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Rajesh Kumar & Anr. vs United India Insurance Co.Ltd.
2010 Latest Caselaw 156 Del

Citation : 2010 Latest Caselaw 156 Del
Judgement Date : 13 January, 2010

Delhi High Court
Rajesh Kumar & Anr. vs United India Insurance Co.Ltd. on 13 January, 2010
Author: J.R. Midha
13
*IN THE HIGH COURT OF DELHI AT NEW DELHI

                    +      FAO No.206/2003

                             Date of Decision: 13th January, 2010
%

      RAJESH KUMAR & ANR.          ..... Appellants
                   Through : Mr. V.P. Choudhary, Sr. Adv.
                             with Mr. Nitinjya Choudhary
                             and Ms. Sushma, Advs.

                  versus

      UNITED INDIA INSURANCE CO.LTD.      ..... Respondent
                     Through : Mr. S.K. Ray, Adv. for R-1.


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.1,73,000/- has

been awarded to the appellants. The appellants seek

enhancement of the award amount.

2. The accident dated 2nd August, 1989 resulted in the

death of Sukhnandan. The deceased was survived by two

minor sons and a married daughter. The two minor sons

filed the claim petition before the learned Tribunal.

3. The deceased was aged 45 years at the time of the

accident and was a vegetable seller earning Rs.2,500/- per

month. However, in the absence of sufficient proof of

income, the learned Tribunal took the income of the

deceased as Rs.2,000/- per month, deducted 1/3rd towards

the personal expenses and applied the multiplier of 10 to

compute the loss of dependency at Rs.1,56,000/-. Rs.2,000/-

has been awarded towards funeral expenses and Rs.15,000/-

towards loss of estate. The total compensation awarded is

Rs.1,73,000/-.

4. The learned Senior Counsel for the appellants has

urged the following grounds at the time of hearing of this

appeal:-

(i) The multiplier be enhanced from 10 to 14.

(ii) The future prospects be taken into consideration.

(iii) The compensation be awarded for loss of love and

affection.

(iv) The rate of interest be enhanced.

5. The appropriate multiplier at the age of 45 years is 14

as per the judgment of Hon'ble Supreme Court in the case of

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

Scale 129. Following the aforesaid judgment, the multiplier

is enhanced from 10 to 14.

6. In the case of R.K. Malik vs. Kiran Pal, 2009(8)

Scale 451, the Hon'ble Supreme Court has allowed the

future prospects in the case of minor children. Following the

aforesaid judgment, 30% is added as future prospects since

the deceased was between the age of 40 to 50 years.

7. The learned Tribunal has not awarded any

compensation for loss of love and affection. Rs.10,000/- is

awarded as compensation for loss of love and affection.

8. The learned Tribunal has awarded interest @6% per

annum which is on a lower side. The appropriate rate of

interest in 1989 was 12% per annum which was reduced to

9% per annum in the year 2001 by the judgment of the

Hon'ble Supreme Court in the case of Kaushnuma Begum

vs. New India Assurance Co. Ltd., AIR 2001 SC 485 and

to 7.5% per annum in the year 2008 by 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.

9. Following the aforesaid judgments, the rate of interest

is enhanced from 6% per annum to 12% per annum from the

date of filing of the petition till 31st December, 2000, 9% per

annum from 1st January, 2001 to 31st December, 2007 and

7.5% per annum from 1st January, 2008 till realization.

10. Taking the income of the deceased to be Rs.2,000/- per

month, adding 30% towards future prospects, deducting 1/3rd

towards personal expenses and applying the multiplier of 14,

the loss of dependency is computed to be Rs.2,91,200/-.

Adding Rs.2,000/- towards funeral expenses, Rs.15,000/-

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

and affection, the total compensation is computed to be

Rs.3,18,200/- (Rs.2,91,200 + Rs.15,000 + Rs.2,000 +

Rs.10,000).

11. The appeal is allowed and the award amount is

enhanced from Rs.1,73,000/- to Rs.3,18,200/- along with

interest @12% per annum from the date of filing of the

petition till 31st December, 2000 @ 9% per annum from 1st

January, 2001 to 31st December, 2007 and thereafter @7.5%

per annum from 1st January, 2008 up to the date of payment.

12. The enhanced award amount along with interest be

deposited by respondent No.1 with UCO Bank, Delhi High

Court Branch A/c Rajesh Kumar through Mr. M.M. Tandon,

Member-Retail Team, UCO Bank Zonal, Parliament Street,

New Delhi (Mobile No. 09310356400) within 30 days.

13. Upon the enhanced award amount along with interest

being deposited, UCO Bank is directed to keep a sum of

Rs.4,00,000/- in fixed deposit in the following manner:-

(i) Fixed deposit for Rs.50,000/- in the name of

appellant No.1 for a period of six months.

(ii) Fixed deposit for Rs.50,000/- in the name of

appellant No.1 for a period of one year.

(iii) Fixed deposit for Rs.50,000/- in the name of

appellant No.1 for a period of one and a half

years.

(iv) Fixed deposit for Rs.50,000/- in the name of

appellant No.2 for a period of six months.

(v) Fixed deposit for Rs.50,000/- in the name of

appellant No.2 for a period of one year.

(vi) Fixed deposit for Rs.50,000/- in the name of

appellant No.2 for a period of one and a half

years.

(vii) Fixed deposit for Rs.50,000/- in the name of

respondent No.4 for a period of six months.

(viii) Fixed deposit for Rs.50,000/- in the name of

respondent No.4 for a period of one year.

14. The remaining amount be released to the appellants

and respondent No.4 in the equal proportion by transferring

the same to their respective Saving Bank Accounts.

15. Interest on all the fixed deposits shall be paid

cumulative.

16. The original Fixed Deposit Receipts shall be retained by

the Bank in the safe custody. However, the original Pass

Book shall be given to the appellants along with the

photocopy of the FDRs.

17. The original Fixed Deposit Receipts shall be handed

over to the appellants on the expiry of the period of the

FDRs.

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

said fixed deposit receipts without the permission of this

Court.

19. On the request of the appellants, the Bank shall

transfer the Savings Account to any other branch of UCO

Bank according to their convenience.

20. The appellants shall furnish all the relevant documents

for opening of the Saving Bank Account and Fixed Deposit

Account to Mr. M.M. Tandon, Member-Retail Team, UCO Bank

Zonal, Parliament Street, New Delhi.

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. M.M. Tandon,

Member-Retail Team, UCO Bank Zonal, Parliament Street,

New Delhi (Mobile No. 09310356400) through the UCO Bank,

High Court Branch under the signature of Court Master.

J.R. MIDHA, J

JANUARY 13, 2010 aj

 
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