Delhi High Court
Reliance General Insurance Co Ltd vs Meenu Wadhera & Ors on 28 July, 2017
$~13 to 16
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 28th July, 2017
+ MAC.APP. 259/2015 & CM No.4546/2015, 2444-2445/2016
RELIANCE GENERAL INSURANCE CO LTD ..... Appellant
Through: Mr. A.K. Soni, Adv.
versus
MEENU WADHERA & ORS ..... Respondents
Through: Mr. Navneet Goyal, Adv. for R1 and
R2.
+ MAC.APP. 278/2015 & CM No.5035/2015 & 2014/2016
RELIANCE GENERAL INSURANCE CO LTD ..... Appellant
Through: Mr. A.K. Soni, Adv.
versus
KRISHNA AHUJA & ORS ..... Respondents
Through: Mr. Navneet Goyal, Adv. for R1 to
R4.
+ MAC.APP. 128/2016
MEENU WADHERA & ANR ..... Appellants
Through: Mr. Navneet Goyal, Adv.
versus
RELIANCE GENERAL INS CO LTD & ORS ..... Respondents
Through: Mr. A.K. Soni, Adv.
MAC.APP.259/2015, 278/2015, 128/2016 & 889/2016 Page 1 of 7
+ MAC.APP. 889/2016
KRISHNA AHUJA & ORS ..... Appellants
Through: Mr. Navneet Goyal, Adv.
versus
RELIANCE GENERAL
INSURANCE CO LTD & ORS ..... Respondents
Through: Mr. A.K. Soni, Adv.
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT (ORAL)
1. The Claims Tribunal has awarded compensation of Rs.22,97,668/- to
legal representatives of Gurmeet Singh Wadhera and Rs.21,62,467/- to legal
representatives of Pradeep Kumar Ahuja which is under challenge in these
appeals.
2. On 22nd November, 2012 at about 12:35 P.M., Gurmeet Singh
Wadhera and Pradeep Kumar Ahuja travelling in Santro car bearing No.DL-
2CAD-8026 were hit by Ford Endeavour car bearing No.PB-06Q-4123 at H
Block, Kirti Nagar, Delhi which resulted in fatal injuries. The legal heirs of
the deceased persons filed the claim petitions which were decided by the
Claims Tribunal by a common award.
MAC.APP. 259/2015 & MAC.APP. 128/2016
3. Gurmeet Singh Wadhera was aged 45 years at the time of accident
and was carrying on the business of Tent House in the West Patel Nagar,
Delhi in the name M/s Kaka Tent House. The deceased was survived by his
widow and minor son who filed the claim application for compensation. The
deceased was assessed to Income Tax. PW4, Naresh Kumar proved the
Income Tax Return for the year 2010-2011 as Ex.PW4/1. According to the
Income Tax Return, the deceased had income of Rs.2,55,000/- per annum.
However, the Claims Tribunal deducted the standard deduction of
Rs.85,000/- shown in the Income Tax Returns and took the balance amount
of Rs.1,70,000/- as the income of the deceased. The Claims Tribunal added
30% towards future prospects, deducted 1/3 towards personal expenses and
applied the multiplier of 13 to compute the loss of dependency as
Rs.20,62,66.6/-. The Claims Tribunal awarded Rs.1,00,000/- towards loss of
consortium, Rs.10,000/- towards loss of estate, Rs.25,000/- towards funeral
expenses and Rs.1,00,000/- towards loss of care and guidance for minor
children. The total compensation awarded by the Claims Tribunal is
Rs.22,97,668/-.
4. Learned counsel for the appellant in MAC.APP.259/2015 urged at the
time of hearing that the future prospects should not be taken into
consideration and the Income Tax amount be deducted from the income of
the deceased.
5. Learned counsel for the appellant in MAC.APP.128/2016 urged at the
time of hearing that and the deduction of Rs.85,000/- by the Claims Tribunal
be set aside. The annual income of the deceased be taken as Rs.2,55,000/-
according to the Income Tax Return. It is submitted that the standard
deduction of Rs.85,000/- relate to the investment made by the deceased in
LIC, PPF, Mediclaim premium etc.
6. The Income Tax Return of the deceased has been seen from the Trial
Court record. The deceased has declared income of Rs.2,55,000/- per annum
out of which Rs.85,000/- has been shown as deduction under Section 80C
and 80GG-GGA of the Income Tax Act. The Claims Tribunal erred in
deducting the said amount for computation of the compensation. The income
of the deceased is taken as Rs.2,53,970/- (Rs.2,55,000 - Rs.1,030/- towards
Income Tax). The addition of 30% towards future prospects is fair and
reasonable and is upheld. The compensation awarded under the other heads
is also fair and reasonable and upheld.
