Delhi High Court
Jyoti & Anr vs Parminder Pal Singh & Ors (Hdfc ... on 13 May, 2016
$~24
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 13th May, 2016
+ MAC.APP. 945/2014
JYOTI & ANR
..... Appellant
Through Ms. Hreeshika Bhargav, Mr.
Manish Maini and Mr. Aashish
Sharma, Advs.
versus
PARMINDER PAL SINGH & ORS (HDFC ERGO GENERAL
INSURANCE COMPANY LTD)
..... Respondent
Through Mr. P Acharya, Adv. for R-3
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT
R.K.GAUBA, J (ORAL):
1. While upholding the case of the claimants, as presented in accident
claim case MACP 422/2014 (instituted on 11.04.2014) that their child
Nitish, aged 2 ½ years had died as result of accident caused due to
negligent driving of a motor vehicle bearing registration No.DL 3CBS
2840, the motor accident claims tribunal (tribunal) by judgment dated
05.07.2014, awarded compensation in the sum of `3,75,000/- directing the
third respondent (insurer) to pay, it having concededly issued an insurance
policy respecting the offending vehicle against third party risk for the
period in question. The finding about negligence has attained finality as it
was not challenged further.
2. By the appeal at hand, the claimants seek enhancement, their
grievance being that the view taken in R K Malik & Anr. v. Kiran Pal &
Ors. (2009) 14 SCC 1 and National Insurance Co. v. Farzana 2009 ACJ
2763 cannot hold good respecting an accident that occurred in April,
2014. By judgment pronounced earlier today (13.05.2016) in a batch of
similarly placed other appeals led by MAC.APP.554/2010, Chetan
Malhotra v. Lala Ram, this Court has held as under :
"Subject to all other requisite conditions being fulfilled, for the
foregoing reasons, in order to bring about consistency and
uniformity in approach to the issue, it is held that claims for
compensation on account of death of children shall be determined as
follows :
(i). Till such time as the law is amended by the
legislature, or the Central Government notifies the
amendment to the Second Schedule in exercise of the
enabling power vested in it by Section 163-A (3) of the
Motor Vehicles Act, 1988, and except in cases wherein
the prospects of employability and earnings (in future or
present) of the deceased child are proved by cogent and
irrefutable evidence, this having regard, inter alia, to
the academic record or training in special talents or
skills, for computing the pecuniary damages on account
of the loss to estate, the notional income of non-earning
persons (`15000/- p.a.) as specified in the Second
Schedule (brought in force from 14.11.1994), shall be
assumed to be the income of the deceased child, and
taken into account after it is inflation-corrected with the
help of Cost Inflation Index (CII) as notified by the
Government of India from year to year under Section
48 of the Income Tax Act, 1961, by applying the formula
indicated hereinafter.
(ii) For inflation-correction, the financial year of
1997-1998 shall be treated as the "base year" and the
value of the notional income relevant to the date of cause
of action shall be computed in the following manner :-
` 15,000/- x A ÷331
[wherein the figure of „`15,000/-‟ represents
the notional income specified in the second
schedule requiring inflation-correction; „A‟
represents the CII for the financial year in
which the cause of action arose (i.e. the
accident / death occurred); and the figure of
„331‟ represents the CII for the „base year‟]
(iii). After arriving at an appropriate figure of the
present equivalent value of the notional income (i.e.
inflation-corrected amount), it shall be rounded off to a
figure in next thousands of rupees.
(iv). The amount of notional income thus calculated
shall be reduced to two-third, the deduction to the extent
of one-third being towards personal & living expenses
of the deceased, the balance taken as the annual loss to
estate (hereinafter also referred to as "the
multiplicand").
(v). For assessment of the pecuniary damages on
account of the death of children upto the age of 10
years, the loss to estate shall be calculated, capitalizing
the multiplicand, by applying the multiplier of ten (10).
(vi). For children of the age-group of more than 10
years upto 15 years, the loss to estate shall be
calculated by applying the multiplier of fifteen (15).
(vii). For children of the age-group of more than 15
years but less than 18 years, the loss to estate shall be
calculated by applying the multiplier of eighteen (18).
(viii). After the pecuniary loss to estate has been worked
out in the manner indicated above, an amount
equivalent to the amount thus computed shall be added
to it as the composite non-pecuniary damages taking
care of not only the conventional heads but also towards
future prospects as awarded in R.K. Malik v. Kiran Pal
(2009) 14 SCC 1.
(ix). The final sum thus arrived at, appropriately
rounded off, if so required to the nearest (if not next)
thousands of rupees, shall be awarded as compensation
for the death of the child."
3. Thus, the compensation in the present case is recomputed.
4. The death having occurred on 08.04.2014, the cost inflation index
(CII) for financial year 2014-15 (i.e. 1024) would apply. Thus, the
notional income of `15,000/- per annum, is to be inflation-corrected as
(15,000 x 1,024 ÷ 331) `46,404/- rounded off to `47,000/-. Upon
deduction of 1/3rd and applying the multiplier of 10, the pecuniary loss to
estate is calculated as (47,000 x 2 ÷ 3 x 10) `3,13,333/- rounded off to
`3,20,000/-. Adding similar amount towards composite non-pecuniary
damages, the total compensation in the case is computed as `6,40,000/-.
5. The compensation is enhanced to `6,40,000/-.
6. Following the consistent view taken by this Court [see judgment
dated 22.02.2016 in MAC.APP. 165/2011 Oriental Insurance Co Ltd v.
Sangeeta Devi & Ors.], the rate of interest is increased to 9% per annum
from the date of filing of the petition till realization.
7. The insurer is directed to deposit the balance of its liability with the
tribunal within 30 days making it available to the claimants.
8. The appeal is disposed of in above terms.
R.K. GAUBA
(JUDGE)
MAY 13, 2016
VLD
