Delhi High Court
Royal Sundaram Alliance ... vs Santosh & Ors. on 17 March, 2010
Author: J.R. Midha
25
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.915/2006
Date of Decision: 17th March, 2010
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ROYAL SUNDARAM ALLIANCE INSURANCE ..... Appellant
Through : Ms. Sakshi Mittal, Adv.
versus
SANTOSH & ORS. ..... Respondents
Through : Mr. Sushil Kumar, Adv.
for R-1 to 6.
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.7,28,461/- has been
awarded to claimants/respondents No.1 to 6. The appellant
is seeking reduction of the award amount.
2. The accident dated 15th January, 2005 resulted in the
death of Manoj Kumar. The deceased was survived by his
widow, two minor sons, parents and unmarried sister 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 vegetable vendor. The
Claims Tribunal took minimum wages of Rs.2,894.90 per
month, added 50% towards increase in minimum wages due
to inflation and rise in price index, deducted 1/4 th towards
personal expenses and applied the multiplier of 18 to
compute the loss of dependency at Rs.7,03,461/-. Rs.5,000/-
has been awarded towards funeral expenses and Rs.20,000/-
towards loss of love and affection. The total compensation
awarded is Rs.7,28,461/-.
4. The learned counsel for the appellant has urged the
following grounds at the time of hearing of this appeal:-
(i) The multiplier be reduced from 18 to 16.
(ii) The personal expenses be increased from 1/4th to
1/3rd.
(iii) The increase in minimum wages due to inflation
and rise in price index be set aside.
5. The learned counsel for claimants/respondents No.1
to 6 has made following submissions at the time of hearing
of this appeal:-
(i) The Claims Tribunal has not awarded any
compensation towards loss of consortium.
(ii) The Claims Tribunal has also not awarded any
compensation for loss of estate.
(iii) The Claims Tribunal has awarded interest @6%
per annum against the interest rate of 7.5% per
annum payable according to 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.
(iv) This case relates to the accident dated 15th
January, 2005 and the claimants have not
received the award amount except the interim
award amount of Rs.50,000/-.
6. The deceased was aged 32 years at the time of the
accident and has left behind six legal representatives. 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, the appropriate multiplier is 16 and the
appropriate deduction towards personal expenses is 1/4 th.
The Claims Tribunal has applied the multiplier of 18 and has
deducted 1/4th towards personal expenses of the deceased.
The Claims Tribunal has added 50% towards increase in
minimum wages due to inflation and rise in price index which
is in accordance with the principles laid down by this Court in
the cases of Kanwar Devi vs. Bansal Roadways, 2008
ACJ 2182, National Insurance Company Limited vs.
Renu Devi III (2008) ACC 134 and UPSRTC vs. Munni
Devi, MAC.APP.No.310/2007 decided on 28.07.2008. The
increase in minimum wages due to inflation and rise in price
index and deduction of 1/4th towards personal expenses is in
accordance with the well settled principles of law mentioned
above. The only point for consideration is the reduction of
multiplier from 18 to 16 in terms of the judgment of the
Hon'ble Supreme Court in the case of Sarla Verma (supra).
However, considering that the Claims Tribunal has not
awarded any compensation to the claimants towards loss of
consortium, loss of estate and has awarded lower interest
rate of 6% per annum and the claimants are without any
compensation despite a lapse of more than five years from
the date of accident, the award of the Claims Tribunal does
not warrant any interference in the peculiar facts and
circumstances of this case.
7. The appeal is dismissed.
8. The appellant has handed over cheque bearing
No.656894 dated 11th March, 2010 for Rs.8,52,021/- to
learned counsel for claimants/respondents No.1 to 6 towards
entire award amount along with up to date interest after
deducting the interim award amount of Rs.50,000/-. The
learned counsel has also handed over cheque bearing
No.660498 dated 11th March, 2010 for Rs.5,000/- drawn in
the name of respondent No.1 towards cost imposed by this
Court on 11th February, 2010. Let the said cheques be
deposited with State Bank of India, Tis Hazari Branch through
Mr. H.S. Rawat, Relationship Manager, Tis Hazari Branch, Tis
Hazari (Mb: 09717044322) today itself and the proof of
deposit be placed on record.
9. Upon the aforesaid deposit being made, the State Bank
of India is directed to release 10% of the amount to
respondent No.1 by transferring the said amount to her
Saving Bank Account.
10. The remaining amount be kept in fixed deposit in the
following manner:-
(i) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.1 for a
period of one year.
(ii) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.4 for a
period of two years.
(iii) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.1 for a
period of three years.
(iv) Fixed deposit in respect of 5% of the award
amount in the name of respondent No.6 for a
period of four years.
(v) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.5 for a
period of five years.
(vi) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.1 for a
period of six years.
(vii) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.1 for a
period of seven years.
(viii) Fixed deposit in respect of 5% of the award
amount in the name of respondent No.1 for a
period of eight years.
(ix) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.2 till he
attains the age of 20 years.
(x) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.3 till he
attains the age of 20 years.
11. The interest on the aforesaid fixed deposits of
respondents No.1, 2 and 3 shall be paid monthly by
automatic credit of interest in the Savings Account of
respondents No.1 at Bahadurgarh. The interest on the
aforesaid fixed deposits of respondents No.4, 5 and 6 shall
be paid monthly by automatic credit of interest in the
Savings Account of respondents No.4 at Bahadurgarh.
Respondents No.1 and 4 shall intimate their Saving Bank
Account number and name and address of the bank to UCO
Bank.
12. Withdrawal from the Saving Bank Account shall be
permitted to respondents No.1 and 4 after due verification
and the Bank shall issue photo Identity Card to respondents
No.1 and 4 to facilitate identity.
13. No cheque book be issued to respondents No.1 and 4
without the permission of this Court.
14. The Bank shall issue Fixed Deposit Pass Book instead of
the FDRs to respondents No.1 and 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.
15. No loan, advance or withdrawal shall be allowed on the
said fixed deposit receipts without the permission of this
Court.
16 . Half yearly statement of account be filed by the Bank in
this Court.
17. On the request of respondents No.1 and 4, the Bank
shall transfer the Savings Account to any other branch
according to the convenience of respondents No.1 and 4.
18. Respondents No.1 to 6 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).
19. Copy of the order be given dasti to counsel for both the
parties under signatures of the Court Master.
20. Copy of this order be also sent to Mr. H.S. Rawat,
Relationship Manager, Tis Hazari Branch, Tis Hazari (Mb:
09717044322) through the State Bank of India, Tis Hazari
Branch under the signature of Court Master.
J.R. MIDHA, J
MARCH 17, 2010
aj