7. The claimants are entitled to the total compensation of Rs.31,48,503/-
as per the break up given hereunder:-
Annual Income : Rs.2,53,970/-
Add 30% towards future prospects : Rs.76,191/-
Deduct 1/3rd towards personal expenses : Rs.1,10,053.66
Annual loss of dependency : Rs.2,20,107.34
Multiplier : 14
Loss of dependency : Rs.30,81,502.76(2,20,107.34x14)
Loss of care and guidance for minor children : Rs.1,00,000/-
Loss of consortium : Rs.1,00,000/-
Loss of estate : Rs.10,000/-
Funeral expenses : Rs.25,000/-
TOTAL : Rs.33,16,502.76 (rounded off as Rs.33,16,503/-)
8. MAC.APP.128/2016 is allowed and the award amount is enhanced
from Rs.22,97,668/- to Rs.31,48,503/-. The MAC.APP.259/2015 is
dismissed.
9. Reliance General Insurance Company Limited is directed to deposit
the enhanced awarded amount with UCO Bank, Delhi High Court Branch by
means of a cheque in the name of UCO Bank A/c Meenu Wadhera within
four weeks.
MAC.APP. 278/2015 & MAC.APP. 889/2016
10. Pradeep Kumar Ahuja was aged 50 years at the time of accident and
was carrying on the business of photography in the Kirti Nagar, Delhi in the
name Foto Shop. The deceased was survived by his widow, two unmarried
daughters, one minor son and widowed mother who filed the claim
application for compensation. The deceased was assessed to Income Tax.
PW3, Girjia Shankar Bajpai proved the Income Tax Return for the year
2010-2011 as Ex.PW3/1(colly). According to the Income Tax Return, the
deceased had income of Rs.2,54,813/-. However, the Claims Tribunal
deducted the standard deduction of Rs.49,191/- shown in the Income Tax
Return along with Income Tax of Rs.4,700/- and took the balance amount of
Rs.2,00,922/- as the income of the deceased. The Claims Tribunal added
15% towards future prospects, deducted 1/4 towards personal expenses and
applied the multiplier of 11 to compute the loss of dependency at
Rs.19,06,247/-. The Claims Tribunal awarded Rs.1,00,000/- towards loss of
consortium, Rs.10,000/- towards loss of estate, Rs.25,000/- towards funeral
expenses and Rs.1,00,000/- towards loss of care and guidance for minor
children. The total compensation awarded by the Claims Tribunal is
Rs.21,62,467/-.
11. Learned counsel for the appellant in MAC.APP.278/2015 urged at the
time of hearing that the future prospects should not be taken into
consideration.
12. Learned counsel for the appellant in MAC.APP.889/2016 urged at the
time of hearing that the annual income of the deceased be taken as
Rs.2,54,813/- according to the Income Tax Return and the deduction of
Rs.49,191/- by the Claims Tribunal be set aside. It is submitted that the
standard deduction of Rs.49,191/- relate to the investment made by the
deceased in LIC, PPF, Mediclaim premium etc.
13. The Income Tax Return of the deceased has been seen from the Trial
Court record. The deceased has declared income of Rs.2,54,813/- per annum
out of which Rs.49,191/- has been shown as deduction under Section 80C of
the Income Tax Act. The Claims Tribunal erred in deducting the said
amount for computation of the compensation. The income of the deceased is
taken as Rs.2,50,114/- (Rs.2,54,813/- - Rs.4699/- towards Income Tax). The
addition of 15% towards future prospects is fair and reasonable and is
upheld. The compensation awarded under the other heads is also fair and
reasonable and upheld.
14. The claimants are entitled to the total compensation of Rs.26,07,957/-
as per the break up given hereunder:-
Annual Income : Rs.2,50,114/-
Add 15% towards future prospects : Rs.37,517.1
Deduct 1/4th towards personal expenses : Rs.71907.775
Annual loss of dependency : Rs. 2,15,723.325
Multiplier : 11
Loss of dependency : Rs. 23,72,956.575 (2,15,723.325x11)
Loss of care and guidance for minor children : Rs.1,00,000/-
Loss of consortium : Rs.1,00,000/-
Loss of estate : Rs.10,000/-
Funeral expenses : Rs.25,000/-
TOTAL : Rs. 26,07,956.575 (rounded off as Rs.26,07,957/-)
15. MAC.APP.889/2016 is allowed and the award amount is enhanced
from Rs.21,62,467/- to Rs.26,07,957/-. MAC.APP.278/2015 is dismissed.
16. Reliance General Insurance Company Limited is directed to deposit
the enhanced awarded amount with UCO Bank, Delhi High Court Branch by
means of a cheque in the name of UCO Bank A/c Krishna Ahuja within four
weeks.
17. Statutory amount be refunded back to the Reliance General Insurance
Company Limited in MAC.APP.259/2015 and in MAC.APP.278/2015 after
the deposit of the enhanced award amount.
18. List for disbursement of the enhanced award amount on 09th October,
2017.
19. Copy of the judgment be given dasti to counsels for the parties under
the signature of the Court Master.
JULY 28, 2017 J.R. MIDHA, J.
ak
