Delhi High Court
United India Insurance Co Ltd vs Bhawna & Ors on 7 March, 2024
Author: Dharmesh Sharma
Bench: Dharmesh Sharma
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on : 5th March, 2024
Judgment pronounced on : 7th March, 2024
+ MAC.APP. 573/2016
UNITED INDIA INSURANCE CO LTD ..... Appellant
Through: Mr. Pradeep Gaur, Mr. Amit
Gaur and Ms. Sweta Singh,
Advs.
versus
BHAWNA & ORS ..... Respondents
Through: Mr. S.K. Choudhary, Adv.
CORAM:
HON'BLE MR. JUSTICE DHARMESH SHARMA
JUDGMENT
1. The appellant/insurance company is assailing the quantum of
compensation awarded by the learned Presiding Officer, Motor
Accident Claims Tribunal-02, Patiala House Courts, New Delhi1 vide
award-cum-judgment dated 12.02.2016 to the respondents No.1 and 2,
who are the daughters of the deceased.
2. Learned counsel for the appellant has urged that only
respondent No.1 was financially dependent upon the deceased-mother,
namely Shakuntala, whereas, respondent No.2 had already been
married and thereby she was not financially dependent upon the
deceased-mother.
Tribunal
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3. The main grievance of the learned counsel for the appellant/
insurance company is that the deduction towards personal use and
living expenses has been reckoned at 1/3rd from the annual financial
dependency instead of 1/2. Further, it is pointed out that the rate of
interest has been awarded @ 9% from the date of filing of the petition
till realization, which as per catena of decisions should be 7.5%.
4. A careful perusal of the impugned award-cum-judgment dated
12.02.2016 passed by the learned Tribunal would show that the
deceased was 48 years of age at the time of his death and employed
with Airports Authority of India ["AAI"], deriving monthly salary of
Rs. 49,132/- as per salary slip for the month of May, 2015 proven on
the record. Learned Tribunal noted that the salary income included
perks towards proficiency allowance of Rs.1700/-; medical allowance
of Rs. 1820.83/-; and the consolidated perks were to the tune of Rs.
8450.20/- besides, monthly tax of Rs. 330/-. Thus the salary of the
deceased was reckoned @ Rs. 35,000/- per month. As the deceased
was in a stable employment, future loss of income was reckoned at
30% and multiplier of 13 was applied but 1/3rd were deducted towards
personal use and living expenses and accordingly the loss of financial
dependency was arrived at Rs. 47,32,000/-.
5. Without further ado, since respondent No.1 was an unmarried
daughter and the only one who was financially dependent on the
deceased, the deductions towards personal use and expenses should be
reckoned at 1/2 from the annual financial loss of dependency.
Accordingly, the assessment for loss of financial dependency is
worked out to be Rs. 35000x12=Rs 4,20,000/- + Rs.1,26,000/-
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towards future prospects and thereby, the annual income would come
to Rs. 5,46,000/-. One half has to be deducted towards personal use
and living expenses and applying multiplier of 13, it worked out to be
Rs. 35,49,000/-.
6. Further, the learned Tribunal has awarded Rs. 1,00,000/-
towards love and affection. However, as per decision in the case of
National Insurance Co. Ltd. v. Pranay Sethi2 it has to be reckoned
@ Rs.40,000/- each to the two daughters towards loss of consortium
and love and affection. Rs. 15,000/- is awarded towards loss of estate
and Rs. 15,000/- towards funeral expenses. The total compensation is
accordingly arrived as under:-
S. No. Head Amount
1. Annual Income Rs.4,20,000/-
(Rs.35,000 X 12)
2. Addition towards loss of future prospects Rs.1,26,000/-
(30% of 4,20,000)
3. Deduction towards personal use & living 1/2
expenses
5. Total expenses towards future income Rs.35,49,000
6. Loss of Consortium Rs.80,000 (40,000
each)
7. Loss of Estate Rs.15,000/-
8. Funeral expenses Rs. 15,000/-
Total Compensation Rs. 36,59,000/-
7. Lastly, as regards the question of interest awarded @ 9%, in
view of the decision in the case of National Insurance Co. Ltd. v.
(2017) 16 SCC 680
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Yad Ram3 wherein, it was held that the cases where 9% interest has
been granted are those pertaining to accidents which took place
several years ago, even when the bank rate of interest of FDRs was
much higher. Further, there is no uniform rate of interest laid down
under MV Act. In this light, I am of the considered view that the
claimants are entitled to receive interest @ 7.5% p.a.
8. Accordingly, the present appeal is allowed and the impugned
award-cum-judgment dated 12.02.2016 is hereby modified. The
claimants i.e. the respondents No. 1 and 2 are awarded the total
compensation of Rs.36,59,000 with interest @ 7.5% from the date of
filing of the petition i.e. 28.10.2015 till realization. In terms of the
award passed by the learned Tribunal, 20% with accrued interest is
awarded to the grandson of the deceased (Shakuntala) Master Anurag
and 10% of the amount of compensation is awarded to petitioner No.2
Amrita with accrued interest and the balance to petitioner No.1
Bhawna.
9. The appeal stands disposed of accordingly.
DHARMESH SHARMA, J.
MARCH 07, 2024
Sadiq
(2023) SCC OnLine Del 1849
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