Delhi High Court
Oriental Insurance Co. Ltd. vs Samla Devi & Ors. on 23 March, 2010
Author: J.R. Midha
36
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.48/2005
Date of Decision : 23rd March, 2010
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ORIENTAL INSURANCE CO. LTD. ..... Appellant
Through : Ms. Manjusha Wadhwa, Adv.
versus
SAMLA DEVI & ORS. ..... Respondents
Through : Mr. O.P. Mannie, 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 appellants have challenged the award of the
learned Tribunal whereby compensation of Rs.4,38,000/- has
been awarded to the claimants/respondents No. 1 to 5.
2. The accident dated 14th June, 1993 resulted in the
death of Raja Ram. The deceased was survived by his widow,
three sons 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 selling milk. The learned Tribunal took the
income of the deceased as 3,000/-, deducted 1/3rd towards
the personal expenses of the deceased and applied the
multiplier of 17 to compute the loss of dependency at
Rs.4,08,000/-. The learned Tribunal has awarded Rs.30,000/-
towards loss of consortium, funeral expenses and mental
pain and agony. The learned Tribunal has awarded total
compensation of Rs.4,38,000/- to the claimants.
4. The only ground urged by the learned counsel for the
appellant at the time of hearing of this appeal is that the
appellant received the notice of the claim petition from the
Claims Tribunal on 30th May, 2002 and therefore the
appellant is liable to pay the interest from 30th May, 2002 up
to the date of deposit of the award amount whereas the
Claims Tribunal has awarded the interest from the date of
filing of the claim petition i.e. 12th July, 1993.
5. The deceased was survived by five legal
representatives and, therefore, the appropriate deduction
towards the personal expenses is 1/4th whereas the Claims
Tribunal has taken the deduction towards personal expenses
as 1/3rd. If the deduction towards personal expenses is taken
as 1/4th, the loss of dependency would be computed as
Rs.4,59,000/- (Rs.3,000 x 3/4 x 17 x 12). The Claims Tribunal
has also not awarded any compensation for loss of love and
affection and loss of estate. Taking the compensation of
Rs.10,000/- towards loss of love and affection and
Rs.10,000/- towards loss of estate, the award warrants
enhancement by Rs.71,000/-. That apart the appellant has
not been able to show what steps have been taken by them
after receipt of summons from the Claims Tribunal to
compute the compensation payable to claimants in
accordance with law. It is well settled that the compensation
becomes due and payable from the time of accident but the
interest is imposed from the date of filing of the claim
petition. In that view of the matter, no interference of the
award is called for.
6. In the facts and circumstances of this case, the appeal
is dismissed.
7. It is also noted that though the appellant has only
disputed the liability to pay interest from the date of filing of
the claim petition till the notice was received by them from
the Claims Tribunal, the appellant obtained ex-parte stay
from this Court on 24th January, 2005 in respect of the entire
award amount and the claimants have been deprived even of
the admitted amount till today, resulting in irreparable
injustice.
9. Respondents No. 1, 3 and 4 are present in Court.
Respondent No. 5 has already expired and his rights have
devolved upon respondents No.1 to 4. The respondents are
permanent resident of village Massipur. The respondents are
without any compensation for the last 17 years and injustice
caused to them due to this appeal is irreparable.
10. The appellant has deposited a sum of Rs.7,62,517/-
with UCO Bank, Delhi High Court Branch A/c Samla Devi in
terms of the order dated 19th January, 2010.
11. The Claims Tribunal has sent the expired cheques to
this Court. Let the same be handed over by the Court Master
to learned counsel for the appellant against receipt. The
photocopy of the same be retained by this Court.
12. The amount deposited by the appellant covers the
interest up to the date of deposit, i.e., 26th August, 2005.
The dispute of the appellant in this appeal related only to the
interest for a period of nine years but the appellant obtained
stay on the release of the entire award amount by the Claims
Tribunal to the claimants.
13. In that view of the matter, the appellant is liable to pay
interest @ 7.5% per annum for the said period in terms of
the judgments of this Court in the cases of Haryana
Engineering & Foundry Water vs. UOI, 1998(47) DRJ
172; MANU/DE/1171/1998, Delhi Development
Authority vs. Bhai Sardar Singh & Sons, 158(2009)
DLT; 2009(109) DRJ 384 and M/s Engineering Projects
India Ltd. vs. Arvind Construction Co. Ltd.,
MANU/DE/0744/2009.
14. The appellant is directed to deposit the interest on the
principal award amount with effect from 26th August, 2005 up
to this date. The interest be deposited with the UCO Bank,
Delhi High Court Branch A/c Samla Devi within a period of
four weeks.
15. Claimants/respondents No.1 to 4 are permanent
residents of Allahabad and they submit that State Bank of
Allahabad is convenient to them and the amount be
permitted to be remitted/transferred to their Saving Bank
Account with State Bank of Allahabad.
16. The UCO Bank is directed to release a sum of
Rs.62,517/- to respondent No.1 by transferring the same to
her Saving Bank Account with State Bank of Allahabad.
17. The remaining amount of Rs.7,00,000/- be kept in fixed
deposit in the following manner:-
(i) Fixed deposit for Rs.50,000/- in the name of
respondent No.2 for a period of six months.
(ii) Fixed deposit for Rs.50,000/- in the name of
respondent No.3 for a period of one year.
(iii) Fixed deposit for Rs.50,000/- in the name of
respondent No.4 for a period of one and a half
years.
(iv) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of two years.
(v) Fixed deposit for Rs.50,000/- in the name of
respondent No.2 for a period of two and a half
years.
(vi) Fixed deposit for Rs.50,000/- in the name of
respondent No.3 for a period of three years.
(vii) Fixed deposit for Rs.50,000/- in the name of
respondent No.4 for a period of three and a half
years.
(viii) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of four years.
(ix) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of four and a half
years.
(x) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of five years.
(xi) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of five and a half
years.
(xii) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of six years.
(xiii) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of six and a half
years.
(xiv) Fixed deposit for Rs.50,000/- in the name of
respondent No.1 for a period of seven years.
18. With respect to the balance interest to be deposited by
the appellant with UCO Bank, the UCO Bank is directed to
release 50% of the same to respondent No.1 by transferring
the same to her Saving Bank Account with State Bank of
Allahabad and the remaining amount be kept in fixed deposit
for a period of eight years.
19. The interest on the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the Savings
Account of respondent No.1.
20. 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.
21. No cheque book be issued to respondent No.1 without
the permission of this Court.
22. 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 FDRs.
23. No loan, advance or withdrawal shall be allowed on the
said fixed deposit receipts without the permission of this
Court.
24. Half yearly statement of account be filed by the Bank in
this Court.
25. On the request of respondent No.1, the Bank shall
transfer the Savings Account to any other branch according
to the convenience of respondent No.1.
26. 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.
27. Copy of the order be given dasti to counsel for both the
parties under the signatures of the Court Master.
28. 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 23, 2010/hl/mk
