Delhi High Court
Future General India Ins Co Ltd vs Saroj & Ors on 22 May, 2015
Author: Jayant Nath
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*IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 22.05. 2015
+ MAC.APP. 827/2011
FUTURE GENERAL INDIA INS CO LTD ..... Appellant
Through Mrs. Shanta Devi Raman, Advocate
versus
SAROJ & ORS ..... Respondents
Through Mr. S.N. Parashar and Mr. J.S. Dagar,
Advocates
AND
+ MAC.APP. 828/2011
FUTURE GENERALI INDIA
INSURANCE CO LTD ..... Appellant
Through Mrs. Shanta Devi Raman, Advocate
versus
RATTAN SINGH & ORS ..... Respondents
Through Mr. S.N. Parashar and Mr. J.S. Dagar,
Advocates
CORAM:
HON'BLE MR. JUSTICE JAYANT NATH
JAYANT NATH, J.
1. The present two appeals are filed seeking to impugn the Award
dated 16.07.2011. Two separate claim petitions were filed on account of
the death of Smt.Rajali and Smt.Krishna.
2. Brief facts are that on 04.04.2010, two women Smt. Rajali and
Smt. Krishna were travelling in a three wheeler scooter. When they
reached Mundi Nangal Bus Stand, the three wheeler turned turtle due to
the rash and negligent driving by the driver of the said three wheeler
scooter. The two ladies fell on the roadside ditch and received fatal
injuries. Two separate petitions were filed under Section 166 of the Motor
Vehicles Act seeking compensation.
3. Based on the evidence on record, the tribunal concluded that the
accident took place due to rash and negligent driving of the driver of
three wheeler scooter.
4. On compensation, the tribunal noted that Smt. Rajali was 69 years
old. Relying on the judgment of the Supreme Court in the case of Lata
Wadhwa & Ors. vs. State of Bihar & Ors. (2001) 8 SCC 197, and the
prevalent minimum wages at the time of the accident, the tribunal took
the notional income as Rs.5000/- per month and awarded annual loss of
dependency at Rs.60,000/-. Taking a multiplier of 5, the actual loss of
dependency was calculated at Rs.3,00,000/-. A sum of Rs. 75,000/- was
awarded for loss of love and affection and a sum of Rs.10,000/- was
awarded for funeral expenses - being a total of Rs.3,85,000/-.
5. In the case of Smt. Krishna, the tribunal noted that her age was 61
years. Her notional income was taken as Rs.6000/- per month and loss of
dependency of Rs.5,04,000/- was awarded. A sum of Rs.75,000/- was
awarded for loss of love and affection; a sum of Rs.10,000/- was awarded
for funeral expenses and a sum of Rs.10,000/- was awarded for loss of
consortium - being a total of Rs.5,99,000/-.
6. Learned counsel for the appellant has submitted that Smt.Rajali
was 69 years old and Smt. Krishna age being 62 years and hence the
claimants would not be entitled to any loss of dependency keeping in
view the age of the deceased.
7. This Court has already fixed the issue regarding compensation for a
house wife in the case of Royal Sundaram Alliance Insurance Co. Ltd.
vs. Master Manmeet Singh & Ors. ILR (2012) IV Delhi 547.
8. This Court after going through the whole gamut of judgments
concluded that the loss of dependency would be as follows:
"34. To sum up, the loss of dependency on
account of gratuitous services rendered by a
housewife shall be:-
(i) Minimum salary of a Graduate where she is
a Graduate.
(ii) Minimum salary of a Matriculate where she
is a Matriculate.
(iii) Minimum salary of a non-Matriculate in
other cases.
(iv) There will be an addition of 25% in the
assumed income in (i), (ii) and (iii) where the
age of the homemaker is upto 40 years; the
increase will be restricted to 15% where her age
is above 40 years but less than 50 years; there
will not be any addition in the assumed salary
where the age is more than 50 years.
(v) When the deceased home maker is above 55
years but less than 60 years; there will be
deduction of 25%; and when the deceased
home maker is above 60 years there will be
deduction of 50% in the assumed income as the
services rendered decrease substantially.
Normally, the value of gratuitous services
rendered will be NIL (unless there is evidence
to the contrary) when the home maker is above
65 years.
(vi) If a housewife dies issueless, the
contribution towards the gratuitous services is
much less, as there are greater chances of the
husband's re-marriage. In such cases, the loss of
dependency shall be 50% of the income as per
the qualification stated in (i), (ii) and (iii) above
and addition and deduction thereon as per (iv)
and (v) above.
(vii) There shall not be any deduction towards
the personal and living expenses.
(viii) As an attempt has been made to
compensate the loss of dependency, only a
notional sum which may be upto ` 25,000/- (on
present scale of the money value) towards loss
of love and affection and ` 10,000/- towards
loss of consortium, if the husband is alive, may
be awarded.
(ix) Since a homemaker is not working and thus
not earning, no amount should be awarded
towards loss of estate."
Hence, when home makers are above 65 years old, the above
judgment holds that there should be no compensation on account of loss
of dependency unless there is evidence to the contrary.
MAC.APP.No.827/2011
9. In the present case evidence to the contrary has not been proved by
the legal representatives of Smt. Rajali. The award of loss of dependency
in the present case is Rs.3 lac. The deceased was 69 years old. Hence this
award is erroneous and contrary to the dictum laid down by this Court in
the case of Royal Sundaram Alliance Insurance Co. Ltd. vs. Master
Manmeet Singh & Ors.
10. However, in my opinion, the tribunal awarded Rs.10,000/- for
funeral expenses. I enhance funeral expenses to Rs.25,000/-. As in this
case no loss of dependency is being awarded I enhance compensation for
loss of love and affection from Rs.75,000/- to Rs.1 lac. Accordingly, total
compensation payable in the present case would be Rs.1,25,000/-.
MAC.APP.828/2011
11. In the present case, the deceased Smt. Krishna is, as per the post
mortem report, 61 years old. The tribunal had taken the age at 62 years
and assessed compensation accordingly at Rs.5,99,000/-. There are no
reason to interfere in the said compensation amount.
12. The appeal is allowed to the above extent. This Court vide order
dated 15.09.2011 had directed the appellant to deposit the entire amount
which was to be kept in a fixed deposit.
13. On 18.04.2013, this Court directed to release 40% of the deposit
amount. In the case of MAC APP.827/2011, the Registrar General may
release the amount with proportionate interest in favour of the claimants
in case any such amount is still due and payable. The balance along with
accumulated proportionate interest be refunded to the appellant company.
14. In MAC APP. 828/2011 the Registrar General may release entire
awarded amount proportionately in the manner as directed in the award to
the claimant with accumulated interest.
15. The appeals stand disposed of.
(JAYANT NATH)
JUDGE
MAY 22, 2015
'raj'
