High CourtsSingle Bench(2012) 09 DEL CK 0144

Royal Sundaram Alliance Insurance Company Ltd. vs Naushad Mandal and Others

Delhi High Court · Decided on 17 September 2012

HON’BLE JUDGES
G.P. Mittal, J
CASE NUMBER
MAC. APP. 643 of 2010

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Judgment

17 paragraphs · 734 words

G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs. 9,69,000/- awarded by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of Respondents No. 1 to 3 for the death of Smt. Manobra who died in a motor vehicle accident which occurred on 27.04.2009. On appreciation of evidence, the Claims Tribunal found that the accident was caused on account of rash and negligent driving of Tata 407 No. HR-55-GT-3632.

2.

During inquiry before the Claims Tribunal it was claimed that the deceased was working as a domestic help (maid servant) and was earning Rs. 7,000/- per month. In the absence of any cogent evidence with regard to the deceased''s income, the Claims Tribunal took the minimum wages of an unskilled worker, deducted one-third towards personal and living expenses and applied the multiplier of 18 to compute the loss of dependency as Rs. 8,64,000/-. On adding further a sum of Rs. 1,05,000/-towards non-pecuniary damages, the overall compensation of Rs. 9,69,000/-was awarded.

3.

The finding on negligence is not disputed by the Appellant Insurance Company.

4.

The following contentions are raised on behalf of the Appellant:-

(i) In the absence of any evidence with regard to the deceased''s future prospects, the Claims Tribunal erred in making an addition of 50% towards the future prospects.

(ii) The compensation of Rs. 75,000/- awarded towards loss of love and affection is on the higher side.

5.

The Appeal must succeed on both the grounds.

6.

It is well settled that an addition on account of future prospects can be made only when there is evidence with regard to the same. ( Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, and Bijoy Kumar Dugar Vs. Bidyadhar Dutta and Others, ).

7.

This Court in Rakhi v. Satish Kumar & Ors. (MAC. APP. 390/2011) decided on 16.07.2012, referred to the reports of the Supreme Court in General Manager, Kerala State Road Transport Corporation, Trivandrum Vs. Mrs. Susamma Thomas and others, , Smt. Sarla Dixit and another Vs. Balwant Yadav and others, , Bijoy Kumar Dugar Vs. Bidyadhar Dutta and Others, , Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, and Santosh Devi v. National Insurance Company Ltd. & Ors., 2012 (4) SCALE 559 and held that Santosh Devi provided for an increase of 30% towards inflation in the victims income in case of self employed persons and persons having fixed income.

8.

Thus, the Respondents No. 1 to 3 were entitled to an addition of 30% instead of 50% as granted by the Claims Tribunal. The loss of dependency thus comes to Rs. 7,48,799/- (4,000/- + 30% x 2/3 x 12 x 18) as against a sum of Rs. 8,64,000/- awarded by the Claims Tribunal.

9.

The Claims Tribunal awarded a sum of Rs. 75,000/- towards loss of love and affection. Loss of love and affection can never be measured in terms of money. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma and Others Vs. Bachitar Singh and Others, and in Baby Radhika Gupta and Others Vs. Oriental Insurance Co. Ltd. and Others, granted only Rs. 25,000/- (in total to all the claimants) under the head of loss of love and affection. Thus, I would reduce the compensation under this head to Rs. 25,000/- only.

10.

In addition, the Respondents No. 1 to 3 are further entitled to a sum of Rs. 10,000/- each towards loss of consortium, loss to estate and funeral expenses.

11.

The overall compensation comes to Rs. 8,03,799/- as against Rs. 9,69,000/-awarded by the Claims Tribunal.

12.

Thus there is reduction of Rs. 1,65,201/- in the compensation award. The excess amount of Rs. 1,65,201/- along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

13.

By an order dated 29.09.2010, 75% of the award amount was ordered to be released in favour of Respondents No. 1 to 3 in terms of the impugned judgment. After refunding the excess amount, the balance amount payable to Respondents No. 1 to 3 shall be released/held in fixed deposit in terms of the order passed by the Claims Tribunal.

14.

The statutory deposit of Rs. 25,000/- be refunded to the Appellant Insurance Company.

15.

The Appeal is allowed in above terms. Pending Applications also stand disposed of.