New India Assurance Co Ltd vs Mamta Devi & Ors
2011 Latest Caselaw 5805 Del

*        IN THE HIGH COURT OF DELHI AT NEW DELHI

                                        Reserved on: 24th November, 2011
                                      Pronounced on : 29th November, 2011

+        MAC APP.421/2011

         MAMTA DEVI & ORS             ..... Appellants
                 Through  Mr. Partap Singh, Advocate

                           versus


         MANAGER SINGH & ORS           ..... Respondents
                Through   Mr. Kanwal Chaudhary, Advocate for
                          Respondent No.3.

+        MAC.APP. 430/2011


         NEW INDIA ASSURANCE CO LTD        ..... Appellant
                  Through Mr. Kanwal Chaudhary, Advocate

                           versus

         MAMTA DEVI & ORS               ..... Respondents
                 Through  Mr. Partap Singh, Advocate

         CORAM:
         HON'BLE MR. JUSTICE G.P.MITTAL

                                    JUDGMENT

G. P. MITTAL, J.

1. MAC APP No.421/2011 is for enhancement for compensation in respect of death of Bhairon Das, who was aged about 25

years at the time of the accident which took place on 07.03.2010. The Motor Accident Claims Tribunal (the Tribunal) by the impugned award dated 09.02.2011 granted compensation of ` 11,65,048/-.

2. The Appellants' grievance is that the deceased's father Nageshwar Das was not considered as a dependent and, therefore, the Tribunal deducted one-third towards the personal living expenses which ought to have been one-fourth. It is averred that no compensation was awarded towards the loss of love and affection.

3. In the cross appeal being MAC APP No.430/2011 preferred by the Appellant New India Assurance Company Limited it is averred that 50% addition was made in the minimum wages which was not permissible in view of the judgment of the Supreme Court in Sarla Verma & Ors. v. Delhi Transport Corporation (2009) 6 SCC 121.

4. The law with regard to the grant of future prospects was crystallized in the judgment of the Supreme Court in Sarla Verma & Ors. v. Delhi Transport Corporation (supra). The future prospects are granted only where the deceased has a permanent job and there is evidence of future prospects. Addition of 50% in the minimum wages to work out the average income of the deceased is not towards the future prospects but to counter inflation. It has to be borne in mind that the

minimum wages are increased by the Govt. from time to time to counter indexation inflation and to give a better standard of living to the lowest paid workers. The aspect of considering addition of 50% of minimum wages in the case of lowest paid workers was not considered by the Supreme Court in Sarla Verma (supra).

5. In view of the judgment of this Court in (i) UPSRTC v. Munni Devi, IV (2009) ACC 879; (ii) National Insurance Company Ltd. v. Renu Devi & Ors., III (2008) ACC 134; and (iii) Narinder Bishal & Anr. v. Rambir Singh & Ors. 2009 ACJ 1881, 50% addition in the minimum wages to offset inflation and to give a better standard of living to the lowest paid workers was justified.

6. There is no merit in MAC APP. No.430/2011 preferred by the Insurance Company; the same is accordingly dismissed.

7. In Sarla Verma (supra) in Para 31, it was held that father was likely to have his own income and would not be considered as a dependant unless there is evidence to the contrary.

8. No evidence was led by the Claimants Appellants that the father was dependant on deceased Bhairon Das, thus, deduction of one-third towards personal expenses was rightly done.

9. Although, in Sarla Verma (supra), the Supreme Court did not specifically grant any compensation towards loss of love and

affection. At the same time, it was not stated that no compensation would be payable towards loss of love and affection. Though, it was stated that in death cases no compensation would be payable on account of pain and suffering.

10. The Appellants were entitled to a compensation of ` 25,000/-

towards loss of love and affection. The enhanced amount of ` 25,000/- shall carry interest @ 7.5 % per annum from the date of filing of the petition till the date of payment. The enhanced amount shall be payable to Appellant No.1 Mamta Devi by Respondent No.3 the Insurance Company. The enhanced amount shall be deposited with the Registrar General of this Court within six weeks who shall convert the same in a Fixed Deposit for a period of two years in UCO Bank, Delhi High Court Branch, New Delhi.

11. The appeals are disposed of in the above terms. No costs.

(G.P. MITTAL) JUDGE NOVEMBER 29, 2011 vk