Delhi High Court
U.P. State Road Transport ... vs Ranjeet Kumar on 31 August, 2016
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 31st August, 2016
+ MAC.APP. 472/2014
36 U.P. STATE ROAD TRANSPORT CORPORATION
THROUGH: ITS REGIONAL MANAGER ..... Appellant
Through: Ms. Garima Prashad, Advocate
versus
RANJEET KUMAR ..... Respondent
Through: Mr. Vijay Kinger and Ms. Bornali,
Advocates
+ MAC.APP. 872/2015
37 RANJEET KUMAR ..... Appellant
Through: Mr. Vijay Kinger and Ms. Bornali,
Advocates
versus
U.P. STATE ROAD TRANSPORT CORPORATION
..... Respondent
Through: Ms. Garima Prashad, Advocate
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT (ORAL)
1. The Claims Tribunal has awarded compensation of Rs.8,97,650/-
along with interest @ 9% per annum to Ranjeet Kumar, in respect of the
injuries suffered by him in the accident dated 17th /18th May, 2010. The
appellant in MAC. APP. 472/2014 is seeking reduction whereas the
appellant in MAC. APP. 872/2015 is seeking enhancement of the award
amount.
2. On 17th/18th May, 2010, Ranjeet Kumar, hereinafter referred to as
"injured", was going to Badaun in bus No.UP-14-AB-9302. At about 02.00
A.M. in the night, the aforesaid bus met with an accident with another bus
No.UP25T-7587 which resulted in grievous injuries including the fracture of
right arm of the injured. The injured was initially taken to Babu Banarasi
Dass Rajkiya Chikitsalaya, Bulandshahar, U.P. and thereafter, to Safdarjung
Hospital, Delhi. The injured remain hospitalised from 18th May, 2010 to 18th
June, 2010. He underwent two surgeries, first surgery on 22nd May, 2010,
for the external fixation of fracture shaft of Humerus (right side), open
reduction/internal fixation of inter condylar fracture by K wire, and open
reduction/internal fixation fracture shaft of Ulna and second surgery on 5th
June, 2010 for K-wire fixation of acromioclavicular joint (right side) done
under S/C block and SSG. The appellant was examined by the Medical
Board constituted by Lal Bahadur Shastri Hospital, KhichriPur, Delhi and
his disability was assessed as 44% in respect of his right upper limb.
3. The injured is present in Court and his condition has been seen. The
injured is unable to do any work with his right hand. Though the injured is
able to slowly write from his right hand but he cannot lift any weight.
Considering the condition of the injured, this Court is of the view that the
compensation of Rs.8,97,650/- is on the lower side and it warrants
enhancement.
4. The compensation for pain and sufferings is enhanced from
Rs.80,000/- to Rs.1,80,000/-, compensation for loss of amenities is enhanced
from Rs.80,000/- to Rs.1,80,000/-, compensation for disfiguration and loss
of expectation of life is enhanced from Rs.80,000/- to Rs.2,80,000/- and
compensation for matrimonial prospects is enhanced from Rs.75000/- to
Rs.1,83,180/-. The total compensation awarded to the injured is enhanced
by Rs.5,08,180/- along with interest @ 9% per annum. If the enhanced
award amount is deposited by 17th September, 2016, the interest from the
date of filing of the petition up to 17th September, 2016 would be
Rs.1,91,820/-, thus, making the total enhancement including the interest as
Rs.7,00,000/-.
5. The appellant present in Court along with his counsel does not press
for enhancement on the ground of loss of earning capacity in view of fair
compensation awarded to the injured by way of aforesaid enhancement.
6. The appellant in MAC.APP.472/2014 has deposited the award amount
with the Registrar General of this Court in terms of the order dated 26th May,
2014 out of which 70% amount has already been released to the injured and
balance Rs.2,98,358.40 is lying in fixed deposit.
7. The Registrar General is directed to transfer the aforesaid amount to
the UCO Bank in A/c No.20780110074824 of the injured.
