Delhi High Court
Reena vs Sataywan And Ors. on 16 March, 2012
Author: J.R. Midha
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Reserve on : 24th February, 2012
Date of decision : 16th March, 2012
+ MAC.APP. 270/2007
REENA ..... Appellant
Through : Mr. Alok Sangwan, Adv.
versus
SATAYWAN AND ORS. ..... Respondents
Through : Mohd. Tabish Zia, Adv.
for R-2&3.
+ MAC.APP. 288/2007
UNITED INDIA INSURANCE CO. LTD. ..... Appellant
Through : Mr. Onkar Pandey, Adv. for
Mr. Pankaj Seth, Adv.
versus
REENA AND ORS. ..... Respondents
Through : Mr. Alok Sangwan, Adv.
for R-1.
Mohd. Tabish Zia, Adv.
for R-2&3.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT
1. The parties have challenged the impugned award whereby
the Claims Tribunal has awarded `11,10,000/- to the claimants.
The appellant in MAC.APP.No.270/2007 seeks enhancement of
the award amount whereas the appellant in
MAC.APP.No.288/2007 seeks reduction of the award amount.
2. The accident dated 1st July, 1999 resulted in the death of
Anand Singh. The deceased was survived by his widow and
parents. The widow of the deceased re-married after two years
of the death of the deceased but the second husband also died
after sometime. The widow of the deceased filed the claim
petition and impleaded the parents as the respondents therein.
The deceased was aged 26 years at the time of the accident and
was running the business of building material earning `15,000/-
per month. The deceased was also having agricultural income.
The deceased was claimed to be earning `5,000/- per month from
the business of agriculture. The Claims Tribunal took the income
of the deceased as `7,500/- per month, added 50% towards
future prospects, deducted 1/3rd towards personal expenses and
applied the multiplier of 11 to compute the loss of dependency at
`9,90,000/-. `25,000/- was awarded towards loss of consortium
to the widow, `10,000/- was awarded to each of the parents for
loss of love and affection, `10,000/- towards funeral expenses
and `65,000/- was awarded towards medical expenditure. The
total compensation awarded is `11,10,000/-. Out of the total
compensation awarded, `4,25,000/- was awarded to the widow of
the deceased, `3,80,000/- was awarded to the father of the
deceased and `3,05,000/- was awarded to the mother of the
deceased.
3. The appellant in MAC.APP.No.270/2007 seeks enhancement
of the award amount on the ground that the multiplier be
enhanced from 11 to 17 and the entire compensation be given to
her.
4. The appellant in MAC.APP.No.288/2007 seeks reduction of
the award amount on the ground that the income and future
prospects of the deceased were not proved and, therefore, the
minimum wages should be taken into consideration for
computing the compensation.
5. The widow of the deceased appeared in the witness box as
PW-1 and deposed that her husband was having two building
material shops in village Bijwasan and was earning `15,000/- per
month. She further deposed that her husband was also having
agricultural income of `5,000/- per month from growing
vegetables.
6. The father of the deceased appeared in the witness box as
RW-1 and placed on record the certificate of class 10th and 12th of
the deceased. He deposed that his son was running the business
of supplying building material in the name of Anand Cement
Store at Bijwasan and was also doing agricultural work. RW-1
further deposed that the deceased was earning `12,000/- to
`15,000/-. The receipt of the cement bags in respect of the
business of the deceased were placed on record. The statement
of bank accounts of the deceased was also placed on record. The
original records relating to the agricultural land were also placed
on record.
7. The father of the deceased admitted in his testimony that
the deceased was not paying Income Tax. The Income Tax limit
at the relevant time was `50,000/- per annum. The appellant has
succeeded in proving that the deceased was a business man
carrying on the business of building material in the name of
Anand Cement Store and, therefore, the Tribunal was justified in
not applying the minimum wages to compute the income of the
deceased. However, since the deceased was not paying Income
Tax, his business income cannot be presumed to be more than
`50,000/- per annum (`4,167/- per month). The deceased was
also having agricultural income which is exempt from Income
Tax. Since the agricultural land is still with the legal heirs of the
deceased, only the value of the agricultural work personally done
by the deceased can be taken into consideration, which in the
opinion of this Court would be `2,500/- per month. The income of
the deceased is taken to be `6,667/- per month (`4167/- from the
business and `2,500/- towards the value of the agricultural work
done by the deceased). The claimants are not entitled to future
prospects in terms of the judgment of the Supreme Court in
Sarla Verma v. Delhi Transport Corporation, 2009 (6)
Scale 129. The Claims Tribunal has applied the multiplier of 11
according to the age of the father of the deceased. The
deceased left behind a widow, who got remarried but her second
husband also died and, therefore, the multiplier of 17 has to be
applied according to the age of the deceased. The remarriage of
the widow would not have any bearing as held by this Court in
DTC v. Meena Kumar, 2011 (1) TAC 545. Even otherwise, the
second husband also died and the widow is dependent upon the
compensation for survival.
