Delhi High Court
Bharti Axa General Insurance Co ... vs Rakesh Arora & Anr on 4 September, 2017
$~3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 4th September, 2017
+ MAC.APP. 652/2016 & CM No. 30411/2016
BHARTI AXA GENERAL INSURANCE CO LTD
..... Appellant
Through: Mr. Navneet Kumar, Adv.
Versus
RAKESH ARORA & ANR ..... Respondents
Through: Mr. S.N. Parashar, Adv. for R-1
& 2.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. Vikas Arora, then 27 years old, a bachelor, died in motor
vehicular accident that occurred on 08.06.2013 at about 10.15 a.m.
due to negligent driving of motorcycle bearing registration no. DL
4SCE 0823 admittedly insured against third party risk with the
appellant insurance company (insurer). His parents, first and second
respondents (collectively, the claimants), instituted accident claim
case (MACP 205/2013) on 08.07.2013. The tribunal, by its judgment
dated 02.02.2016, awarded compensation in the sum of Rs.
71,10,000/- and directed the insurer to pay with interest @ ten per
cent (10%) per annum.
2. The insurer is in appeal questioning the calculation of loss of
dependency worked out by the tribunal in the sum of Rs. 68,85,000/-
arguing that it was erroneously based on the multiplier of 17, keeping
in view the age of the deceased and that the element of future
prospects of increase was wrongly included, and there being no
deduction, wrongly so, on account of income tax liability.
3. On the question of choice of multiplier in the case of death of a
bachelor, this Court in case titled Reliance General Insurance
Company Limited vs. Gomti & Ors., MAC APP.467/2016, decided on
24th August, 2017, has observed as under:-
"6. The question as to the choice of multiplier in cases of
deaths of bachelors, had come up before this Court in
MAC appeal No. 431/2016 National Insurance Co. Ltd.
vs. Mohd. Siddique & Ors. decided on 18th July, 2017,
where it was urged on behalf of the insurance company
that the law laid down by the Supreme Court in cases of
General Manager, Kerala State Road Transport
Corporation vs. Susamma Thomas & Ors., (1994) 2 SCC
176 and U.P. State Road Transport Corporation and
Ors. vs. Trilok Chandra and Ors., (1996) 4 SCC 362
continues to prevail as the binding precedent. This
Court, after examining the issue in light of the decisions
in aforementioned cases and in the cases of Reshma
Kumari vs. Madan Mohan (2013) 9 SCC 65 and noting
the dicta in Central Board of Dawoodi Bohra Community
& Anr. v. State of Maharashtra & Anr., (2005) 2 SCC
67; Safiya Bee v. Mohd. Vajahath Hussain @ Fasi,
(2011) 2 SCC 94 and Union of India & Ors. v. S.K.
Kapoor, (2011) 4 SCC 589, held as under:-
"16. Since the decision in Trilok Chandra and Ors.,
(supra) by a bench of three Hon'ble Judges is prior in
time in relation to the decisions in Reshma Kumari
(supra) and Munna Lal Jain (supra), it is the
statement of law on choice of multiplier in the former
which is to be taken as the binding precedent. Thus,
this court will follow the dictum in the said judgment
and adopt the multiplier according to the age of the
deceased or that of the claimants, whichever is
higher"."
4. The matric certificate of the second respondent (mother) was
proved (Ex.PW-2/4) during the inquiry indicating her date of birth as
05.06.1964. In this view, she was 49 years old at the relevant point of
time and, therefore, the multiplier of 13 should have been applied.
5. The evidence adduced before the tribunal clearly brought out
that the deceased was a qualified Chartered Accountant, he having
taken up a job with Singhi Chugh & Kumar Firm, a private firm of
chartered accountants. Sachin Chugh (PW-1), a partner of the said
firm was examined to prove the letter of appointment (Ex.PW-1/A)
and the salary slips for the period December, 2012 to May, 2013
(Ex.PW-1/B). Having regard to the nature of educational qualification
and the terms of engagement, the prospects of future increase in
income cannot be grudged.
6. However, while calculating the loss of dependency, the income
tax liability should have been kept out. The income at the time of
death being Rs.45,000/-, the annual gross income comes to Rs.
5,40,000. Since the death had occurred during the financial year 2013-
2014, having regard to the rates of taxation applicable, the income
upto Rs. 2,00,000/- being exempt, the total income tax liability is
calculated as Rs. 36,800/-. Thus, the net income to Rs.(5,40,000-
36,800) Rs. 5,03,200/-, adding the element of future prospects of
increase, applying the multiplier of 13 and after deduction of 50%
towards personal & living expenses, the loss of dependency is
computed, as (5,03,200 x 150 ÷ 100 ÷ 2 x 13) Rs. 49,06,200/-,
rounded off to Rs. 49,07,000/-.
7. It is pointed out by the claimants, that the non-pecuniary heads
of damages awarded by the tribunal are not in sync with the
dispensation in similarly placed cases, referring in this context to
MAC.APP.No.160/2015 Shriram General Insurance Co Ltd v. Usha
decided by this court on 05.05.2016. The awards under the heads of
loss of love & affection, loss to estate and funeral expenses are revised
to Rs. 1,50,000/-, 1,50,000/- and Rs. 50,000/- respectively.
8. Thus, the total compensation comes to (49,07,000 + 1,50,000 +
1,50,000 + 50,000) Rs. 52,57,000/- (Rupees Fifty Two Lakhs Fifty
Seven Thousand only). The award is modified accordingly.
9. The tribunal has not given any reasons why it opted to apply the
interest @ ten per cent (10% ) which is higher than the one ordinarily
invoked. Following the consistent view taken by this Court [see
judgment dated 22.02.2016 in MAC.APP. 165/2011 Oriental
Insurance Co Ltd v. Sangeeta Devi & Ors.], the rate of interest is
reduced to nine per cent (9%) per annum from the date of filing of the
petition till realization.
10. The coercive action against the appellant was stayed by order
dated 22.08.2016. The appellant is directed to satisfy the award,
modified as above, by requisite deposit with the tribunal within thirty
days whereupon the same shall be released to the claimants.
11. The statutory amount shall be refunded.
12. Dasti.
R.K.GAUBA, J.
SEPTEMBER 04, 2017
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