8. U.P. State Road Transport Corporation is directed to deposit enhanced
amount with UCO Bank by means of a cheque drawn in the name of UCO
Bank - Ranjit Kumar A/c No.20780110074824.
9. Upon deposit of the enhanced award amount by U.P. State Road
Transport Corporation and transfer of FDR amount by the Registrar General
in terms of para 7 above, UCO Bank shall release Rs.50,000/- to injured and
keep the balance amount in fixed deposit in the following manner:-
Sr. No. Duration of FDRs Percentage of awarded amount
1. 1 yr 10%
2. 2 yrs 10%
3. 3 yrs 10%
4. 4 yrs 10%
5. 5 yrs 10%
6. 6 yrs 10%
7. 7 yrs 10%
8. 8 yrs 10%
9. 9 yrs 10%
10. 10 yrs 10%
TOTAL 100%
10. In Jai Prakash vs M/S. National Insurance Co., (2010) 2 SCC 607,
the Supreme Court gave the following directions for protection of the award
amount: -
"Problem (iv)
13. Courts have always been concerned that the full
compensation amount does not reach and benefit the victims
and their families, particularly those who are uneducated,
ignorant, or not worldly-wise. Unless there are built-in
safeguards they may be deprived of the benefit of compensation
which may be the sole source of their future sustenance. This
court has time and again insisted upon measures to ensure that
the compensation amount is appropriately invested and
protected and not frittered away owing to ignorance, illiteracy
and susceptibility to exploitation. [See Union Carbide
Corporation v. Union of India - 1991 (4) SCC 584 and General
Manager, Kerala State Road Transport Corporation v.
Susamma Thomas - 1994 (2) SCC 176]. But in spite of the
directions in these cases, the position continues to be far from
unsatisfactory and in many cases unscrupulous relatives,
agents and touts are taking away a big chunk of the
compensation, by ingenious methods.
xxx xxx xxx
28. To protect and preserve the compensation amount
awarded to the families of the deceased victim special schemes
may be considered by the insurance companies in consultation
with the Life Insurance Corporation of India, State Bank of
India or any other Nationalized Banks. One proposal is for
formulation of a scheme in consultation with Nationalized
Banks under which the compensation is kept in fixed deposit for
an appropriate period and interest is paid by the Bank monthly
to the claimants without any need for claimants having to
approach either the court or their counsel or the Bank for that
purpose. The scheme should ensure that the amount of
compensation is utilized only for the benefit of the injured
claimants or in case of death, for the benefit of the dependent
family. We extract below the particulars of a special Scheme
offered by a nationalized Bank at the instance of the Delhi High
Court :
(i)The fixed deposit shall be automatically renewed till the
period prescribed by the Court.
(ii)The interest on the fixed deposit shall be paid monthly.
(iii)The monthly interest shall be credited automatically in the
saving account of the claimant.
(iv)Original fixed deposit receipt shall be retained by the Bank
in safe custody. However, the original passbook shall be given
to the claimant along with the photocopy of the FDR.
(v)The original fixed deposit receipt shall be handed over to the
claimant at the end of the fixed deposit period.
(vi)Photo identity card shall be issued to the claimant and the
withdrawal shall be permitted only after due verification by the
Bank of the identity card of the claimant.
(vii)No cheque book shall be issued to the claimant without
permission of the court.
(viii)No loan, advance or withdrawal shall be allowed on the
fixed deposit without permission of the court.
(ix)The claimant can operate the saving bank account from the
nearest branch of UCO Bank and on the request of the
claimant, the bank shall provide the said facility."
