecated goods vehicles, the said amount being the presumptive monthly income previous year whereupon tax was payable but the irony is that both the vehicles were purchased barely few months before the death of the deceased. As regards the periodical increment at the rate of 10% vis- -vis general damages in every three years, there is no quarrel over the legal position as held by the Apex Court in Pranay Sethi (supra), however, it shall be in respect of an amount of Rs. 70,000/- instead of Rs. 1,20,000/- which has been allowed by the learned Tribunal on the heads of consortium @ Rs. 40,000/- for each for the claimants. 11. As regards the plea of Mr. Dasmohapatra, learned counsel for Insurance Company that there was violation of policy conditions, it is pleaded that the tanker was involved in transporting hazardous substance, which was not in terms of the DL of the driver, who had no such authorization to ply the alleged vehicle. In fact, there has been no specific evidence brought on record from the side of the Insurance Company challenging the DL of the driver of the offending tanker to claim that any such policy condition is violated. Though, the Insurance Company examined O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs. 77,000/- on general damages inclusive of periodical increment every three years and other additional expenses allowed by learned Tribunal on the heads of transportation of dead body for Rs. 5,000/-, funeral and obsequies expenses at the rate of Rs. 20,000/-, the amount of compensation is reached at Rs. 30,88,592/- (instead of Rs. 33,58,657/-) which is payable along with interest @ 7% per annum usually being the lending rate. Hence, the Court is not in favour of enhancing the interest to 9% per annum so claimed by the appellants. The Court is also not in favour of any penal interest @ 9% per annum allowed by the learned Tribunal as the same is unwarranted. In other words, no justifiable reason lies to allow default interest on the amount of compensation. 13. Hence, it is ordered. 14. In the result, appeals stand disposed of. As a logical sequitur, the impugned award dated 10th February, 2023 passed in M.A.C Case No. 63 of 2017 by learned Additional District Judge-cum-3rd M.A.C.T, Dhenkanal is hereby modified to the extent as aforesaid with a direction to the Insurance Company to deposit a sum of Rs. 30,88,592/- along with interest at the rate of 7% per annum from the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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