Delhi High Court
Champa Gulati & Ors. vs Davinder Singh & Ors. on 27 April, 2012
Author: J.R. Midha
R-11 (Part-I)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO NO.459/1998
% Reserve on : 20th March, 2012
Date of decision : 27th April, 2012
CHAMPA GULATI & ORS. ..... Appellants
Through : Mr. M.L. Mahajan and
Mr. Gaurav Mahajan, Advs.
versus
DAVINDER SINGH & ORS. .... Respondents
Through : Mr. Kanwal Chaudhary, Adv.
for R-3.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT
1. The appellants have challenged the award of the Claims
Tribunal whereby compensation of `1,00,000/- has been
awarded to the appellants. The appellants seek enhancement
of the award amount.
2. The accident dated 4th May, 1989 resulted in the death of
K.D. Gulati. The deceased was survived by his widow, one son
and a daughter who filed the claim petition before the Claims
Tribunal. The deceased was aged 48 years at the time of the
accident and was working as a Managing Director of M/s
Anchal Chit and Finance Private Limited drawing a salary of
`7,500/- per month. The Claims Tribunal took the minimum
wages of `750/- per month into consideration, added 50%
towards the future prospects, deducted 1/3rd towards the
personal expenses and applied the multiplier of 12 to compute
the loss of dependency at `90,000/-. The Claims Tribunal has
awarded `2,000/- towards funeral expenses, `2,500/- towards
loss of estate and `5,000/- towards loss of love and affection.
The total compensation awarded is rounded off to `1,00,000/-.
3. The learned counsel for the appellants has urged
following ground at the time of hearing of this appeal:-
(i) The income of the deceased be taken as `7,500/- per
month.
(ii) The multiplier be enhanced from 10 to 13.
(iii) The compensation be awarded for loss of consortium.
(iv) The interest be awarded from the date of filing of the
claim petition.
4. With respect to the income of the deceased, the
appellants proved the certificate of the Chartered Accountant
before the Claims Tribunal as Ex.PW1/1. In the said certificate,
the Chartered Accountant certified that the deceased was
working as a Managing Director of M/s Anchal Chit and Finance
Private Limited and he drew a salary of `7,500/- per month for
the month of April, 1989. It was further certified that the
deceased received `90,000/- during the period 1st April, 1988
to 31st March, 1989. The Claims Tribunal disregarded the
certificate on the ground that the better evidence could have
been produced by the appellants.
5. Vide order dated 20th March, 2009, the appellants were
permitted to lead additional evidence to prove the occupation
and income of the deceased in pursuance to which the
appellants filed additional evidence of Champa Gulati, AW-1
who proved the original Income Tax Assessment Order
Ex.AW1/1 which reflected the income of the deceased as
`88,190/- for the year ending 31st March, 1988. The respondent
in rebuttal summoned the Income Tax records of the deceased
K.D. Gulati for the year 1987-88 and 1988-89 in pursuance to
which Mr. K.C. Sharma, Income Tax Officer appeared on 20th
April, 2010 and stated that the said records, being very old,
were not traceable. On 22nd September, 2011, Mr. Piyush
Srivastav, Inspector from Income Tax Office appeared along
with a written communication of the Income Tax Officer dated
21st September, 2011 to the effect that the said records were
not traceable.
6. The Claims Tribunal has taken the minimum wages of
`750/- per month into consideration as income of the
deceased. This Court is of the view that the Claims Tribunal
was not justified in taking the minimum wages into
consideration as there was sufficient evidence on record to
prove that the deceased was a Managing Director of a Private
Limited Company. The appellants have placed on record the
original Income Tax Assessment Order Ex.AW1/1 according to
which the total income of the deceased under Section 143(1)
of the Income Tax Act was `88,190/-. The Income Tax limit
during the relevant period was `18,000/- and therefore,
`24,526/- is deducted towards the Income Tax and the income
of the deceased for computation of compensation is taken to
be `5,305/- per month [(`88,190 - `24,526)/12].
7. The Claims Tribunal has applied the multiplier of 10
whereas the appropriate multiplier at the age of 48 years
according the judgment of the Supreme Court in the case of
Sarla Verma v. Delhi Transport Corporation, (2009) 6
SCC 121 is 13. The multiplier is, therefore, enhanced from 10
to 13.
8. The Claims Tribunal has not awarded any compensation
for loss of consortium. `10,000/- is awarded towards loss of
consortium. The Claims Tribunal has not awarded interest
from the date of filing of the claim petition up to the date of
realization. The interest at the rate of 7.5% per annum is
awarded from the date of filing of the claim petition till
realization.
9. The appellants are entitled to total compensation of
`5,71,220/- as per the break-up given hereunder:-
(i) Income of the deceased (per `5,305/-
month)
(ii) Less : personal expenses `1,768/-
(1/3rd)
(iii) Annual income `42,440/-
(iv) Total loss of dependency `5,51,720/-
(multiplier of 13)
(v) Funeral expenses `2,000/-
(vi) Loss of Estate `2,500/-
(vii) Loss of love and affection `5,000/-
(viii) Loss of Consortium `10,000/-
Total `5,71,220/-
10. The appeal is allowed and the award amount is enhanced
from `1,00,000/- to `5,71,220/- along with interest @ 7.5% per
annum from the date of filing of the claim petition till
realization. The share of the three appellants in the award
amount shall be equal.
11. The enhanced award amount along with interest be
deposited by respondent No.3 with UCO Bank, Delhi High Court
Branch by means of a cheque drawn in the name of UCO Bank
A/c Champa Gulati within 30 days.
12. Upon deposit of the award amount, the UCO Bank shall
release 1/3rd (1/9th of the total enhanced award amount)of the
share of each of the three appellants in the enhanced award
amount. The remaining award amount be kept in fixed deposit
in the following manner:-
(i) Fixed deposit in respect of 1/3rd of the share of each of
the appellants (1/9th of the total enhanced award) for a period
of 2½ years in the name of each of the three appellants.
(ii) Fixed deposit in respect of 1/3rd of the share of each of
the appellants (1/9th of the total enhanced award) for a period
of five years in the name of each of the three appellants.
13. The interest on the aforesaid fixed deposits shall be paid
monthly by automatic credit of interest in the respective Savings
Account of the beneficiaries.
14. Withdrawal from the aforesaid account shall be permitted to
the beneficiaries after due verification and the Bank shall issue
photo Identity Card to the beneficiaries to facilitate identity.
15. No cheque book be issued to the beneficiaries without the
permission of this Court.
16. The original fixed deposit receipts shall be retained by the
Bank in the safe custody. However, the original Pass Book shall
be given to the beneficiaries 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 beneficiaries.
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 the beneficiaries, Bank shall transfer the
Savings Account to any other branch according to their
convenience.
20. The beneficiaries shall furnish all the relevant documents
for opening of the Saving Bank Account and Fixed Deposit
Account to Mr. M.S. Rao, AGM, UCO Bank, Delhi High Court
Branch, New Delhi (Mobile No. 09871129345).
21. Copy of this judgment be sent to Mr. M.S. Rao, AGM, UCO
Bank, Delhi High Court Branch, New Delhi (Mobile
No.09871129345).
J.R. MIDHA, J
APRIL 27, 2012
