Delhi High Court
United India Insurance Co. Ltd. vs Smt. Darshan Devi And Ors. on 27 May, 2011
Author: J.R. Midha
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO No.566/2001
% Date of decision: 27th May, 2011
UNITED INDIA INSURANCE CO. LTD. ...Appellant
Through : Mr. M.K. Tiwari, Adv.
versus
SMT. DARSHAN DEVI AND ORS. ...Respondents
Through : Mr. Anil Goel and
Mr. Rajiv 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)
1. The appellant challenged the award of the Claims
Tribunal in this appeal whereas the respondents filed the
cross-objections to seek the enhancement of the award
amount. Vide order dated 24th March, 2004, the appeal was
dismissed whereas the cross-objections were admitted.
2. The accident dated 2nd December, 1995 resulted in the
death of Jaiveer Singh. The deceased was survived by his
widow, a minor son aged 6 years and a minor daughter
aged about 3 years and parents who filed the claim petition
before the Claims Tribunal. The father of the deceased died
during the pendency of the claim petition.
3. The deceased was aged 27-1/2 years at the time of
the accident and was working as a Head Constable with
Delhi Police drawing a salary of Rs.3225/- apart from the
perks and allowances as per Government Rules. The Claims
Tribunal took the income of the deceased as Rs.5,000/- per
month after taking the effect of Fifth Pay Commission which
was implemented on 1st January, 1996, added 50% towards
future prospects, deducted 1/3 towards the personal
expenses of the deceased and applied the multiplier of 16
to compute the loss of dependency at Rs.9,60,000/-.
4. Learned counsel for the claimants/respondents urged
the following grounds for enhancement of the compensation
at the time of hearing of cross-objections:-
(i) The personal expenses of the deceased be reduced
from 1/3rd to 1/4th in terms of the judgment of the
Hon'ble Supreme Court in the case of Sarla Verma
Vs. Delhi Transport Corporation, 2009 (6) Scale
129.
(ii) The multiplier be enhanced from 16 to 17 in terms of
the judgment of the Hon'ble Supreme Court in the
case of Sarla Verma Vs. Delhi Transport
Corporation (supra).
(iii) The income of the deceased be taken as Rs.8,000/-
instead of Rs.5,000/-.
(iv) The compensation be awarded towards loss of
consortium, loss of love and affection, loss of estate
and funeral expenses.
5. The Hon'ble Supreme Court has laid down the
following principles for grant of compensation in death
cases in the case of Sarla Verma Vs. Delhi Transport
Corporation, 2009 (6) Scale 129:-
"I . MULTIPLIER
Age of the Multiplier
deceased (in
years)
II. DEDUCTION FOR PERSONAL AND LIVING EXPENSES
Deceased - unmarried
(i) Deduction towards personal : 1/2 (50%)
expenses.
(ii) Deduction where the family of the : 1/3rd (33.33%)
bachelor is large and dependent on
the income of the deceased.
Deceased - married
(i) 2 to 3 dependent family members. : 1/3rd
(ii) 4 to 6 dependent family members. : 1/4th
(iii) More than 6 family members : 1/5th
(iv) Subject to the evidence to the : Father, brother and
contrary. sisters will not be
considered as
dependents.
III. FUTURE PROSPECTS
(i) Permanent job : Actual salary - tax +
below 40 years of age 50% towards future
prospects.
(ii) Permanent job : Actual salary - tax +
between 40 - 50 years 30% towards future
prospects.
(ii) More than 50 years with : Actual salary only.
permanent job. No addition for future
prospects.
(iv) Deceased employed at a : Only actual income to be
fixed salary (without taken
provision for annual No addition.
increments)
IV. NON-PECUNIARY DAMAGES
(i) Compensation for loss of estate : Rs.5,000/- to
Rs.10,000/-
(ii) Compensation for loss of consortium : Rs.5,000/- to
Rs.10,000/-
(iii) Compensation for pain and sufferings : Nil
and hardship
(iv) Funeral expenses, cost of : Actual
transportation of body and medical
expenses"
6. In the present case, the deceased aged 27-1/2 years
left behind five dependant legal representatives, namely,
widow, two minor children and parents. Applying the
principles laid down in the case of Sarla Verma Vs. Delhi
Transport Corporation, 2009 (6) Scale 129, the
multiplier is enhanced from 16 to 17 and the personal
expenses of the deceased are reduced from 1/3 to 1/4.
7. The deceased was working as Head Constable with
Delhi Police at the time of the accident. PW-2, Head
Constable Virender Singh proved the salary of the deceased
for the month of November, 1995 was Rs.3,300/- as per
Ex.PW-2/A. PW-2 further deposed that after implementation
of Fifth Pay Commission, the salaries have been revised.
PW-2 who was also the Head Constable deposed that his
salary was revised to Rs.8,000/- per month with the
implementation of Fifth Pay Commission. The Fifth Pay
Commission was implemented with effect from 2nd June,
1996 i.e. within one month of death of the deceased and,
therefore, the Claims Tribunal erred in taking the income of
the deceased as Rs.5,000/- per month. In the case of Sarla
Verma Vs. DTC (Supra), the Hon'ble Supreme Court has
held that the Courts will usually take only the actual income
at the time of death and the departure therefrom should be
made only in rare and exceptional cases including special
circumstances. This Court is of the view that since the Fifth
Pay Commission was implemented within one month of
death of the deceased, this case falls within the exception.
