Delhi High Court
Reliance General Insurance Co Ltd vs Rajesh Kumar & Ors on 15 September, 2016
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 15th September, 2016
+ MAC.APP. 1102/2013
RELIANCE GENERAL INSURANCE CO LTD ..... Appellant
Through: Mr. Shoumik Mazumdar, Adv.
versus
RAJESH KUMAR & ORS ..... Respondents
Through: Mr. Rajeshwar Kumar Gupta, Adv.
for respondent no.1 along with
respondent no.1 in person.
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.33,89,525/- has been awarded to respondent
no.1.
2. The accident dated 1st May, 2010 resulted in the amputation of right
leg above knee (mid thigh) and left hand index finger. The permanent
disability of the appellant has been assessed as 90% in respect of the right
lower limb and left upper limb.
3. Respondent no.1 was carrying on business relating to jeans/pants at
the time of the accident earning Rs.2,08,500/- per annum as per the Income
Tax returns. The Claims Tribunal took functional disability as 70 % in
respect of whole body and applied the multiplier of 15 to compute the loss
of future income as Rs.21,89,250/-. The Claims Tribunal further awarded
future prospects @ 30%. The total loss of future income has been computed
as Rs.28,86,025/-. The loss of income for one year after the accident has
been computed as Rs.2,08,500/-. The Claims Tribunal further awarded
Rs.20,000/- towards attendant, Rs.20,000/- towards special diet, Rs.20,000/-
towards conveyance and Rs.1,00,000/- towards artificial limb. The Claims
Tribunal awarded Rs.1,00,000/- towards pain and suffering, Rs.25,000/-
towards amenities of life, Rs.25,000/- towards shortening of life span,
Rs.25,000/- towards disfiguration, Rs.37,352/- towards medical bills. The
total compensation of Rs.33,89,525/- has been awarded by the Claims
Tribunal.
4. Learned counsel for the appellant urged at the time of the hearing of
the appeal that functional disability of 70% with respect of whole body was
taken by the Claims Tribunal and 30% increase on account of future
prospects are on a higher side. It is further submitted that the income of
respondent no.1 should be taken according to the Income Tax returns of the
previous years. It is further submitted that the loss of income for the one
year is also on a higher side. Learned counsel further submits that the
interest on the future income should not be awarded. Learned counsel
further submits that the penal interest of 12% should be set aside since the
appellant had filed appeal before this Court.
5. Respondent no.1 is present in Court and his condition has been seen.
This Court is of the view that the compensation awarded to respondent no.1
is just, fair and reasonable. There is no infirmity in the computation of the
income of respondent no.1 according to the latest Income Tax return. The
future prospects of 30% taken by the Claims Tribunal is also fair and
reasonable. The interest on the future income does not warrant interference
as the Claims Tribunal has awarded lower interest rate of 7.5% instead of
9% being consistently awarded by this Court. However, the penal interest of
12% imposed by the Claims Tribunal has to be set aside since the appellant
had filed the appeal before this Court.
6. The compensation of Rs.33,89,525/- awarded by the Claims Tribunal
along with interest @ 7.5% per annum is upheld. However, the appeal is
partially allowed to the extent that the penal interest of 12% awarded by the
Claims Tribunal is set aside.
7. The appellant has deposited the entire award amount with this Court
in terms of order dated 2nd December, 2013 out of which 60% amount has
been disbursed to respondent no.1 and the balance 40% amount is lying with
this Court.
8. The Registrar General is directed to instruct UCO Bank, Delhi High
Court Branch to discharge the FDR and disburse the balance award amount
to respondent No.1 in the following proportion:-
(i) UCO Bank shall release 10% of the amount to respondent No.1 by
transferring the said amount to his savings bank account.
(ii) The balance 90% amount be kept in nine fixed deposits of equal
amount for a period of 1 year, 2 years, years, 3 years, 4 years, 5
years, 6 years, 7 years, 8 years and 9 years.
9. Monthly interest on the FDRs of respondents No.1 shall be credited in
the individual 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 account of respondent
no.1.
11. 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 claimant/respondent no.1.
12. No cheque book or debit card be issued to the claimant/respondent
no.1 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, Delhi High Court Branch shall ensure that the savings
bank account of respondent no.1 is an individual account and not joint
account.
15. Respondent no.1 are at liberty to approach this Court for release of
further amount in case of any financial exigency.
16. The statutory amount be refunded back to the appellant.
17. Copy of this judgment be given dasti to counsels for the parties under
signatures of the Court Master.
J.R. MIDHA, J.
SEPTEMBER 15, 2016
dk
