Delhi High Court
National Insurance Co.Ltd. vs Prabhawati Sharma & Ors. on 8 December, 2009
Author: J.R. Midha
36
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.323/2007
Date of Decision: 8th December, 2009
%
NATIONAL INSURANCE CO.LTD. ..... Appellant
Through : Mr. L.K. Tyagi, Adv.
versus
PRABHAWATI SHARMA & ORS. ..... Respondents
Through : Mr. Taiyab Khan and
Ms. Filza Moonis, Advs.
for R-1 to 7.
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)
CM Nos.11892-94/2009
1. For the reasons stated in the applications, the delay in
filing and refilling of cross-objections is condoned. The cross-
objections are taken on record.
2. CMs stand disposed of.
MAC.APP. 323/2007
1. The appellants have challenged the award of the
learned Tribunal whereby compensation of Rs.5,24,200/- has
been awarded to claimants/respondents No.1 to 7. The
appellants seek reduction of the award amount on the
ground of contributory negligence. Claimants/respondents
No.1 to 7 seek enhancement of the award amount.
2. The accident dated 24th April, 2004 resulted in the
death of Shiv Dutt Sharma. The deceased was survived by
his widow, three daughters, one son and parents who filed
the claim petition before the learned Tribunal.
3. The deceased was aged about 28 years at the time of
the accident and was working as a driver earning Rs.5,500/-
per month. However, in the absence of any documentary
proof of income, the learned Tribunal took the minimum
wages of Rs.3,300/-, deducted 1/3rd towards personal
expenses and applied the multiplier of 18 to compute the
loss of dependency at Rs.4,75,200/-. Rs.15,000/- has been
awarded towards loss of consortium, Rs.24,000/- towards
loss of love and affection and Rs.10,000/- towards funeral
expenses. The total compensation awarded is Rs.5,24,200/-.
4. The only ground urged by learned counsel for the
appellant at the time of hearing of this appeal is that the
deceased was contributory negligent and, therefore, the
award amount should be reduced.
5. The deceased was driving truck No.HR-38F-9215 while
coming from Amritsar to Delhi. At village Mohanpur near
G.T. Road, Khanna, Punjab, the deceased hit a stationary
truck bearing No.PB-10G-9727 standing in the middle of the
road without any indicators. The accident occurred at about
5:30am and the visibility is reported to be low at that time.
The learned Tribunal held the driver of the parked truck to be
negligent. The statements of the witnesses in this regard
have been re-appreciated and this Court is of the view that
the deceased was contributory negligent to the extent of
20%. In fact, the deceased could have avoided the accident
by careful driving. The finding of the learned Tribunal with
respect to the negligence of the offending truck is, therefore,
modified and the deceased is held to be contributory
negligent to the extent of 20%.
6. The learned counsel for the claimants/respondents has
urged the following grounds at the time of hearing of this
appeal for enhancement of the award amount:-
(i) The increase in minimum wages due to inflation
and rise in price index be taken into
consideration.
(ii) The personal expenses of the deceased be
reduced from 1/3rd to 1/5th.
(iii) The compensation be awarded for loss of estate.
(iv) The rate of interest be enhanced.
7. The learned Tribunal has taken the minimum wages of
Rs.3,300/- per month to compute the loss of dependency. It
is settled by the catena of judgments of this Court in the
cases of Kanwar Devi vs. Bansal Roadways, 2008 ACJ
2182, National Insurance Company Limited vs. Renu
Devi III (2008) ACC 134 and UPSRTC vs. Munni Devi,
MAC.APP.No.310/2007 decided on 28.07.2008 that the
Court should take judicial notice of increase in minimum
wages to meet the increase in price index and inflation rate.
The Court has taken the view that the minimum wages get
doubled over the period of 10 years and increase in
minimum wages is not akin to future prospects and the
income should be computed by taking the average of
minimum wages and its double.
8. Following the aforesaid judgment, the income of the
deceased is taken to be Rs.4,950/- [(Rs.3,300+Rs.6,600/-)/2].
9. The deceased has left behind seven legal
representatives and as per the judgment of the Hon'ble
Supreme Court in the case of Sarla Verma Vs. Delhi
Transport Corporation, 2009 (6) Scale 129, the personal
expenses of the deceased have to be taken as 1/5 th.
Following the aforesaid judgment of the Hon'ble Supreme
Court, the personal expenses of the deceased is reduced
from 1/3rd to 1/5th.
10. The learned Tribunal has applied the multiplier of 18
whereas according to the judgment of the Hon'ble Supreme
Court in the case of Sarla Verma (supra), the appropriate
multiplier at the age of 28 years is 17. The multiplier is,
therefore, reduced from 18 to 17. The learned Tribunal has
not awarded any compensation for loss of estate.
Rs.10,000/- is awarded for loss of estate.
11. The learned Tribunal has awarded interest @7% per
annum. Following the judgment of the Hon'ble Supreme
Court in the case of Dharampal vs. U.P. State Road
Transport Corporation, III 2008 ACC (1) SC, the rate of
interest is enhanced from 7% per annum to 7.5% per annum.
12. Taking the income of the deceased to be Rs.4,950/- per
month, deducting 1/5th towards personal expenses, applying
the multiplier of 17, adding Rs.15,000/- towards loss of
consortium, Rs.24,000/- towards loss of love and affection,
Rs.10,000/- towards loss of estate, Rs.10,000/- towards
funeral expenses and reducing 20% on account of
contributory negligence, the total compensation is computed
to be Rs.6,93,472/- {[(Rs.4,950 x 4/5 x 12 x 17) x Rs.15,000
+ Rs.24,000 + Rs.10,000 + Rs.10,000] - 20%}
13. The appeal as well as cross-objections are allowed and
the award amount is enhanced from Rs.5,24,200/- to
Rs.6,93,472/- along with interest @7.5% per annum from the
date of filing of the petition till realization.
14. The enhanced award amount along with interest be
deposited by the appellant with UCO Bank, Delhi High Court
Branch A/c Prabhawati Sharma by means of a cheque
through Mr. M.M. Tandon, Member-Retail Team, UCO Bank
Zonal, Parliament Street, New Delhi (Mobile No.
09310356400) within 30 days.
15. The order for disbursement of the award amount shall
be passed after examining claimants/respondents No.1 to 7.
16. List on 20th January, 2010.
J.R. MIDHA, J
DECEMBER 08, 2009
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