Delhi High Court
The Oriental Insurance Co Ltd vs Moni Arora & Ors on 6 September, 2016
$~10
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 06th September, 2016
+ MAC.APP. 560/2016 & C.M. Appl. Nos.26500/2016 & 32560/2016
THE ORIENTAL INSURANCE CO LTD ..... Appellant
Through: Mr. R.K. Tripathi, Advocate
versus
MONI ARORA & ORS ..... Respondents
Through: Mr. S.N. Parashar, Advocate for
respondents No.1 to 5
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.13,24,744/- has been awarded to
claimants/respondents No.1 to 5.
2. The accident on the intervening night 20th and 21st January, 2006
resulted in the death of Vikas Arora, who was survived by his widow, one
daughter, one son and parents, who filed the claim petition. The deceased
was running a kirana shop. It was claimed that he was earning Rs.10,000/-
per month. However, the Claims Tribunal took the minimum wages of
Rs.3,934/- per month, added 50% towards future prospects, deducted 1/4th
towards personal expenses and applied the multiplier of 16 to compute the
loss of dependency at Rs.8,49,744/-. The Claims Tribunal awarded
Rs.1,00,000/- to each child and Rs.50,000/- to mother towards loss of love
and affection, Rs.25,000/- towards funeral expenses, Rs.1,00,000/- towards
loss of consortium and Rs.1,00,000/- towards loss of estate. The total
compensation awarded by Claims Tribunal is Rs.13,24,744/.-
3. The appellant has challenged the impugned award on the two
grounds, first that 50% of future prospects should not be awarded and
second that the compensation of Rs.1,00,000/- for loss of love and affection
to each child of the deceased and Rs.1,00,000/- towards loss of estate is on a
higher side.
4. The Claims Tribunal has taken the minimum wages of Rs.3,934/- and
after adding 50% towards the future prospects, the total income of the
deceased has been taken as Rs.5,901/- (Rs.3934 + Rs.1967). This Court is
of the view that the occupation of the deceased as running a kirana shop
having been sufficiently proved, the income of the deceased can be safely
presumed as Rs.5901/- per month even if future prospects are not awarded.
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.
5. 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.
6. 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.
7. Applying the principles laid down in Uphaar tragedy case, the
income of the deceased is presumed to be Rs.5,901/-. The compensation for
love and affection and loss of estate does not warrant any interference.
Applying Section 167 of the Evidence Act, the award of the learned
Tribunal is upheld for the reasons stated above.
8. There is no merit in the appeal which is hereby dismissed.
9. The appellant has deposited entire award amount with the UCO Bank,
Delhi High Court Branch in terms of the order dated 26th July, 2016. The
said amount is lying in FDR with the UCO Bank, Delhi High Court Branch.
10. Para 8 of the award amount is modified to the extent that
Rs.22,00,000/- of the award amount be kept in a FDRs in the following
proportion: -
Sr. Duration Resp. 1 Resp. 2 Resp. 3 Resp. 4 Resp. 5
No. of FDR (Wife) (Minor Son) (Minor (Mother) (Father)
Daughter)
1. 1 yr 1,00,000 Rs.4,00,000 be Rs.4,00,000 be 50,000 50,000
kept in FDR till kept in FDR till
2. 2 yrs 1,00,000 he attains the she attains the age 50,000 50,000
3. 3 yrs 1,00,000 age of majority. of majority. 50,000 50,000
4. 4 yrs 1,00,000 On maturity 4 On maturity 4 50,000 50,000
FDRs be FDRs be
5. 5 yrs 1,00,000 - -
renewed by renewed by
6. 6 yrs 1,00,000 issuing each for issuing each for a - -
a period of 1 period of 1 year,
7. 7 yrs 1,00,000 year, 2 years, 3 2 years, 3 years - -
years and 4 and 4 years.
8. 8 yrs 1,00,000 years. - -
9. 9 yrs 1,00,000 - -
10. 10 yrs 1,00,000 - -
TOTAL 10,00,000 4,00,000 4,00,000 2,00,000 2,00,000
GRAND TOTAL 22,00,000
11. The UCO Bank shall release the balance amount in equal shares to
respondents No.1, 4 and 5 by transferring the said amount to their individual
savings bank accounts.
12. Monthly interest on the FDRs of respondents No.1 to 3 shall be
credited in the individual savings bank account of respondent No.1 and that
of respondents No.4 & 5 shall be credited in their individual savings bank
accounts.
13. At the time of maturity, the fixed deposit amount shall be
automatically credited in the individual savings bank accounts of the
beneficiaries/respondents.
14. All the original FDRs shall be retained by UCO Bank, Delhi High
Court Branch. However, the photocopies of the same shall be provided to
the respondents.
15. No cheque book or debit card shall be issued to the
claimants/respondents without permission of this Court.
16. No loan or advance or pre-mature discharge shall be permitted
without the permission of this Court.
17. UCO Bank, Delhi High Court Branch shall ensure that the savings
bank account of appellant no.1 is individual account and not joint account.
18. The claimants/respondents shall approach the UCO Bank, Delhi High
Court Branch for completing the formalities for the disbursement of the
award amount in terms of this order.
19. The claimants/respondents are at liberty to approach this Court for
release of further amount in case of any financial exigency.
20. C.M. Appl. 26500/2016 and C.M. Appl. 32560/2016 are disposed of.
21. Copy of this judgement be given dasti to learned counsels for parties
under signatures of the Court Master.
22. Copy of this judgement be sent to respondents as well as UCO Bank,
Delhi High Court Branch.
J.R. MIDHA, J.
SEPTEMBER 06, 2016
rsk
