Reliance General Insurance Co Ltd vs Harbhajani & Ors
2018 Latest Caselaw 2648 Del

$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                Date of Decision: 27th April, 2018

+      MAC.APP. 353/2017 & CM 13653/2017

       RELIANCE GENERAL INSURANCE CO LTD ..... Appellant
                    Through: Ms. Prerna Mehta, Advocate

                        versus

       HARBHAJANI & ORS                               ..... Respondents
                    Through:        Mr.Nagender Deswal, Advocate for
                                    respondents no.1 and 2.
                                    Mr.Lavkush Agnihotri, Mr.Manoj
                                    Kumar, Advocates for respondents
                                    no.5 along with respondent no.5 in
                                    person

       CORAM:
       HON'BLE MR. JUSTICE J.R. MIDHA
       ]




                          JUDGMENT (ORAL)

1. The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.31,30,612/- has been awarded to respondents no.1, 2 and 5.

2. The accident dated 8th December, 2009 resulted in the death of Praveen Kumar. The deceased was aged 24 years at the time of the accident and was survived by his widow and parents. The deceased was a contractual employee with NDMC. The deceased was working as Clerical Assistant with NDMC on contractual basis and was earning Rs.87,660/- per annum.

The deceased was also working as a LIC commission agent and he earned a commission of Rs.77,372/- in the year 2008-2009.

3. The Claims Tribunal took the income of the deceased from both the sources as Rs.1,65,032/- per annum. The Claims Tribunal added 50% towards future prospects, deducted 1/3rd towards personal expenses and applied the multiplier of 17 to compute the loss of dependency as Rs.28,05,544/-. The Claims Tribunal awarded Rs.1 lakh towards loss of estate, Rs.25,000/- towards funeral expenses, Rs.1 lakh towards consortium and Rs.1 lakh towards loss of love and affection. The total compensation awarded is Rs.31,30,544/-.

4. Learned counsel for the appellant urged at the time of the hearing that income of the deceased be taken as per the Income Tax Returns and Income Tax be deducted from the income of the deceased. It is further submitted that the future prospects be reduced from 50% to 40%. It is further submitted that the personal expenses of the deceased be increased from 1/3 rd to 1/2nd. Learned counsel for the appellant seeks reduction of the non-pecuniary compensation in terms of principles laid down in National Insurance Co. Limited v. Pranay Sethi 2017 SCC Online SC 1270. Learned counsel further seeks reduction of interest from 10% to 9%.

5. Learned counsel for the respondents urged at the time of the hearing that no Income Tax is payable on the income of the deceased. It is submitted that the multiplier of 18 be applied according to the age of the deceased i.e. 24 years.

6. With respect to the income of the deceased, the respondents have filed copy of the Income Tax Return before the Claims Tribunal which shows income of the deceased as Rs.1,52,000/- on which the deceased got refund of

TDS of Rs.7,969/- as no Income Tax was payable. In that view of the matter, no Income Tax was deductable from the income of the deceased. The future prospects are reduced from 50% to 40% as the employment of deceased was not permanent in nature. With respect to the personal expenses of the deceased, there is no infirmity in the deduction of 1/3rd towards personal expenses of the deceased as the deceased was survived by his widow and parents. The multiplier is enhanced as per the age of the deceased from 17 to

18. The non-pecuniary compensation awarded by the Claims Tribunal is reduced to Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses in terms of National Insurance Co. Limited v. Pranay Sethi (supra). . The interest on the compensation amount is reduced from 10% to 9% per annum.

7. Taking the income of the deceased as Rs.1,52,000/- per annum, adding 40% towards future prospects, deducting 1/3rd towards personal expenses and applying the multiplier of 18 as per the age of the deceased, the loss of dependency is computed as Rs.25,53,600/-. Adding Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses. The total compensation is computed as Rs.26,23,600/-.

8. The appeal is allowed and the compensation amount is reduced from Rs.31,30,612/- to Rs.26,23,600/- along with interest at the rate of 9% per annum with effect from date of institution of suit i.e. 29th May, 2010. Pending application is disposed of.

9. The appellant is directed to file the calculation of the amount liable to be refunded at least three days before the next date of hearing with copy to

the respondents No.1, 2 and 5 who shall verify the same. The appellant shall also file proof of deposit before the next date of hearing.

10. Statutory amount be refunded back.

11. List for disbursement of the compensation amount on 31st May, 2018.

12. Copy of this judgment be given dasti to counsels for the parties under signature of Court Master.

APRIL 27, 2018                                                J.R.MIDHA, J.
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