Delhi High Court
Oriental Insurance Co Ltd vs Shikari Yadav & Ors on 21 July, 2017
$~15, 16, 35
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision:21st July, 2017
15
+ MAC.APP. 544/2014 & CM 29493/2016
ORIENTAL INSURANCE CO LTD ..... Appellant
Through: Mr. Pankaj Seth, Advocate
versus
KALPANA BHATELA & ORS ..... Respondents
Through: Mr. Ravi Bhushan, Advocate for
respondents no.1 and 2 along with
respondent no.2 in person.
16
+ MAC.APP. 555/2014
ORIENTAL INSURANCE CO LTD ..... Appellant
Through: Mr. Pankaj Seth, Advocate
versus
KIRAN & ORS ..... Respondents
Through: Mr. Sanjeev Srivastava, Advocate for
respondents no.1 to 6.
35
+ MAC.APP. 551/2014
ORIENTAL INSURANCE CO LTD ..... Appellant
Through: Mr. Pankaj Seth, Advocate
MAC.APP.544/2014, 555/2014, 551/2014 Page 1 of 9
versus
SHIKARI YADAV & ORS ..... Respondents
Through:
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT (ORAL)
1. The appellant has challenged three common awards of the Claims
Tribunal whereby compensation has been awarded to claimants.
2. On 15th June, 2008 at about 3 A.M., Rajinder Singh, [email protected]
Bhatela and Sumodo @ Ram Samujh Yadav were returning from Manesar to
Delhi in vehicle No. DL 1M 1514. When the vehicle reached Raja Garden
flyover, Near Batra Hospital, truck trala bearing no. HR 55 E 7627 suddenly
stopped without giving any indication due to which No. DL 1M 1514 hit the
back portion of the truck which resulted in the death of all the three persons.
The legal representatives of the three deceased persons instituted the three
separate claim petitions which were decided by a common award. The
Claims Tribunal held the driver of the offending truck No.HR 55 E 7627 to
be rash and negligent and awarded compensation of Rs.11,69,733/- to the
legal representatives of Rajinder Singh, Rs.7,96,122/- to the legal
representatives of Raul Bhatela and Rs.7,23,546/- to the legal representatives
of Sumodo @ Ram Samujh Yadav.
MAC.APP.555/2014
3. Rajinder Singh was aged 34 years at the time of the accident and was
working as a driver. Kiran, the widow of the deceased appeared in the
witness box and deposed that the deceased was working as a driver and was
earning Rs.7,000/- per month out of which he was contributing Rs.6,000/-
per month towards the household expenses. The Claims Tribunal took the
minimum wages of Rs.4,057/-, added 50% towards inflation and deducted
1/5th towards the personal expenses of the deceased and applied the
multiplier of 16 to compute the loss of dependency as Rs.9,34,733/-. The
Claims Tribunal awarded Rs.1 lakh towards loss of care and guidance of
minor child, Rs.1 lakh towards loss of consortium, Rs.10,000/- towards loss
of estate and Rs.25,000/- towards funeral expenses. The total compensation
awarded is Rs.11,69,733/- along with interest @ 7.5% per annum.
4. Learned counsel for the appellant urged at the time of the hearing that
Rajinder Singh was guilty of contributory negligence and therefore, the
compensation awarded by the Claims Tribunal is liable to be reduced on the
ground of contributory negligence. It is further submitted that the addition
of 50% towards the future prospects is liable to be set aside. It is further
submitted that the deduction towards personal expenses should be taken as
1/4th instead of 1/5th.
5. This Court is of the view that it is not mandatory to resort to 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 1/3 rd
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 12 x 15 = Rs.7.5 lakhs.
6. 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/-
but neither the Division Bench of this Court nor Supreme Court resorted to
minimum wages to compute the compensation although neither the income
nor the occupation of the victims was proved.