It has been sufficiently proved by the evidence of PW-2 that
the income of the deceased would have been Rs.8,000/- per
month with the implementation of Fifth Pay Commission
w.e.f. 2nd January, 1996 and, therefore, the income of the
deceased is taken to be Rs.8,000/- per month.
8. Taking the income of the deceased to be Rs.8,000/-
per month, adding 50% towards future prospects, deducting
1/4 towards personal expenses of the deceased and
applying the multiplier of 17, the loss of dependency is
computed at Rs.18,36,000/-.
9. The Claims Tribunal has not awarded any
compensation for loss of consortium, loss of love and
affection, loss of estate and funeral expenses. In the facts
and circumstances of the case, Rs.10,000/- is awarded
towards loss of consortium, Rs.10,000/- is awarded towards
loss of love and affection, Rs.10,000/- is awarded towards
loss of estate and Rs.5,000/- is awarded towards funeral
expenses.
10. The claimants are entitled to total compensation of
Rs.18,71,000/- (Rs.18,36,000/- towards loss of dependency
+ Rs.10,000 towards loss of consortium + Rs.10,000
towards loss of love and affection + Rs.10,000/- loss of
estate + Rs.5,000/- towards funeral expenses).
11. The cross objections are allowed and the award
amount is enhanced from Rs.9,60,000/- to Rs.18,71,000/-.
The Claims Tribunal has awarded interest at the rate of 9%
per annum which is not disturbed on the original award
amount of Rs.9,60,000/-. However, on the enhanced award
amount, the rate of interest shall be 7.5% per annum from
the date of filing of the claim petition till realization.
12. Respondent No.1, Darshan Devi and her son Ashish
are present in Court. Respondent No.1 submits that she has
got Saving Bank Account bearing No.11075567119 with
State Bank of India, Main Branch, Near District Court,
Rohtak.
13. The enhanced award amount along with upto date
interest be deposited by the appellant with State Bank of
India, A/c Darshan Devi, Tis Hazari Court Branch by means
of a cheque through Mr. H.S. Rawat, Relationship Manager,
Tis Hazari Branch, Tis Hazari (Mb: 09717044322) within 30
days.
14. Upon the aforesaid amount being deposited with State
Bank of India is directed to release 10% of the award
amount to respondent No.1/widow of the deceased by
transferring the same to her Saving Bank Account bearing
No.11075567119 with State Bank of India, Main Branch,
Near District Court, Rohtak and keep the remaining amount
in fixed deposit in the aforesaid Branch in the following
manner:-
(i) Fixed deposit of 10% of the award amount for a
period of one year in the name of respondent
No.4.
(ii) Fixed deposit of 10% of the award amount for a
period of two years in the name of respondent
No.2.
(iii) Fixed deposit of 10% of the award amount for a
period of three years in the name of respondent
No.3.
(iv) Fixed deposit of 10% of the award amount for a
period of four years in the name of respondent
No.1.
(v) Fixed deposit of 10% of the award amount for a
period of five years in the name of respondent
No.1.
(vi) Fixed deposit of 10% of the award amount for a
period of six years in the name of respondent
No.1.
(vii) Fixed deposit of 10% of the award amount for a
period of seven years in the name of respondent
No.1.
(viii) Fixed deposit of 10% of the award amount for a
period of eight years in the name of respondent
No.1.
(ix) Fixed deposit of 10% of the award amount for a
period of nine years in the name of respondent
No.1.
15. The interest on the aforesaid fixed deposits shall be
paid monthly by automatic credit of interest in the Savings
Account of respondent No. 1.
16. Withdrawal from the aforesaid accounts 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.
17. No cheque book be issued to respondent No. 1 without
the permission of this Court.
18. The original fixed deposit receipts shall be retained by
the Bank in the safe custody. However, the original Pass
Book shall be given to respondent No. 1 along with the
photocopy of the FDRs. Upon the expiry of the period of
each FDR, the Bank shall automatically credit the maturity
amount in the Savings Account of the beneficiary.
19. No loan, advance or withdrawal shall be allowed on
the said fixed deposit receipts without the permission of this
Court.
20. Half yearly statement of account be filed by the Bank
in this Court.
21. On the request of respondent No. 1, the Bank shall
transfer the Savings Account to any other branch of State
Bank of India according to the convenience of respondent
No. 1.
22. Respondent No. 1 shall furnish all the relevant
documents to Mr. H.S. Rawat, Relationship Manager, Tis
Hazari Branch, Tis Hazari Court, New Delhi.
23. Copy of the order be given dasti to counsel for both
the parties under signature of the Court Master.
24. Copy of this order be also sent to Mr. H.S. Rawat,
Relationship Manager, Tis Hazari Branch, Tis Hazari Court,
New Delhi as well as to the Manager, State Bank of India,
Main Branch, Near District Court, Rohtak for compliance.
J.R. MIDHA, J
MAY 27, 2011
s.pal
