Delhi High Court
The Oriental Insurance Company ... vs Smt. Ranjana Mishra & Ors. on 12 October, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 12th October, 2012
+ MAC. APP. 745/2010
THE ORIENTAL INSURANCE COMPANY LTD....... Appellant
Through: Mr. Santosh Paul, Adv. with
Ms. Mohita Bagati, Adv.
versus
SMT. RANJANA MISHRA & ORS. .... Respondents
Through Mr. Peeush Sharma, Adv. for R-1 to R-6.
+ MAC. APP. 401/2011
SMT. RANJANA MISHRA & ORS ...... Appellants
Through: Mr. Peeush Sharma, Adv.
versus
THE ORIENTAL INSURANCE COMPANY LTD. ...... Respondent
Through: Mr. Santosh Paul, Adv. with
Ms. Mohita Bagati, Adv.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. These two Appeals arise out of a common judgment dated 27.08.2010
passed by the Motor Accident Claims Tribunal (the Claims Tribunal) in
Suit No.1382/2008 whereby a compensation of `50,40,940/- was
awarded in favour of the legal representatives of deceased Nagendra
Mishra, who died in a motor vehicle accident which occurred on
04.11.2008.
2. MAC APP.745/2010 has been filed by the Oriental Insurance Company
Limited on the ground that the compensation awarded is exorbitant and
excessive whereas in MAC APP.401/2011, the legal representatives of
the deceased Nagendra Mishra claim that the compensation awarded
particularly the rate of interest is very low.
3. For the sake of convenience, the Appellant in MAC APP.745/2010 shall
be referred to as the Insurance Company whereas the Appellants in MAC
APP.401/2011 shall be referred to as the Claimants.
4. During inquiry before the Claims Tribunal, it was claimed that the
deceased was working as an Assistant Manager (Purchase) with
Distilleries & Chemicals Pvt. Ltd., Gehlab Road, Hathin, District Mewat,
Haryana and was getting a salary of `23,618/- per month. The Claimants
during the course of inquiry proved a salary certificate Ex.PW-1/12 to
show that the deceased received annual salary of `2,96,352/- at the time
of his death. This certificate was not disputed. The Claims Tribunal
deducted one-fourth towards the personal and living expenses of the
deceased; applied the multiplier of 15 to compute the loss of dependency
as `50,00,940/-.
5. The Claims Tribunal further awarded a sum of `10,000/- each towards
loss of love and affection, loss of consortium, loss to estate and funeral
expenses to compute the overall compensation of ` 50,40,940/-.
6. The only ground of challenge raised by the Appellant Insurance Company
is that for the computation of loss of dependency, actual income less
income tax should have been taken into consideration. Reliance is placed
on Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr.,
(2009) 6 SCC 121.
7. On the other hand, learned counsel for the Claimants urges that the
compensation awarded is just and reasonable. It is stated that the
compensation awarded towards loss of love and affection is on the lower
side. Moreover, the Claims Tribunal awarded interest @ 5% per annum
whereas in the year 2009 when the Claim Petition was filed and the year
2010 when the same was decided the rate of interest on long term fixed
deposits were very high. The Claims Tribunal ought to have awarded
interest @ 12% per annum.
8. It is well settled that while computing the compensation, the actual
income of the deceased less income tax is to be taken into consideration.
After taking out the House Rent Allowance for the purpose of calculation
of income tax, the liability of income tax in the Assessment Year 2009-10
was about `8,000/-. The loss of dependency thus comes to `48,65,940/-
(2,96,352/- - `8,000/- (income tax) + 50% x 3/4 x 15) as against an award
of `50,00,940/-.
9. Normally a compensation of `25,000/- is awarded 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 `
25,000/- (in total to all the claimants) under the head of loss of love and
affection. Thus, I would enhance the compensation under this head from
` 10,000/- to ` 25,000/- while maintaining the award of `10,000/- each
towards loss to estate, loss of consortium and funeral expenses.
10. The overall compensation thus comes to `49,20,940/-.
11. The award of interest by the Claims Tribunal is compensation for the
retention of the money held by the Insurance Company. The rate of
interest was very low till about the year 2006. It started rising since the
year 2007. From the year 2009 onwards, the interest on long term
deposits is in the vicinity of about 9% per annum. Thus, the rate of
interest on long term deposits during the pendency of the Claim Petition
was varying between 8% - 8.5% per annum. The award of interest @ 5%
per annum by the Claims Tribunal was totally unreasonable. The
Claimants would be entitled to interest @ 8% per annum from the date of
filing of the Petition till the amount was deposited in pursuance of the
order of this Court.
12. Although the compensation amount stands reduced by `1,20,000/-, since
there is an enhancement in the rate of interest by 3%, there would be an
overall increase in the amount payable to the Claimants on account of the
increase in the rate of interest. The balance amount of compensation
shall be deposited with the Claims Tribunal within six weeks.
13. The enhanced amount shall enure for the benefit of the first Claimant,
who is the deceased's widow.
14. Fifty of the enhanced compensation shall be held in fixed deposit for a
period of two years. Rest shall be released on deposit.
15. The statutory deposit of `25,000/- shall be refunded to the Appellant
Insurance Company.
16. Both the Appeals stand disposed of in above terms.
17. Pending Applications also stand disposed of.
(G.P. MITTAL)
JUDGE
OCTOBER 12, 2012
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