7. This Court is of the view that since the occupation of the deceased had
been proved as a driver, applying the principles laid down in Uphaar
tragedy, the income of the deceased is presumed to be Rs.7,000/- per month.
Accepting the contention of learned counsel for the appellant, no future
prospects are added to the aforesaid income of the deceased. Taking the
income of the deceased as Rs.7,000/- per month, deducting 1/5th towards the
personal expenses and applying the multiplier of 16, the loss of dependency
is computed as Rs.10,75,200/-. Adding Rs.1 lakh towards the loss of love
and affection, Rs.1 lakh towards loss of consortium, Rs.10,000/- towards
loss of estate and Rs.25,000/- towards funeral expenses, the total
compensation is computed as Rs.13,10,200/-. The deceased is held to be
contributory negligent to the extent of 10.7% and Rs.1,40,467/- is deducted
from the above compensation amount. Respondents are entitled to
compensation of Rs.11,69,733/-.
8. The appeal is partially allowed. However, the compensation of Rs.
11,69,733/- is upheld for the reasons stated hereinabove. The Claims
Tribunal has awarded interest @ 7.5% which is on a lower side. The
Supreme Court as well as this Court are consistently awarding interest @
9% per annum. The rate of interest is therefore, enhanced from 7.5% to 9%
per annum.
9. The appellant has deposited the entire award amount with the
Registrar General of this Court in terms of the order dated 24 th July, 2014
out of which 80% amount has been released to respondents no.1 to 6 and the
balance amount of 20% is lying in FDR with the Registrar General of this
Court.
10. The Registry shall send a report to place on record the amount in the
FDR and the interest accrued thereon on the next date of hearing.
11. Oriental Insurance Company is directed to deposit the enhanced
interest amount with UCO Bank, Delhi High Court Branch by means of a
cheque drawn in the name of UCO Bank A/c Kiran within four weeks.
12. List for disbursement of the award amount on 13th September, 2017.
13. The claimants shall remain present in Court on the next date of
hearing along with the passbook of their savings bank accounts near the
place of their residence as well as PAN cards and Aadhar cards.
MAC.APP.544/2014
14. [email protected] Bhatela was aged 21 years at the time of the accident
and was working with M/s. Shiva Motors as a mechanic earning Rs.6,000/-
per month. The Claims Tribunal took the minimum wages of Rs.4,081/-,
added 50% towards future prospects and applied the multiplier of 18 to
compute the loss of dependency as Rs.6,61,122/-. The Claims Tribunal
awarded Rs.1 lakh towards loss of love and affection, Rs.10,000/- towards
loss of estate and Rs.25,000/- towards funeral expenses. The total
compensation awarded is Rs.7,96,122/- along with interest @ 7.5% per
annum.
15. Learned counsel for the appellant urged at the time of the hearing of
the appeal that future prospects of 50% should not be taken into
consideration.
16. This Court is of the view that since the occupation of the deceased had
been proved as a mechanic, applying the principles laid down in Uphaar
tragedy, the income of the deceased is presumed to be Rs.7870.5 per month.
Accepting the contention of learned counsel for the appellant, no future
prospects are added to the aforesaid income of the deceased. Since the
deceased was unmarried, the multiplier is reduced from 18 to 14. Taking the
income of the deceased as Rs.7870.5, deducting 50% towards his personal
expenses and applying the multiplier of 14, the loss of dependency is
computed as Rs. 6,61,122/-. Adding Rs.1 lakh towards loss of love and
affection, Rs.10,000/- towards loss of estate and Rs.25,000/- towards funeral
expenses, the total compensation is computed as Rs.7,96,122/-.
17. The appeal is partially allowed. However, the compensation of
Rs.7,96,122/- is upheld for the reasons stated hereinabove. The Claims
Tribunal has awarded interest @ 7.5% which is on a lower side. The
Supreme Court as well as this Court are consistently awarding interest @
9% per annum. The rate of interest is therefore, enhanced from 7.5% to 9%
per annum.
