Delhi High Court
Reliance General Insurance Co ... vs Sahajhan Khatoon & Ors. on 4 July, 2018
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: July 04, 2018
+ MAC.APP. 542/2015 & C.M. 12208/2015
RELIANCE GENERAL INSURANCE CO LTD. ..... Appellant
Through: Mr. A.K. Soni, Advocate
Versus
SAHAJHAN KHATOON & ORS. ..... Respondents
Through: Mr. Naveen Goyal, Advocate
CORAM:
HON'BLE MR. JUSTICE SUNIL GAUR
JUDGMENT
(ORAL)
1. Impugned Award of 10th April, 2015 grants compensation of
`11,62,760/- with interest @ 8% p.a. to respondent-claimants on account
of death of one Mohd. Kasim in a vehicular accident on 18th April, 2013.
2. The factual background of this case, as noticed in the impugned
Award, is as under:-
"The brief facts of the case as mentioned in the
petition are that one Mohd. Kasim S/o late Abdul Rehman
met with road traffic accident on 18.4.2013 at about 1:10 AM
and the deceased alongwith Mohd. Ahsaan and other persons
were standing near their Tempo near Sunariya Hotel, NH-8,
Manesar, Gurgaon, Haryana and in the meantime a Tanker
bearing no. MH-43Y-0832 driven by R-1 came from behind
in a very high speed which was being driven in rash and
negligent manner and it hit the deceased and other persons
with great force as a result of which deceased expired on the
spot due to injuries received in the accident."
3. On the basis of evidence led, impugned Award has been rendered
by Motor Accident Claims Tribunal (henceforth referred to as "the
Tribunal") and the breakup of compensation awarded is as under:-
1.) Loss of dependency : `9,37,760/-
(rounded off)
2.) Loss of Care & Guidance for children : `1,00,000/-
3.) Funeral expenses : `25,000/-
4.) Loss of Consortium : `1,00,000/-
_________
Total : `11,62,760/-
4. The challenge to impugned Award by learned counsel for
appellant-Insurer is on the ground that deduction towards "personal
expenses" of deceased ought to be 1/4th and not 1/5th, as three daughters
are married and son of deceased is of major age. It is further submitted
that in light of decision of Constitution Bench of Supreme Court in
National Insurance Company Ltd. Vs. Pranay Sethi & ors. (2017) 16
SCC 680, addition towards future prospects ought to be 10% and not
15%, as granted by Tribunal. It is next submitted that multiplier of 9
ought to have been applied and not of 11. Thus, it is submitted that
compensation awarded deserves to be suitably reduced. Learned counsel
for appellant-Insurer submits that compensation granted under the "non-
pecuniary heads" ought to be in terms of Supreme Court's decision in
Pranay Sethi (Supra).
5. On the contrary, learned counsel for respondents supports
impugned Award and submits that the compensation awarded is just and
fair and so, this appeal deserves to be dismissed.
6. Upon hearing and on perusal of impugned Award and the evidence
on record, I find that out of eight legal heirs, three were married
daughters and one son was aged 26 years on the date of accident and so,
deduction towards "personal expenses" ought to be 1/4th. Regarding
addition towards "future prospects", in terms of Supreme Court's
decision in Pranay Sethi (Supra), it has to be of 10% and not 15%. In
view of Supreme Court's decision in Sarla Verma (Smt.) and others v.
Delhi Transport Corporation and Another, (2009) 6 SCC 121, the
applicable multiplier is of 11 and the Tribunal has rightly applied it.
Accordingly, the "loss of dependency" is reassessed as under:-
`7,722 X 110/100 X 3/4 X 12 X 11 = `8,40,925.8/-
(rounded off to `8,40,926/-)
7. As regards compensation granted under the „non pecuniary heads‟,
it needs to be brought in tune with decision of Constitution Bench of
Supreme Court in Pranay Sethi (supra). Accordingly, compensation
granted by the Tribunal under the head of „loss of care and guidance for
children‟ is disallowed and "funeral expenses" are decreased from
`25,000/- to `15,000/-. Similarly, compensation granted under the head
"loss of consortium" is also reduced from `1,00,000/- to `40,000/-.
However, compensation of `15,000/- under the head "loss of estate" is
granted.
8. In light of the aforesaid, the compensation payable to respondent-
claimants is reassessed as under:-
S.No. Description Amount
1. Loss of Dependency `8,40,926/-
2. Loss of Consortium `40,000/-
3. Funeral Expenses `15,000/-
4. Loss of Estate `15,000/-
Total `9,10,926/-
Less (interim compensation `50,000/-
awarded vide order dated
09.09.2014)
`8,60,926/-
9. Consequentially, the compensation amount payable stands reduced
from `11,62,760/- to `9,10,926/-. Compensation awarded be released
forthwith to respondent-claimants in terms of impugned Award. Statutory
deposit along with excess deposit, if any, be refunded to appellant-
Insurer.
10. With aforesaid directions, this appeal and the application are
disposed of.
(SUNIL GAUR)
JUDGE
JULY 04, 2018
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