New India Insurance Co. Ltd. vs Soni Bai & Anr
2012 Latest Caselaw 3127 Del

$~12 & 18
*    IN THE HIGH COURT OF DELHI AT NEW DELHI

                                              Date of decision:10th May, 2012
+        MAC. APP. No.543/2011

         NEW INDIA INSURANCE CO. LTD.
                                                        ..... Appellant
                                   Through:   Mr.    Kanwal      Chaudhary,
                                              Advocate
                            Versus

         SONI BAI & ANR.                                   ..... Respondents
                       Through:               Mr. Anshuman Bal, Advocate
                                              for the Respondents No.1 & 2
WITH
+   MAC. APP. No.202/2012

         SONI BAI & ANR.                                ..... Appellants
                        Through:              Mr. Anshuman Bal, Advocate
                   Versus

         NEW INDIA INSURANCE CO. LTD.      ..... Respondent
                       Through: Mr. Kanwal Chaudhary,
                                Advocate
         CORAM:
         HON'BLE MR. JUSTICE G.P.MITTAL

                                   JUDGMENT

G. P. MITTAL, J. (ORAL)

1. These two Appeals MAC APP No.543/2011 and MAC APP No.202/2012 arise out of a judgment dated 01.04.2011 passed in a Claim Petition under Section 163-A of the Motor Vehicles Act whereby a compensation of Rs.3,38,516/- was awarded for

the death of Suraj a 19 years old son of the Appellant in MAC APP No.543/2011.

2. Both the Appellant (Insurance Company) and the Cross-

Objectionists (the Claimants) say that in a Petition under Section 163-A of the Act, compensation has to be awarded as per the structured formula. This court after analyzing the law in MAC APP No.304/2009 titled New India Assurance Co. Ltd. v. Pitamber & Ors. decided on 23.01.2012 held that the compensation in a Petition under Section 163-A has to be awarded on the basis of structured formula.

3. The deceased's income was claimed to be Rs.3300/- per month The Claims Tribunal in the absence of any cogent evidence granted the compensation on the basis of minimum wages of an unskilled worker i.e. Rs.3,271/- per month. The compensation towards loss of dependency comes to Rs.4,71,023/-(3271 X 2/3 X 12 X 18). On adding a further sum of Rs.2500/- towards funeral expenses and Rs.2000/- towards loss to estate, the overall compensation comes to Rs.4,75,523/-.

4. The compensation thus stands enhanced from Rs.3,38,516/- to Rs.4,75,523/-.

5. The compensation deposited in MAC APP No.543/2011 shall be released in favour of the Respondent No.1 in terms of the order passed by the Claims Tribunal.

6. The enhanced compensation of Rs.1,37,007/- shall carry interest @ 7.5% per annum and shall be payable to the Respondents No.1 and 2 (the Claimants and Cross-Objectionists) in equal proportion.

7. The Appellant Insurance Company is directed to deposit the enhanced amount along with interest in favour of the Respondents No.1 and 2 in UCO Bank, Delhi High Court Branch within six weeks.

8. The statutory amount of Rs.25,000/- shall be refunded to the Appellant Insurance Company.

9. Both the Appeals are disposed of accordingly.

(G.P. MITTAL) JUDGE MAY 10, 2012 pst