The New India Assurance Co.Ltd. vs Shimla Devi & Ors.
2010 Latest Caselaw 1602 Del

32
*IN THE HIGH COURT OF DELHI AT NEW DELHI

                      +   MAC.APP.No.344/2008

                                 Date of Decision : 22nd March, 2010
%

      THE NEW INDIA ASSURANCE CO.LTD. ..... Appellant
                    Through : Mr. Pankaj Seth, Adv.

                      versus

      SHIMLA DEVI & ORS.                  ..... Respondents
                     Through : Mr. Y.R. Sharma, Adv.
                               for R-1 and 2.


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.4,58,200/- has been

awarded to claimants/respondents No.1 and 2.

2. The accident dated 5th December, 1998 resulted in the

death of Krishan Pal. The deceased was survived by his

widow, one son and father who filed the claim petition before

the learned Tribunal.

3. The deceased was aged 28 years at the time of the

accident and was a band master earning Rs.6,500/- per

month. However, in the absence of sufficient proof of

income, the Claims Tribunal took the minimum wages of

Rs.1,937/- per month and the increase in minimum wages

due to inflation and rise in price index into consideration,

deducted 1/3rd towards his personal expenses and applied

the multiplier of 18 to compute the loss of dependency at

Rs.4,18,200/-. Rs.25,000/- has been awarded towards loss of

consortium and Rs.15,000/- towards funeral expenses. The

total compensation awarded is Rs.4,58,200/-.

4. The only ground urged by learned counsel for the

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

appellant was impleaded on 11th October, 2006 and,

therefore, the appellant is liable to pay the interest from the

said date. The learned counsel for claimants/respondents

No.1 and 2 submit that the application to implead the

appellant was filed before the Claims Tribunal on 1 st

February, 2005 and the Insurance Company entered

appearance on 20th April, 2006. The learned counsel further

submits that the amendment related back to the filing of the

claim petition and the interest has rightly been awarded by

the Claims Tribunal.

5. The perusal of the award reveals that the deceased was

working as band master earning Rs.6,500/- per month which

was proved by the salary certificate dated 15 th February,

2005 but the Claims Tribunal disregarded the said evidence

on the technical ground that the certificate does not bear the

stamp of Azad Band and the registration number has not

been mentioned thereon. The Claims Tribunal has also not

awarded any compensation for loss of love and affection and

loss of estate. The Claims Tribunal has also awarded lower

rate of interest @7% per annum against interest 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.

6. Respondents No.1 and 2 are present in Court.

Respondent No.1 is the widow of the deceased staying in the

District Muzaffarnagar, U.P. Respondent No.1 has lost one

eye and has no source of livelihood. Respondent No.2 is

aged 14 years. In the facts and circumstances of this case

and considering that the Claims Tribunal has awarded lower

amount of compensation, no interference is warranted in the

facts and circumstances of this case. However, the question

raised by the learned counsel for the appellant is left open to

be examined in an appropriate case.

7. The appellant has deposited a sum of Rs.6,53,894/-

with the Registrar General of this Court on 1st August, 2008

in terms of the order dated 7th July, 2008. Out of the said

amount, a sum of Rs.1,02,250/- has been released to

respondent No.1. Out of the remaining amount, FDR for

Rs.1,02,050/- has been kept in fixed deposit in the name of

respondent No.1 for a period of five years and Rs.2,04,100/-

has been kept in fixed deposit in the name of respondent

No.2 till he attains majority. The balance amount of

Rs.2,45,694/- has been kept in fixed deposit in the name of

Registrar General of this Court. The Registrar General is

directed to transfer/remit the said FDR to UCO Bank with

instructions to disburse the amount in terms of this

judgment.

8. It is further noted that the appellant has deducted TDS

of Rs.14,106/- from the award amount. It is well settled by

the order of this Court dated 26th March, 2009 passed in

MAC.APP.No.596/2008 that no TDS amount is to be deducted

while depositing the amount under the interim order of this

Court. In that view of the matter, the TDS of Rs.14,106/- be

deducted from the statutory amount of Rs.25,000/- deposited

by the appellant and be also transferred to UCO Bank A/c

Shimla Devi, Delhi High Court Branch through Mr. M.M.

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

Street, New Delhi (Mobile No. 09310356400). The remaining

amount of Rs.10,894/- (Rs.25,000 - Rs.14,106) be refunded

back to the appellant through counsel within a period of four

weeks.

9. Upon the aforesaid amount being deposited, the UCO

Bank is directed to release 10% of the same to respondent

No.1 by transferring the same to her Saving Bank Account.

The remaining amount be kept in fixed deposit in the name

of respondent No.1 in the following manner:-

(i) Fixed deposit in respect of 10% of the award

amount for a period of six months.

(ii) Fixed deposit in respect of 10% of the award

amount for a period of one year.

(iii) Fixed deposit in respect of 10% of the award

amount for a period of one and a half years.

(iv) Fixed deposit in respect of 10% of the award

amount for a period of two years.

(v) Fixed deposit in respect of 10% of the award

amount for a period of two and a half years.

(vi) Fixed deposit in respect of 10% of the award

amount for a period of three years.

(vii) Fixed deposit in respect of 10% of the award

amount for a period of three and a half years.

(viii) Fixed deposit in respect of 10% of the award

amount for a period of four years.

(ix) Fixed deposit in respect of 10% of the award

amount for a period of four and a half years.

10. With respect to two fixed deposit receipts in the name

of respondents No.1 and 2, respondents No.1 and 2 are

directed to deposit the said fixed deposit receipts with UCO

Bank and UCO Bank is directed to transfer/remit the amount

upon maturity in the Saving Bank Account of respondents

No.1 and 2 without bothering the claimants to come to Delhi

for discharging the FDRs.

11. The interest on the aforesaid fixed deposits shall be

paid monthly by automatic credit of interest in the Savings

Account of respondent No.1.

12. Withdrawal from the aforesaid account 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.

13. No cheque book be issued to respondent No.1 without

the permission of this Court.

14. The Bank shall issue Fixed Deposit Pass Book instead of

the FDRs to respondent No.1 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. Respondent No.1 is a permanent resident of District

Muzaffarnagar, U.P. Respondent No.1 shall open her account

with State Bank of India and give account number to UCO

Bank whereupon the UCO Bank shall transfer/remit the

monthly interest to respondent No.1. The maturity amount

of the FDR should also be automatically transfer/remit to the

Saving Bank Account of respondent No.1 without bothering

her to visit Delhi for discharge of the FDR.

18. The respondents 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 (Mobile No.

09310356400).

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. 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 22, 2010 mk