National Insurance Co. Ltd vs Santosh Tirkey and Ors

J.R. Midha

The appellants have challenged the award of the learned Tribunal whereby compensation of Rs.27,38,000/- has been awarded to claimants/respondents No.1 to 4.

The accident dated 26th August, 2002 resulted in the death of Ignatius Tirkey. The deceased was survived by her husband and three minor children who filed the claim petition before the learned Tribunal.

The deceased was aged about 43 years at the time of the accident and was working as a Nurse with Dr. Ram Manohar Lohia Hospital. The deceased was drawing a salary of Rs.15,378/- at the time of the accident. The learned Tribunal deducted Rs.2,378/- towards the allowances and took the income of the deceased as Rs.13,000/- per month. The average of Rs.13,000/- and Rs.32,500/- was taken towards the future prospects, 1/3rd was deducted towards the personal expenses and the multiplier of 15 was applied to compute the loss of dependency at Rs. 27,18,000/-. The learned Tribunal has awarded Rs.20,000/- towards loss of love and affection and funeral expenses.

The learned counsel for the appellant has urged the following grounds at the time of hearing of this appeal:-

(i) The multiplier be reduced from 15 to 14.

(ii) The future prospects be computed by adding 30% of the salary of the deceased.

The learned counsel for claimants/respondents No.1 to 4 has made following submissions at the time of hearing of this appeal:-

(i) The deduction of allowances of Rs.1,850/ be set aside.

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

(iii) The compensation be awarded for loss of estate.

(iv) The compensation be awarded for loss of consortium.

(v) The interest be awarded from the date of the institution of the claim petition on 27th September, 2002.

The salary of the deceased at the time of the accident as per salary certificate Ex.PW-1/1 and Pay Bill Ex.PW-1/2 was Rs.15,378/-. The deduction of Rs.150/- towards washing allowance and Rs.100/- towards transport allowance is justified but there is no justification of deduction of other allowances of Rs.1,850/-. The deduction of Rs.1,850/- is therefore set aside. The salary of deceased for computation of loss of dependency is taken to be Rs.15,128/- [Rs.15378- (Rs.150 + Rs.100)].

The learned Tribunal has computed the future prospects by taking the average of Rs.13,000/- and Rs.32500/-, which is not permissible. The deceased was aged 43 years at the time of the accident and the future prospects according to the judgment of Sarla Verma Vs. Delhi Transport Corporation, 2009 (6) Scale 129 is taken as 30% and Rs.4,538.40 (30% of Rs.15,128/-) is added towards future prospects. The income of the deceased for computation of income is taken to be Rs.19,666.40 (Rs.15,128 + Rs.4,538.40).

The learned Tribunal has deducted 1/3rd towards personal expenses. The appropriate deduction towards personal expenses of the deceased according to the judgment of Hon''ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation (Supra) is 1/4th. The personal expenses of the deceased are, therefore, reduced from 1/3rd to 1/4th.

The learned Tribunal has applied the multiplier of 15. However, the appropriate multiplier according to the judgment of Sarla Verma Vs. Delhi Transport Corporation (Supra) is 14. The multiplier is therefore reduced from 15 to 14.

Taking the income of the deceased to be Rs.19,666.40, deducting 1/4th towards personal expenses and applying the multiplier of 14, the loss of dependency is computed to be Rs.24,77,966.4 (19,666.4 x 3/4 x 14 x 12).

The learned Tribunal has not awarded for compensation towards loss of consortium and loss of estate. Rs.10,000/- is awarded towards loss of consortium and Rs.10,000/- is awarded towards loss of estate.

The claimants are entitled to total compensation of Rs.25,17,966.4 (Rs.24,77,966.4 + Rs.20,000 + Rs.10,000 + Rs.10,000).

The learned Tribunal has awarded interest @ 7.5% from the date of filing of the claim petition till realization. The claim was instituted on 27th September, 2002. However, the Claims Tribunal inadvertently mentioned the date of institution as 9th March, 2007 in the impugned award. The date of institution in the impugned award is corrected as 27th September, 2002 and it is held that the claimants shall be entitled to interest from 27th September, 2002 till realization.

The appeal is partially allowed and the award amount is reduced from Rs.27,38,000/- to Rs.25,17,966.40 along with interest at the rate of 7.5% from the date of filing of the claim petition i.e. 27th September, 2002 till the date of realization.

The appellant has deposited the entire award amount with the Claims Tribunal, in terms of order dated 10th February, 2009 and part of the said amount has already been released to the claimants. The remaining amount is lying in fixed deposit and the original fixed deposit receipt is lying with the Claims Tribunal.

The learned counsel for claimants/respondents No.1 to 4 submits that the appellant would be required to deposit some more money.

Let both the parties file their respective Statements of Account before this Court when the appropriate order for deposit and release of the amount shall be passed.

List for directions on 9th April, 2010.

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