Delhi High Court
National Insurance Company ... vs Premwati & Ors on 21 March, 2018
$~23 & 24
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: March 21, 2018
+ MAC.APP. 508/2015
NATIONAL INSURANCE COMPANY LIMITED ..... Appellant
Through: Mr.L.K.Tyagi, Advocate
versus
PREMWATI & ORS ..... Respondents
Through: Mr.Syed Hasan Isfahani and Mr.Vikas
Yadav, Advocates
+ MAC.APP. 511/2015 & CM No.11562/2015
NATIONAL INSURANCE COMPANY LIMITED ..... Appellant
Through: Mr.L.K.Tyagi, Advocate
versus
NIRMALA DEVI & ORS ..... Respondents
Through: Mr.Syed Hasan Isfahani and Mr.Vikas
Yadav, Advocates
CORAM:
HON'BLE MR. JUSTICE SUNIL GAUR
JUDGMENT
(ORAL)
1. The above captioned two appeals are directed against Award of 31 st
March, 2015 whereby two claim petitions arising out of one vehicular
Mac.A.Nos.508/2015 & 511/2015 Page 1
accident which took place on 16th July, 2007, have been decided. With
consent of learned counsel for the parties, both these appeals have been
heard together and are being decided by this common judgment. The facts
as noted in the impugned Award needs no reproduction. Suffice to note that
Ramendera Singh aged 45 years and Ramesh Chandera aged 49 years (both
Government employees) had died in a vehicular accident on 16 th July, 2007.
2. In the case of Late Ramendera Singh, Motor Accident Claims
Tribunal (hereinafter referred to as the Tribunal) has assessed the loss of
dependency while applying multiplier of 14 and adding 50% towards future
prospects and after deducting 1/4th towards personal expenses. The breakup
of the compensation granted to the legal heirs of Late Ramendera Singh is as
under:-
S.No. Head Amount
1. Loss of dependency Rs.30,27,192/-
(Rs.18019/-x12x14)
2. Loss of love and affection Rs.1,00,000/-x4 =
to children Rs.4,00,000/-
3. Loss of love and affection Rs.50,000/-
towards Parent
4. For funeral expenses Rs.25,000/-
5. Loss of estate Rs.1,00,000/-
6. Loss of consortium Rs.1,00,000/-
TOTAL Rs.37,02,192/-
3. Whereas in the case of Late Ramesh Chandera, multiplier of 13 has
been applied and addition of 50% towards future prospects has been made.
1/3rd deduction towards personal expenses has been also made. The breakup
of compensation granted to the legal heirs of Late Ramesh Chandera is as
Mac.A.Nos.508/2015 & 511/2015 Page 2
under:-
S.No. Head Amount
1. Loss of dependency Rs.24,30,168/-
(Rs.15,578/-x12x13)
2. Loss of love and Rs.1,00,000/-x2 =
affection to children Rs.2,00,000/-
3. Funeral expenses Rs.25,000/-
4. Loss of estate Rs.1,00,000/-
5. Loss of consortium Rs.1,00,000/-
TOTAL Rs.28,55,168/-
4. The Tribunal has directed that the aforesaid compensation shall carry
interest @ 9% per annum and the manner in which it has to be apportioned
inter se the legal heirs of both the deceased has been also spelt out in the
impugned Award.
5. The challenge to the impugned Award by learned counsel for
appellant is on the ground that the cheque issued by the owner of the vehicle
in question towards the premium for the insurance policy had bounced and
so appellant is not liable to pay the awarded amount and so, recovery rights
are sought against respondent-owner of the vehicle in question. Learned
counsel for appellant submits that the quantum of compensation granted is
on higher side and in view of Constitution Bench decision of Supreme Court
in National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. 2017 SCC OnLine
SC 1270 compensation granted deserves to be suitably reduced.
6. As per order of 3rd August, 2016, the legal heirs of the driver and
owner of the vehicle in question have been served and they have been
proceeded ex-parte. Learned counsel for respondent-claimants submits that
Mac.A.Nos.508/2015 & 511/2015 Page 3
though the liability to pay compensation may be of the owner and driver of
vehicle in question but appellant ought to first pay the compensation
awarded and thereafter, recover from owner and driver of the vehicle in
question. Regarding the quantum of compensation awarded by the Tribunal,
it is submitted by learned counsel for respondent-claimants that the
compensation awarded is adequate and no case for its reduction is made out.
Nothing else is urged by either side.
7. Upon hearing and on perusal of the impugned Award, evidence on
record and the decision cited, I find that in view of the unrebutted testimony
of appellant's witness R-3W1, the Tribunal has erroneously put the burden
on appellant to pay the compensation since the cheque issued by the owner
of the vehicle in question towards the premium amount had bounced and the
insurance cover was withdrawn by the appellant on account of the non-
payment of insurance premium and therefore, liability to pay the
compensation is of the owner of the vehicle in question and not of the
appellant. In light of the aforesaid, appellant is granted recovery rights qua
the owner of vehicle in question.
8. So far as addition of 50% towards future prospects is concerned, I
find that the Tribunal has erred in making addition of 50% towards future
prospects. Since the deceased were aged 45 and 49 years on the day of the
accident, so in view of Supreme Court's decision in Pranay Sethi (supra),
addition of 30% is to be made towards future prospects.
9. In view of the Constitution Bench decision of Supreme Court in
Pranay Sethi (supra), the compensation granted on account of 'loss of
Mac.A.Nos.508/2015 & 511/2015 Page 4
dependency' and under the non-pecuniary heads deserves to be modified. In
face of the dictum of Supreme Court in Pranay Sethi (supra), compensation
granted under the head of 'loss of love and affection' is disallowed and
thereafter the compensation payable to the legal heirs of Late Ramendera
Singh is re-assessed as under:-
S.No. Head Amount
1. Loss of dependency `26,23,584/-
(Rs.16017/-x12x14x130/100x3/4)
2. Funeral Expenses `15,000/-
5. Loss of Estate `15,000/-
6. Loss of Consortium `40,000/-
TOTAL `26,93,584/-
10. The compensation payable to legal heirs of Late Ramesh Chandera is
re-assessed as under:-
S.No. Head Amount
1. Loss of dependency `21,06,145/-
(Rs.15578x12x13x2/3x130/100)
2. Funeral Expenses `15,000/-
4. Loss of Estate `15,000/-
5. Loss of Consortium `40,000/-
TOTAL `21,76,145/-
11. The impugned Award is modified in the aforesaid terms. The
compensation granted to legal heirs of Late Ramendera Singh is reduced
from `37,02,192/- to `26,93,584/- which shall carry the interest @ 9% per
annum and compensation granted to legal heirs of Late Ramesh Chandera is
reduced from `28,55,168/- to `21,76,145/- which shall carry the interest @
Mac.A.Nos.508/2015 & 511/2015 Page 5
9% per annum. Appellant to deposit compensation in terms of this judgment
within four weeks and thereafter it be released to the respondent-claimants
forthwith by appellant. Recovery rights are granted to appellant qua the
owner and driver of the vehicle in question. Statutory deposit and excess
deposit, if any, be refunded as per rules.
12. With aforesaid directions, these two appeals and application are
disposed of.
(SUNIL GAUR)
JUDGE
MARCH 21, 2018
mamta
Mac.A.Nos.508/2015 & 511/2015 Page 6
