New India Ass. Co. Ltd. vs Prem Wati &Ors.
2012 Latest Caselaw 1553 Del

*       IN THE HIGH COURT OF DELHI AT NEW DELHI

                                           Decided on: 5th March, 2012

+       MAC.APP. 381/2009


        NEW INDIA ASS. CO. LTD.            ..... Appellant
                      Through: Mr.D.K.Sharma, Advocate

                    versus

        PREM WATI &ORS.                    ..... Respondents
                     Through:          None.

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

G. P. MITTAL, J. (ORAL)

1. This appeal is for reduction of compensation of `20,10,804/- awarded for the death of the Dev Raj in a motor accident which occurred on 13.04.2006.

2. It is urged by the learned counsel for the Appellant that future income of `c 2,50,000/- was assumed by the Claims Tribunal without any basis.

3. I have perused the record.

4. Although the Claims Tribunal relied on Sarla Dixit & Anr. v. Balwant Yadav AIR 1996 SC 1274 but without any basis assumed the

average future income of the deceased as `2,50,000/-. Since there was gradual increase in the deceased's income, the Respondents (the Claimants) were entitled to 50% increase towards future prospects on the basis of Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121. Deducting 1/4th towards personal living expenses (considering number of dependants as 6) and adopting a multiplier of 16, the loss of dependency would come to `11,07,000/- (`61500+50%x3/4x16).

5. The Tribunal erred in jointly granting a sum of `25,000/- towards Funeral Expenses and loss of Love and Affection. I would make provision for the same separately and in addition grant a sum of `10,000/- each towards Loss to Estate and Loss of Consortium. The

compensation is awarded as under:-

        Loss of Dependency            :     `11,07,000/-


        Loss of Love and Affection    :        `25,000/-


        Funeral Expenses              :        `10,000/-


        Loss to Estate                :        `10,000/-


        Loss of Consortium            :        `10,000/-
                                             ___________
        Total                                `11,62,000/-

6. In terms of order dated 10.08.2009 of this Court an amount of `12 lacs (inclusive of interest) was to be deposited as a condition of

grant of stay of the execution. The Appellant was liable to deposit `11,62,000/- along with interest @ 7.5% per annum from the date of

filing of the petition till the date of deposit. The shortfall shall be made by the Appellant/Insurance Company within 30 days.

7. By an order dated 14.10.2009 a sum of `2 lac in all was ordered to be released. It appears that the same has not been released as the Respondents did not come forward. 10% of the awarded amount along with proportionate interest shall be payable to Respondent No.3 and 5% each to Respondents No. 2,4,5 and 6. Rest shall go to the Respondent No.1. The amount payable to Respondents Nos. 4,5 and 6 shall be held in Fixed Deposit till they attain the age of 21 years. The amount payable to Respondents No. 2 and 3 shall be released forthwith. 25% of the amount payable to Respondent No.1 shall be released on deposit. Rest of the amount shall be held in Fixed Deposit for a period of 2 years, 4 years, 6 years and 8 years in equal proportion in UCO Bank, Delhi High Court Branch. The Respondent No.1 and 4 to 6 shall be entitled to payment of monthly interest.

8. The statutory amount of `25,000/- shall be released in favour of the Appellant.

9. The appeal is allowed of in above terms.

(G.P. MITTAL) JUDGE MARCH 05, 2012 mr