Delhi High Court
National Insurance Co. Ltd. vs Sumitra Sohni & Ors on 18 February, 2015
Author: G.P. Mittal
$-12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 18th February, 2015
+ MAC.APP. 1043/2012
NATIONAL INSURANCE CO. LTD.
..... Appellant
Through: Mr.L.K. Tyagi, Advocate
versus
SUMITRA SOHNI & ORS ..... Respondents
Through: Ms. Saroj Datta Bakshi,
Advocate for Respondents no.1
to 3.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
CM.APPL 237/2014(delay)
1. There is a delay of 308 days in filing the appeal. It is urged by
the learned counsel for the Applicant that the Claims Tribunal
had not deducted Income Tax from the income of deceased
Harish Kumar Sahni while calculating the compensations and
that is why, a review application was moved by the Applicant
for making deduction towards Income Tax and then compute
the loss of dependency. Reliance is placed on Sarla Verma
(Smt.) & Ors. v. Delhi Transport Corporation & Anr., (2009) 6
SCC 121. The review application was however, dismissed by
the Claims Tribunal by an order dated 31.05.2012.
2. The application is opposed by the learned counsel for the
Respondents.
3. For the reasons stated in the application, delay of 308 days in
filing the appeal is condoned.
4. The application is accordingly allowed.
MAC.APP. 1043/2012
5. The appeal is for reduction of compensation of Rs.39,34,848/-
awarded by the Motor Accident Claims Tribunal (the Claims
Tribunal) for the death of Harish Kumar Sahni who died in a
motor vehicular accident which occurred on 17.10.2010.
6. The only ground of challenge raised by the Appellant is that the
Claims Tribunal erred in not deducting Income Tax from the
income of the deceased before computing the loss of
dependency.
7. On the other hand, the learned counsel for Respondents no.1 to
3 urges that the compensation awarded towards loss of
consortium and loss to estate was on the lower side and addition
of 15% ought to have been made towards future prospects.
Reliance is placed on Rajesh & Ors. v. Rajbir Singh & Ors.,
(2013) 9 SCC 54.
8. It is well settled that for computing the loss of dependency,
Income Tax is required to be deducted because loss of
dependency is to be awarded upon income which actually
comes to the hands of the deceased and is available to his
dependency. The deceased was employed in UCO Bank and
was aged 58 years of age at the time of the accident. At the age
of 58 years, addition towards future prospects is not
permissible.(See Sarla Verma (Smt.) & Ors. v. Delhi Transport
Corporation & Anr., (2009) 6 SCC 121). On the other hand, in
Rajesh & Ors.(supra), a three Judge Bench of the Supreme
Court held that addition of 15% may be made in case of self-
employed persons who are aged between 50 to 60 years.
However, since Sarla Verma(supra) was approved by a three
Judge Bench decision of the Supreme Court in Reshma Kumari
& Ors. v. Madan Mohan & Anr., (2013) 9 SCC 65, the three
Judge Bench decision will be the binding precedent as held by
this Court in HDFC Ergo General Insurance Co. Ltd. v. Smt.
Lalta Devi and Ors. MAC APP No. 189/ 2014 decided on
12.01.2015. In view of this, addition towards future prospects
at the age of 58 years is not permissible.
9. The loss of dependency would therefore, come to
Rs.32,44,164/- (Rs.5,90,868/- - Rs.50,174/-(Income Tax) x 2/3
x 9).
10. In addition, the Respondents are entitled to a sum of
Rs.1,00,000/- each towards loss of love and affection and loss
of consortium, Rs.25,000/- towards funeral expenses and
Rs.10,000/- towards loss to estate. Also, the claimants are
entitled to a sum of Rs.2,40,288/- towards medical expenses and
Rs.10,000/- towards special diet as awarded by the Claims
Tribunal.
11. The overall compensation thus, comes to Rs.37,29,452/-.
12. Excess amount of Rs.2,05,896/- along with proportionate
interest shall be refunded to the Appellant Insurance Company.
13. By an order dated 17.09.2012, 80% of the compensation
awarded was ordered to be deposited. The balance
compensation shall be deposited in UCO Bank, Delhi High
Court Branch along with interest @ 7.5% per annum.
14. The awarded amount along with interest shall be released/held
in Fixed Deposit in terms of the orders passed by the Claims
Tribunal.
15. The appeal is allowed in above terms.
16. Pending applications stand disposed of.
17. Statutory amount, if any, deposited shall be refunded to the
Appellant Insurance Company only after deposit of the
enhanced compensation and filing of a certificate that the
enhanced compensation has been deposited.
(G.P. MITTAL)
JUDGE
FEBRUARY 18, 2015/pst
