Delhi High Court
New India Assurance Co Ltd vs Asha Sehgal & Ors on 25 March, 2010
Author: J.R. Midha
4
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.142/2010
Date of Decision : 25th March, 2010
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NEW INDIA ASSURANCE CO LTD ..... Appellant
Through : Mr. Kanwal Chaudary, Adv.
versus
ASHA SEHGAL & ORS ..... Respondents
Through : Mr. Navneet Goyal and
Mr. Varun Kumar, 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 (Oral)
CM No.4510/2010 (Exemption)
1. Allowed, subject to just exceptions.
2. The application stands disposed of.
CM No.4511/2010 (Delay)
1. The delay in filing the claim petition is condoned.
2. The application stands disposed of.
MAC.APP. No.142/2010
1. The appellant has challenged the award of the learned
Tribunal whereby compensation of Rs.18,62,000/- has been
awarded to claimants/respondents No.1 and 2.
2. The accident dated 22nd June, 2008 resulted in the
death of Ashok Kumar Sehgal. The deceased was survived
by his widow and son who filed the claim petition before the
Claims Tribunal.
3. The deceased was aged 44 years at the time of the
accident and was working as claims consultant. He was also
working as LIC agent. The total income of the deceased was
Rs.16,000/- per month. The Claims Tribunal deducted 1/3 rd
towards his personal expenses and applied the multiplier of
14 to compute the loss of dependency at Rs.17,92,000/-.
Rs.50,000/- has been awarded towards loss of consortium,
Rs.5,000/- towards loss of estate, Rs.10,000/- towards loss of
love and affection and Rs.5,000/- towards funeral expenses.
The total compensation awarded is Rs.18,62,000/-.
4. The only ground urged by learned counsel for the
appellant at the time of hearing of this appeal is that the
Income Tax has not been deducted from the income of the
deceased.
5. On the request of this Court, the Accounts Department
of this Court has done the calculation and as per the
prevailing Rules, the Income Tax of Rs.4,326/- is payable on
the annual income of the deceased. The annual income of
the deceased is taken to be Rs.1,87,674/- [(Rs.16,000 x
12) - Rs.4,326].
6. Taking the income of the deceased as Rs.1,87,674/- per
annum, deducting 1/3rd towards his personal expenses and
applying the multiplier of 14, the loss of dependency is
computed to be Rs.17,51,624/-. Adding Rs.50,000/- towards
loss of consortium, Rs.10,000/- towards loss of love and
affection, Rs.5,000/- towards loss of estate and Rs.5,000/-
towards funeral expenses, the total compensation computed
to be Rs.18,21,624/- (Rs17,51,624 + Rs.50,000 + Rs.10,000
+ Rs.5,000 + Rs.5,000).
7. The appeal is partially allowed and the award amount is
reduced from Rs.18,62,000/- to Rs.18,21,624/- along with
interest @ 7.5% per annum from the date of filing of the
claim petition up to the date of notice of deposit under Order
XXI Rule 1 of the Code of Civil Procedure.
8. The appellant is directed to deposit the award amount
along with interest in terms of this judgment with UCO Bank
A/c Asha Sehgal through Mr. M.M. Tandon, Member-Retail
Team, UCO Bank Zonal, Parliament Street, New Delhi (Mobile
No.09310356400) within 30 days.
9. Upon the aforesaid deposit being made, the UCO Bank
is directed to release 10% of the amount to respondent No.1
by transferring the same to her Saving Bank Account. 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.1 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 10% of the award
amount in the name of respondent No.1 for a
period of four years.
(v) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.1 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.2 for a
period of seven years.
(viii) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.2 for a
period of eight years.
(ix) Fixed deposit in respect of 10% of the award
amount in the name of respondent No.2 for a
period of nine years.
10. The interest on the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the Savings
Account of respondent No.1.
11. 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.
12. No cheque book be issued to respondent No.1 without
the permission of this Court.
13. 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.
14. No loan, advance or withdrawal shall be allowed on the
said fixed deposit receipts without the permission of this
Court.
15. Half yearly statement of account be filed by the Bank in
this Court.
16. 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.
17. 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.
18. CM No.4509/2010 stands disposed of as infructuous.
19. After the deposit of the award amount by the appellant
with the UCO Bank, the appellant shall furnish the proof of
deposit of the award amount to the Registry whereupon the
Registry shall refund the statutory amount to the appellant
without any further order of this Court.
20. Copy of the order be given dasti to counsel for both the
parties under the signatures of the Court Master.
21. 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
mk
