Delhi High Court
The New India Assurance Co Ltd vs Smt Preeti & Ors on 12 August, 2016
$~5
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 12th August, 2016
+ MAC.APP. 1146/2013
THE NEW INDIA ASSURANCE CO LTD ..... Appellant
Through: Mr. J.P.N. Shahi, Advocate
versus
SMT PREETI & ORS ..... Respondents
Through: Mr. Arun Srivastava, Advocate for
respondents no.1 and 3
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT (ORAL)
1. The appellant has challenged the award of the Claims Tribunal
whereby compensation of Rs.9,01,132/- has been awarded to respondents
no.1 to 3.
2. On 20th February, 2008 at about 6.30 pm, Ajay was going on his
motor cycle from Burari towards Jahangir Puri when he was hit by blue line
bus no. DL-1PB-0115 in front of MCD flats on Prayas NGO Road, Jahangir
Puri, Delhi which resulted in his death. The deceased aged 28 years was
working as Copper Wire Drawing Machine Operator with G.L. Auto
Industries earning Rs.6,000/- per month. The deceased was survived by his
widow and parents who filed the claim petition before the Claims Tribunal.
3. The Claims Tribunal took minimum wages of Rs.3,633/- per month
added 50% towards future prospects, deducted 1/3rd towards the personal
expenses of the deceased and applied the multiplier of 17 to compute the
loss of dependency at Rs.7,41,132/-. The Claims Tribunal awarded
Rs.1,00,000/- towards loss of consortium, Rs.25,000/- towards loss of love
and affection, Rs.10,000/- towards loss of estate and Rs.25,000/- towards
funeral expenses. Total compensation awarded is Rs.9,01,132/- along with
interest @ 75.% per annum.
4. The appellant has challenged the impugned award on the sole ground
that 50% should not be added to the minimum wages to compute the income
of the deceased.
5. The Claims Tribunal has taken the income of the deceased as
Rs.3,633/- per month and 50% has been added towards future prospects.
The total income has been taken as Rs.5,449/-[Rs.3,633 + Rs.1,816/-]. The
occupation of the deceased has been proved on record as Copper Wire
Drawing Machine Operator with G.L. Auto Industries. The claimants
proved the income of the deceased by examining the employer as PW-2 who
deposed that the deceased was working with G.L. Auto Industries for 1½
years. Since PW-2 did not prove the documentary evidence, the minimum
wages were taken into consideration.
6. This Court is of the view that the occupation of the deceased having
been sufficiently proved, the income of the deceased can be safely presumed
to Rs.5,449/- per month. It is not mandatory to resort the minimum wages in
each and every case. Reference in this regard may be made to the judgment
of the Supreme Court in Municipal Corporation of Delhi v. Association of
Victims of Uphaar Tragedy, AIR 2012 SC 100 in which 59 persons died in
Uphaar tragedy and the Supreme Court granted compensation of
Rs.10,00,000/- to the victims of above 20 years of age and Rs.7,50,000/- to
the victims below 20 years of age on the basis of multiplier method. The
Supreme Court applied the multiplier of 15 and deducted 1/3rd towards the
personal expenses. The income of the victims aged more than 20 years was
assumed to be Rs.8,333/- per month and that of victims aged less than 20
years was assumed to be Rs.6,249/- per month. The computation of the
compensation awarded by the Supreme Court would be as under :-
For victims aged more than 20 years:-
(Rs.8,333/- less 1/3rd)x 12 x 15 = Rs.10 lakhs.
For victims aged less than 20 years:-
(Rs.6249/- less 1/3rd) x 15 = Rs.7.5 lakhs.
7. It is relevant to note that the Uphaar tragedy took place on 13th June,
1997 and the minimum wages at the relevant time were less than Rs.2600/-.
Although there was no proof of the income of the victims, the Supreme
Court did not find it proper to apply the minimum wages.
8. This Court has applied the principles laid down in Uphaar tragedy
case to compute the compensation in United India Insurance Co. V.
Kanwar Lal, 2012 SCC Online Del 2411, New India Assurance Co. Ltd. v.
Bal Kishan Pawar, 2012 SCC Online Del 3201, National Insurance Co.
Ltd. v. Chander Dutt, 2012 SCC Online Del 2412, National Insurance Co.
Ltd. v. Sewa Ram, 2012 SCC Online Del 2413 and National Insurance Co.
Ltd. v. Komal, 2014 ACJ 1540, National Insurance Co. Ltd. v. Gaje Singh,
2012 ACJ 2346 and National Insurance Co. Ltd. v. Bhateri, 2012 SCC
Online Del 2409.
9. Applying the principles laid down in Uphaar tragedy case, the
income of the deceased is presumed to be Rs.5,449/-. Taking the income of
the deceased as Rs.5,449/- and considering the other factors as taken by the
Claims Tribunal, the compensation of Rs.9,01,132/- awarded by the Claims
Tribunal is upheld.
10. There is no merit in the appeal which is hereby dismissed. Applying
Section 167 of the Evidence Act, the award of the learned Tribunal is upheld
for the reasons stated above.
11. The Claims Tribunal has awarded interest @ 7.5% per annum which
is of a lower side. The Supreme Court has consistently awarded interest @
9% per annum. The rate of interest is enhanced from 7.5% per annum to 9%
per annum.
12. The appellant has deposited the entire award amount with the
Registrar General of this Court in terms of 19th December, 2013 out of
which 80% amount has been released to the respondents no.1 to 3.
13. Learned counsel for respondents no.1 and 3 submits that respondent
no.2 has expired and her share be released to respondents no.1 and 3 in
equal shares.
14. The Registrar General is directed to release the balance 20% award
amount to respondents no.1 and 3 in equal shares.
15. With respect to the amount released earlier in terms of order dated
19th December, 2013, UCO Bank, Delhi High Court Branch is directed to
release the FDR amount upon maturity in equal shares to respondents no.1
and 3.
16. The enhanced interest amount be deposited by the appellant with
UCO Bank, Delhi High Court Branch by means of a cheque drawn in the
name of UCO Bank A/c Preeti. Upon the deposit being made, the UCO
Bank shall transfer the amount to respondents no.1 and 3 in equal shares.
17. After deposit of the enhanced interest amount, the Accounts Officer
of this Court shall verify whether the amount deposited earlier as well as
being deposited now has been properly computed and if so, the statutory
amount be refunded back to the appellant. However, in the event of any
short deposit, the Registry shall deduct the same from the statutory amount
and send the same to respondents no.1 and 3 through UCO Bank and
balance statutory amount be refunded back to the appellant.
18. Copy of this judgment be given dasti to counsel for the parties under
the signature of the Court Master.
J.R. MIDHA, J.
AUGUST 12, 2016
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