Bajaj Allianz Insurance Co. Ltd. vs Sarla Devi and Others

J.R. Midha, J.—The appellants have challenged the award of the learned Tribunal whereby compensation of Rs. 5,69,518/- has been awarded to the claimants/respondents No. 1 and 2.

The accident dated 20th October, 2006 resulted in the death of Sandeep. The deceased was survived by his parents who filed the claim petition before the learned Tribunal.

The deceased was aged 25 years at the time of the accident and was unmarried. The deceased was working in a shop earning Rs. 4,000/- per month. In the absence of sufficient proof of income, the learned Tribunal took the minimum wages as Rs. 3,505/- per month, added 50% due to inflation and rise in price index, deducted 1/3rd towards his personal expenses and applied the multiplier of 11 to compute the loss of dependency at Rs. 4,62,660/-. The learned Tribunal has awarded Rs. 20,000/- towards funeral expenses, Rs. 50,000/- towards loss of love and affection and Rs. 36,858/- towards medical expenses. The total compensation awarded is Rs. 5,69,518/-.

The learned Counsel for the appellant has urged that the personal expenses of the deceased should be increased from 1/3rd to 1/2. In view of the judgment of the Hon''ble Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, . The learned Counsel also seeks reduction of medical expenses from Rs. 36,858/- to Rs. 33,842/-.

The deceased was unmarried at the time of the accident and according to the judgment of the Hon''ble Supreme Court in the case of Sarla Verma (Supra), the personal expenses of the deceased are to be taken as 1/2. Following the aforesaid judgment, the personal expenses of the deceased are increased from 1/3rd to 1/2.

The learned Counsel for claimants/respondent No. 1 and 2 submits that this plea has not been taken by the appellant in the appeal. This is a legal plea on the basis of the judgment of Hon''ble Supreme Court in the case of Sarla Verma (Supra) and, therefore, permitted to be taken by the appellant at the time of hearing of this appeal.

The claimants/respondents No. 1 and 2 have proved the medical expenditure of Rs. 33,842/-. The Claims Tribunal has awarded Rs. 3,000/- more than the amount proved by the claimants/respondents No. 1 and 2, which is fair and reasonable, considering that at times, the proof of complete medical expenses is not retained and made available and, therefore, this finding does not call any interference.

The Claims Tribunal has not awarded any compensation for loss of estate. Rs. 20,000/- be awarded to claimants/respondents No. 1 and 2 for loss of estate.

The claimants/respondents No. 1 and 2 are entitled to total compensation of Rs. 4,73,820/- [(5257 x 1/2 x 12 x 11) + 50,000 + 20,000 + 20,000 + 36858)].

The appeal is allowed and the award amount is reduced from Rs. 5,69,518/- to Rs. 4,73,820/- along with interest at the rate of 8% per annum from the date of filing till realization.

The appellant has deposited the entire award amount with the Registrar General out of which 50% has been released to the claimants, in terms of order dated 3rd November, 2008. The remaining 50% of the award amount was kept in fixed deposit till 13th February, 2010. Vide order dated 20th January, 2010, the Registrar General was directed to transfer/remit the entire amount to UCO bank and UCO Bank was directed to release a sum of Rs. 20,027/- to claimants/respondents No. 1 and 2 and the remaining amount of Rs. 3,50,000/- be kept in 7 fixed deposits.

The appellant deposited a sum of Rs. 6,48,988/- in terms of the order dated 3rd November, 2008 apart from the statutory amount of Rs. 25,000/- along with this appeal making it a total of Rs. 6,73,988/-. The interest on the reduced award amount of Rs. 4,73,820/- from the date of filing of the claim petition till the date of deposit of the award amount comes to Rs. 5,50,046/-. The balance amount of Rs. 1,23,904/- is to be refunded to the appellant. Rs. 1,23,904/- shall include the principal amount of Rs. 95,698/- and interest of Rs. 15,395/- thereon as per the calculation of the Accounts Department of this Court.

UCO Bank is directed to refund a sum of Rs. 1,23,904/- to the appellant by means of a cheque drawn in the name of Bajaj Allianz Insurance Company Limited and the same be handed over to its authorized representative against receipt. This amount be refunded by discharging the three fixed deposit receipts of 50,000/- for a period of 21/2 years, 3 years and 31/2 years. The balance amount of Rs. 26,096/- after discharging the said FDRs be paid to the claimants/respondents No. 1 and 2 by transferring the same to their Savings Bank Account. The remaining four fixed deposits of Rs. 50,000/- for a period of 6 months, one year, one and a half years and two years shall continue for their remaining term and the maturity amount be released to claimants No. 1 and 2 at the time of maturity.

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