Delhi High Court
National Insurance Co. Ltd vs Shakuntala & Ors on 11 January, 2010
Author: J.R. Midha
26
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.475/2008
Date of Decision: 11th January, 2010
%
NATIONAL INSURANCE CO. LTD ..... Appellant
Through : Mr. Amit Kumar Pandey, Adv.
versus
SHAKUNTALA & ORS ..... Respondents
Through : Mr. Piyush Prabhakar, Adv.
for R-1 to 5.
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.9,50,000/- has been
awarded to claimants/respondents No.1 to 5. The appellants
seek reduction of the award amount.
2. The accident dated 6th October, 2001 resulted in the
death of Uma Shankar. The deceased was survived by his
widow, one son and three daughters who filed the claim
petition before the learned Tribunal.
3. The deceased was aged 32 years at the time of the
accident and was working as a driver with M/s Bansal
Building Material Suppliers earning Rs.4,500/- per month.
The learned Tribunal added 50% towards future prospects,
deducted 1/3rd towards the personal expenses of the
deceased and applied the multiplier of 17 to compute the
loss of dependency at Rs.9,18,000/-. Rs.32,000/- has been
awarded towards loss of love and affection, consortium and
funeral expenses. The total compensation awarded is
Rs.9,50,000/-.
4. The only ground urged by learned counsel for the
appellant at the time of hearing of this appeal is that the
income of the deceased has not been sufficiently proved and,
therefore, the minimum wages should be taken into
consideration for computing the compensation.
5. The widow of the deceased appeared in the witness box
as PW-1 and deposed that her husband was working with M/s
Bansal Building Material Suppliers earning Rs.4,500/- per
month besides other benefits and facilities. The colleague of
the deceased appeared in the witness box as PW-3 and
deposed that the deceased was working with M/s Bansal
Building Material Suppliers drawing a salary of Rs.4,500/- per
month besides benefits/facilities such as overtime. The
employer of the deceased also appeared in the witness box
as PW-4 and deposed that he was paying Rs.4,500/- per
month as salary to the deceased apart from overtime of
Rs.800/- to Rs.1,000/- per month.
6. The learned counsel for the appellant submits that PW-
4, in cross-examination, admitted that he was not
maintaining any accounts or register and further that the
deceased was a daily wager and wages were paid in cash.
The learned counsel for the appellant submits that the
admission of PW-4 that the deceased was a daily wager
means that the deceased was being paid the salary
according to the Minimum Wages Act. The interpretation of
the statement of PW-4 by learned counsel for the appellant is
not correct. PW-4 has clearly stated in his testimony that he
was paying Rs.4,500/- per month as salary to the deceased.
Even if the salary was calculated according to the daily
wages, it can be more than the minimum wages fixed under
the Act and no question was put to the witness by the
appellant that the wages of the deceased were less than
Rs.4,500/- per month. From the statement of PW-1, PW-3
and PW-4, it has been sufficiently proved that the deceased
was earning Rs.4,500/- per month. It may also be noted that
the proceedings under Sections 168 and 169 of the Motor
Vehicles Act are in the nature of summary inquiry and the
proof on record is sufficient to prove the income of the
deceased.
7. The learned counsel for the appellant further submits
that the multiplier be reduced from 17 to 16 in view of the
judgment of the Hon'ble Supreme Court in the case of Sarla
Verma Vs. Delhi Transport Corporation, 2009 (6) Scale
129. In the case Sarla Verma (supra), the Hon'ble
Supreme Court has laid down the following principles for
computation of compensation:-
I. MULTIPLIER
Age of the deceased Multiplier
(in years)
II. DEDUCTION FOR PERSONAL AND LIVING EXPENSES
Deceased - unmarried
(i) Deduction towards personal : 1/2 (50%)
expenses.
(ii) Deduction where the family of the : 1/3rd (33.33%)
bachelor is large and dependent on
the income of the deceased.
Deceased - married
(i) 2 to 3 dependent family : 1/3rd
members.
(ii) 4 to 6 dependent family : 1/4th
members.
