Delhi High Court
Reena Bhatia & Anr. vs Badan Singh & Ors. on 17 May, 2012
Author: G.P. Mittal
$~16
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision:17th May, 2012
+ MAC. No.539/2010
REENA BHATIA & ANR. ..... Appellants
Through: Mr. S.N. Parashar, Advocate
Versus
BADAN SINGH & ORS. ..... Respondents
Through: Mr. Sameer Nandwani,
Advocate for Respondent No.3
Insurance Company.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. The Appeal is for enhancement of compensation of ` 3,75,000/-
awarded by the Claims Tribunal for the death of Pratham
Bhatia, who died in an accident which occurred on 11.04.2007.
2. By the impugned award, the Claims Tribunal held that the
accident was caused on account of the rash and negligent
driving of truck No.RJ-14GB-1307 driven by the First
Respondent which hit the motorcycle No.DL-4S-AN-5995 on
which the deceased was riding as a pillion.
3. In the absence of any Appeal by the owner/insurer, the finding
on negligence has become final between the parties.
4. The Claims Tribunal noticed that the deceased was a first year
student of Engineering in Delhi College of Engineering. He
was 18 years old at the time of his death. The Claims Tribunal
followed the judgment of this Court in Loknath Gupta v.
Rajender Kumar, ILR (2010) 1 Delhi 102 for award of
compensation in case of the death of a child and awarded a
compensation of ` 3,75,000/-.
5. It is urged by the learned counsel for the Appellants that the
deceased had an exceptional meritorious record. He secured
admission in Delhi College of Engineering in the stream of
Production Engineer. It is urged that from PW3's evidence
(Head Clerk from Delhi College of Engineering) it was
established that the placement of all the students in the College
took place between a package of `3 lakhs to 10 lakhs in the year
2009. It is urged that the compensation has to be awarded on
the basis of potential income of the deceased.
6. It is established on record that the deceased was a meritorious
student and was able to secure admission in a prestigious
Engineering College in Delhi.
7. In Ganga Devi & Ors. v. New India Assurance Co. Ltd. & Ors.,
MAC APP. 359/2008, decided by this Court on 23.11.2009,
which related to the death of a student (studying medicine) who
was doing internship and was to be awarded the MBBS degree
in a short time, the Tribunal awarded a compensation of `
9,35,352/- on the basis of the minimum wages of a Graduate.
This Court observed that although the deceased was getting a
stipend of ` 5,000/- per month at the time of his death due to the
accident, he would have ultimately joined as a doctor at a salary
ranging between ` 16,000/- per month to ` 25,000/- per month.
Thus, the average monthly income of the deceased was taken as
` 18,000/- and after adding 50% towards future prospects, the
compensation was enhanced to ` 21,36,000/-.
8. In Ramesh Chand Joshi v. New India Assurance Company MAC
APP.212-213/2006 decided on 20.01.2010 this Court took the
potential income of a BE (Bio-Technology) First year student of
Delhi College of Engineer (DCE) as ` 38,333/- per month.
9. A Division Bench of Andhra Pradesh High Court in
B.Ramulamma & Ors. v. Venkatesh, Bus Union, Rep. by A.M.
Velu Mudaliyar & Anr., 2011 ACJ 1702, held that it was very
difficult to determine the income of a student after completion
of the course. It was observed that it was appropriate and
reasonable to take the salary at the entry level fixed by the Govt.
for such jobs.
10. It may be noticed that in the cross-examination, PW3 deposed
that all the students did not participate in the placement. He
testified that 476 students were eligible to participate in the test
and only 452 got the placement.
11. The gross salary of a Group A Officer in the Central and State
Government on the date of the accident i.e. 11.04.2007 was
`27,000/-. There was a liability of Income Tax of about
`44,000/- on an income of `3,24,000/-. There would be
deduction of 50% towards the personal and living expenses in
the case of a bachelor. The loss of dependency thus comes to
`17,70,000/-(`27,000/- x 12 x 1/2 - 44,000/- x 15). On adding
a notional sum of `25,000/- towards loss of love and affection
and `10,000/- each towards loss to estate and funeral expenses,
the overall compensation comes to ` 18,15,000/-.
12. The enhanced compensation of ` 14,40,000/- shall carry interest
@ 7.5% from the date of the filing of the Petition till its deposit.
Out of the enhanced compensation, a sum of `2,50,000/- each
along with proportionate interest shall be payable to the
Appellants No.2 and 3. The compensation awarded to the
Appellant No.3 shall be held in Fixed Deposit till she attains the
age of 21 years. 80% of the compensation awarded to the
Appellants No.1 and 2 shall be held in Fixed Deposit for a
period of two years, four years and six years in equal
proportion. Rest of the amount shall be released to them
immediately on deposit.
13. The Respondent No.3 United India Insurance Company Ltd. is
directed to deposit the enhanced amount along with interest
with the UCO Bank, Delhi High Court Branch in the name of
the Appellants within six weeks.
14. The Appeal is allowed in above terms.
(G.P. MITTAL)
JUDGE
MAY 17, 2012
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