IFFCO TOKIO GENERAL INSURANCE CO LTD vs SATVEERI & ORS

J.R. MIDHA

1.The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.51,96,200/- has been awarded to respondents no.1 to 3.

2.The accident dated 31st August, 2015 resulted in the death of Krishan.Â

The deceased was aged 52 years and was working with Seeds Corporation Ltd. and was earning Rs.43,332/- per month. The deceased was

survived by his widow, daughter and son who claimed compensation before the Claims Tribunal.

3.The Claims Tribunal took the income of the deceased as Rs.43,332/- per month, added 15% towards future prospects, deducted 1/3rd towards his

personal expenses and applied the multiplier of 11 to compute the loss of dependency as Rs.46,71,189.60. The Claims Tribunal awarded Rs.3 lakh

towards loss of love and affection, Rs.1 lakh towards loss of consortium, Rs.1 lakh towards loss of estate and Rs.25,000/- towards funeral

expenses.Â

The total compensation awarded is Rs.51,96,200/-.

4.Learned counsel for the appellant urged at the time of the hearing that the Claims Tribunal has not deducted the Income Tax from the income of the

deceased. It is further submitted that the personal expenses of the deceased be increased from 1/3rd to 1/2nd. It is further submitted that the

nonpecuniary compensation be reduced in terms of the principles laid down by the Supreme Court in National Insurance Co. Limited vs. Pranay

Sethi and Ors. 2017 SCC Online SC 1270.

5.There is merit in the appellant’s contention of deduction of Income Tax. The Income Tax is to be deducted from the income of the

deceased. With respect to the personal expenses of the deceased, this Court is of the view that there is no infirmity in the deduction of 1/3rd

towards personal expenses of the deceased as the deceased was survived by his widow, son and daughter. The non-pecuniary compensation awarded

by the Claims Tribunal is reduced to Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards personal

expenses.

6.Taking the income of the deceased as Rs.43,332/- per month, deducting 1/3rd towards the personal expenses of the deceased, deducting

Rs.9,665.60 towards Income Tax, adding 15% towards future prospects, and applying the multiplier of 11, the loss of dependency is computed as

Rs.42,62,928.56/- Adding Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses, the

total compensation is computed as Rs.43,32,982.56, rounded off to 43,33,000/-.

7.The appeal is allowed and the compensation amount is reduced from Rs.51,96,200/- to Rs.43,33,000/- along with interest @ 9% per annum from the

date of filing of DAR i.e.18th February, 2016.

8.Respondents No.1 and 3 are present in Court along with the passbooks of the individual savings bank accounts of respondents No.1 to 3 containing

the necessary endorsement. The particulars of their individual savings bank accounts are given herein below:-

(i)Satveeri (Respondent No.1)

A/c No.37257148113

State Bank of India, Defence Colony Branch

IFSC Code: SBIN0007196

(ii)Monika (Respondent No.2)

A/c No.37256860314

State Bank of India, Defence Colony Branch

IFSC Code: SBIN0007196

(iii)Arun Kumar (Respondent No.3)

A/c No.37255400721

State Bank of India, Defence Colony Branch

IFSC Code: SBIN0007196

9.The appellant has deposited Rs.50,85,161/- with the Registrar General of this Court in terms of the order dated 10th January, 2018. Respondent

No.1 present in Court seeks release of Rs.10 lakh to discharge the loans taken by her for the marriage of her daughter (respondent No.2).

10.The Registrar General of this Court is directed to disburse the amount deposited by the appellant by instructing UCO Bank, Delhi High Court

Branch as under:

(i)Rs.30,00,000/- be kept in 120 FDRs of Rs.25,000/- each, in the name of respondent No.1 for the period 1 month to 120 months respectively, with

cumulative interest.

(ii)Rs.5,00,000/- be kept in 100 FDRs of Rs.5000/- each, in the name of respondent No.2 for the period 1 month to 100 months respectively, with

cumulative interest.

(iii)Rs.5,00,000/- be kept in 100 FDRs of Rs.5000/- each, in the name of respondent No.3 for the period 1 month to 100 months respectively, with

cumulative interest.

(iv)Rs.1,00,000/- be released to respondents No.2 and Rs.1,00,000/- be released to respondents No.3 by transferring the same to their individual

savings bank accounts with State Bank of India, Defence Colony Branch mentioned in para-8 above.Â

(v)The balance amount, after keeping Rs. 40,00,000/- in FDRs and after releasing Rs.1,00,000/- each to respondents No. 2 and No.3, be released to

respondent No. 1 by transferring the same to her individual savings bank account with State Bank of India, Defence Colony Branch mentioned in

para-8 above.Â

11.All the original FDRs shall be retained by UCO Bank Delhi High Court Branch. However, the statement containing FDR number, FDR amount,

date of maturity and the maturity amount shall be furnished to respondents No.1 to 3.

12.The maturity amounts of the FDRs along with interest shall be transferred to the individual savings bank accounts of the beneficiaries mentioned in

para-8 above.

13.No loan or advance or pre-mature discharge shall be permitted without the permission of this Court.

14.State Bank of India, Defence Colony Branch, Delhi shall permit the claimants to withdraw money from their individual savings bank account by

means of a withdrawal form.

15.List for reporting compliance on 17th May, 2018.

16.Copy of this Judgment be given dasti to counsels for the parties under the signatures of the court master.Â