(iii) More than 6 family : 1/5th
members
(iv) Subject to the evidence to : Father, brother and sisters will
the contrary. not be considered as
dependents.
III. FUTURE PROSPECTS
(i) Permanent job : Actual salary - tax +
below 40 years of age 50% towards future prospects.
(ii) Permanent job : Actual salary - tax +30% towards
between 40 - 50 years future prospects.
(ii) More than 50 years with: Actual salary only.
permanent job. No addition for future prospects.
(iv) Deceased employed at a : Only actual income to be taken.
fixed salary (without No addition.
provision for annual
increments)
(v) Departure from this Rule : Only in rare and exceptional
cases involving special circumstances.
IV. NON-PECUNIARY DAMAGES
(i) Compensation for loss of : Rs.5,000/- to Rs.10,000/-
estate
(ii) Compensation for loss of : Rs.5,000/- to Rs.10,000/-
consortium
(iii) Compensation for pain and : Nil
sufferings and hardship
(iv) Funeral expenses, cost of : Actual
transportation of body and
medical expenses"
8. Following the aforesaid judgment, the deduction is
liable to be reduced from 1/3rd to 1/4th and multiplier is liable
to be reduced from 17 to 16. The loss of dependency is
liable to be enhanced from Rs.9,18,000/- to Rs.9,72,000/-
[(Rs.4,500 + 50% of Rs.4,500) x ¾ x 12 x 16). However,
since there are no cross-objections by the claimants, the
enhancement is not warranted in this matter.
9. For all the aforesaid reasons, the appeal is dismissed.
10. The appellant has deposited the entire award amount
along with interest with the Registrar General of this Court in
terms of the order dated 5th February, 2009. The Registrar
General is directed to remit/transfer the entire award amount
along with interest to UCO Bank, Delhi High Court Branch A/c
Shakuntala within three weeks.
11. Upon the receipt of the aforesaid award amount by
UCO Bank, UCO Bank is directed to keep as sum of
Rs.12,00,000/- in fixed deposit in the following manner:-
(i) Fixed deposit of Rs.2,00,000/- in the name of
respondent No.3 till she attains the age of 20
years.
(ii) Fixed deposit of Rs.2,00,000/- in the name of
respondent No.4 till she attains the age of 20
years.
(iii) Fixed deposit of Rs.2,00,000/- in the name of
respondent No.5 till she attains the age of 20
years.
(iv) Fixed deposit of Rs.50,000/- in the name of
respondent No.2 for a period of one year.
(v) Fixed deposit of Rs.50,000/- in the name of
respondent No.2 for a period of 1- ½ years.
(vi) Fixed deposit of Rs.50,000/- in the name of
respondent No.2 for a period of two years.
(vii) Fixed deposit of Rs.50,000/- in the name of
respondent No.2 for a period of 2- ½ years.
(viii) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of three years.
(ix) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of 3- ½ years.
(x) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of four years.
(xi) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of 4- ½ years.
(xii) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of five years.
(xiii) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of 5- ½ years.
(xiv) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of six years.
(xv) Fixed deposit of Rs.50,000/- in the name of
respondent No.1 for a period of 6- ½ years.
12. The remaining amount be released equally to
respondents No.1 and 2 by transferring the same in their
respective Saving Bank Accounts.
13. The interest on all the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the Savings
Account of respondent No.1.
14. Withdrawal from the aforesaid accounts 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 original Fixed Deposit Receipts shall be retained by
the Bank in the safe custody. However, the original Pass
Book shall be given to respondents No.1 to 5 along with the
photocopy of the FDRs.
17. The original Fixed Deposit Receipts shall be handed
over to respondents No.1 to 5 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. Half yearly statement of account be filed by the Bank in
this Court.
20. On the request of respondents No.1 to 5, the Bank shall
transfer the Savings Account to any other branch of UCO
Bank according to the convenience of respondents No.1 to 5.
21. Respondents No.1 to 5 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.
22. The statutory amount of Rs.25,000/- be refunded back
to the appellant through counsel within four weeks.
23. Copy of the order be given dasti to counsel for both the
parties under the signatures of the Court Master.
24. 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 11, 2010/aj
