National Insurance Co. Ltd. vs Devki Rawat & Ors.
2012 Latest Caselaw 1648 Del

R-12 (Part-III)
*      IN THE HIGH COURT OF DELHI AT NEW DELHI

                   +    MAC.APP.612/2006

%                            Date of decision: 7th March, 2012

      NATIONAL INSURANCE CO. LTD.         ...... Appellant
                    Through : Mr. Mukesh Anand, Adv. for
                              Ms. Sonia Sharma, Adv.
               versus

      DEVKI RAWAT & ORS.                    ..... Respondents
                    Through : None.

       CORAM:
       HON'BLE MR. JUSTICE J.R. MIDHA

                       JUDGMENT (ORAL)

1. The appellant has challenged the award of the Claims

Tribunal whereby compensation of `6,54,000/- has been

awarded to the claimants/respondents No.1 to 5.

2. The accident dated 5th June, 1992 resulted in the death of

V.S. Rawat. The deceased was survived by his widow, three

daughters and one son who filed the claim petition before the

Claims Tribunal.

3. The deceased was an ex-serviceman holding a diploma in

pharmacy. The deceased was drawing the pension of `2,223/-

per month apart from business income of `1,000/- per month.

The Claims Tribunal took the income of the deceased as

`3,223/- per month, added `1,761/- towards future prospects,

deducted 1/6th towards personal expenses and applied the

multiplier of 13 to compute the loss of dependency at

`6,24,000/-. `25,000/- was awarded towards loss of love and

affection and `5,000/- towards funeral expenses. The total

compensation awarded is `6,54,000/- along with interest @ 7%

per annum.

4. The learned counsel for the appellant submits that the

award amount is liable to be reduced as the income and future

prospects of the deceased were not proved by sufficient

evidence. It is further submitted that the appropriate deduction

towards personal expenses of the deceased should be 1/5th

instead of 1/6th. .

5. The widow of the deceased appeared in the witness box

as PW-2 and deposed that the deceased was a diploma holder

in pharmacy. The diploma certificate and certificate of

Registered Pharmacist were proved as Ex.PW-2/2 and Ex.PW-

2/3 respectively. The deceased was an ex-serviceman and his

discharge from the Army Medical Corps. from the post of

Subedar (Pharma) on 28th February, 1990 vide discharge book

proved as Ex.PW2/8. PW-2 further deposed that the deceased

was drawing a pension of `2,223/- per month apart from

income of `1,000/- from business. The Claims Tribunal took

into consideration that the deceased was a technical person

and although there was no documentary proof of income, the

statement of PW-1 that the deceased was earning `1,000 per

month apart from the pension was held to be fair and

reasonable. The Claims Tribunal took the future prospects into

consideration considering the revision in minimum wages due

to inflation and price rise index. There is no infirmity in

findings of the Claims Tribunal with respect to the income and

future prospects of the deceased. With respect to the

deduction towards personal expenses, the Claims Tribunal has

deducted 1/6th towards personal expenses whereas the

appropriate deduction should have been 1/5th. However,

considering that the Claims Tribunal has awarded interest

@7% per annum whereas the appropriate rate of interest at

the relevant time was 12% per annum, no interference is

warranted in the facts and circumstances of this case but this

case shall not be treated as precedent with respect to the

deduction towards the personal expenses.

6. For the aforesaid reasons, the appeal is dismissed. The

pending application is disposed of.

7. The LCR be sent back forthwith.

8. Copy of this judgment be sent to respondents No.1 to 5

as well as their counsel.

J.R. MIDHA, J MARCH 07, 2012 aj