Delhi High Court
New India Assurance Co. Ltd. vs Paramjeet Kaur & Ors. on 31 January, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: January 30, 2012
Pronounced on: January 31,2012
+ MAC. APP. 285/2010
NEW INDIA ASSURANCE CO. LTD.
..... Appellant
Through: Mr. Kanwal Chaudhary, Advocate.
Versus
PARAMJEET KAUR & ORS.
..... Respondents
Through: Mr. Anshuman Bal, Advocate for
Respondents No.1 to 5
WITH
+ MAC. APP.104/2012
PARAMJEET KAUR & ORS.
..... Appellants
Through: Mr. Anshuman Bal, Advocate for
Appellants No.1 to 5
Versus
NEW INDIA ASSURANCE CO. LTD.
..... Respondent
Through: Mr. Kanwal Chaudhary, Advocate.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
MAC. APP. No.285/2010 & MAC. APP.104/2012 Page 1 of 6
JUDGMENT
G. P. MITTAL, J.
1. These are two Cross-Appeals. In MAC APP No.285/2010, the
Appellant New India Assurance Company Ltd.(hereinafter
referred to "the insurer") seeks reduction of the compensation of
`18,82,000/- awarded for the death of Balwant Singh who
succumbed to his injuries on 17.09.2007 suffered in a motor
accident which took place on 10.08.2007.
2. In the Cross-Appeal being MAC APP No 102/2012, the
Appellants who are Respondents No.1 to 5 in MAC APP
No.285/2010 seek enhancement of compensation on the ground
that the deceased's full salary was not taken into consideration
while computing the loss of dependency.
3. The contentions raised on behalf of the Appellants are:
(i) The deceased was aged 55 years; no future prospects
were, therefore, permissible. The Tribunal erred in
awarding 30% increase in the salary.
(ii) A sum of `1 lakh was awarded towards loss of love and
affection, which was on the higher side. The deceased's
income should have been considered as `13,953/- per
month instead of `15,345/- taken by the Tribunal.
4. By the impugned judgment, the Tribunal took the deceased's
salary to be `15,315, added 30% towards future prospects,
deducted 1/3rd towards the personal and living expenses and
computed the loss of dependency as `17,52,036/-.
5. On account of 6th Pay Commission, the salaries of Government
employees were increased retrospectively w.e.f. 01.01.2006.
The deceased died on 17.09.2007. His salary certificate, after
fixation of his salary as revised by the 6th Pay Commission, was
placed on record during inquiry before the Tribunal. The
deceased's salary as on 17.09.2007 inclusive of all allowances
was `19,409/-. This also included transport allowance of `100/-,
Metro Pass Allowance of `90 and Conveyance Allowance of
`150.
6. It is well settled that for determination of loss of dependency,
the entire salary paid to the deceased by his employer by way of
perks should be included in the monthly income. (National
Insurance Co. Ltd. V. Indira Srivastava, 1 (2008) ACC 162
(SC) and National Insurance Co. Ltd. V. Saroj & Ors., (2009)
13 SCC 508). Out of the entire salary, only a sum of `100/-
which was transport allowance, Metro Pass Allowance `90/-
and Conveyance Allowance `150/- could be taken as perks
incidental to employment and are personal to the deceased.
Thus, the loss of dependency was to be computed on the salary
of `19,409/- - 100 - 150 - 90 = `19,069/-.
7. The deceased was aged 55 years. The Tribunal erred in
granting 30% increase towards future prospects. As per Sarla
Varma v. DTC, (2009) 6 SCC 121, this was permissible only
when the deceased was between the age of 40 years to 50 years.
8. The compensation of `1 lakh awarded towards loss of love and
affection was on the higher side. I may mention that where the
Claimants are awarded the 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.
9. The compensation awarded in view of the above observations is
recomputed as under:-
i) Loss of Dependency `15,25,788/-
19069 X 12 - 20766 (Income Tax)
- 1/3rd (69354) X 11
ii) Loss of Love and Affection ` 25,000/-
iii) Loss of Estate `10,000/-
iv) Funeral Expenses `10,000/-
v) Loss of consortium ` 10,000/-
Total `15,80,788/-
10. The compensation stands reduced from ` 18,82,000/- to
`15,80,788/-, with interest @ 7.5% per annum from the date of
filing of the petition till the date of deposit.
11. 40% of the compensation amount shall be payable to Smt.
Paramjeet Kaur, the deceased's widow; 25% shall be payable to
Smt. Dalip Kaur, the deceased's mother; 5% shall be payable to
Smt. Baljeet Kaur, the deceased's married daughter and rest
15% each shall be payable to Hardeep Singh and Tejinder Singh
respectively.
12. The amount payable to Smt. Paramjeet Kaur shall be held in
Fixed Deposit for a period of five years. The amount payable to
Hardeep Singh and Tejinder Singh shall be held in a Fixed
Deposit in UCO Bank, Delhi High Court Branch, New Delhi for
a period of four years. They shall be entitled to apply to the
Tribunal for premature encashment of FDR, in case the money
is needed for their higher education. The Claimants would be
entitled to payment of interest on quarterly basis.
13. The excess amount along with interest earned, if any, during the
pendency of the Appeal shall be refunded to the Appellant New
India Assurance Company Ltd. The amount payable shall be
proportionately disbursed/ held in fixed deposit in terms of the
Tribunal's order in favour of the claimants.
14. MAC. APP. No.285/2010 is allowed in above terms.
15. MAC. APP. No.104/2012 is dismissed.
(G.P. MITTAL)
JUDGE
JANUARY 31, 2012
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