R-56(part-1)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.110/2009
% Reserved on : 16th March, 2012
Date of decision : 30th March , 2012
SMT. SHAKTI MAHAJAN & ORS. ..... Appellants
Through : Mr. Ashok Popli, Adv.
versus
UOI & ANR. ..... Respondents
Through : Ms. Amita Singh, Adv. for R-1
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT
1. The appellants have challenged the award of the Claims Tribunal whereby compensation of `5,20,000/- has been award to them. The appellants seek enhancement of the award amount.
2. The accident dated 15th February, 2000 resulted in the death of Anand Prakash Mahajan. The deceased was survived by his widow and two sons who filed the claim petition before the Claims Tribunal. The deceased aged 55 years, at the time of the accident, was a practicing advocate. The Claims Tribunal took the income of the deceased as `7,500/- per month, deducted 1/3rd towards his personal expenses and applied the multiplier of 8 to compute the loss of dependency at `4,80,000/-. `25,000/- has been awarded towards loss of MAC.APP.No.110/2009 Page 1 of 5 consortium and `15,000/- towards funeral expenses. The total compensation awarded is `5,20,000/-.
3. The learned counsel for the appellant seeks enhancement of the award amount on the following grounds:-
(i) The income of the deceased be taken as `30,000/- per month.
(ii) The multiplier be enhanced from 8 to 11.
(iii) The compensation be awarded for loss of love and affection and loss of estate.
(iv) The rate of interest be enhanced from 7% per annum to 12% per annum.
4. The learned counsel for the respondents submit as under:-
(i) The income of the deceased has not been sufficiently proved.
(ii) The penal rate of interest @12% per annum be set aside.
5. The widow of the deceased appeared in the witness box as PW-1 and proved the enrolment certificate and law degree of the deceased as Ex.P-1 and Ex.P-2. She also proved the Income Tax Returns and assessments as Ex.P-13 to Ex.P-22. As per the Income Tax Return for the year 1996-97, the professional income of the deceased was `54,470/- per annum. The professional income of the deceased for the assessment MAC.APP.No.110/2009 Page 2 of 5 year 1997-98 was `65,280/- per annum. No Income Tax Return was filed after 1997-98. The Claims Tribunal assumed the income of the deceased as `7,500/- per month (`90,000/- per annum). However, the Claims Tribunal has not given any basis for assessing the income of the deceased as `7,500/- per month. The Claims Tribunal ought to have taken the annual income of the deceased as `65,280/- as per his last Income Tax Return. The finding of the Claims Tribunal with respect to income of the deceased is modified and the income of the deceased is reduced from `7,500/- per month (`90,000/- per annum) to `5,440/- per month (`65,280/- per annum).
6. The Claims Tribunal has applied the multiplier of 8 whereas appropriate multiplier according to the judgment of the Supreme Court in the case of Sarla Verma v. Delhi Transport Corporation, 2009 (6) Scale 129 is 11 as the deceased was aged 55 years at the time of the accident. The multiplier is therefore enhanced from 8 to 11.
7. The Claims Tribunal has not awarded any compensation towards loss of love and affection. `25,000/- is awarded towards loss of love and affection.
8. The Claims Tribunal has also not awarded any compensation towards loss of estate. `10,000/- is awarded towards loss of estate.
MAC.APP.No.110/2009 Page 3 of 5
9. The Claims Tribunal has awarded interest @ 7% per annum. However, the appropriate rate of interest as per the judgment of the Supreme Court in the case of Municipal Corporation of Delhi v. Association of Victims of Uphaar Tragedy & Ors., AIR 2012 SC 100 is 9% per annum. The rate of interest is enhanced from 7% per annum to 9% per annum. The Claims Tribunal has also awarded penal interest @ 12% per annum which is not justified in the facts and circumstances of this case. The direction of the learned Trial Court with respect to the penal rate of interest is therefore set aside.
10. Taking the annual income of the deceased as `65,280/-, deducting 1/3rd towards his personal expenses and applying the multiplier of 11, the loss of dependency is computed to be `4,78,720/-. Adding `25,000/- towards loss of consortium, `25,000/- towards loss of love and affection, `15,000/- towards funeral expenses and `10,000/- towards loss of estate, the total compensation is computed to be `5,53,720/-.
11. The appeal is allowed and the award amount is enhanced from `5,20,000/- to `5,53,720/- along with interest @ 9% per annum from the date of filing of the claim petition till realization. The share of the appellants in the enhanced award amount shall be as under:-
MAC.APP.No.110/2009 Page 4 of 5
Appellant No.1 (widow) - 50%
Appellant No.2 (son) - 25%
Appellant No.3 (son) - 25%
12. The enhanced award amount along with interest be paid by respondent No.1 within 30 days with UCO Bank by means of a cheque drawn in the name of UCO Bank A/c Shakti Mahajan. Upon the aforesaid amount being deposited, UCO Bank shall release the same to the appellants as per their shares by transferring the same to their savings bank accounts.
13. Copy of this judgment be sent to Mr. M.S. Rao, AGM, UCO Bank, Delhi High Court Branch, New Delhi (Mobile No.09871129345).
J.R. MIDHA, J MARCH 30, 2012 MAC.APP.No.110/2009 Page 5 of 5