The New India Assurance Co. Ltd. vs Smt. Suparo Devi And Others
2010 Latest Caselaw 578 Del

*IN THE HIGH COURT OF DELHI AT NEW DELHI

                     +    MAC.APP.No.27/2009

                              Date of Decision: 2nd February, 2010
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      THE NEW INDIA ASSURANCE CO. LTD. ..... Appellant
                    Through : Mr. Ramesh Kumar and
                              Mr. R.N. Tiwari, Advocates.

                     versus

      SMT. SUPARO DEVI AND OTHERS      ..... Respondents
                    Through : Mr. Zahir Hussain and
                              Mr. Abhishek Kumar, Advs.

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.4,16,772/-

has been awarded to the claimants/respondents No.1 to 4.

Claimants/respondents No.1 to 4 have filed the cross-

objections seeking enhancement of the award amount.

2. The accident dated 24th June, 2006 resulted in the

death of Makar Chand. The deceased was survived by his

widow and three sons, who filed the claim petition before the

learned Tribunal.

3. The deceased was aged about 52 years of age at the

time of the accident and was working as a contractor and

was earning Rs.7,000/- per month. However, in the absence

of any documentary evidence, the learned Tribunal took the

minimum wages of Rs.3,271/- and after taking judicial notice

of increase in minimum wages, took the income as

Rs.4,906.50 [(Rs.3,271 + Rs.6,542)/2]. 1/3rd was deducted

towards the personal expenses of the deceased and the

multiplier of 11 was adopted to compute the loss of

dependency at Rs.4,31,772/. The learned Tribunal has

awarded Rs. 10,000/- towards funeral expenses and Rs.

25,000/- has been awarded towards loss of love and

affection. Total compensation awarded is Rs.4,66,772/-.

4. The only ground urged by learned counsel for the

appellant at the time of hearing of this appeal is that the

owner of the offending vehicle did not have a valid permit

and therefore the appellant is not liable to pay the

compensation. The learned counsel submits that the award

should be passed against the owner of the offending vehicle.

5. The learned counsel for the claimants/respondents has

urged the following grounds at the time of hearing of this

appeal:-

(i) The deduction towards the personal expenses of

the deceased be reduced from 1/3rd to 1/4th .

(ii) The compensation be awarded for loss of

consortium.

(Iii) The compensation be awarded for loss of estate.

5. The learned counsel for the appellant submits that the

appellant issued a notice Ex.R3W1/A to the owner of the

offending vehicle to produce the permit No.SC/3000/Ex./

0069/92, but the owner failed to produce the permit. The

appellant, therefore, appointed an investigator Mr. M.S.

Bisht, to verify the permit particulars of the offending

vehicle, who submitted his report Ex.R3W1/C. As per the

verification report Ex.R3W1/C, there was a valid permit

bearing No.SC/3000/Ex./0069/92, in respect of the vehicle

but the said permit was in the name of the Dharamvir Singh

Yadav and not in the name of the insured.

6. The learned counsel submits that there is a violation of

the policy terms and conditions because the permit was not

in the name of the owner of offending vehicle. Since there

was a valid permit in respect of offending vehicle at the time

of accident, there is no violation of the terms and conditions

of the insurance policy. In any view of the matter, the

irregularity in the name of the permit holder would make out

a case of recovery rights which have been granted to the

appellant. The learned Tribunal has granted recovery rights

to the appellant to recover the award amount after making

the payment to the claimants. There is no challenge of this

finding by the claimants in this appeal and, therefore, the

finding of the learned Tribunal in this regard does not call

any interference.

7. With respect to the quantum of compensation awarded

to the claimants, it is noted that the deceased was survived

by his widow and three sons and, therefore, the appropriate

deduction towards the personal expenses of the deceased

according to the judgment of the Hon'ble Supreme Court in

the case of Sarla Verma Vs. Delhi Transport

Corporation, 2009 (6) Scale 129 is 1/4th. Following the

aforesaid judgment of the Hon'ble Supreme Court, the

personal expenses are reduced from 1/3rd to 1/4th.

8. The learned Tribunal has not awarded any

compensation towards loss of consortium and loss of estate.

However, compensation of Rs.25,000/- towards loss of love

and affection is on higher side and it shall be treated to

include compensation towards loss of consortium and loss of

estate and no further amount is awarded under these two

heads. The claimants are entitled to total compensation of

Rs.5,20,743/- [(4906.50 x 3/4 x 12 x 11) + 10,000 + 25,000].

9. For the aforesaid reasons, the appeal is dismissed and

the cross-objections are allowed. The compensation of

Rs.4,66,772/- is enhanced to Rs.5,20,743/- along with

interest @7.5% per annum from the date of filing of the claim

petition. Enhanced award amount be deposited by the

appellant with UCO Bank, Delhi High Court Branch, A/c

Suparo Devi through Mr. M.M. Tandon, Member-Retail Team,

UCO Bank Zonal, Parliament Street, New Delhi (Mobile No.

09310356400) within 45 days.

10. The order with respect to the disbursement of the

award amount shall be passed after examining the

appellants who are directed to remain present in Court on

the next date of hearing.

11. List on 26th April, 2010.

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

both the parties under signature of Court Master.

J.R. MIDHA, J FEBRUARY 02, 2010 HL