Delhi High Court
Dalvinder Kaur @ Devinder vs United India Insurance Co.Ltd. on 25 March, 2010
Author: J.R. Midha
24
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO 524/2003
Date of decision: 25.3.2010
DALVINDER KAUR @ DEVINDER ..... Appellant
Through: Mr. Varun Kumar and Mr.Navneet
Goyal, Advs.
versus
UNITED INDIA INSURANCE CO.LTD. ..... Respondent
Through: Mr. Vishnu Mehra and Mr. R.L.
Kadamb, Advs.
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
1. The appellants have challenged the award of the
learned Tribunal whereby compensation of Rs.12,82,200/-
has been awarded to them. The appellants seek
enhancement of the award amount.
2. The accident dated 7th June, 1999 resulted in the
death of S. Inderjeet Singh. The deceased was survived by
his widow, two minor sons and mother who filed the claim
petition before the learned Tribunal.
3. The deceased was aged 38 years at the time of the
accident and was working as a building contractor. The
deceased was an Income-Tax assessee and as per the last
Income-Tax Return, the income of the deceased was
Rs.1,54,800/-. However, the Claims Tribunal disregarded
the said Income-Tax return on the ground that it was filed
after the death of the deceased. The deceased expired on
7th June, 1999 whereas the Income-Tax Return, Ex.PW-2/7
was filed on 30th September, 1999. The Claims Tribunal
took the income of the deceased relating to the previous
year, according to which the income of the deceased was
Rs.1,28,280/-. 1/3 was deducted towards the personal
expenses of the deceased and the multiplier of 15 was
applied to compute the loss of dependency at
Rs.12,82,800/-.
4. The learned counsel for the appellants has urged the
following grounds at the time of hearing of this appeal:-
(i) The income of the deceased be taken at
Rs.1,54,800/-.
(ii) The future prospects of the deceased be taken
into consideration.
(iii) The deduction towards the personal expenses of
the deceased be reduced from 1/3 to 1/4.
(iii) The compensation be awarded for loss of love
and affection, loss of estate and loss of
consortium.
5. The Income-Tax Return, PW-2/7 filed on 30th
September, 1999 has been perused. The said Income-Tax
Return relates to the period 1st April, 1998 to 31st March,
1999 and the same was filed on 30th September, 1999
within the prescribed period of limitation for filing the
Income-Tax Return. There is no rebuttal evidence by the
respondent to show that the contents of the said Income-
Tax Return were not correct. The Claims Tribunal was in
error in not taking the last Income-Tax Return of the
deceased into account. The filing of Income-Tax Return
after the death of the deceased is no ground for
disregarding the same. The income of the deceased is taken
to be Rs.1,54,800/- per annum as per the Ex.PW-2/7. The
deceased paid Income-Tax of Rs.20,440/- and after
deducting the same from Rs.1,54,800/-, the income of the
deceased is taken to be Rs.1,34,360/- per annum.
6. The learned counsel for the appellants submits that
future prospects be taken into consideration. According to
the judgment of the Hon'ble Supreme Court in the case of
Sarla Verma Vs. Delhi Transport Corporation, 2009
(6) Scale 129, the future prospects are not permitted to be
added in respect of self-employed persons. Learned
counsel for the appellant submits that after the judgment of
the Hon'ble Supreme Court in the case of Sarla Verma
(supra), the Hon'ble Supreme Court in the case of R.K.
Malik Vs. Kiran Pal, 2009 (8) Scale 451, has permitted
the future prospects to be taken into consideration in
respect of death of a minor child. The learned counsel for
the appellant refers to and relies upon the recent judgment
dated 24th November, 2009 of the Hon'ble Supreme Court in
the case of Baby Radhika Gupta Vs. Oriental Insurance
Co. Ltd., Civil Appeal No.7736/2009 in which the
Hon'ble Supreme Court awarded Rs.2 lakh towards future
prospects in respect of a self-employed person.
