National Insurance Company Ltd vs Babita Devi
2012 Latest Caselaw 3094 Del

*        IN THE HIGH COURT OF DELHI AT NEW DELHI

                                           Date of decision: 9th May, 2012
+        MAC.APP. 405/2011

         NATIONAL INSURANCE COMPANY LTD ..... Appellant
                        Through: Mr. M.R. Sinha, Adv.
                 versus

         BABITA DEVI                               ..... Respondent
                            Through:     Mr. O.P. Mannie, Adv. for
                                         R-1 to R-3.
         CORAM:
         HON'BLE MR. JUSTICE G.P.MITTAL
                       JUDGMENT

G. P. MITTAL, J. (ORAL)

1. The Appeal is for reduction of compensation of `14,09,400/-

awarded for the death of Rajeev who died in a motor accident, which took place on 20.05.2010.

2. The deceased was employed as a fitter with M/s. Hindustan Investigation & Security System and was getting a salary of ` 6099/- per month. It was proved on record that he was matriculate and had obtained a National Trade Certificate from the Department of Industrial Training & Vocational Education, Haryana, in the trade of fitter. The Claims Tribunal accepted the deceased's salary to be `6099/-, added 50% towards the future prospects, deducted 1/3rd towards the personal and living expenses and applied multiplier of '17' appropriate to the deceased's age to compute the loss of dependency as

`12,44,400/-. A sum of `1,65,000/-was added towards non- pecuniary damages.

3. The following contentions are raised on behalf of the Appellant.

(i) The Claims Tribunal erred in adding 50% towards future prospects.

(ii) A sum of `1,00,000/- awarded towards loss of consortium was excessive and exorbitant.

(iii) Compensation of `50,000/- awarded towards loss of love and affection is excessive.

4. From the salary certificate Ex.PW-1/5 it was established that the deceased was in permanent employment with Investigation and Security Services. He was contributing towards PF and ESI and was a qualified fitter. The Claims Tribunal was justified in making addition of 50% towards future prospects.

5. Only a conventional sum of compensation is awarded towards the loss of consortium. In Sarla Verma & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121, the Supreme Court laid down the principle that normally a sum of `5,000/- to 10,000/- is awarded towards loss of consortium. In the instant case, the Claims Tribunal awarded a sum of `1,00,000/- under this head, which is exorbitant and excessive. The same is reduced to `10,000/- only in consonance with Sarla Verma (supra).

6. 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.

7. It is urged by the learned counsel for the Respondents (the Claimants) that no compensation has been awarded towards loss to estate.

8. Under Order XLI Rule 22 CPC the Respondents can resist the Appeal for enhancement of compensation by claiming that the compensation awarded under a particular head is low or that the compensation has not been awarded under a particular head. A reference may be made to Jayakodi & Ors. v. Branch Manager, NIC & Anr., Civil Appeal No.401/2008 (arising out of SLP (Civil) No.13746/2004 decided on 11.01.2008).

9. In view of the above discussion, the overall compensation is reassessed as under:-

           Sl.        Compensation under    Awarded by      Awarded by
                        various heads       the Claims       this Court
          No.                                Tribunal

          1.         Loss of Dependency      `12,44,400/-    `12,44,400/-





           2.         Loss of Consortium           ` 1,00,000/-    ` 10,000/-

          3.         Love and Affection            ` 50,000/-     ` 25,000/-

          4.         Funeral Expenses              ` 15,000/-     ` 15,000/-

                                          Total ` 14,09,400/- ` 12,94,400/-

10. The overall compensation is thus reduced from `14,09,400/- to `12,94,400/-.

11. The amount of `12,94,400/- with interest @ 7.5% per annum shall be released in favour of the Respondents No.1 to 3.

12. The award amount shall be held in fixed deposits in terms of order passed by the Claims Tribunal.

13. The excess amount of `1,15,400/- along with the proportionate interest and the interest, if any, accrued during the pendency of the Appeal, shall be refunded to the Appellant Insurance Company

14. The statutory amount of `25,000/- shall also be refunded to the Appellant.

15. The Appeal is allowed in above terms.

(G.P. MITTAL) JUDGE MAY 09, 2012 neelam