Delhi High Court
The New India Assurance Co. Ltd vs Khushboo Jha on 16 November, 2017
$~R-496
IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 16th November, 2017
+ MAC.APP.442/2012
THE NEW INDIA ASSURANCE CO. LTD...... Appellant
Through: Mr. J.P.N. Shahi, Adv.
versus
KHUSHBOO JHA ..... Respondent
Through: None.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. Manish Jha, aged 27 years, employed in a private entity, died
due to injuries suffered in motor vehicular accident that occurred on
19.01.2011 on account of negligent driving of motor vehicle described
as one bearing registration no. DL 1PB 6680 which was admittedly
insured against third party risk with the appellant (insurer) for the
period in question. On the accident claim case (Suit No. 1/11)
instituted on 16.03.2011 by his wife and four other members of the
family dependent on him, they being first to fifth respondents
(collectively the claimants) the tribunal, by judgment dated
02.03.2012, awarded compensation in the total sum of Rs. 12,91,760/-,
fastening the liability to pay with interest @7.5% per annum against
the insurer which is in appeal to question the said computation of
compensation.
2. The appeal was admitted and put in the list of regulars as per
order dated 02.11.2012. When it is called out for hearing on its own
turn, there is no appearance on behalf of the claimants. The appeal has
been heard with the assistance of the learned counsel for the insurer
and the record perused.
3. The counsel of the insurer presses the appeal only to argue that
the element of future prospects of increase in income to the extent of
50% added against the income notionally assessed with minimum
wages (Rs. 5,278/-) was incorrect and that the awards under non
pecuniary heads of damages in the sum of Rs. 10,000/- each towards
funeral expenses, loss of consortium and loss to estate; and Rs.
50,000/- towards loss of love and affection are excessive.
4. Having regard to the decision of the Constitution Bench of a
Supreme Court rendered on 31.10.2017 in SLP (C) 25590/2014,
National Insurance Company Ltd. Vs. Pranay Sethi and Ors., suitable
corrections are required to be made.
5. Since the claimants were unable to prove the gainful
employment of the deceased or the earnings therefrom and the tribunal
was constrained to go by the minimum wages, the element of future
prospects will have to be restricted to 40%.
6. Thus, the loss of dependency is recomputed as (5,278 x 140
÷100 x 3 ÷ 4 x 12 x 17) Rs. 11,30,547.60 rounded off to Rs.
11,31,000/-. Following the dispensation in Pranay Sethi (supra) Rs.
40,000/- towards loss of consortium and Rs. 15,000/- each on account
of loss to estate and funeral expenses are added. Thus, the total
compensation in the case is calculated as (11,31,000 + 40,000 +
15,000 + 15,000) Rs. 12,01,000/- (Rupees Twelve Lakhs One
Thousand only). The award is modified accordingly.
7. Following the consistent view taken by this Court, the rate of
interest is increased to 9% (nine percent) per annum from the date of
filing of the petition till realization. [see judgment dated 22.02.2016
in MAC.APP. 165/2011 Oriental Insurance Co Ltd v. Sangeeta Devi
& Ors.].
8. By Order dated 27.04.2012, the insurance company had been
directed to deposit the entire awarded amount with upto date interest
with UCO Bank, Delhi High Court Branch. By subsequent order
dated 02.11.2012, 50% of the awarded amount was permitted to be
released to the claimants. The balance shall now be released to the
claimants in terms of the modification ordered above. As the award
has been reduced, the excess amount deposited shall be refunded to
the appellant.
9. The statutory amount shall also be refunded.
10. The appeal is disposed of in above terms.
R.K.GAUBA, J.
NOVEMBER 16, 2017
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