Delhi High Court
Nirmala Verma vs Baljinder Singh & Ors on 26 February, 2015
Author: G.P. Mittal
$-44
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 26th February, 2015
+ MAC.APP. 618/2006
NIRMALA VERMA ..... Appellant
Through: Mr.R.K. Dhawan, Advocate
with Ms. Richa Dhawan,
Advocate & Ms. Sheweta Joshi,
Advocate
versus
BALJINDER SINGH & ORS ..... Respondents
Through: Mr. S.L. Gupta, Advocate with
Mr. Ram Ashray, Advocate for
Respondent no.3 Insurance
Company.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. The appeal is for enhancement of compensation of
Rs.5,65,000/- awarded by the Motor Accident Claims Tribunal
(the Claims Tribunal) in favour of the Appellant for the death
of her son Raj Adhyaksh Verma who died in a motor vehicular
accident which occurred on 09.04.1998 at about 1:15 p.m.
2. In the absence of any appeal by Respondent no.3 Insurance
Company, the finding with regard to negligence has attained
finality.
3. It is urged by the learned counsel for the Appellant that the
compensation awarded is too small and inadequate. It is urged
that deceased Raj Adhyaksh Verma was a highly qualified
person. He did his B.Com. from Delhi University (Ex.PW2/12)
and went on to obtain Post-Graduate Diploma in International
Business from Foundation for Organisational Research and
Education (Ex.PW2/13). Because of his high qualifications, he
was issued an appointment letter (Ex.PW2/11) by Euro India
Biotech Limited where he was expected to join by 15.04.1998.
It is urged that the compensation awarded towards the non-
pecuniary damages is also on the lower side.
4. On the other hand, the learned counsel for Respondent
Insurance Company supports the impugned judgment and says
that the compensation awarded is just and reasonable.
5. I have the Trial Court record before me. The qualifications of
the deceased with regard to his graduation in Commerce and
Post-Graduation Diploma in International Business were not
disputed. The deceased had initially joined as a Sales Executive
in Sterling Holiday Resorts(I) Ltd. and was getting a salary of
Rs.4,130/- per month. Later, a few months before his death, he
was offered a fresh job with Euro India Biotech Limited. It is
therefore, established that the deceased was 24 years of age at
the time of his unfortunate death and was a highly qualified
person and was just on the threshold of his career.
6. It is urged by the learned counsel for Respondent Insurance
Company that it is well settled that income of the deceased only
at the time of death has to be taken into consideration. Since on
the basis of appointment letter, the deceased had not joined the
job as yet, his salary as reflected in the appointment letter
cannot be taken into consideration.
7. It is well settled that in appropriate cases, the Court can take
into consideration the potential income of a victim of an
accident.
8. In the case of Haji Zainullah Khan (Dead) by LRs. v. Nagar
Mahapalika, Allahabad, 1994 (5) SCC 667, in case of death of a
student aged 20 years, a student of B.Sc Ist year (Biology),
potential income was taken into consideration by the Court
while awarding compensation.
9. Similarly, in Ganga Devi & Ors. v. New India Assurance Co.
Ltd. & Ors., MAC APP. 359/2008, decided by this Court on
23.11.2009, potential income of a student who was to be
awarded the MBBS degree in a short time was taken into
consideration to award the compensation.
10. From the record, it is borne out that although the deceased had
obtained his decree in Commerce in 1996 and had Post-
Graduate Diploma in the year 1997, he was immediately offered
a job in Sterling Holiday Resorts(I) Ltd. where he continued to
work till his death. Within a short span of six months of his
joining Sterling Holiday Resorts(I) Ltd., he was given an offer
to join as a Project Executive on a salary of Rs.11,500/- by Euro
India biotech Limited which was more than double of the
salary of his first appointment. The deceased had appeared for
interview on 20.03.1998. He was issued the appointment letter
on 27.03.1998. He was offered to join Euro India Biotech
Limited as a Project Assistant from 15.04.1998. Before that
could happen, he met with the unfortunate accident. Taking
into consideration the deceased's qualification, his first
appointment and the second offer of appointment on a salary of
Rs.11,500/- per month, I am inclined to hold that in the peculiar
facts and circumstances of the case, since there was ample
evidence of deceased's future prospects, addition of 50%
towards future prospects should be made.
11. The deceased left behind his parents as his dependants. It is
well settled that in case of a death of a bachelor, deduction
towards personal and living expenses will be 1/2 of the income
of the deceased and multiplier will be as per the age of his
mother. (A reference can be made to Vijay Laxmi & Anr. v.
Binod Kumar Yadav & Ors., ILR (2012) 6 DEL 447). The age
of the mother as per the PAN Card at the time of the accident
was 46 years, her date of birth being 30.09.1952. The
appropriate multiplier to be adopted in the case therefore, will
be 13.
12. As per the appointment letter (Ex.PW2/11) issued by Euro India
Biotech Limited, the deceased was entitled to a basic salary of
Rs.9,500/-, House Rent Allowance of Rs.2,000/- and
Conveyance Allowance of Rs.1,500/-(extendable upto 2,500/-)
if the deceased maintain his own car. In addition, he was
entitled to Medical Allowance of Rs.1,500/- and Education
Allowance of Rs.750/- per annum respectively. He was
further entitled to reimbursement for telephone expenses and
entertainment expenses including membership of a Club @
2,000/- per month. I will take the allowance of Rs.1,500/- per
month as incidental to employment. The loss of dependency
thus, comes to Rs.14,35,200/- (Rs.1,64,250/- - Rs.17,050/-
(Income Tax) + 50% ÷ 2 x 13).
13. In addition, in view of the judgment in Rajesh & Ors. v. Rajbir
Singh & Ors., (2013) 9 SCC 54, I further award a sum of
Rs.1,00,000/- towards loss of love and affection, Rs.25,000/-
towards funeral expenses and Rs.10,000/- towards loss to estate.
14. The overall compensation therefore, comes to Rs.15,70,200/-.
15. The compensation is thus, enhanced by Rs.10,05,200/- which
shall carry interest @ 7.5% per annum from the date of filing of
the claim petition till its payment.
16. Respondent no.3 New India Insurance Company Ltd. is directed
to deposit the enhanced compensation with the Claims Tribunal
within six weeks, failing which the Appellant shall be entitled to
interest @ 12% per annum from the date of this judgment.
17. 50% of the enhanced compensation shall be held in Fixed
Deposit for two and four years respectively in equal proportion;
rest shall be released on deposit.
18. The appeal is allowed in above terms.
19. Pending applications stand disposed of.
(G.P. MITTAL)
JUDGE
FEBRUARY 26, 2015
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