Delhi High Court
Sumitra Sharma & Anr vs National Insurance Co Ltd & Ors on 31 May, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 31st May, 2012
+ MAC.APP. 600/2010
SUMITRA SHARMA & ANR ..... Appellant
Through: Mr. S.N. Parashar, Advocate
versus
NATIONAL INSURANCE CO LTD & ORS ..... Respondent
Through: Mr. K.P. Chawla, Advocate for
the R-1.
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 for the death of Amit Sharma in a motor accident
which occurred on 20.10.2005.
2. It is urged by the learned counsel for the Appellants that the
deceased was an extraordinary brilliant student and had scored
1067 rank in the Haryana State All India Common Engineering
Entrance Test (CEET-2005). He got admission in the Institute
of Technology and Management, Faridabad under the stream of
Electronics and Communication Engineering.
3. The Motor Accident Claims Tribunal (the Claims Tribunal),
argues the learned counsel for the Appellants, erred in taking
notional income of the deceased as `15,000/- against his
potential income as an Electronics and Communication
Engineer.
4. The Appeal must succeed.
5. The deceased Amit Sharma scored 89.3% marks in his 12 th
Class Examination held by the CBSE. He scored 97% marks in
Mathematics.
6. Obviously, the deceased did not have any income on the date of
the accident.
7. In the case of Haji Zainullah Khan (Dead) by Lrs. v. Nagar
Mahapalika, Allahabad, 1994 (5) SCC 667, death of a young
boy, aged 20 years took place in an accident which happened in
the year 1972. The deceased was a student of B.Sc Ist year
(Biology), a compensation of `1,46,900/- was increased and
rounded off to ` 1,50,000/-.
8. 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/-.
9. 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 Engineering (DCE) as `38,333/- per month.
10. 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 who was allowed
to complete his course. It was observed that it was appropriate
and reasonable to take a salary at the entry level fixed by the
Govt. for such jobs.
11. The gross salary of a Group 'A' officer in the Central and the
State Govt., excluding the transport allowance was `17,940/-
per month. If a qualified degree holder Engineer joins a Govt.
service he would get this salary on a basic pay of `8,000/-. The
placement in private sector was on a slightly higher side. Since
the deceased had scored admission in a College which was not
affiliated to a prestigious University, I would not make any
addition towards the future prospects.
12. The age of the deceased's mother on the date of the accident
was 42 years. Thus, the appropriate multiplier to compute the
loss of dependency was '14'. The loss of dependency thus
comes to `14,41,048/- (17940/- x 12 - 9416/- (tax) x 1/2 x14).
13. On adding a sum of `25,000/- towards loss of love and affection
and `10,000/- each towards funeral expenses and loss to estate,
the overall compensation comes to `14,86,048/-.
14. The compensation is enhanced from `3,75,000/- to `14,86,048/-
which shall carry interest @ 7.5% per annum from the date of
filing of the Petition till its payment.
15. Respondent No.1 National Insurance Company Limited is
directed to make the deposit of the enhanced compensation
along with interest within eight weeks with UCO Bank, Delhi
High Court, New Delhi in the name of the Appellants.
16. The enhanced amount along with interest shall be payable to the
Appellants in equal shares.
17. 70% of the enhanced amount shall be held in fixed deposit for a
period of one year, three years, five years and seven years in
equal proportion. Rest of the amount shall be released
immediately on deposit.
18. The Appeal is allowed in above terms.
19. Pending Applications stand disposed of.
(G.P. MITTAL)
JUDGE
MAY 31, 2012
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