Alka Gupta & Ors. vs Nihar Amit Dave & Ors.
2010 Latest Caselaw 2633 Del

*IN THE HIGH COURT OF DELHI AT NEW DELHI

                      +   MAC.APP.No.592/2006

                                      Date of Decision:18th May, 2010
%

      ALKA GUPTA & ORS.             ..... Appellants
                    Through : Mr. Vinay Kumar Garg and
                              Ms. Seema Bhatt, Advs.

                      versus

      NIHAR AMIT DAVE & ORS.         ..... Respondents
                    Through : Mr. D.K. Sharma, Adv.

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.21,40,000/-

has been awarded to them. The appellants seek

enhancement of the award amount.

2. The accident dated 20th June, 1996 resulted in the

death of S.K. Gupta. The deceased was survived by his

widow, two minor children and mother who filed the claim

petition before the learned Tribunal. The mother of the

deceased was alive at the time of the accident. However, the

mother of the deceased expired during the pendency of the

claim petition in the year 2004.

3. The deceased was aged about 40 years at the time of

the accident and was working as Senior Project Co-ordinator

with M/s Phoenix Overseas Ltd. and drawing a salary of

Rs.18,800/-. The learned Tribunal added 50% towards future

prospects, deducted 1/3rd towards the personal expenses of

the deceased and applied the multiplier of 15 to compute the

loss of dependency at Rs.20,72,160/-. The learned Tribunal

has awarded Rs.30,000/- towards loss of consortium,

Rs.30,000/- towards loss of love and affection and Rs.5,000/-

towards funeral expenses. The learned Tribunal has awarded

total compensation of Rs.21,40,000/- to the appellants.

4. The learned counsel for the appellants has urged the

following grounds at the time of hearing of this appeal:-

(i) The deduction towards the personal expenses of

the deceased be reduced from 1/3rd to 1/4th.

(ii) The deduction towards the Income Tax be

reduced from 30% to 10%.

(iii) The rate of interest be enhanced from 7% to 7.5%

per annum

5. The deceased left behind four legal representatives and

the appropriate deduction in accordance with the judgment

of the Hon'ble Supreme Court in the case of Sarla Verma

Vs. Delhi Transport Corporation, 2009 (6) Scale 129 is

1/4th. The Claims Tribunal has deducted 1/3rd towards the

personal expenses of the deceased. Following the aforesaid

judgment of the Hon'ble Supreme Court, the personal

expenses are reduced from 1/3rd to 1/4th.

6. The learned Tribunal has taken the income of the

deceased as Rs.28,200/- after adding 50% towards the future

prospects. The Claims Tribunal has deducted 1/3rd towards

Income Tax. The learned counsel for the appellant submits

that the appropriate deduction should be 10%. The Accounts

Department of this Court has done the calculation and at the

time of the accident, the Income Tax according to the

prevailing rates was 27%. The deduction towards the Income

Tax be reduced from 1/3rd to 27% (33.33% to 27%).

7. The learned counsel for respondent No.3 points out that

the compensation towards loss of love and affection and loss

of consortium is on a higher side. Following the aforesaid

judgment, the compensation towards loss of love and

affection is reduced from Rs.30,000/- to Rs.10,000/- and the

compensation towards loss of consortium is also reduced

from Rs.30,000/- to Rs.10,000/-. Rs.10,000/- is awarded for

the compensation towards loss of estate.

8. The Claims Tribunal has awarded the interest @ 7% per

annum. In terms of the judgment of Hon'ble Supreme Court

in the case of Dharampal & Ors. vs. U.P. State Road

Transport Corporation, III 2008 ACC (1) SC, the rate of

interest is enhanced from 7% to 7.5% per annum.

9. The appellants have entitled to total compensation of

Rs.28,14,110/- as per breakup given herein:-

(i) Compensation for loss of : Rs.27,79,110/-

dependency [(Rs.28,200 - 27% towards Income Tax - 1/4th towards personal expenses) x 12 x 15]

(ii) Compensation towards loss of : Rs.10,000/-

consortium.

(iii) Compensation towards loss of : Rs.10,000/-

love and affection

(iv) Compensation towards loss of : Rs.10,000/-

estate.

(v) Compensation for funeral : Rs.5,000/-

expenses.

Total Amount : Rs.28,14,110/-

10. The appeal is allowed and the award amount is enhanced

from Rs.21,40,000/- to Rs.28,14,110/- along with interest

@7.5% per annum from the date of filing the petition till

realization.

11. The enhanced award amount along with interest thereon

be deposited by respondent No.3 with UCO Bank A/c Alka

Gupta, Delhi High Court Branch, within 30 days through

Mr.M.M. Tandon, Member-Retail Team, UCO Bank Zonal,

Parliament Street, New Delhi (Mobile No. 09310356400).

12. Upon the said amount being deposited, the UCO Bank is

directed to release 10% of the said amount to the appellant

No.1 by transferring the same to her UCO Bank account. The

remaining amount be kept in fixed deposits in the following

manner:-

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

months.

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

the name of appellant No.1 for a period of one

year.

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

the name of appellant No.1 for a period of one

and a half years.

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

the name of appellant No.2 for a period of two

years.

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

the name of appellant No.2 for a period of two and

a half years.

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

the name of appellant No.2 for a period of three

years.

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

the name of appellant No.3 for a period of three

and a half years.

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

the name of appellant No.3 for a period of four

years.

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

the name of appellant No.3 for a period of four

and a half years.

13. The interest on the aforesaid fixed deposits shall be

paid monthly by automatic credit of interest in the Savings

Account of appellant No.1.

14. 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.

15. No cheque book be issued to appellant No.1 without the

permission of this Court.

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

the FDRs to the appellants and the maturity amount of the

FDRs be automatically credited to the Saving Bank Account

of the beneficiary at the end of the FDR.

17. No loan, advance or withdrawal shall be allowed on the

said fixed deposit receipts without the permission of this

Court.

18. Half yearly statement of account be filed by the Bank in

this Court.

19. 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.1.

20. The appellant Nos.1 to 3 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.

21. Copy of the order be given dasti to counsel for both the

parties under the signatures of the Court Master.

22. 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 MAY 18, 2010 HL