53
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO No. 208/1991
% Date of decision: 25th May, 2009
PAVNEET SINGH & ANR. ..... Appellants
Through : Mr. T.K. Chawla, Adv.
versus
SAHI RAM ..... Respondent
Through : (name not given), Adv.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
1. Whether Reporters of Local papers may Yes
be allowed to see the Judgment?
2. To be referred to the Reporter or not? Yes
3. Whether the judgment should be Yes
reported in the Digest?
JUDGMENT (Oral)
1. The appellant has challenged the award of the learned Tribunal, whereby compensation of Rs.1,15,200/- has been awarded to the appellants. The appellant seeks enhancement of the award amount.
2. The accident dated 29.04.1980 resulted in the death of Gurcharan Singh, aged 31 years at the time of the accident. The deceased was survived by his widow and two minor children who filed the claim petition before the Learned Tribunal.
3. At the time of the accident, the deceased was carrying on the business of tent house and installation of electrical connections in the name of M/S A-one Shamiana House at Model FAO.No.208/1991 Page 1 of 6 Town. The occupation and income of the deceased was proved by the widow of the deceased, who appeared as PW-3 and deposed that her husband was carrying on the business in the name and style of M/S A-one Shamiana House at F-14/47, Model Town, Delhi and was earning about Rs.2,000/- p.m and he used to give Rs.500/- to 600/- for running household expenses and whenever she needed more amount, he used to give her more amount. She further deposed that after the death of her husband, business was closed and nobody attended to it. She also produced cash book, order book, register of employees, bill book and ledger book of the business of the deceased.
4. The claimants also produced the partner of the deceased as PW-1 who deposed that the business was in partnership for about three years till 1978 when the partners got separated from the business which was thereafter carried by the deceased alone as a proprietor. PW-1 produced the receipt of payment made on account of the dissolution of the partnership as Ex-PW-1/A. PW-1 also proved the assessment order of the firm as Ex-PW-1/B.
5. The claimants produced another witness PW-2 who proved that the deceased was running the tent house business in the name of M/S A-one Shamiana House at Model Town and the deceased had 3-4 employees, who were being paid Rs.300/- to Rs.400/- each per month.
6. The Learned Tribunal considered the Income-tax assessment order Ex-PW-1/B in which the income of the firm had been shown about Rs.25,000/- for the year 1977-1978. However, FAO.No.208/1991 Page 2 of 6 the learned Tribunal took the income of the deceased to be Rs.10,000/- being 40% of the assessed income. The Learned Tribunal took the dependency of the claimants to Rs.600/- p.m and applied the multiplier of 16 to compute the loss of dependency on Rs.1,15,200/-. No amount has been awarded for loss of love and affection, loss of estate, loss of consortium and general expenses.
7. The learned counsel for the appellant has urged the following grounds at the hearing of the appeal:-
(i) The income of the deceased be taken at Rs.25,000/- per annum because the partnership firm was dissolved in the year 1978 and the deceased was carrying on the business as a sole proprietor from 1978 till his death on 29.04.1980 when the business was finally closed.
(ii) The multiplier be enhanced.
(iii) Compensation be awarded for loss of love and affection, loss of estate, loss of consortium and funeral expenses.
8. With respect to the occupation and income of the deceased, it has been proved by PW-1 that the deceased carried on the business of tent house in the name of M/S A-one Shamiana House at Model Town in the partnership from 1975 -1978 and the partnership were dissolved in the year 1978, which has been proved by Ex-PW-1/A. After 1978, the deceased carried on the business as a sole proprietor till his death. The deceased had 3-4 employees drawing salary of Rs.300/- to Rs.400/- each per month. The income of the business for the year 1977-1978 was FAO.No.208/1991 Page 3 of 6 Rs.25,000/- per annum. Since the deceased was carrying on the business as a sole proprietor of the firm, the Learned Tribunal was in error in taking 40% of the income of the deceased. The income of the deceased is, therefore, taken to be Rs.25,000/- per annum. 1/3rd is deducted towards the personal expenses of the deceased and the dependency of the claimants is taken to be Rs.16,667/- per annum.
9. The Learned Tribunal has applied the multiplier of 16. The Second Schedule of the Motor Vehicles Act provided the multiplier of 17. However, the Hon'ble Supreme Court in the recent case of Sarla Verma Vs. Delhi Transport Corporation, 2009 (6) Scale 129 decided on 15th April, 2009 has corrected the multiplier provided in the Second Schedule and the appropriate multiplier as per the said judgment for the age of 31 years is 16. The learned Tribunal has applied the multiplier of 16, which does not call for any interference. The loss of dependency by applying the multiplier of 16 is computed to be Rs.2,66,672/- (Rs.16,667/- X 16).
10. The learned Tribunal has not awarded any compensation for loss of love and affection, loss of estate, loss of consortium and general expenses. Rs.10,000/- is awarded towards the loss of consortium, Rs.10,000/- towards the loss of estate and Rs.10,000/- towards the loss of love and affection and Rs.5,000/- towards the funeral expenses. The total compensation is computed as Rs.3,01,672/-.
FAO.No.208/1991 Page 4 of 6
11. The learned Tribunal has awarded the interest @9% per annum. Learned counsel for the appellant seeks enhancement of rate of interest on the ground that the bank rate of interest at the time of the award was 12% per annum. The rate of interest is enhanced from 9% per annum to 12% per annum from the date of filing of the petition till the award of the learned Tribunal on 06.05.1991. However, from the date of award up to 31st December, 2001, the rate of interest shall be 9% per annum and from 1st January, 2002 up to date of payment, the rate of interest shall be 7.5% per annum.
12. The appeal is allowed and the award amount is enhanced from Rs.1,15,200/- to Rs.3,01,672/- along with interest @12% per annum from the date of filing of petition till 6 th May, 1991, @9% per annum from 7th May, 1991 up to 31st December, 2001 and @7.5% per annum from 1st January, 2002 till date of payment. Appellants No.1 and 2 shall have equal share in enhanced amount.
13. Respondent No.3 is directed to deposit the enhanced award amount along with interest amount with the learned Tribunal within 30 days. Upon the aforesaid deposit being made, the learned Tribunal shall release 50% of the enhanced award amount to appellants No.1 and 2 and the remaining 50% of the enhanced award amount along with interest amount is directed to be kept in fixed deposit for five years on which periodical interest be paid to appellants No.1 and 2 but no loan, advance or FAO.No.208/1991 Page 5 of 6 withdrawal be permitted without prior permission of the learned Tribunal.
14. Copy of this order be given 'Dasti' to learned counsel for the parties under signature of Court Master.
J.R. MIDHA, J MAY 25, 2009 rs FAO.No.208/1991 Page 6 of 6