18. The appellant has deposited the entire award amount with the
Registrar General of this Court in terms of the order dated 24 th July, 2014
out of which 80% amount has been released to respondents no.1 to 6 and the
balance amount of 20% is lying in FDR with the Registrar General of this
Court.
19. The Registry shall send a report to place on record the amount in the
FDR and the interest accrued thereon on the next date of hearing.
20. Oriental Insurance Company is directed to deposit the enhanced
interest amount with UCO Bank, Delhi High Court Branch by means of a
cheque drawn in the name of UCO Bank A/c Kalpana Bhatela within four
weeks.
21. List for disbursement of the award amount on 13th September, 2017.
22. The claimants shall remain present in Court on the next date of
hearing along with the passbook of their savings bank accounts near the
place of their residence as well as PAN cards and Aadhar cards.
MAC.APP.551/2014
23. Sumodo @ Ram Samujh Yadav was aged 18 years at the time of the
accident and was working as a motor mechanic/helper with Pawan Ji Milk
Dairy. The deceased was survived by his parents who filed the claim
petition before the Claims Tribunal. The Claims Tribunal took the minimum
wages of Rs.3,633/-, added 50% towards inflation and deducted 50%
towards the personal expenses of the deceased and applied the multiplier of
18 to compute the loss of dependency as Rs.5,88,546/- The Claims Tribunal
awarded Rs.1 lakh towards loss of love and affection, Rs.10,000/- towards
loss of estate and Rs.25,000/- towards funeral expenses. The total
compensation awarded is Rs.7,23,546/- along with interest @ 7.5% per
annum.
24. Learned counsel for the appellant urged at the time of the hearing of
the appeal that future prospects of 50% should not be taken into
consideration.
25. This Court is of the view that since the occupation of the deceased had
been proved as a motor mechanic/helper with Pawan Ji Milk Dairy, applying
the principles laid down in Uphaar tragedy, the income of the deceased is
presumed to be Rs.7,006.5 per month. Accepting the contention of learned
counsel for the appellant, no future prospects are added to the aforesaid
income of the deceased is taken as Rs.7,006.5. Since the deceased was
unmarried, the multiplier is reduced from 18 to 14. Taking the income of
the deceased as Rs.7,006.5, deducting 50% towards his personal expenses
and applying the multiplier of 14, the loss of dependency is computed as Rs.
5,88,546/-. Adding Rs.1 lakh towards loss of love and affection, Rs.10,000/-
towards loss of estate and Rs.25,000/- towards funeral expenses, the total
compensation is computed as Rs.7,23,546/-.
26. The appeal is partially allowed. However, the compensation of
Rs.7,23,546/- is upheld for the reasons stated hereinabove. The Claims
Tribunal has awarded interest @ 7.5% which is on a lower side. The
Supreme Court as well as this Court are consistently awarding interest @
9% per annum. The rate of interest is therefore, enhanced from 7.5% to 9%
per annum.
27. The appellant has deposited the entire award amount with the
Registrar General of this Court in terms of the order dated 24 th July, 2014
out of which 80% amount has been released to respondents no.1 to 6 and the
balance amount of 20% is lying in FDR with the Registrar General of this
Court.
28. The Registry shall send a report to place on record the amount in the
FDR and the interest accrued thereon on the next date of hearing.
29. Oriental Insurance Company is directed to deposit the enhanced
interest amount with UCO Bank, Delhi High Court Branch by means of a
cheque drawn in the name of UCO Bank A/c Shikari Yadav within four
weeks.
30. List for disbursement of the award amount on 13th September, 2017.
31. The claimants shall remain present in Court on the next date of
hearing along with the passbook of their savings bank accounts near the
place of their residence as well as PAN cards and Aadhar cards.
32. Copy of this judgment be given dasti to counsel for the parties under
the signature of the Court Master.
JULY 21, 2017 J.R. MIDHA, J.
dk
