Delhi High Court
National Insurance Co. Ltd. vs Nisha Devi & Ors. on 3 September, 2009
Author: J.R. Midha
17
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.118/2008
% Date of decision: 3rd September, 2009
NATIONAL INSURANCE CO. LTD. ..... Appellant
Through : Mr. Manoj Ranjan Sinha, Adv.
versus
NISHA DEVI & ORS. ..... Respondents
Through : Mr. J.S. Kanwar, Adv. for R-1
to 6.
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.7,60,264/- has been
awarded to claimants/respondents No.1 to 6.
2. The accident dated 14th April, 2001 resulted in the death of
Binesh Tyagi. The deceased was survived by his widow, two
sons, one daughter and parents who filed the claim petition
before the learned Tribunal.
3. The deceased was aged 28 years at the time of the accident
and was carrying on the business of manufacturing electronic
goods. However, in the absence of any documentary evidence to
prove the income, the learned Tribunal took the minimum wages
of Rs.2,579/- in respect of an unskilled worker and increased it to
Rs.3,025/- per month by taking the average of minimum wages at
the time of the accident and at the time of award. The learned
Tribunal further took the future prospects into consideration by
taking the average of Rs.3,025/- and its double. The learned
Tribunal deducted 1/4th towards the personal expenses of the
deceased and applied the multiplier of 18 to compute the loss of
dependency at Rs.7,25,264/-. Rs.30,000/- has been awarded
towards loss of love and affection and consortium and Rs.5,000/-
towards funeral expenses. The total compensation awarded is
Rs.7,60,300/-.
4. The only ground urged by learned counsel for the appellant
at the time of hearing of this appeal is that the increase in
minimum wages has been taken twice which is not permissible in
law.
5. It is well settled by catena of judgments of this Court in the
cases of Kanwar Devi vs. Bansal Roadways, 2008 ACJ 2182,
Lekh Raj vs Suram Singh, 2007 ACJ 2165, 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 judicial notice be taken of
increase in minimum wages due to inflation and rise in price
index and that the minimum wages get doubled over the period
of 10 years and the average of minimum wages and its double be
taken to compute the income of the deceased for computation of
compensation. Following the aforesaid judgments of this Court,
the income of the deceased is computed by taking the average of
minimum wages of Rs.2,579/- at the time of the accident and its
double which comes to Rs.3,868.50 [(Rs.2,579 + Rs.5,158)/2].
The income of the deceased for computation of compensation is,
therefore, reduced from Rs.4,538/- to Rs.3,868.50.
6. The learned Tribunal has applied the multiplier of 18
according to the Second Schedule of the Motor Vehicles Act.
However, in the recent judgment of the Hon'ble Supreme Court in
the case of Sarla Verma Vs. Delhi Transport Corporation
(supra), the Hon'ble Supreme Court has held the appropriate
multiplier at the age of 28 years to be 17. The multiplier is,
therefore, reduced from 18 to 17.
7. Taking the income of the deceased to be Rs.3,868.50,
deducting 1/4th towards the personal expenses of the deceased
and applying the multiplier of 17, the loss of dependency is
computed to be Rs.5,91,881/- (Rs.3,868.50 x 12 x 17 x 3/4). The
learned Tribunal has not awarded any compensation for loss of
estate. Rs.10,000/- is awarded towards loss of estate. Adding
Rs.30,000/- towards loss of love and affection and consortium,
Rs.5,000/- towards funeral expenses and Rs.10,000/- towards loss
of estate, the total compensation is computed to be Rs.6,36,881/-
( Rs.5,91,881 + Rs.10,000 + Rs.30,000 + Rs.5,000).
8. The learned Tribunal has awarded interest @7% per annum
from the date of filing of the petition till realization. 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% to
7.5% per annum.
9. The appeal is allowed and the award amount is reduced
from Rs.7,60,264/- to Rs.6,36,881/- along with interest @7.5% per
annum from the date of filing of the petition till realization.
10. The appellant has deposited a sum of Rs.5,00,000/- with the
Registrar General of this Court in terms of the order dated 22 nd
February, 2008 and the said amount has already been released
to claimants/respondents No.1 to 6. The appellant is directed to
deposit the remaining award amount along with interest without
adjusting statutory amount of Rs.25,000/- filed along with this
appeal with the learned Tribunal within 30 days. Upon such
deposit being made, the learned Tribunal is directed to release
the same to the claimants in the same manner and proportion as
in the original award.
11. Upon deposit of the remaining award amount along with
interest, the appellant shall submit the proof of deposit with the
Registry whereupon the Registry shall release the statutory
amount of Rs.25,000/- to the appellant without any further order
from this Court.
12. Copy of this order be given 'Dasti' to learned counsel for the
parties under the signature of Court Master.
J.R. MIDHA, J
SEPTEMBER 03, 2009
aj
