Delhi High Court
M/S. The New India Assurance Co. ... vs Smt. Siraj Begum & Ors. on 9 October, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 9th October, 2012
+ MAC. APP. 227/2010
M/S. THE NEW INDIA ASSURANCE CO. LTD. ..... Appellant
Through: Mr. D.D. Singh, Adv. with
Mr. Navdeep Singh, Adv.
versus
SMT. SIRAJ BEGUM & ORS. .... Respondents
Through Nemo.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. The Appeal is for reduction of compensation of `5,91,672/- awarded by
the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of
Respondents No.1 to 7 for the death of Shawaz Khan, a bachelor aged 25
years.
2. The finding on negligence is not challenged by the owner, driver or the
Appellant Insurance Company; the same therefore has attained finality.
3. During inquiry before the Claims Tribunal it was claimed that the
deceased Shawaz Khan was a self-employed person and was earning
`10,000/- to `12,000/- per month. In the absence of any evidence with
regard to the deceased' income, the Claims Tribunal took the minimum
wages of an unskilled worker as fixed by the Govt. of NCT of Delhi
under the Minimum wages Act; added 50% towards future prospects;
deducted one-third towards personal and living expenses (as the deceased
had younger siblings); and applied the multiplier of 13 to compute the
loss of dependency.
4. The following contentions are raised on behalf of the Appellant Insurance
Company:-
(i) There should have been deduction of 50% towards personal and
living expenses in the case of a bachelor.
(ii) The age of the deceased's mother was 65 years and, therefore, the
appropriate multiplier was 5 instead of 13 as taken by the Claims
Tribunal.
(iii) Although there was no evidence with regard to deceased's future
prospects, the Claims Tribunal made an addition of 50% towards
future prospects.
(iv) The compensation of `50,000/- awarded towards loss of love and
affection is on the higher side.
DEDUCTION AND MULTIPLIER:-
5. In this case the deceased Shawaz Khan left behind seven legal
representatives. His father Nazakat Khan died immediately after filing of
the Claim Petition. In Sarla Verma (Smt.) & Ors. v. Delhi Transport
Corporation & Anr., (2009) 6 SCC 121, the Supreme Court laid down
that where a deceased bachelor had the responsibility of younger siblings,
it would be appropriate to make deduction of one-third instead of one-
half towards personal and living expenses. Thus, the Claims Tribunal
was justified in making deduction of one-third towards personal and
living expenses.
6. As far as multiplier is concerned, I have before me a photocopy of the
voter Identity Card issued by the Election Commission of India (Ex.PW-
1/A) which shows that Smt. Siraj Begum, the deceased's mother was
aged 48 years on 01.01.2008. Thus, on the date of the accident she was
only about 47 years. The Claims Tribunal therefore, rightly applied the
multiplier of '13'.
7. No evidence was led by the Claimants to prove as to what was the
deceased's profession and what were his future prospects. Thus, in the
absence of any evidence with regard to deceased's future prospects, an
addition of 50% could not have been made. (Bijoy Kumar Dugar v.
Bidyadhar Dutta & Ors., AIR 2006 SC 1255; and Sarla Verma (Smt.) &
Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121). On the
other hand, an addition of 30% should have been made towards inflation
on the basis of the judgment of the Supreme Court in Santosh Devi v.
National Insurance Company Ltd. & Ors., 2012 (4) SCALE 559.
8. The loss of dependency thus comes to `4,47,782/- (3312/- + 30% x 2/3 x
12 x 13) as against a sum of `5,16,672/- awarded by the Claims Tribunal.
9. The Claims Tribunal awarded a sum of `50,000/- towards loss of love
and affection. 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.
10. The Claims Tribunal awarded a sum of `25,000/- towards funeral
expenses. Funeral expenses are awarded on the basis of actual
expenditure. No evidence was led with regard to the expenditure on last
rites. In the absence of any evidence, Courts usually award a sum of
`10,000/- towards funeral expenses. The compensation awarded towards
funeral expenses is thus reduced from `25,000/- to `10,000/- only. The
Claimants are further awarded a sum of `10,000/- towards loss to estate.
11. The overall compensation is thus reduced from `5,91,672/- to `
4,92,782/- which shall carry interest @ 7.5% per annum from the date of
filing of the Petition till its payment.
12. The excess amount of `98,890/- along with proportionate interest and the
interest accrued, if any, during the pendency of the Appeal shall be
refunded to the Appellant Insurance Company.
13. The compensation awarded shall be released/held in fixed deposit in
favour of the Claimants in terms of the order passed by the Claims
Tribunal.
14. The statutory deposit of `25,000/- be refunded to the Appellant Insurance
Company.
15. The Appeal is allowed in above terms.
16. Pending Applications also stand disposed of.
(G.P. MITTAL)
JUDGE
OCTOBER 09, 2012
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