Delhi High Court
Harpal Singh & Anr. vs M/S. Icici Lombard & Anr. on 21 April, 2015
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 21st April, 2015
+ MAC.APP. 1071/2012
HARPAL SINGH & ANR. ..... Appellants
Through: Mr. S.N.Gupta, Adv.
versus
M/S. ICICI LOMBARD & ANR. ..... Respondents
Through: Ms. Suman Bagga, Adv. with
Mr. Pankaj Seth, Adv. for R-1.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
G. P. MITTAL, J. (ORAL)
1. The appeal is for enhancement of compensation of `12,35,000/-
awarded by the Motor Accident Claims Tribunal (the Claims
Tribunal) in favour of the Appellants for the death of Jaspreet Singh,
who suffered fatal injuries in a motor vehicular accident which
occurred on 13.01.2010.
2. It is urged by the learned counsel for the Appellants that Jaspreet
Singh was a brilliant student who was pursuing B.Tech (Bachelor of
Technology) in Computer Science & Engineering from Guru Tegh
Bahadur Institute of Technology affiliated to Guru Gobind Singh
Indraprastha University. He had passed 12th class examination from a
prestigious school, i.e. Gyan Bharati School, Saket, New Delhi
affiliated to the Central Board of Secondary Education (CBSE). It is
stated that the Claims Tribunal assumed the potential income of the
deceased to be just `15,000/- per month, which is very low and needs
to be raised.
3. On the other hand, learned counsel for Respondent no.1 (M/s. ICICI
Lombard) states that the compensation awarded is just and reasonable.
4. It is no longer res integra that the potential income of a student who
suffers injuries in a motor vehicular accident must be considered for
awarding loss of dependency or loss of earning capacity.
5. 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). Compensation
of `1,46,900/- was increased and rounded off to ` 1,50,000/-.
6. 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 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/- per month and after adding 50% towards future prospects, the
compensation was enhanced to ` 21,36,000/-.
7. 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) to be `38,333/- per month.
8. 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 if he was allowed to complete his 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.
9. There will always be a difference in the potential income of a student
pursuing professional course. There are prestigious colleges of
medicine like All India Institute of Medical Sciences and Maulana
Azad Medical College on the one hand and the colleges run by the
private universities on the other. Similarly, there are Indian Institute of
Technologies (IITs), Regional Engineering Colleges, Colleges
affiliated to State Universities and Private Colleges for Engineering
courses.
10. In the instant case, Guru Tegh Bahadur Institute of Technology
affiliated to Guru Gobind Singh Indraprastha University, Delhi can be
taken as a middle level College and University. Normally, the salary
of a Group A officer in the Central and State Government on the date
of accident is taken for awarding compensation in case of prestigious
and highly reputed colleges. Future prospects are also granted,
depending on the facts of the case. In the instant case, the Claims
Tribunal relied on the judgment in Oriental Insurance Company
Limited v. Urmila Devi and Ors., MAC APP.325/2011, decided on
19.04.2012 to assume the potential income of the deceased (Jaspreet
Singh) to be `15,000/- per month. In Urmila Devi (supra), the
deceased was pursuing MCA from Indira Gandhi National Open
University (IGNOU) by correspondence. Thus, the instant case could
not have been equated with the case of Urmila Devi (supra) as
Jaspreet Singh was doing B.Tech. from a middle level college and
University.
11. The salary of a Junior Engineer in the Government in January, 2010
inclusive of House Rent Allowance (HRA) was about `25,000/- per
month. The placement of a student coming out of such college was
also in the range of `3 lac to `3.5 lacs per annum. In view of this, I
tend to adopt the potential salary of the deceased to be `25,000/- per
month. If the component of HRA is treated as non-taxable, there
would be liability of income tax of about `5,000/- per annum.
12. The loss of dependency thus, comes to `20,65,000/- (25,000/- x 12 -
`5,000/- (income tax) x 1/2 x 14).
13. In view of the three Judge Bench decision of the Supreme Court in
Rajesh & Ors. v.Rajbir Singh & Ors., (2013) 9 SCC 54, the Appellants
are further entitled to a sum of `1,00,000/- towards loss of love
`25,000/- towards funeral expenses and `10,000/- towards loss to
estate.
14. The overall compensation hence, comes to `22,00,000/-.
15. Thus, the compensation is enhanced by `9,65,000/- which shall carry
interest @ 7.5% per annum from the date of filing of the Claim
Petition till its payment.
16. The enhanced compensation along with interest shall be deposited by
Respondent no.1 Insurance Company within a period of six weeks,
failing which the Appellants will be entitled to interest @ 12% per
annum from the date of this judgment.
17. The enhanced compensation along with interest shall be released/held
in fixed deposit in favour of the Appellants in terms of the order
passed by the Claims Tribunal.
18. The appeal is allowed in above terms.
19. Pending applications, if any, also stand disposed of.
(G.P. MITTAL)
JUDGE
APRIL 21, 2015
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