Delhi High Court
Oriental Insurance Co.Ltd. vs Sumitra & Others on 9 March, 2010
Author: J.R. Midha
27
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.235/2004
Date of Decision: 9th March, 2010
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ORIENTAL INSURANCE CO.LTD. ..... Appellant
Through : Mr. Ram N. Sharma, Adv.
versus
SUMITRA & OTHERS ..... Respondents
Through : Mr. Anshuman Bal, Adv.
for 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.5,65,000/- has been
awarded to claimants/respondents No.1 to 4.
2. The accident dated 26th May, 1995 resulted in the
death of Ram Karan. The deceased was survived by his
widow, two minor children and parents who filed the claim
petition before the learned Tribunal.
3. The deceased was aged 27 years at the time of the
accident and was working as a helper. However, in the
absence of any documentary proof, the learned Tribunal took
the income of the deceased as Rs.2,500/-, added 50%
towards the future prospects, deducted 1/4th towards the
personal expenses and applied the multiplier of 17 to
compute the loss of dependency at Rs.5,40,000/-.
Rs.20,000/- has been awarded towards loss of love and
affection and Rs.5,000/- towards funeral expenses. The total
compensation awarded is Rs.5,65,000/-.
4. The only ground urged by the learned counsel for the
appellant at the time of hearing of this appeal is that the
income of the deceased be taken to be equivalent to
minimum wages of Rs.1,459/- per month instead of
Rs.2,500/- per month.
5. The learned counsel for the claimants in reply submit
that the appellant does not have any permission under
Section 170 of the Motor Vehicles Act. It is also submitted
that the Claims Tribunal has not awarded any compensation
for loss of consortium and loss of estate. The learned
counsel further submits that the interest awarded by the
Claims Tribunal is on a lower side as the appropriate rate of
interest at the time of passing of the award was 9% per
annum.
6. The minimum wages at the time of the accident were
Rs.1,495/- per month and in the absence of any documentary
proof of income, the learned Tribunal ought to have taken
the minimum wages of Rs.1,495/- per month. Taking the
income of the deceased to be Rs.1,495/- per month, adding
50% towards the increase in minimum wages due to inflation
and rise and price index, the income for computation of
compensation is taken to be Rs.2,242.50 per month
[(Rs.1,495 + Rs.2,990)/2]. 1/4th is deducted towards the
personal expenses of the deceased and the multiplier of 17 is
applied to compute the loss of dependency at Rs.3,43,102.50
(Rs.2,242.50 x 3/4 x 12 x 17). Rs.10,000/- is awarded for loss
of consortium and Rs.10,000/- for loss of estate. The
claimants are entitled to total compensation of
Rs.3,88,102.50 (Rs.3,43,102.50 + Rs.20,000 + Rs.5,000 +
Rs.10,000 + Rs.10,000). The rate of interest is enhanced
from 6% per annum to 9% per annum.
7. The appeal is partially allowed and the award amount is
reduced from Rs.5,65,000/- to Rs.3,88,102.50 along with
interest @ 9% per annum from the date of filing of the claim
petition, i.e. 16th December, 1995 up to the notice of deposit
under Order XXI Rule 1 of the Code of Civil Procedure.
8. The learned counsel for the appellant submits that the
award amount was deposited with the Claims Tribunal in
terms of the award and 50% of the same has been paid to
the claimants. The learned counsel further submits that the
claimants have also received the interim award amount.
9. The learned counsel for the claimants submit that 50%
award amount along with interest was attached through
execution proceedings but the same was not disbursed by
the Claims Tribunal in view of the ex-parte stay order dated
31st May, 2004 and the claimants have not received any
amount. It is submitted that the claimants have not even
received the interim award.
10. In the facts and circumstances of this case, the
appellant is directed to deposit the entire award amount
along with up to date interest with UCO Bank A/c Sumitra
within 30 days. The appellant shall be entitled to adjust the
interim award amount only if the same has been received by
the claimants. The expired cheques, if any, lying with the
Claims Tribunal be returned back to the appellant within two
weeks.
11. Upon the aforesaid deposit being made, the UCO Bank
is directed to release 10% of the same to
claimants/respondents No.1 to 4 in equal shares by
transferring the said amount to their respective Saving Bank
Account. The remaining amount be kept in fixed deposit in
the following manner:-
(i) Fixed deposit of 10% of the amount in the name
of respondent No.4 for a period of six months.
(ii) Fixed deposit of 10% of the amount in the name
of respondent No.2 for a period of one year.
(iii) Fixed deposit of 10% of the amount in the name
of respondent No.3 for a period of one and a half
years.
(iv) Fixed deposit of 10% of the amount in the name
of respondent No.1 for a period of two years.
(v) Fixed deposit of 10% of the amount in the name
of respondent No.4 for a period of two and a half
years.
(vi) Fixed deposit of 10% of the amount in the name
of respondent No.2 for a period of three years.
(vii) Fixed deposit of 10% of the amount in the name
of respondent No.3 for a period of three and a half
years.
(viii) Fixed deposit of 10% of the amount in the name
of respondent No.1 for a period of four years.
(ix) Fixed deposit of 10% of the amount in the name
of respondent No.1 for a period of four and a half
years.
12. The interest on the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the respective
Savings Account of respondents No.1 to 4.
13. Withdrawal from the aforesaid account shall be
permitted to respondents No.1 to 4 after due verification and
the Bank shall issue photo Identity Card to respondents No.1
to 4 to facilitate identity.
14. No cheque book be issued to respondents No.1 to 4
without the permission of this Court.
15. The Bank shall issue Fixed Deposit Pass Book instead of
the FDRs to respondents No.1 to 4 and the maturity amount
of the FDRs be automatically credited to the Saving Bank
Account of the beneficiary at the end of the FDR.
16. No loan, advance or withdrawal shall be allowed on the
said fixed deposit receipts without the permission of this
Court.
17. Half yearly statement of account be filed by the Bank in
this Court.
18. On the request of respondents No.1 to 4, the Bank shall
transfer the Savings Account to any other branch according
to the convenience of respondents No.1 to 4.
19. Respondents No.1 to 4 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.
20. List for reporting compliance on 7th May, 2010.
21. Copy of this order be sent to the Claims Tribunal for
immediate release of expired cheques, if any, lying deposited
with it to the appellant within a period of two weeks.
22. Copy of the order be given dasti to counsel for both the
parties under the signatures of the Court Master.
23. 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
MARCH 09, 2010
mk
