New India Ass. Co. Ltd. vs Prem Wati and Others

G.P. Mittal, J.—This appeal is for reduction of compensation of Rs. 20,10,804/- awarded for the death of the Dev Raj in a motor accident which occurred on 13.04.2006. It is urged by the Learned Counsel for the Appellant that future income of Rs. 2,50,000/- was assumed by the Claims Tribunal without any basis.

I have perused the record.

Although the Claims Tribunal relied on Smt. Sarla Dixit and another Vs. Balwant Yadav and others, but without any basis assumed the average future income of the deceased as Rs. 2,50,000/-. Since there was gradual increase in the deceased''s income, the Respondents (the Claimants) were entitled to 50% increase towards future prospects on the basis of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, Deducting 1/4th towards personal living expenses (considering number of dependants as 6) and adopting a multiplier of 16, the loss of dependency would come to Rs. 11,07,000/- ( Rs. 61500+50%x3/4x16).

The Tribunal erred in jointly granting a sum of Rs. 25,000/- towards Funeral Expenses and loss of Love and Affection. I would make provision for the same separately and in addition grant a sum of Rs. 10,000/- each towards Loss to Estate and Loss of Consortium. The compensation is awarded as under:-

Loss of Dependency

:

Rs. 11,07,000/-

Loss of Love and Affection

:

Rs. 25,000/-

Funeral Expenses

:

Rs. 10,000/-

Loss to Estate

:

Rs. 10,000/-

Loss of Consortium

:

Rs. 10,000/-

Total

:

Rs. 11,62,000/-

In terms of order dated 10.08.2009 of this Court an amount of Rs. 12 lacs (inclusive of interest) was to be deposited as a condition of grant of stay of the execution. The Appellant was liable to deposit Rs. 11,62,000/- along with interest @ 7.5% per annum from the date of filing of the petition till the date of deposit. The shortfall shall be made by the Appellant/Insurance Company within 30 days.

By an order dated 14.10.2009 a sum of Rs. 2 lac in all was ordered to be released. It appears that the same has not been released as the Respondents did not come forward. 10% of the awarded amount along with proportionate interest shall be payable to Respondent No. 3 and 5% each to Respondents No. 2, 4, 5 and 6. Rest shall go to the Respondent No. 1. The amount payable to Respondents Nos. 4, 5 and 6 shall be held in Fixed Deposit till they attain the age of 21 years. The amount payable to Respondents No. 2 and 3 shall be released forthwith. 25% of the amount payable to Respondent No. 1 shall be released on deposit. Rest of the amount shall be held in Fixed Deposit for a period of 2 years, 4 years, 6 years and 8 years in equal proportion in UCO Bank, Delhi High Court Branch. The Respondent No. 1 and 4 to 6 shall be entitled to payment of monthly interest.

The statutory amount of Rs. 25,000/- shall be released in favour of the Appellant. The appeal is allowed of in above terms.