Delhi High Court
Govind Singh & Anr. vs Tulsi Ram @ Verma & Ors. on 31 October, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 31st October, 2012
+ MAC. APP. 931/2012
GOVIND SINGH & ANR. ..... Appellants
Through: Mr. S.N. Parashar, Adv.
versus
TULSI RAM @ VERMA & ORS. ..... Respondents
Through: Ms. Suman Bagga, Adv. for R-3.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
CM APPL.14713/2012 (Exemption)
Exemption allowed, subject to all just exceptions.
The Application is allowed.
CM APPL.14712/2012 (Delay)
Delay of 35 days in filing the Appeal is condoned.
The Application is allowed.
MAC. APP. 931/2012
1. The Appeal is for enhancement of compensation of ` 3,14,248/- awarded
by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour
of the Appellants for the death of Bijender Singh in a motor vehicle
accident which occurred 15.12.20074.
2. In the absence of any Appeal by the driver, owner or the Insurer, the
finding on negligence and liability has attained finality.
3. During inquiry before the Claims Tribunal it was claimed that the
deceased was working in a private company and was earning `4500/- per
month. In the absence of any cogent evidence with regard to deceased's
income the Claims Tribunal took the minimum wages of unskilled worker
as on the date of the accident, i.e. `3516/-, deducted 50% towards
personal and living expenses as the deceased was a bachelor and applied
the multiplier of 13 according to the age of the deceased's mother to
compute the loss of dependency.
4. The Claims Tribunal further awarded a sum of `25,000/- towards loss of
love and affection and `15,000/- towards funeral expenses.
5. Learned counsel for the Appellants urges that the Appellant were entitled
to an addition towards future prospects/inflation. The Claims Tribunal
ought to have been awarded some compensation towards loss to estate.
6. On the other hand, learned counsel for the Respondent Insurance
Company supports the impugned judgment and states that the
compensation awarded is just and reasonable.
7. The Appeal must succeed on both the grounds.
8. This Court in Rakhi v. Satish Kumar & Ors. (MAC. APP.390/2011)
decided on 16.07.2012, referred to the reports of the Supreme Court in
General Manager, Kerala State Road Transport Corporation,
Trivandrum v. Susamma Thomas (Mrs.) and Ors. (1994) 2 SCC 176,
Sarla Dixit v. Balwant Yadav, (1996) 3 SCC 179, Bijoy Kumar Dugar v.
Bidya Dhar Dutta & Ors, (2006) 3 SCC 242, Sarla Verma & Ors. v.
Delhi Transport Corporation & Anr, (2009) 6 SCC 121 and Santosh Devi
v. National Insurance Company Ltd. & Ors., 2012 (4) SCALE 559 and
held that as per Santosh Devi even in the absence of any evidence as to
future prospects an increase of 30% in the income has to be provided
where the victim had fixed income or was a self employed person.
Relevant portion of Santosh Devi is extracted hereunder:-
"14.....In our view, it will be naive to say that the wages or total
emoluments/income of a person who is self-employed or who is
employed on a fixed salary without provision for annual increment,
etc., would remain the same throughout his life. The rise in the cost
of living affects everyone across the board. It does not make any
distinction between rich and poor. As a matter of fact, the effect of
rise in prices which directly impacts the cost of living is minimal
on the rich and maximum on those who are self- employed or who
get fixed income/emoluments. They are the worst affected people.
Therefore, they put extra efforts to generate additional income
necessary for sustaining their families. The salaries of those
employed under the Central and State Governments and their
agencies/instrumentalities have been revised from time to time to
provide a cushion against the rising prices and provisions have
been made for providing security to the families of the deceased
employees. The salaries of those employed in private sectors have
also increased manifold. Till about two decades ago, nobody could
have imagined that salary of Class IV employee of the Government
would be in five figures and total emoluments of those in higher
echelons of service will cross the figure of rupees one lac.
Although, the wages/income of those employed in unorganized
sectors has not registered a corresponding increase and has not
kept pace with the increase in the salaries of the Government
employees and those employed in private sectors but it cannot be
denied that there has been incremental enhancement in the income
of those who are self-employed and even those engaged on daily
basis, monthly basis or even seasonal basis. We can take judicial
notice of the fact that with a view to meet the challenges posed by
high cost of living, the persons falling in the latter category
periodically increase the cost of their labour. In this context, it
may be useful to give an example of a tailor who earns his
livelihood by stitching cloths. If the cost of living increases and the
prices of essentials go up, it is but natural for him to increase the
cost of his labour. So will be the cases of ordinary skilled and
unskilled labour, like, barber, blacksmith, cobbler, mason etc.
Therefore, we do not think that while making the observations in
the last three lines of paragraph 24 of Sarla Verma's judgment, the
Court had intended to lay down an absolute rule that there will be
no addition in the income of a person who is self-employed or who
is paid fixed wages. Rather, it would be reasonable to say that a
person who is self-employed or is engaged on fixed wages will also
get 30 per cent increase in his total income over a period of time
and if he / she becomes victim of accident then the same formula
deserves to be applied for calculating the amount of
compensation."
9. Thus, relying on Santosh Devi I am of the view that even in the absence
of any evidence with regard to the deceased's future prospects, the
Claimants were entitled to an addition of 30% towards inflation.
10. The loss of dependency comes to ` 3,56,522/- (3516/- + 30% x 1/2 x 12 x
13) as against a sum of `2,74,248/- awarded by the Claims Tribunal.
11. In Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr.,
(2009) 6 SCC 121 it was laid down that the notional sum of `5,000/- to
`10,000/- should be awarded towards loss to estate. In the circumstances,
I would make a provision of `10,000/- towards loss to estate.
12. The overall compensation thus comes to `4,06,522/- (3,56,522/- +
50,000/-).
13. The enhanced compensation of `92,274/- shall carry interest @ 7.5% per
annum which shall be equally shared between the Appellants.
14. The enhanced compensation along with interest shall be deposited with
the Claims Tribunal within six weeks.
15. Seventy five percent of the enhanced compensation shall be held in fixed
deposit for a period of two years. Rest shall be released on deposit.
16. The Appeal is allowed in above terms.
17. Pending Applications also stand disposed of.
(G.P. MITTAL)
JUDGE
OCTOBER 31, 2012
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