New India Assurance Co Ltd vs Archana Shukla & Ors

Citation : 2012 Latest Caselaw 1714 Del
Judgement Date : 13 March, 2012

Delhi High Court
New India Assurance Co Ltd vs Archana Shukla & Ors on 13 March, 2012
Author: G.P. Mittal
*       IN THE HIGH COURT OF DELHI AT NEW DELHI

                                          Decided on: 13th March, 2012

+       MAC APP. No. 355/2010

        NEW INDIA ASSURANCE CO LTD           ..... Appellant
                     Through: Mr. Kanwal Choudhary, Advocate

                            versus

        ARCHANA SHUKLA & ORS                ..... Respondent
                    Through: Ms. Shalinee, Advocate for
                    respondents No. 1 to 5.

        CORAM:
        HON'BLE MR. JUSTICE G.P.MITTAL

                            JUDGMENT

G. P. MITTAL, J. (ORAL)

1. The Appellant seeks reduction of compensation of ` 50,63,504/-

awarded for the death of Shri Brijender Shekhar Shukla who died in an accident which occurred on 15th March,2003.

2. The contentions raised on behalf of the Appellant are as under:-

(i) That the deceased was aged 38 years. The Tribunal ought to have adopted the multiplier of 15 instead of 16 as taken by the Tribunal.
(ii) The deduction towards income-tax was not made while computing the loss of the dependency.
MAC APP 355/2010 Page 1 of 3

3. The Appeal is bound to succeed on both the grounds.

4. At the same time, it has to be noticed that the deceased's gross salary was ` 34,205/- on the date of the accident. Even if the amount paid towards entertainment allowances, washing allowance, petrol reimbursement, conveyance maintenance, telephone bills and canteen allowances is deducted, the deceased's salary would be ` 30,610/- per month or ` 3,67,320/- annually. There was a liability of income tax amounting to ` 84,100/- thereon. On adding 50% towards future prospects (Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 12) The loss of dependency would come to ` 47,79,337/- (` 30,610/- X 12- ` 84,100/- (income tax) + 50% X 3 /4X 15 ). On adding conventional sum of ` 25,000/- towards loss of Love and Affection, ` 10,000/- each, towards Loss of Consortium, Loss of Estate and Funeral Expenses, the overall compensation comes to `48,34,337/-.

5. The overall compensation is reduced to ` 48,34,337/- from `50,63,504/-which shall carry interest @ 7% per annum, as granted by the Claims Tribunal.

6. By an order dated 16th July, 2010, 75% of the award amount was directed to be deposited by the Appellant/Insurance Company. Rest of the amount along with interest shall be deposited with the Registrar General of this Court within 30 days. The amount payable shall be apportioned and held in MAC APP 355/2010 Page 2 of 3 Fixed Deposit in the matter as directed by the Claims Tribunal.

7. The appeal is allowed in the above terms.

8. Statutory amount shall be refunded to the Appellant/Insurance Company through its counsel.

(G.P. MITTAL) JUDGE MARCH 13, 2012 P MAC APP 355/2010 Page 3 of 3