The New India Assurance Co. Ltd vs Vidya Devi & Ors.
2009 Latest Caselaw 3085 Del

14
*IN THE HIGH COURT OF DELHI AT NEW DELHI

                      +   MAC.APP.No. 28/2007

                                  Date of Decision:10th August, 2009


      THE NEW INDIA ASSURANCE CO. LTD      ..... Appellant
                    Through Mr. R.K. Tripathi, Advocate

                      versus

      VIDYA DEVI & ORS.              ..... Respondents
                     Through Mr. Manish Maini, Advocate
                     for Mr. Goyal, Advocate.


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 appellants have challenged the award of the

learned Tribunal whereby compensation of Rs.19,36,000/-

has been awarded to the claimants/respondent nos. 1 to 5.

2. The accident dated 2nd October, 2005 resulted in the

death of Ram Achal. The deceased was survived by his

widow, two minor sons and parents who filed the claim

petition before the learned Tribunal.

3. The deceased was aged 31 years at the time of the

accident and was a teacher in Kisan Inter College, Kakrauli,

Muzaffar Nagar earning Rs.9,859/- per month.

4. The salary certificate of the deceased was proved as

Ex.PW-3/2. PW 5 also produced the salary register and

attendance register of the deceased. The salary sheet and

certificate of the deceased for the month of August, 2005

were proved as Ex. PW-5/1 and Ex.PW-5/2. The salary

increment certificate was proved as Ex.PW-5/4. The

deceased was a permanent employee of the college.

5. As per the salary sheet - Ex.PW-5/1 and certificate -

Ex.PW-5/2, the gross salary of the deceased was Rs.9,859/- in

August, 2005 and the salary after deductions was Rs.9,341/-.

6. The learned Tribunal took the income of the deceased

as Rs.9,341/- and added 50% towards future prospects. 1/3rd

was deducted therefrom towards the personal expenses of

the deceased and the multiplier of 17 was applied to

compute the loss of dependency at Rs.19,06,000/-.

Rs.10,000/- has been awarded towards loss of consortium,

Rs.10,000/- towards loss of love and affection and

Rs.10,000/- towards funeral rites. The total compensation

awarded is Rs.19,36,000/-.

7. The learned counsel for the appellant has challenged

the impugned award on the ground that HRA, GPF and PF

should be deducted from the salary of the deceased to

compute the loss of dependency. It is further submitted that

future prospects should not have been taken into

consideration.

8. The claimants/respondents No.1 to 5 have filed cross-

objections for enhancement of the compensation on the

ground that the income of the deceased for computation of

compensation be taken as Rs.13,000/- on the basis of 6th pay

commission and the deduction towards the personal

expenses should be reduced from 1/3rd to 1/4th as the

deceased has left behind five legal representatives.

9. The deceased was a teacher in Kisan Inter College,

Kakrauli, Muzaffar Nagar and his income has been duly

proved by the evidence on record. As per Ex.PW-5/2, last

drawn salary of the deceased was Rs.10,883/- out of which

Rs.600/- has been deducted towards GPF, Rs.559/- has been

deducted as contribution towards LIC and Rs.83 towards GIS.

Total deduction is Rs.1,542/- and after deducting Rs.1,542/-,

the net salary paid to the deceased was Rs.9,341/- which has

been taken by the learned Tribunal to compute the

compensation. The learned Tribunal was in clear error in

making the deduction of Rs.1,542/- towards the GPF, LIC and

GIS which constitutes income of the deceased. The deduction

of Rs.1,542/- is hereby set aside. The total salary of the

deceased for computation of the compensation is taken to be

Rs.10,883/-.

10. It has been proved by sufficient evidence that the

deceased had a permanent job. According to the recent

judgment of Hon'ble Supreme Court in the case of Sarla

Verma Vs. Delhi Transport Corporation, 2009 (6) Scale

129, 50% of the salary has to be added towards future

prospects and the salary of the deceased after adding future

prospects is taken to be Rs.16,325/- (Rs.10,883 + Rs.5,442).

11. The learned Tribunal has deducted 1/3rd towards the

personal expenses of the deceased. The deceased has left

behind five dependants and, therefore, following the

judgment of Sarla Verma (Supra), the personal expenses

of the deceased are reduced from 1/3 to 1/4.

12. The learned Tribunal has applied the multiplier of 17.

The deceased was aged 31 years and the appropriate

multiplier as per the aforesaid judgment of Sarla Verma

(Supra) is 16. The multiplier is, therefore, reduced from 17

to 16.

13. The claimants are entitled to loss of dependency of

Rs.23,50,800/- (Rs.16,325 x 3/4 x 12 x 16).

14. The learned counsel for the respondent submits that no

amount has been awarded towards loss of estate.

Rs.10,000/- is awarded towards loss of estate. The total

compensation is computed to Rs.23,90,800/- (Rs.23,50,800 +

Rs.10,000 + 10,000 + 10,000 + 10,000).

15. The appeal is dismissed. The cross-objections are

allowed and the award amount is enhanced from

Rs.19,36,000/- to Rs.23,90,800/- along with interest @ 8%

per annum from the date of filing of the petition till

realization. The shares of the claimants shall be in the same

proportion as in the award.

16. The enhanced award amount along with interest be

deposited with the learned Tribunal within 30 days and the

same be released in the same manner as in the original

award with proportionate amount in fixed deposit.

17. The ex-parte stay dated 15th July, 2007 is hereby

vacated. All pending CMs are disposed of.

18. Copy of this order be given 'Dasti' to learned counsel

for the parties under the signature of Court Master.

J.R. MIDHA, J August 10, 2009 HL