National Insurance Co. Ltd vs Sanju Bala & Ors.
2010 Latest Caselaw 2066 Del

*IN THE HIGH COURT OF DELHI AT NEW DELHI

                     +   MAC.APP.No.42/2008

                                  Date of Decision: 20th April, 2010
%

      NATIONAL INSURANCE CO. LTD             ..... Appellant
               Through : Mr. Pankaj Seth and
                         Mr. M.K. Tiwari, Advs.

                         versus

      SANJU BALA & ORS.                   ..... Respondents
               Through : Mr. Arun Srivastava, Adv.
                         for R-1 to 4 along with R-1 to 4.

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.22,76,000/- has been

awarded to claimants/respondents No.1 to 4.

2. The accident dated 9th April, 2006 resulted in the death

of Tilak Raj Sharma. The deceased was survived by his

widow, two minor sons and mother who filed the claim

petition before the learned Tribunal.

3. The deceased was aged 38 years at the time of the

accident and was working as a driver with Himachal

Roadways drawing a salary of Rs.9,329/- per month. The

learned Tribunal took the future prospects into consideration

by taking the average of Rs.9,329/- and Rs.28,000/-, 1/3rd

was deducted towards his personal expenses and the

multiplier of 15 was applied to compute the loss of

dependency at Rs.22,41,000/-. Rs.25,000/- has been

awarded for loss of love and affection, loss of consortium and

Rs.10,000/- has been awarded for funeral expenses. The

total compensation awarded is Rs.22,76,000/-

4. The learned counsel for the appellant has urged at the

time of hearing of this appeal that the future prospects be

taken into consideration by adding 50% of the salary of the

deceased in terms of the judgment of the Hon'ble Supreme

Court in the case of Sarla Verma Vs. Delhi Transport

Corporation, 2009 (6) Scale 129.

5. The learned counsel for claimants/respondents No.1 to

4, in reply, submit that personal expenses of the deceased

be reduced from 1/3rd to 1/4th and the compensation be

awarded for loss of estate in terms of the judgment of the

Hon'ble Supreme Court in the case of Sarla Verma (Supra).

Following the aforesaid judgment, the finding of the Claims

Tribunal with respect to the future prospects of the deceased

is set aside and the 50% of the salary is added towards the

future prospects and the personal expenses of the deceased

are reduced from 1/3rd to 1/4th and Rs.10,000/- is awarded

towards loss of estate.

6. Taking the income of the deceased as Rs.9,329/- per

month, adding 50% towards the future prospects, deducting

1/4th towards the personal expenses, applying the multiplier

of 15, adding Rs.25,000/- towards loss of love and affection

and loss of consortium, Rs.10,000/- towards funeral expenses

and Rs.10,000/- towards loss of estate, the total

compensation computed to be Rs.19,34,122/- [(Rs.9,329 +

50% of Rs.9,329) x 3/4 x 12 x 15 + Rs.25,000 + Rs.10,000 +

Rs.10,000].

7. The appeal is allowed and the award amount is reduced

from Rs.22,76,000/- to Rs.19,34,122/- along with interest @

7.5% per annum from the date of filing of the petition till

realization.

8. The appellant deposited 75% of the award amount with

the Registrar General of this Court in terms of the order

dated 31st January, 2008. The said amount was remitted by

the Registrar General of this Court along with the statutory

amount of Rs.25,000/- to the Claims Tribunal in terms of the

order dated 6th April, 2009. The 25% of the award amount

along with interest thereon was deposited by the appellant

with the Claims Tribunal in terms of the order dated 6th April,

2009. As such, the entire award amount awarded by the

Claims Tribunal has been deposited/remitted to the Claims

Tribunal and, therefore, in view of this appeal being allowed,

the appellant is entitled to refund of Rs3,41,878/-

(Rs.22,76,000 - Rs.19,34,122) along with interest thereon as

deposited by the appellant.

9. The Claims Tribunal has released part of the award

amount to the claimants in terms of its award amount. The

remaining amount is lying in fixed deposit and the original

fixed deposit receipts are retained by the Claims Tribunal in

terms of the order dated 6th April, 2009.

10. The Claims Tribunal is directed to refund a sum of

Rs.3,41,878/- along with such interest thereon as paid by the

appellant. The appellant would be entitled only to such

amount of interest as per the interest component in the

amount deposited by the appellant.

11. This refund should be made by discharging all the fixed

deposit receipts held by the Claims Tribunal by means of a

cheque to be prepared on the instructions of the Claims

Tribunal by the State Bank of India, Tis Hazari Court Branch.

12. After refund of the amount to the appellant, the Claims

Tribunal is directed to release 10% of the amount to

respondent No.1 by transferring the said amount to her

Saving Bank Account. The balance 90% amount be kept in

fresh fixed deposits in the following manner:-

(i) Fixed deposit in respect of 10% of the amount in

the name of respondent No.1 for a period of one

year.

(ii) Fixed deposit in respect of 10% of the amount in

the name of respondent No.4 for a period of two

years.

(iii) Fixed deposit in respect of 10% of the amount in

the name of respondent No.1 for a period of three

years.

(iv) Fixed deposit in respect of 10% of the amount in

the name of respondent No.4 for a period of four

years.

(v) Fixed deposit in respect of 10% of the amount in

the name of respondent No.1 for a period of five

years.

(vi) Fixed deposit in respect of 10% of the amount in

the name of respondent No.2 for a period of six

years.

(vii) Fixed deposit in respect of 10% of the amount in

the name of respondent No.3 for a period of seven

years.

(viii) Fixed deposit in respect of 10% of the amount in

the name of respondent No.2 for a period of eight

years.

(ix) Fixed deposit in respect of 10% of the amount in

the name of respondent No.3 for a period of nine

years.

13. The interest on the aforesaid fixed deposits shall be

paid monthly by automatic credit of interest in the Savings

Account of respondent No.1 with State Bank of India, Hamir

Pur Branch.

14. Withdrawal from the aforesaid account shall be

permitted to respondent No.1 after due verification and the

Bank shall issue photo Identity Card to respondent No.1 to

facilitate identity.

15. No cheque book be issued to respondent No.1 without

the permission of this Court.

16. The Bank shall issue Fixed Deposit Pass Book instead of

the FDRs to the respondents and the maturity amount of the

FDRs be automatically credited to the Saving Bank Account

of the beneficiary at the end of the FDRs.

17. No loan, advance or withdrawal shall be allowed on the

said fixed deposit receipts without the permission of this

Court.

18. Half yearly statement of account be filed by the Bank in

this Court.

19. On the request of respondent No.1, the Bank shall

transfer the Savings Account to any other branch according

to the convenience of respondent No.1.

20. The respondent Nos.1 to 4 shall furnish all the relevant

documents for opening of the Saving Bank Account and Fixed

Deposit Account to Mr. H.S. Rawat, Relationship Manager, Tis

Hazari Branch, Tis Hazari (Mb: 09717044322).

21. Copy of the order be given dasti to counsel for both the

parties under the signatures of the Court Master.

22. Copy of this order be also sent to Mr. H.S. Rawat,

Relationship Manager, Tis Hazari Branch, Tis Hazari (Mb:

09717044322) under the signature of Court Master.

J.R. MIDHA, J APRIL 20, 2010 mk