Amount entered in bank passbook cannot be treated as income of a person: High Court

Bengaluru: The High Court has opined that the amount entered in the bank passbook cannot be considered as the income of a person. The Motor Vehicle Accident Compensation Tribunal had instructed to give compensation considering the figures entered in the bank passbook. Challenging this order, the National Insurance Company filed an application in the High Court.

The bench headed by Justice Dr. Prabhakar Shastri, which heard the petition, granted the petition in part and ordered to reduce the compensation amount. In the case, the deceased's wife said that the deceased was doing business in clothes and was earning Rs 50,000 per month. However, no relevant documents had been submitted to substantiate this contention. Instead, two bank passbooks related to the deceased had been submitted. One is a joint account of the deceased and his wife. Another is the deceased's account, both of which are not business accounts.

Also, even if he believes that he is earning Rs. 50,000 per month, he had to pay income tax related to it. No documents had been submitted to the court in this regard. Thus, the bench held that the amount entered in the bank passbook cannot be considered as monthly income. The tribunal ordered to pay compensation of Rs. 16.00 lakh instead of the order which directed payment of compensation of Rs. 23.3 lakh.

On March 3, 2016, at 9.15 pm, Ganesh, a resident of KR pura, was traveling on a two-wheeler on the Chittoor-Palamneru main road of Andhra Pradesh. At this time, a maxi cab registered in Mangalore which was coming at high speed from Chittoor side collided with the petitioner's vehicle at Rangababu circle. As a result, the petitioner's husband died on the spot due to severe injuries. The deceased was 47 years old and was a textile merchant and earning Rs 50,000 per month. Due to the accident, the applicant and his two children became orphans. As a result, a compensation of Rs 50 lakh should be given, the deceased's wife had applied to the Motor Vehicle Accident Compensation Tribunal.

The insurance company, which had objected in this regard, said that the two-wheeler rider and the maxi cab driver did not have a driving license at the time of the accident. The trial court was told that no relief can be given in this context. The tribunal that had heard the application had directed the National Insurance Company to give a compensation of Rs. 23.3 lakh. The insurance company in question filed an application in the High Court.