Delhi High Court
Iffco Tokio General Insurance Co. ... vs Poonam & Ors. on 23 January, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 18th January, 2012
Pronounced on: 23rd January, 2012
+ MAC APP. 393/2011
IFFCO TOKIO GENERAL
INSURANCE CO. LTD. ..... Appellant
Through: Ms. Suman Bagga, Adv.
versus
POONAM & ORS. ..... Respondents
Through: Mr. S. S. Tomar, Adv. for R-1
to R-5.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J.
1. The Appellant Insurance Co., impugns the Award passed by the
Learned Motor Vehicle Claims Tribunal, wherein the
Respondents No.1 to 5 (Claimants in MACT No.354/08) were
granted ` 11,19,000/- @ 9% interest for the death of Parvesh
(hereinafter referred to as 'Deceased') who was aged about 29
years on the date of the accident.
2. On 25.10.2008, the deceased was travelling with Deepak and
and Bhupender in a Maruti 800 car bearing the Reg. No. DL-
3CAD-4289; at about 6.30 PM when their car reached Thorma
- Ki - Dhani a truck bearing a Reg. No.HR-39A-3331 came
from the opposite direction (Gurgaon's side) and hit the vehicle
of the deceased, due to which they were grievously injured and
they succumbed to the injuries.
3. The contentions of the Counsel for the Appellant were: -
(i) That the Tribunal erred in increasing the income of the
deceased by 50% when his income was computed
according to the Minimum wages.
(ii) That the compensation which was granted by the
Tribunal under the head of 'Loss of Love and Affection'
was on the higher side.
CONTENTION (i): -
4. It is urged by the learned counsel for Appellant that the Tribunal
had erred in adding 50% increase to the minimum wages for
computing the loss of dependency. In National Insurance
Company Ltd. v. Renu Devi & Ors., III (2008) ACC 134, this
Court held that the increase in the minimum wages is not on
account of promotion of a unskilled worker or on account of
advancement in his career but the same is due to increase in the
price index and cost of living. It has also to be borne in mind
that the minimum wages are revised not only to meet the
inflation but also to improve the standard of living of the lowest
paid workers and to give them the benefit of growth in GDP.
5. A perusal of the Notifications issued under the Minimum
Wages Act would show that the minimum wages of a skilled
worker were revised from ` 4,107/- on 01.08.2008 to ` 6,448/-
on 01.02.2010. Thus, it has to be noticed that there was
increase of about 50% in the minimum wages just in a year and
a half. This was not only on account of inflation but also to
provide a better standard of living to the people of the lower
strata of the society.
6. In Renu Devi & Ors.(supra) it was held as under:-
"9. In a recent decision of this Court Sh.
Narinder Bishal and Anr. v. Sh. Rambir Singh and
Ors., MAC App. 1007-08/2006, decided on
20.02.08 by Kailash Gambhir, J., it has been
observed as under:-
"For determining the earning of the
deceased or victim of the accident, the
claimants are supposed to prove the
exact income of the deceased by
leading some cogent and reliable
documentary evidence as to the
nature of his employment or trade or
business or in any other activity he
was involved in and then the said
income can be taken into
consideration for determining the
quantum of compensation and if in
such a case, the claimants are further
able to establish the future prospects
as well, then the criteria laid down in
Sarla Dixit's case would get attracted.
There can be another category of
cases where the claimants are able to
establish the future prospects of the
deceased by quantifying the amount to
be earned by the deceased in future
with the help of cogent, reliable and
convincing evidence and in all such
cases the tribunal can take into
consideration such future increase as
has been established by the claimants
on record. The difficulty however,
would arise in all those cases where
although the claimants are able to
sufficiently establish on record the
educational qualification of the
deceased or the nature of his
employment whether skilled, semi-
skilled or unskilled but fail to
establish by any reliable evidence to
prove the exact income of the
deceased. In such cases, question
arises whether the Tribunal can take
into consideration the minimum
wages and the periodical revision of
minimum wages as are fixed by the
Government under the Minimum
Wages Act. To examine this question,
it will have to be considered whether
the revision which takes place under
the Minimum Wages Act can be
equated with the future prospects of a
deceased. As would be evident from
catena of judgments of the Supreme
Court, the future prospects have no
correlation with the price index,
inflation or denunciation of currency
value.
The future prospects would
necessarily mean advancement in
future career, earnings and
progression in one's life. It could be
considered by seeing, from which post
a person began his career, what
avenues or prospects he has while
being in a particular avocation and
what targets he/she would finally
achieve at the end of his career. The
promotional avenues, career
progression, grant of selection grades
etc. are some of the broad features for
considering one's future prospects in
one's career.
The minimum wage, in the very
context of economy has a correlation
with the growth and development of
the nation's economy, postulating
increase in the price index, reduction
of purchasing power with the
denunciation of currency value and
consequent fixation of minimum
wages giving some periodical
increase so as to ensure sustenance
and survival of the workman class.
Keeping this in view, under no
circumstance the revision of minimum
wages can be treated on the same
footing with the factor of future
prospects."
10. In The New India Assurance Co. Ltd. v. Smt.
Nirmala Devi and Ors., [2007] VI AD (Delhi) 730,
this Court held:-
"A perusal of the minimum wages
notified under the Minimum Wages
Act show that the minimum wages
gets increased by nearly 150% in 10
years."
11. The Court further observed:-
"Noting that minimum wages
virtually double after every 10 years
to neutralise increase in inflation,
cost of living, purchasing power of
rupee....."
12. Since the minimum wages have doubled in
the past 10 years as per the Minimum Wages Act,
therefore, safely the said increase at least can be
taken in view as a future increase of double
Minimum Wages under the Minimum Wages Act.
Applying the said criteria, the income of the
deceased as assessed in the year 2005 would
increase to Rs. 4,800/- and taking an average of
the same, the Tribunal rightly assessed the income
of deceased at Rs. 3,200/- per month."
7. Therefore the Tribunal had rightly added the increase of 50% to
the minimum wages for computing the income of the deceased.
CONTENTION (ii): -
8. The Tribunal awarded a sum of ` 1,25,000/- (` 25,000 for each
Claimant) towards loss of love and affection. I may mention
that, where the Claimants are entitled to loss of dependency on
actual basis, normally a nominal sum is awarded under the head
of loss of love and affection. Loss of love and affection can
never be measured in terms of money. Thus, uniformity has to
be adopted by the Courts while granting non-pecuniary
damages. The Supreme Court in Sunil Sharma v. Bachitar Singh
(2011) 11 SCC 425 and in Baby Radhika Gupta v. Oriental
Insurance Company Limited (2009) 17 SCC 627 granted only `
25,000/- (in total to all the claimants) under the head of loss of
love and affection. Thus, I would reduce the compensation
under this head to ` 25,000/- only
9. Therefore the compensation is reduced from ` 11,19,000/- to
`10,19,000/- . I would not interfere in the rate of interest
awarded @ 9% per annum as the period of interest is not long
and the rate of interest in Banks has risen during the last one or
two years. The awarded amount along with interest after
deducting the amount of interim compensation if paid shall be
disbursed in terms of the Tribunal's order.
10. The Appeal is allowed in above terms.
(G.P. MITTAL)
JUDGE
JANUARY 23, 2012
hs
