Delhi High Court
National Insurance Co Ltd vs Shaheen & Ors on 4 March, 2020
$~34
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Decided on: 04.03.2020
+ MAC.APP. 337/2017 & C.M. No.12954/2017
NATIONAL INSURANCE CO LTD ..... Appellant
Through: Ms. Aishna Jain for Ms. Shanti Devi
Raman, Advocate.
versus
SHAHEEN & ORS ..... Respondents
Through: Mr. J.S. Kanwar, Advocate for R-1.
CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI
NAJMI WAZIRI, J. (Oral)
1. This appeal impugns the Award passed by the learned MACT on
31.01.2017 in suit No.357659/2016 on the ground that penal interest at the
rate of 12% has been awarded and the driver of the offending vehicle being
minor at the time of the motor vehicular accident, the insurer cannot be held
liable to indemnify a claim which is in breach of the policy condition.
2. Insofar as the penal interest is concerned, the Court is of the view that
for the last half a decade interest has been awarded at the rate of 9% p.a..
The Supreme Court in Municipal Corporation of Delhi Vs. Association of
Victims of Uphaar Tragedy, AIR 2012 SC 100 upheld the decision of the
High Court awarding interest @ 9% p.a.. The same principle was reiterated
in this Court's decision in Aarti Gupta vs M/s Jubilant Oil & Gas Pvt. Ltd.,
W.P.(C) 1067/2016, decided on 12.02.2020, which reads, inter alia, as
under:
"......
8. Till today, the management has not put any
document or calculation on record showing as to what
amounts were due to be paid to the petitioner at the
time of her termination. However, insofar as the
aforesaid suggestion has been made by the
management that Rs. 3,55,544/- was tendered to her by
way of a cheque, it does admit that that quantum of
money would be payable. Having sat on it for more
than ten years, they would be liable to pay an interest
on the aforesaid amount. In Municipal Corporation of
Delhi, Delhi vs. Uphaar Tragedy Victims Association
& Ors. (2011) 14 SCC 481, the Supreme Court has
fixed a simple interest @ 9% per annum payable
alongwith the amounts due to claimants. In a number
of cases in the Motor Accident Claim Matters also, this
Court has fixed simple interest @ 9% per annum on
the amounts due.
......"
3. The awarded amount has been deposited.
4. In view of the above, the rate of interest is reduced from 12% to 9%
from the date of filing of the claim petition till its realization.
5. The amount of compensation awarded towards non-pecuniary head of
"loss of love and affection" had been granted at Rs.1,00,000/- per claimant
and lump sum amount of Rs.1,50,000/- was granted towards "loss of
consortium" to all five claimants.
6. In terms of the dicta of Supreme Court in Magma General Insurance
Co. Ltd. Vs. Nanu Ram @ Chuhru Ram & Ors. 2018 SCC OnLine SC 1546
each of the claimants, including the children who had attained the age of
majority, would be entitled to compensation towards "loss of love and
affection" and loss of consortium" at the rate of Rs.50,000/- and Rs.40,000/-
respectively. The same is awarded to each of the claimants. The amount
payable in terms of the above shall be (Rs.50,000/- +
Rs.40,000)x5(claimants) = Rs.4,50,000/-. Furthermore, in terms of dicta of
the Supreme Court in National Insurance Co. Ltd. vs. Pranay Sethi & Ors.,
(2017) 16 SCC 680, compensation of Rs.15,000/- shall be payable under
each head of "loss of estate" and "funeral expenses". Apropos the breach of
policy condition, the principle of "pay and recover" as enunciated in
Manuara Khatun and Ors. Vs Rajesh Kumar Singh and Ors, 2017 (4) SCC
796, and followed by this Court in Shriram General Insurance Co. v/s Anila
Devi & Ors, 24.07.2019, shall be applied for the insurer.
7. A requisite amount in terms of this order shall be deposited by the
petitioner before the Tribunal within three weeks from the date of receipt of
copy of this order to be released to the beneficiary (ies) of the Award in
terms of the scheme of disbursement specified therein.
8. The appeal is disposed of in the above terms. The statutory amount
along with interest accrued be released to the appellant.
NAJMI WAZIRI, J
MARCH 04, 2020/A
