Delhi High Court
Pritam Singh & Anr. vs Shriram General Insurance Co. ... on 27 November, 2017
$~R-570-571 (common order)
IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 27th November, 2017
+ MAC.APP. 892/2012
SHRIRAM GENERAL INSURANCE CO. LTD...... Appellant
Through: Mr. Priyadarsi Acharya, Advocate
Versus
PRITAM SINGH & ORS. ..... Respondents
Through: Mr. Anshuman Bal, Advocate for R-1
& R-2.
+ MAC.APP. 882/2016
PRITAM SINGH & ANR. ..... Appellants
Through: Mr. Anshuman Bal, Advocate
Versus
SHRIRAM GENERAL INSURANCE CO. LTD. & ORS.
...... Respondents
Through: Mr. Priyadarsi Acharya, Advocate
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. By judgment dated 27.02.2012, the motor accident claims
Tribunal (tribunal) decided accident claim case (Suit No.511/11)
which had been instituted on 02.09.2009 by the parents of deceased
Vijender Singh (appellants in MAC APP.882/2016), they being first &
second respondents in MAC APP.892/2012 (collectively, the
claimants), the death having occurred in a motor vehicular accident
that had been caused on 07.06.2009 due to negligent driving of tanker
bearing registration No.HR-55D-7506, which was admittedly insured
against third party risk for the period in question with Shriram General
Insurance Company Limited (insurer), (appellant in MAC
APP.892/2012).
2. The tribunal granted compensation in the total sum of
Rs.8,93,280/-, directing the insurer to pay with interest @ 7.5% per
annum. However, on an application of the insurance company, the
said award was modified by order dated 12.04.2012 whereby
compensation in the total sum of Rs.4,61,640/- was awarded which
included Rs.4,31,640/- on account of loss of dependency and
Rs.10,000/- each towards funeral expenses, loss of estate and loss of
love and affection.
3. The deceased was admittedly a bachelor, aged 21 years on the
date of death. No clear proof as to his income was mustered and, thus,
the tribunal assumed Rs.4,360/- as the notional income, it being the
minimum wages payable during the relevant period. It added 50%
towards future prospects of income, made deduction of one-half and
applied the multiplier of 11, according to the age of the mother of the
deceased while calculating the loss of dependency.
4. Both the insurer and the claimants are in appeal, the former
taking exception to inclusion of future prospects to the extent of 50%
and the latter submitting that the multiplier should have been adopted
as per the age of the deceased and that the non-pecuniary damages and
rate of interest levied are inadequate.
5. The contentions of both sides are found to be correct. In view
of the ruling of the Constitution Bench of the Supreme Court rendered
on 31.10.2017 in SLP (C) 25590/2014, National Insurance Company
Ltd. Vs. Pranay Sethi and Ors., and Sarla Verma & Ors. v. Delhi
Transport Corporation & Anr., (2009) 6 SCC 121, the multiplier of 18
will have to be applied having regard to the age of the deceased at the
time of death and future prospects will need to be restricted to 40%.
Thus, the loss of dependency is re-calculated as (4360 x 140/100 ÷ 2 x
12 x 18] Rs.6,59,232/- rounded off to Rs.6,60,000/-. In addition to
this, Rs.15,000/- each towards loss of love and affection and funeral
expenses are added.
6. Thus, the total compensation comes to (6,60,000/- + 15,000/- +
15,000/-) Rs.6,90,000/- (Rupees Six Lac and Ninety Thousand Only).
7. The award is modified accordingly.
8. Following the consistent view taken by this Court, the rate of
interest is increased to 9% 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.].
9. By order dated 17.08.2012 read with order 08.02.2013 passed in
MAC APP.892/2012, the insurance company had been directed to
deposit the entire awarded amount with upto date interest and out of
the said deposit, fifty per cent (50%) was directed to be released to the
claimants.
10. Since the award stands increased, the entire balance lying in
deposit shall now be released to the claimants in terms of the
impugned award. The enhanced portion of the award with
corresponding interest shall be deposited by the insurance company
with the tribunal within thirty days (30 days) whereupon it shall be
released to the second claimant Smt. Kripal Kaur (mother) only in the
form of interest bearing fixed deposit receipt to be taken out from a
nationalized bank for a period of seven years with right to draw
periodic interest.
11. The statutory deposit shall be refunded to the insurer upon
showing proof of satisfaction of award.
12. Both the appeals stand disposed of in above terms.
13. Pending applications also stand disposed of.
R.K.GAUBA, J.
NOVEMBER 27, 2017
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