Oriental Insurance Co. Ltd. vs Suman & Ors.
2017 Latest Caselaw 545 Del

$~37
* IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                Date of Decision: 30th January, 2017

+     MAC.APP. 266/2015
      ORIENTAL INSURANCE CO. LTD.      ..... Appellant
                   Through: Mr. Shoumik Mazumdar, Adv.

                   versus

      SUMAN & ORS.                                 ..... Respondents
                            Through:   Mr.Anshuman Bal, Adv. 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.9,80,810/- has been awarded to respondents no.1 to 5.

2. The accident dated 8th October, 2008 resulted in the death of Rajbeer Singh. The deceased was aged 38 years at the time of the accident and was survived by his widow, two sons, one minor daughter and mother who filed the claim petition before the Claims Tribunal. It was claimed that the deceased was in private service earning Rs.8,000/- per month. However, the Claims Tribunal took minimum wages of Rs.3,683/- per month in respect of an unskilled person, added 50% towards inflation, deducted 1/4th towards the personal expenses and applied the multiplier of 15 to compute the loss of dependency as Rs.7,45,810/-. The Claims Tribunal awarded Rs.1 lakh towards loss of love and affection, Rs.1 lakh towards loss of

consortium, Rs.10,000/- towards loss of estate, Rs.25,000/- towards funeral expenses. The total compensation awarded by Claims Tribunal is Rs.9,80,810/- along with interest @ 8% per annum.

3. Learned counsel for the appellant urged at the time of the hearing that addition of 50% towards inflation/future prospects be set aside.

4. Learned counsel for the respondents urged at the time of the hearing that the addition of 50% towards inflation/future prospects is fair and reasonable. It is further submitted that the rate of interest be enhanced from 8% to 9% per annum.

5. This Court is of the view that the addition of 50% towards inflation on the minimum wages is fair and reasonable and it does not warrant any interference.

6. With respect to the rate of interest awarded by the Claims Tribunal, this Court is of the view that the Supreme Court as well as this Court are consistently awarding interest @ 9% per annum. The rate of interest is, therefore, enhanced from 8% to 9% per annum.

7. The appeal is dismissed. The award for Rs.9,80,810/- is upheld. However, the rate of interest is enhanced from 8% to 9% per annum w.e.f. 8th December, 2008 till realization.

8. The appellant has deposited the entire award amount with UCO Bank, Delhi High Court Branch out of 75% amount along with proportionate interest has been released in terms of order dated 16th March, 2015. The appellant has deposited Rs.3,96,941/-(Rs.2,45,203 + Rs.1,52,738) with UCO Bank, Delhi High Court Branch on 19th September, 2016. UCO Bank, Delhi High Court Branch is directed to keep Rs.3,50,000/- in fixed deposits in the name of respondents no.1 and 2 in the following manner:

(i) Rs.2 lakh in 40 FDRs for Rs.5,000/- each in the name of respondent no.1 for the period 1 month to 40 months respectively with cumulative interest.

(ii) Rs.1.5 lakh in 30 FDRs for Rs.5,000/- each in the name of respondent no.2 for the period 1 month to 30 months respectively with cumulative interest.

9. The balance amount after keeping Rs.3,50,000/- in FDRs be released to respondents no.1 to 4 in equal shares.

10. The original FDRs shall remain with UCO Bank, Delhi High Court Branch. However, the photocopies thereof shall be furnished to respondents no.1 and 2.

11. The maturity amount of the FDRs be transferred in the savings bank account of respondents no.1 and 2 respectively near the place of their residence. Respondents no.1 and 2 shall furnish the particulars of their savings bank account near the place of their residence to UCO Bank, Delhi High Court Branch.

12. The statutory amount of Rs.25,000/- shall be adjusted against the appellant's liability to pay the enhanced interest amount. The balance enhanced interest amount, if any, be deposited by the appellant with UCO Bank, Delhi High Court Branch by means of a cheque drawn in the name of UCO Bank A/c Suman within four weeks. The appellant shall file the computation of interest on affidavit within four weeks.

13. List for reporting compliance on 25th May, 2017.

14. Copy of this judgment be given dasti to learned counsels for the parties under signature of Court Master.

JANUARY 30, 2017                                     J.R. MIDHA, J.
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