Delhi High Court
United India Insurance Company ... vs Shashi Prabha Arora & Ors on 24 October, 2016
$~33
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 24th October, 2016
+ MAC.APP. 198/2015 and C.M. Appl. 3441/2015
UNITED INDIA INSURANCE
COMPANY LTD ..... Appellant
Through: Mr. L.K. Tyagi, Advocate
versus
SHASHI PRABHA ARORA & ORS ..... Respondents
Through: Mr. Asif Hashmi, Advocate for
respondents No.1 to 3
JUDGMENT (ORAL)
1. The appellant has challenged the award of the Claims Tribunal
whereby compensation of Rs.17,31,000/- has been awarded to
claimants/respondents No.1 and 3.
2. The accident dated 02nd September, 2013 resulted in the death
of Bhim Sen Arora. The deceased was aged 55 years at the time of
accident and was survived by his widow and two sons who filed claim
petition before the Claims Tribunal. The deceased was working as a
Sales Manager in a private firm at the time of accident. It was claimed
that the deceased was earning Rs.17,000/- per month apart from
commission of Rs.5,000/- per month.
3. The Claims Tribunal took the income of the deceased as
Rs.17,000/- per month, deducted 1/3rd towards his personal expenses
and applied the multiplier of 11 to compute the loss of dependency at
Rs.14,96,000/-. The Claims Tribunal awarded Rs.1,00,000/- towards
loss of love and affection, Rs.1,00,000/- towards loss of consortium,
Rs.25,000/- towards funeral expenses and Rs.10,000/- towards loss of
estate. The total compensation awarded is Rs.17,31,000/-.
4. Learned counsel for the appellant urged at the time of hearing
that the income of the deceased has not been sufficiently proved with
documentary evidence and, therefore, the minimum wages of
Rs.9,386/- be taken into consideration. It is further submitted that the
penal interest of 12% per annum be set aside. Learned counsel for
respondents No.1 to 3 submits that the employer came in the witness
box and proved the certificate Ex.PW-2/1.
5. This Court is of the view that the income of the deceased has
not been sufficiently proved. The income of the deceased is, therefore,
taken as Rs.9,386/- in respect of a skilled worker and 30% is added
thereon towards inflation. The income of the deceased is taken as
Rs.12,202/- (Rs.9,386/- + 30% of Rs.9,386/-). Taking the income of
the deceased as Rs.9,386/-, adding 30% towards inflation, deducting
1/3rd towards the personal expenses, applying the multiplier of 11, the
loss of dependency is computed as 10,73,776/-. Adding compensation
for loss of love and affection, loss of consortium, funeral expenses and
loss of estate, as awarded by the Claims Tribunal, the total
compensation is computed as Rs.13,08,776/-.
6. The appeal is allowed and the award amount is reduced from
Rs.17,31,000/- to Rs.13,08,776/-. The penal interest @ 12% is set
aside and the interest @ 9% per annum is awarded.
7. The appellant has deposited the entire award amount with State
Bank of India, Saket Court Branch, out of which some amount was
released to the respondents and the balance is lying in FDRs with
State Bank of India, Saket Court Branch.
8. As per Accounts Officer of this Court, the appellant is entitled
to refund of Rs.2,03,759/-. State Bank of India, Saket Court Branch is
directed to refund Rs.2,03,759/- to the appellant.
9. State Bank of India, Saket Court Branch is directed to release
10% of the balance amount to respondents no.1 and 3 in equal shares
by transferring the same to their individual savings bank accounts and
keep 90% in FDRs in the following manner:
Sr. Duration Resp. 1 Resp.3
No. of FDR Widow Son
1. 1 yr 10% 5%
2. 2 yrs 10% 5%
3. 3 yrs 10% 5%
4. 4 yrs 10% 5%
5. 5 yrs 10% 5%
6. 6 yrs 10% 5%
TOTAL 60% 30%
Grand Total 90%
10. The monthly interest on all the FDRs shall be paid to
respondents No.1 and 3 by transferring the said amount to their
individual savings bank accounts.
11. At the time of maturity, the fixed deposit amount shall be
credited in the individual savings bank accounts of the
claimants/beneficiaries.
12. All the original FDRs shall be retained by State Bank of India,
Saket Court Branch. However, the photocopies of the same shall be
provided to the claimants/beneficiaries.
13. No cheque book or debit card be issued to the
claimants/respondents without permission of this Court.
14. No loan or advance or pre-mature discharge shall be permitted
without the permission of this Court.
15. The claimants/respondents No.1 and 3 shall approach the State
Bank of India for completing the formalities for the disbursement of
the award amount in terms of this order.
16. State Bank of India, Saket Court Branch shall ensure that the
savings bank accounts of respondents No.1 and 3 are individual
accounts and not joint accounts.
17. Respondents are at liberty to approach this Court for release of
further amount in case of any financial exigency.
18. The statutory amount be refunded back to the appellant.
19. Appeal along with the pending application is disposed of.
20. Copy of this judgment be given dasti to counsels for the parties
under signatures of the Court Master.
OCTOBER 24, 2016 J.R. MIDHA, J.
rsk
