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New India Insurance Co. Ltd. vs Soni Bai and Another <BR> Soni Bai and Another Vs New India Insurance Co. Ltd.

Delhi High Court · Decided on 10 May 2012 · Citation: (2012) 05 DEL CK 0123

HON’BLE JUDGES
G.P. Mittal, J
CASE NUMBER
MAC. APP. No. 543 of 2011 and Mac. App. No. 202 of 2012

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Judgment

7 paragraphs · 342 words

G.P. Mittal, J.—These two Appeals MAC APP No. 543/2011 and MAC APP No. 202/2012 arise out of a judgment dated 01.04.2011 passed in a Claim Petition u/s 163A of the Motor Vehicles Act whereby a compensation of Rs. 3,38,516/- was awarded for the death of Suraj a 19 years old son of the Appellant in MAC APP No. 543/2011. Both the Appellant (Insurance Company) and the Cross-Objectionists (the Claimants) say that in a Petition u/s 163A of the Act, compensation has to be awarded as per the structured formula. This court after analyzing the law in MAC APP No. 304/2009 titled New India Assurance Co. Ltd. v. Pitamber & Ors. decided on 23.01.2012 held that the compensation in a Petition u/s 163A has to be awarded on the basis of structured formula.

2.

The deceased''s income was claimed to be Rs. 3300/- per month The Claims Tribunal in the absence of any cogent evidence granted the compensation on the basis of minimum wages of an unskilled worker i.e. Rs. 3,271/- per month. The compensation towards loss of dependency comes to Rs. 4,71,023/-(3271 X 2/3 X 12 X 18). On adding a further sum of Rs. 2500/- towards funeral expenses and Rs. 2000/- towards loss to estate, the overall compensation comes to Rs. 4,75,523/-.

3.

The compensation thus stands enhanced from Rs. 3,38,516/- to Rs. 4,75,523/-.

4.

The compensation deposited in MAC APP No. 543/2011 shall be released in favour of the Respondent No. 1 in terms of the order passed by the Claims Tribunal.

5.

The enhanced compensation of Rs. 1,37,007/- shall carry interest @ 7.5% per annum and shall be payable to the Respondents No. 1 and 2 (the Claimants and Cross-Objectionists) in equal proportion.

6.

The Appellant Insurance Company is directed to deposit the enhanced amount along with interest in favour of the Respondents No. 1 and 2 in UCO Bank, Delhi High Court Branch within six weeks.

7.

The statutory amount of Rs. 25,000/- shall be refunded to the Appellant Insurance Company. Both the Appeals are disposed of accordingly.