7. Following the judgment of the Hon'ble Supreme Court
in the case of R.K. Malik (supra) and Baby Radhika
Gupta (supra), 50% is added towards the future prospects
of the deceased and income of the deceased for
computation of compensation is taken to be Rs.2,01,540
(Rs.1,34,360/- + Rs.67180/-).
8. The deceased has left behind four legal
representatives and, therefore, the appropriate deduction
towards personal expenses of the deceased according to
the judgment of the Hon'ble Supreme Court in the case of
Sarla Verma (supra) is 1/4th. Following the aforesaid
judgment of the Hon'ble Supreme Court, the personal
expenses of the deceased are reduced from 1/3rd to 1/4th.
9. The leaned Tribunal has not awarded non-pecuniary
compensation to the appellants. Rs.10,000/- is awarded
towards the loss of consortium, Rs.10,000/- towards loss of
love and affection, Rs.10,000/- towards loss of estate and
Rs.5,000/- towards funeral expenses.
10. Taking income of the deceased to be Rs.2,01,540/-,
deducting 1/4 towards the personal expenses of the
deceased, applying the multiplier of 15, adding Rs.10,000/-
towards loss of consortium, Rs.10,000/- towards loss of love
and affection, Rs.10,000/- towards loss of estate and
Rs.5,000/- towards funeral expenses, the total
compensation computed to be Rs.23,02,325/- [Rs.2,01,540
x 3/4 x 15) + Rs.10,000 + Rs.10,000 + Rs.10,000 +
Rs.5,000].
11. The appeal is allowed and the award amount is
enhanced from Rs.12,82,200/- to Rs.23,02,325/-. The
learned Tribunal has awarded interest @ 9% per annum
which is not disturbed on the original award amount of
Rs.12,82,800/-. However, on the enhanced award amount,
the rate of interest shall be @7.5% per annum from the
date of filing of the petition till realization.
12. The enhanced award amount along with interest be
deposited by respondent No.1 with UCO Bank, Delhi High
Court Branch A/c Devinder Kaur by means of a cheque to be
handed over to Mr. M.M. Tandon, Member-Retail Team, UCO
Bank Zonal, Parliament Street, New Delhi (Mobile No.
09310356400) within 30 days.
13. Upon the aforesaid deposit being made, the UCO Bank
is directed to release 10% of the said amount to appellants
in equal proportion. The remaining amount be kept in fixed
deposit in the following manner:-
(i) Fixed deposit in respect of 10% of the amount in
the name of appellant No.4 for a period of one
year.
(ii) Fixed deposit in respect of 10% of the amount in
the name of appellant No.1 for a period of two
years.
(iii) Fixed deposit in respect of 10% of the amount in
the name of appellant No.2 for a period of three
years.
(iv) Fixed deposit in respect of 10% of the amount in
the name of appellant No.3 for a period of four
years.
(v) Fixed deposit in respect of 10% of the amount in
the name of appellant No.4 for a period of five
years.
(vi) Fixed deposit in respect of 10% of the amount in
the name of appellant No.1 for a period of six
years.
(vii) Fixed deposit in respect of 10% of the amount in
the name of appellant No.2 for a period of seven
years.
(viii) Fixed deposit in respect of 10% of the amount in
the name of appellant No.3 for a period of eight
years.
(ix) Fixed deposit in respect of 10% of the amount in
the name of appellant No.1 for a period of eight
years.
14. The interest on the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the Savings
Account of appellant No.1.
15. Withdrawal from the aforesaid account shall be
permitted to appellant No.1 after due verification and the
Bank shall issue photo Identity Card to appellant No.1 to
facilitate identity.
16. No cheque book be issued to respondent No.1 without
the permission of this Court.
17. The Bank shall issue Fixed Deposit Pass Book instead
of the FDRs to appellant 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.
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 appellant No.1, the Bank shall
transfer the Savings Account to any other branch according
to the convenience of appellant No.4.
21. Appellants Nos.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.
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 25, 2010
s.pal
