Delhi High Court
Balpreet Kaur & Ors. vs New India Insurance Company Ltd & ... on 6 February, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 6th February, 2012
+ MAC.APP. 796/2010
BALPREET KAUR & ORS. ..... Appellant.
Through Mr. Nitin Yadav, Advocate
versus
NEW INDIA INSURANCE COMPANY LTD & ORS.
..... Respondents
Through Nemo.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. The Appeal is for enhancement of compensation of `
19,62,200/- for the death of Sachin who was aged about 27
years at the time of the accident which took place on
10.03.2008.
2. The sole ground of challenge is that the deceased was carrying
on business of sale of mobile phones in the name and style of
„Shiv Mobile Point‟. The deceased‟s income was gradually
increasing on year to year basis, the same is proved on record
though Income Tax Return (ITR) filed for the assessment year
2005-06, 2006-07 and 2007-08 as ` 78,950/-, ` 1,03,200/- and `
1,49,000/- respectively. Although, the Motor Accident Claims
Tribunal (the Claims Tribunal) awarded the loss of dependency
on the basis of deceased's last year income, but did not take into
account the deceased's future prospects.
3. The Appeal must succeed.
4. In Shakti Devi v. New India Assurance Company Limited 2011
ACJ 15, relying on the judgment of the Sarla Verma & Ors. v.
Delhi Transport Corporation & Anr., (2009) 6 SCC 121, it was
held that where the deceased was self-employed the Court shall
usually take only the actual income at the time of death; a
departure from the said rule shall only be made in rare and
exceptional cases involving special circumstances.
5. Coming to the present facts of the case, as mentioned earlier,
the ITRs filed by the deceased (self-employed) reflects a
constant increase in income on year to year and further the
deceased was young man when he expired. Therefore, this case
is squarely covered under the "special circumstances" as
enunciated in Sarla Verma (supra) and Shakti Devi (supra).
6. Thus, in this case the Appellants are entitled to an addition of
50% to the income of the deceased towards future prospects as
the deceased was 27 years of the age at the time of the accident.
7. On applying the ratio of Sarla Verma (supra) deduction of one-
fourth towards personal and living expenses has to be made as
the number of dependants were four with the multiplier of „17‟,
the loss of dependency works out as ` 26,11,200/- (1,49,000/- +
50% - 18,700/- (tax) - ¼ x 17).
8. The Appellants are further entitled to a sum of `25,000/-
towards loss of love and affection, `10,000/- towards
consortium, `10,000/- towards loss to estate and `5,000/-
towards funeral expenses. The total compensation thus, comes
to ` 26,61,200/-.
9. The compensation is thus enhanced from `19,62,200/- to `
26,61,200/-. The enhanced compensation shall carry interest @
7.5% per annum from the date of filing of the petition till the
date of payment.
10. The Respondent No.1 The New India Assurance Company
Limited is directed to deposit the enhanced amount along with
the upto date interest within 30 days with UCO Bank, Delhi
High Court Branch, New Delhi.
11. The enhanced amount along with the proportionate interest shall
be held in fixed deposit/released to the Appellants (the
Claimants) in the proportion as directed by the Claims Tribunal.
12. The Appeal is allowed in above terms.
13. No costs.
(G.P. MITTAL)
JUDGE
FEBRUARY 06, 2012
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