* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO No. 375/1999
Judgment reserved on: 28.2.2008
% Judgment delivered on: 4.5.2009
Sh. Yashpal & Ors. ...... Appellants
Through: Mr. Y.R. Sharma, Advocate
versus
Sh. Ram Narayan & Ors. ..... Respondents
Through: Nemo
CORAM:
HON'BLE MR. JUSTICE KAILASH GAMBHIR
1. Whether the Reporters of local papers may
be allowed to see the judgment? NO
2. To be referred to Reporter or not? NO
3. Whether the judgment should be reported NO
in the Digest?
KAILASH GAMBHIR, J.
1. The present appeal arises out of the award dated 12.5.99 of the Motor Accident Claims Tribunal whereby the Tribunal awarded a sum of Rs. 1,49,280/- along with interest @ 12% per annum to the claimants.
FAO No. 375/99 Page 1 of 8
2. The brief conspectus of the facts is as follows:
3. On 1.10.1994 deceased Bharat Bhushan was driving a bicycle. He was coming from Tilak Nagar side and was going towards Raja Garden. At about 3.30 p.m. he reached a place near Wood Land Park on Najafgarh Road. In the meanwhile, a bus bearing registration No. DBP 2356 came from the Tilak Nagar side and struck against the cycle of the deceased from behind. As a result of the impact, deceased received injuries. In fact, he was dragged along with the cycle to a considerable distance. He was removed to DDU hospital where he succumbed to the injuries received in this accident on the same day.
4. A claim petition was filed on 28.4.1994 and an award was passed on 12.5.1999. Aggrieved with the said award enhancement is claimed by way of the present appeal.
5. Sh. Y.R. Sharma, counsel for the appellants contended that the tribunal erred in assessing the income of the deceased at Rs. 1868/- per month whereas the tribunal should have assessed the income of the deceased at Rs. 2000/- per month. The counsel further maintained that the tribunal erred in making the deduction to the tune of 1/3rd of the income of the deceased FAO No. 375/99 Page 2 of 8 towards personal expenses when the deceased was supporting a large family at the time of accident and is survived by his parents. The counsel submitted that the tribunal erroneously applied the multiplier of 10 while computing compensation when according to the facts and circumstances of the case multiplier of 16 should have been applied. It was urged by the counsel that the tribunal erred in not considering future prospects while computing compensation as it failed to appreciate that the deceased would have earned much more in near future as he was of 17 yrs of age only and would have lived for another 40-50 yrs had he not met with the accident. It was also contended by the counsel that the tribunal did not consider the fact that due to high rates of inflation the deceased would have earned much more in near future and the tribunal also failed in appreciating the fact that even the minimum wages are revised twice in an year and hence, the deceased would have earned much more in her life span. The counsel also raised the contention that the rate of interest allowed by the tribunal is on the lower side and the tribunal should have allowed simple interest @ 16% per annum in place of only 12% per annum. The counsel contended that the tribunal has erred in not awarding compensation towards loss of FAO No. 375/99 Page 3 of 8 love & affection, funeral expenses, loss of estate, loss of consortium, mental pain and sufferings and the loss of services, which were being rendered by the deceased to the appellants.
6. Nobody appeared for the respondents.
7. I have heard learned counsel for the appellants and perused the record.
8. PW-1 deposed that the deceased was 17-18 years of age on the date of accident. He used to earn about Rs. 2,000/- per month by supplying polythene milk packets and also used to study in school and was a student of XI std.
9. After considering all these factors, I am of the view that the tribunal has not erred in assessing the income of the deceased at Rs. 1868/- p.m. according to the minimum wages rates for a matriculate.
10. It is no more res integra that mere bald assertions regarding the income of the deceased are of no help to the claimants in the absence of any reliable evidence being brought on record.
FAO No. 375/99 Page 4 of 8
11. The thumb rule is that in the absence of clear and cogent evidence pertaining to income of the deceased learned Tribunal should determine income of the deceased on the basis of the minimum wages notified under the Minimum Wages Act.
12. Therefore, no interference is made in relation to income of the deceased by this court.
13. As regards the future prospects, it has been the view of this Court that whenever income is assessed in accordance with Minimum Wages Act then increase in Minimum Wages should also be taken into consideration, which is not akin to future prospects. Thus, the Tribunal erred in not considering the same.
14. As regards the contention of the counsel for the appellant that the 1/3rd deduction made by the tribunal are on the higher side as the deceased is survived by his aged parents. In catena of cases the Apex Court has in similar circumstances made 1/3 rd deductions. Therefore, I am not inclined to interfere with the award on this ground.
FAO No. 375/99 Page 5 of 8
15. As regards the contention of the counsel for the appellant that the tribunal has erred in applying the multiplier of 10 in the facts and circumstances of the case, I feel that the tribunal has committed error. This case pertains to the year 1994 and at that time II schedule to the Motor Vehicles Act had already been brought on the statute book. The deceased was of 17 yearss at the time of the accident and his parents were of 42 years and 38 years. In the facts of the present case I am of the view that after looking at the age of the claimants and the deceased the multiplier of 15 as per the II Schedule should have been applied. Therefore, the award is modified in this regard.
16. As regards the issue of interest that the rate of interest of 12% p.a. awarded by the tribunal is on the lower side and the same should be enhanced to 16% p.a., I feel that the rate of interest awarded by the tribunal is just and fair and requires no interference. No rate of interest is fixed under Section 171 of the Motor Vehicles Act, 1988. The Interest is compensation for forbearance or detention of money and that interest is awarded to a party only for being kept out of the money, which ought to have been paid to him. Time and again the Hon'ble Supreme Court has held that the rate of interest to be awarded should be FAO No. 375/99 Page 6 of 8 just and fair depending upon the facts and circumstances of the case and taking in to consideration relevant factors including inflation, policy being adopted by Reserve Bank of India from time to time and other economic factors. In the facts and circumstances of the case, I do not find any infirmity in the award regarding award of interest @ 12% pa by the tribunal and the same is not interfered with.
17. On the contention regarding that the tribunal erred in not granting compensation towards loss of love & affection, funeral expenses, loss of estate and the loss of services, which were being rendered by the deceased to the appellants. In this regard compensation towards loss of love and affection is awarded at Rs. 20,000/-; compensation towards funeral expenses is awarded at Rs. 10,000/- and compensation towards loss of estate is awarded at Rs. 10,000/-.
18. Thus the total loss of dependency comes to Rs. 3,36,240/- (1868 + 3736/2 x 2/3 x 12 x 15). After considering Rs. 40,000/- which is granted towards non pecuniary damages, the total compensation comes out as Rs. 3,76,240/-.
FAO No. 375/99 Page 7 of 8
19. In view of the above discussion, the total compensation is enhanced to Rs. 3,76,240/- from Rs. 1,49,280/- with interest @ 7.5% per annum on the differential amount from the date of filing of the petition till realisation and the same shall be paid to the appellants by the respondent insurance company in equal proportion, within 30 days from the date of this order.
20. With the above directions, the present appeal is disposed of.
04th May, 2009 KAILASH GAMBHIR, J.
FAO No. 375/99 Page 8 of 8