Lajwanti and Others vs Ram Narayan and Others

J.R. Midha, J.—The appellants have challenged the award of the learned Tribunal whereby the compensation of Rs. 2,40,000/-has been awarded to the appellants. The appellants seek enhancement of the award amount.

The accident dated 5th November, 1999 resulted in the death of Bhuru Ram aged 40 years. The deceased was survived by his widow, three sons and a daughter who filed the claim petition before the learned Tribunal.

The learned Tribunal awarded Rs. 1,90,400/- to the appellants. The learned Tribunal has deducted 1/3rd towards personal expenses of the deceased and has applied the multiplier of 12 to compute the loss of dependency. The learned Tribunal has awarded Rs. 10,000/- towards loss of estate and consortium but no amount has been awarded for loss of love and affection. The interest has been awarded @9% per annum but the appellants have been disentitled for interest for a period of two years.

The learned Counsel for the appellants has made the following submissions:

(i) The multiplier be enhanced from 12 to 15.

(ii) The personal expenses of the deceased be reduced from 1/3rd to 1/4th.

(iii) The compensation be awarded for loss of love and affection.

(iv) The interest be also awarded for a period of two years.

The Hon''ble Supreme Court in the recent judgment of Sarla Verma v. Delhi Transport Corporation 2009 (6) Scale 129 decided on 15th April, 2009 has held the appropriate multiplier at the age of 40 to be 15. Following the aforesaid judgment, the multiplier is enhanced from 12 to 15. The Hon''ble Supreme Court has further held that where the deceased has left behind four to six legal representatives, the personal expenses be deducted as 1/4th. In the present case, the deceased has left behind five legal representatives and, therefore, the personal expenses of the deceased are taken to be 1/4th instead of 1/3rd.

The learned Tribunal has not awarded any compensation for loss of love and affection. Considering the facts and circumstances of this case, the compensation of Rs. 10,000/- is awarded to each of the appellants towards loss of love and affection.

The learned Tribunal has disentitled the appellants to claim interest for a period of two years on the ground that they had delayed the proceedings. The view taken by the learned Tribunal is clearly erroneous. u/s 168 of Motor Vehicles Act, it is the duty of the learned Tribunal to conduct an enquiry. Instead of discharging its statutory duty, the learned Tribunal kept on waiting for the poor and helpless claimants to proceed in the matter. The award amount became due and payable at the time of the death of the deceased and the Insurance Company despite having verified all the relevant facts including the age, occupation, income and number of dependents withheld the amount and kept on earning interest on the award amount invested by them. The Insurance Company cannot deny the award of interest to the claimants on the ground that there was some delay on the part of the poor and helpless claimants. The appellants are, therefore, entitled to interest on the entire award amount from the date of filing of the petition till the date of payment including the period of two years in respect of which the learned Tribunal has not awarded interest.

The appellants are entitled to a sum of Rs. 3,80,017.50 (Rs. 2,370.50 x 3/4 x 12 x 15 + Rs. 10,000 + Rs. 10,000 + Rs. 10,000 + Rs. 10,000 + Rs. 10,000 + Rs. 10,000) which is rounded off as Rs. 3,80,000/-. The shares of the appellants in the award amount shall be as under:

Appellant No. 1 : 50% Appellants No. 2 to 4 : 10% each Appellant No. 5 : 20%

The appeal is allowed and the award amount is enhanced from Rs. 1,90,400/- to Rs. 3,80,000/-. The rate of interest on the original award amount @9% is not disturbed. However, on the enhanced amount, the rate of interest is awarded @7.5% per annum from the date of filing of the petition till the date of payment.

Respondent No. 3 is directed to deposit the enhanced amount along with interest with the learned Tribunal within 30 days.

Upon the enhanced amount being deposited, the learned Tribunal is directed to release 10% of the award amount to appellant No. 1. The remaining amount shall remain in the fixed deposit with a nationalized bank in the name of the appellants as per their share for the period of seven years on which periodical interest be paid to them but no advance, loan or withdrawal be permitted without the prior permission of the learned Tribunal. However, appellant No. 1 shall be at liberty to approach the learned Tribunal for withdrawal of appropriate amount at the time of marriage of appellant No. 5.

Copy of this order be given ''Dasti'' to learned Counsel for the parties under signatures of Court Master.