High CourtsSingle Bench(2013) 03 DEL CK 0280

Royal Sundaram Alliance Insurance Co. Ltd. vs Anita and Others

Delhi High Court · Decided on 8 March 2013 · Citation: (2013) 2 ACC 261

HON’BLE JUDGES
G.P. Mittal, J
RESULT
Allowed
CASE NUMBER
MAC. APP. No. 228 of 2012

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Judgment

12 paragraphs · 795 words

G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs. 14,40,943 awarded by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of the Respondent Nos. 1 to 5 for the death of Hari Om who died in a motor vehicle accident which occurred on 21.2.2009. The finding on negligence reached by the Claims Tribunal is not challenged by the Appellant Insurance Company; thus the same has attained finality.

2.

On the quantum of compensation, the Respondents'' case was that the deceased was an agriculturist and he was earning Rs. 20,000 per month from agriculture and Rs. 15,000 per month from the business of dairy farming. Anita (PW1), the deceased''s widow, had sworn an affidavit with regard to this income. She failed to produce any documentary evidence with regard to this income. In cross-examination, she denied the suggestion that her husband was not earning this amount. She admitted that her husband was not an Income Tax assessee. In the Assessment year 2009-10, any income beyond Rs. 1,50,000 was subject to Income Tax. Even if, an income of Rs. 2,40,000, claimed to be from agriculture, was exempted, the deceased was under an obligation to pay Income Tax on the remaining income of Rs. 1,80,000 on a higher slab after making an addition in the income from agriculture.

3.

Otherwise also, it is difficult to believe that deceased Hari Om had any income from agriculture. The only ground on which the income from agriculture was claimed was that Ved Prakash (the deceased''s father) owned certain lands in village Narela. Admittedly, Ved Prakash had one more son in addition to the deceased. No evidence was led by the Respondents to prove that during his lifetime, Ved Prakash had given the land to the deceased Hari Om and not to the other son. No evidence was led to prove the amount spent on agricultural operations and the yield obtained. In the circumstances, it was not possible to determine the deceased''s income on the ground that he was engaged in agriculture or was in dairy business.

4.

The deceased was a matriculate and in the circumstances the loss of dependency has to be awarded on the basis of minimum wages of a Matriculate. Otherwise also, even if it is assumed that the deceased was doing agriculture, in the absence of any specific evidence with regard to the amount spent on agricultural operations and the net income after deducting the expenditure, the Respondents were entitled to loss of dependency on account of supervisory services rendered by the deceased. The Claims Tribunal, in the circumstances, took the minimum wages of a Matriculate to compute the loss of dependency, but erred in making an addition of double the amount of the minimum wages. In the absence of any evidence as to future prospects an addition of only 30% with regard to the future prospects can be made on the basis of the report of the Supreme Court in Santosh Devi Vs. National Insurance Company Ltd. and Others, . The loss of dependency thus comes to Rs. 8,71,579 (Rs. 4,382 + 30% x 3/4 x 12 x 17) as against Rs. 13,40,943 awarded by the Claims Tribunal.

5.

It is urged that the award of Rs. 50,000 towards loss of love and affection is on the higher side.

6.

Loss of love and affection can never be measured in terms of money. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma and Others Vs. Bachitar Singh and Others, and in Baby Radhika Gupta and Others Vs. Oriental Insurance Co. Ltd. and Others, granted only Rs. 25,000 (in total to all the claimants) under the head of loss of love and affection. Thus, I would reduce the compensation under this head to Rs. 25,000 only.

7.

The compensation of Rs. 20,000 each awarded towards loss to estate and funeral expenses and Rs. 10,000 towards loss of consortium is not challenged by the Appellant Insurance Company.

8.

The overall compensation thus comes to Rs. 9,46,579.

9.

By an order dated 2.3.2012, the award amount was directed to be deposited in UCO Bank, Delhi High Court Branch. The compensation of Rs. 9,46,579 as awarded along with interest @ 7.5% per annum as directed by the Claims Tribunal shall be released in favour of the Claimants in terms of the orders passed by the Claims Tribunal.

10.

The excess amount of Rs. 3,94,364 along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be returned to the Appellant Insurance Company.

11.

Statutory amount of Rs. 25,000, if any, shall be refunded to the Appellant Insurance Company.

12.

The Appeal is allowed in above terms. Pending Applications stand disposed of.