(Emphasis supplied)
11. In New India Assurance Co. Ltd. v. Ganga Devi, IV (2010)
ACC 28, this Court directed the Claims Tribunals to consider
releasing the award amount to the victims in a phased manner. The
relevant para of the judgment is reproduced hereunder:-
"15. It was pointed out by the counsel for the claimants
that the Claims Tribunals were passing directions for releasing
part of the award amount and the remaining amount was kept
in fixed deposit for a long period due to which the claimants
were unable to meet their exigencies and had to approach the
Tribunal again and again for release of the award amount. It
was suggested by the counsel for the claimants that a direction
be given to the Claims Tribunal to keep the amount in fixed
deposit in such a manner that the claimants get the award
amount in a phased manner which will take care of their
exigencies such as illness, marriage of children, education etc.
16. The Claims Tribunal to consider keeping the award
amount in fixed deposit in a phased manner depending upon the
financial status and financial needs of the claimants. For
example, if a sum of Rs.5,50,000 has been awarded to the
claimants, Rs.50,000 may be released immediately and the
remaining amount of Rs.50,000 may be kept in 10 fixed deposits
of Rs.50,000 each for a periods of six months, one year, one
and a half years, two years and so on till five years or one year,
two years, three years and so on till ten years.
17. If the claimants are school/college going children, the
maturity period of the fixed deposit receipts be kept preferably
in the month of 'March' every year so that the family is able to
meet the annual expenses towards the admission and tuition fee
of the children."
12. In the Modified Claims Tribunal Agreed Procedure formulated by this
Court in Rajesh Tyagi v. Jaibir Singh, I (2015) ACC 838 (Del.), this Court
observed that:-
"28. Protection of the award amount
The Claims Tribunal shall, depending upon the financial
status and financial need of the claimant(s), release such
amount as may be considered necessary and direct the
remaining amount to be kept in fixed deposits in phased manner
(for example, if a sum of Rs.5,50,000/- has been awarded to the
claimants, Rs.50,000/- may be released immediately and the
remaining amount of Rs.5,00,000/- may be kept in 10 fixed
deposits of Rs.50,000/- each for a periods of six months, one
year, one and a half years, two years and so on till five years or
one year, two years, three years and so on till ten years). The
Claims Tribunal may also consider imposing following
conditions with respect to the fixed deposits:-
(i) The interest on the fixed deposits be paid monthly to the
Claimant(s).
(ii) The monthly interest be credited automatically in the
saving account of the claimant(s).
(iii) Original fixed deposit receipts be retained by the bank in
safe custody. However, a passbook of the FDRs be given
to the claimant(s) along with the photocopy of the FDR.
At the time of maturity, the fixed deposit amount shall be
automatically credited in the savings bank account of the
Claimant(s).
(iv) No cheque book be issued to the claimant(s) without
permission of the Court. However, a photo identity card
be issued to the claimant(s) and the withdrawal be
permitted upon production of the identity card.
(v) No loan, advance or withdrawal be allowed on the fixed
deposits without permission of the Court.
(vi) The Bank shall not permit any joint name(s) to be added
in the savings bank account or fixed deposit accounts of
the victim.
(vii) Half yearly statement of account be filed by the Bank in
the Tribunal."
13. Vide award dated 19th March, 2014, the Claims Tribunal had awarded
Rs.8,97,650/- to the injured. However, no direction was given to keep any
amount in fixed deposit as a result of which 70% amount was released to the
injured without any restriction of FDR. The injured is present in Court along
with his father. The injured is aged about 22 years and is doing B.A. 1st Year
from IGNOU. The father of injured submits that he has spent Rs.7,00,000/-
in purchasing a property.
14. It is unfortunate that due to the lapse of the Claims Tribunal in not
keeping any amount in the fixed deposit, Rs.7 lakh has not been utilised for
the welfare of the injured. This Court is of the view that the compensation
awarded to the injured was meant to be used only for the welfare of the
injured and was not meant for purchasing the property by his father.
15. Copy of this judgment be sent to the presiding officer of the Claims
Tribunal through District Judge concerned. Copy of this judgment be
circulated to all the Motor Accident Claims Tribunals.
16. Copy of this judgment be given dasti to learned counsels for the
parties under signature of Court Master.
J.R. MIDHA, J.
AUGUST 31, 2016ak/rsk