8. Taking the income of the deceased as Rs.6,667/- per
month, deducting 1/3rd towards the personal expenses of the
deceased and applying the multiplier of 17, the loss of
dependency is computed to be `9,06,712/- (`6,667 x 12 x 2/3 x
17). The legal heirs of the deceased are entitled to total
compensation of `10,26,712/- as per the break-up given
hereinbelow:-
Loss of dependency - `9,06,712/-
Loss of consortium - `25,000/-
Loss of love and affection - `20,000/-
Funeral Expenses - `10,000/-
Medical expenses - `65,000/-
Total - `10,26,712
9. For the reasons as aforesaid, MAC.APP.No.270/2007 is
dismissed, MAC.APP.No.288/2007 is allowed and the award
amount is reduced from `11,10,000/- to `10,26,712/- along with
interest @ 9% per annum from the date of filing of the claim
petition till realization. The share of the widow of the deceased
shall be 50% in the award amount. The share of the parents of
the deceased shall be 25% each in the award amount The award
amount along with interest, after adjusting the payment already
made, be deposited with UCO Bank, Delhi High Court Branch by
means of cheque drawn in the name of UCO Bank A/c Reena.
10. Upon the aforesaid amount being deposited, the UCO Bank
is directed to release 50% of the share of the widow (50% of the
50% of the total award amount) and 50% share of each of the
parents of the deceased out of their respective shares (50% of
25% of the total award amount to each of the parents) by
transferring the same to their Saving Bank Account. The
remaining amount be kept in fixed deposit in the following
manner:-
(i) Fixed deposit in respect of 10% for a period of one
year in the name of the widow.
(ii) Fixed deposit in respect of 10% for a period of one
year in the name of each of the parents.
(iii) Fixed deposit in respect of 10% for a period of two
years in the name of the widow.
(iv) Fixed deposit in respect of 10% for a period of two
years in the name of each of the parents.
(v) Fixed deposit in respect of 10% for a period of three
years in the name of the widow.
(vi) Fixed deposit in respect of 10% for a period of three
years in the name of each of the parents.
(vii) Fixed deposit in respect of 10% for a period of four
years in the name of the widow.
(viii) Fixed deposit in respect of 10% for a period of four
years in the name of each of the parents.
(ix) Fixed deposit in respect of 10% for a period of five
years in the name of the widow.
(x) Fixed deposit in respect of 10% for a period of five
years in the name of each of the parents.
11. The interest on the aforesaid fixed deposits shall be paid
monthly by automatic credit of interest in the respective Savings
Account of the beneficiaries.
12. Withdrawal from the aforesaid account shall be permitted to
the beneficiaries after due verification and the Bank shall issue
photo Identity Card to the beneficiaries to facilitate identity.
13. No cheque book be issued to the beneficiaries without the
permission of this Court.
14. The original fixed deposit receipts shall be retained by the
Bank in the safe custody. However, the original Pass Book shall
be given to the beneficiaries along with the photocopy of the
FDRs. Upon the expiry of the period of each FDR, the Bank shall
automatically credit the maturity amount in the Savings Account
of the beneficiaries.
15. No loan, advance or withdrawal shall be allowed on the said
fixed deposit receipts without the permission of this Court.
16. Half yearly statement of account be filed by the Bank in this
Court.
17. On the request of the beneficiaries, Bank shall transfer the
Savings Account to any other branch according to their
convenience.
18. The beneficiaries shall furnish all the relevant documents
for opening of the Saving Bank Account and Fixed Deposit
Account to Mr. M.S. Rao, AGM, UCO Bank, Delhi High Court
Branch, New Delhi (Mobile No. 09871129345).
19. The pending application is disposed of.
20. Copy of this judgment be sent to Mr. M.S. Rao, AGM, UCO
Bank, Delhi High Court Branch, New Delhi (Mobile
No.09871129345). Copy of this judgment be given dasti to
counsel for both the parties.
21. The LCR be sent back forthwith.
J.R. MIDHA, J
MARCH 16, 2012
