Delhi High Court
United India Insurance Co. Ltd. vs Lalita Jha & Ors on 24 October, 2016
$~51
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 24th October, 2016
+ MAC.APP. 110/2016 & CMs 3737/2016, 34589/2016
UNITED INDIA INSURANCE CO. LTD. ..... Appellant
Through: Mr.Sameer Nandwani, Advocate
versus
LALITA JHA & ORS ..... Respondents
Through: Mr.Ghanshyam Thakur, Advocate
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.27,12,000/- has been awarded to
respondents no.1 to 6.
2. The accident dated 17th September, 2014 resulted in the death of
Ajay Kumar Jha. The deceased was aged 44 years at the time of the
accident and was in private job as Manager. It was claimed that the
deceased was earning Rs.25,000/- per month. The deceased was
holding a professional degree of MBA from L.N. Mishra College of
Business Management, Mirzapur, Bihar. However, in the absence of
any documentary proof of income, the Claims Tribunal assumed his
income on the basis of his educational qualifications as Rs.15,000/-
per month. The Claims Tribunal added 30% towards future prospects,
deducted 1/4th towards his personal expenses and applied the
multiplier of 14 to compute the loss of dependency as Rs.24,57,000/-.
The Claims Tribunal awarded Rs.1,00,000/- towards loss of love and
affection, Rs.1,00,000/- towards loss of consortium, Rs.1,0,000/-
towards loss of estate and Rs.10,000/- towards funeral expenses. The
total compensation awarded is Rs.27,12,000/-.
3. Learned counsel for the appellant urged at the time of the
hearing that the income assumed by the Claims Tribunal is on a higher
side. It is further submitted that 30% addition towards future
prospects is unwarranted in the absence of clear proof of income. It is
further submitted that the compensation awarded for loss of love and
affection and consortium are on a higher side.
4. Learned counsel for the respondent submits that the
compensation awarded by the Claims Tribunal is just, fair and
reasonable. Learned counsel, however, submits that there is a
calculation error and the compensation amount be enhanced to
Rs.29,01,000/-.
5. On careful consideration of the averments made by learned
counsel for both the parties, this Court is of the view that there is no
infirmity in the Claims Tribunal assuming the income of the deceased
as Rs.15,000/- per month on the basis of his professional qualification
of MBA and addition of 30% towards future prospects. This Court is
satisfied that the compensation of Rs.27,12,000/- is just, fair and
reasonable and it does not warrant reduction. The prayer of the
respondents for enhancement of compensation to Rs.29,01,000/- is
also rejected.
6. The appeal is dismissed. The appellant has deposited the entire
award amount with the Claims Tribunal out of which 50% of the
award amount has been released to respondents no.1 to 6 and the
balance amount of Rs.14,69,447/- is lying in fixed deposit with UCO
Bank, Patiala House Courts.
7. UCO Bank, Patiala House Court is directed to keep Rs.13 lakh
in fixed deposit in the following manner:
Sr. Duration Resp. 1 Resp. 2 Resp. 3 Resp. 4 Resp.5 Resp.6
No. of FDR Widow Daughter Minor Son Minor Son Father Mother
(in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.)
1. 6 mths - - 1,75,000/- till 1,75,000/- till 25,000
he attains the he attains the
2. 1 yr 60,000 40,000 25,000 25,000
age of majority. age of majority.
3. 1 ½ yr - - 25,000
On maturity, On maturity,
4. 2 yrs 60,000 40,000 Bank shall Bank shall 25,000
5. 3 yrs 60,000 40,000 release release 25,000
Rs.25,000/- and Rs.25,000/- and
6. 4 yrs 60,000 40,000 3 FDRs of for 3 FDRs of for
7. 5 yrs 60,000 40,000 Rs.50,000 shall Rs.50,000 shall
be kept each for be kept each
8. 6 yrs 60,000 a period of 1 for a period of 1
9. 7 yrs 60,000 year, 2 and 3 year, 2 and 3
years. years.
10. 8 yrs 60,000
11. 9 yrs 60,000
12. 10 yrs 60,000
6,00,000 2,00,000 1,75,000 1,75,000 75,000 75,000
TOTAL
13,00,000
GRAND TOTAL
8. The balance amount, after keeping Rs.13 lakh in FDRs, be
released to respondent no.1 by transferring the same in her savings
bank account.
9. The monthly interest on the FDRs of respondents No. 1,2,5 & 6
5 shall be credited in their savings bank accounts. However, the
monthly interest on the FDRs of the two minor children, namely,
respondents No.3 and 4 shall be credited in the savings bank account
of respondent No.1
10. At the time of maturity, the fixed deposit amount shall be
automatically credited in the individual savings bank accounts of the
beneficiaries.
11. All the original FDRs shall be retained by UCO Bank, Patiala
House Court Branch. However, the photocopies of the same shall be
provided to the claimants/respondents.
12. No cheque book or debit card be issued to the
claimants/respondents without permission of this Court.
13. No loan or advance or pre-mature discharge shall be permitted
without the permission of this Court.
14. UCO Bank, Patiala House Court Branch shall ensure that the
savings bank accounts of respondents are individual accounts and not
joint accounts.
15. Statutory amount be refunded back to the appellant.
16. CM No.3737/2016 is disposed of.
CM 34589/2016
17. List on 8th November, 2016.
18. Respondent no.1 shall produce the copy of the FDRs issued in
terms of this judgment.
19. Copy of this judgment be given dasti to learned counsels for the
parties under signature of Court Master.
OCTOBER 24, 2016 J.R. MIDHA, J.
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