Oriental Insurance Company Ltd v. Geeta Devi; Geeta and Ors v. M/s Oriental Insurance Company Ltd

Delhi High Court · 26 Jul 2017 · 2017:DHC:3945
J. R. Midha
MAC.APP.363/2016 & 310/2017
2017:DHC:3945
civil appeal_allowed Significant

AI Summary

The Delhi High Court enhanced compensation in a motor accident claim by adding future prospects, reducing personal expense deduction, and lowering interest rate to 9% per annum.

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MAC.APP.363/2016 & 310/2017
HIGH COURT OF DELHI
Date of Decision: 26th July, 2017
MAC.APP.363/2016 and CM 15396/2016
JUDGMENT

24 ORIENTAL INSURANCE COMPANY LTD..... Appellant Through: Mr. Ravi Sabharwal, Adv.

VERSUS

GEETA DEVI AND ORS...... Respondents Through: Mr. S.N. Parashar, Adv. + MAC.APP.310/2017 29 GEETA AND ORS...... Appellant Through: Mr. S.N. Parashar, Adv.

VERSUS

M/S ORIENTAL INSURANCE COMPANY LTD..... Respondents Through: Mr. Ravi Sabharwal, Adv. CORAM: HON'BLE MR.

JUSTICE J.R. MIDHA JUDGMENT (ORAL)

1. The Claims Tribunal has awarded compensation of Rs.11,15,128/- to the legal heirs of Pyare Lal which is under challenge in these appeals.

2. The accident dated 06th February, 2012 resulted in the death of Pyare Lal. The deceased was survived by his widow and father who filed the claim petition before the Claims Tribunal. The deceased was aged 31 years and working as a contractor at M/s Star Management Services drawing the salary of Rs.9,500/- per month. The proprietor of M/s Star Management Services 2017:DHC:3945 appeared in the witness box as PW-3 and deposed that the Pyare Lal was skilled technician in his firm. PW-3 produced the TDS certificate of the deceased for the assessment years 2011-12 and 2012-13 as Ex.PW3/A and Ex.PW3/B. PW-2 from Income Tax Department produced the ITR of the deceased for the assessment year 2011-12. The Claims Tribunal took the income of the deceased as Rs.9,168/- per month on the basis of the aforesaid documents and deducted 1/2 towards his personal expenses and applied the multiplier of 16 to compute the loss of dependency as Rs.8,80,128/-. The Claims Tribunal awarded Rs.1,00,000/- towards the loss of love and affection, Rs.1,00,000/- towards the loss of consortium, Rs.10,000/- towards the loss of estate and Rs.25,000/- towards the funeral expenses. The total compensation awarded by the Claims Tribunal is Rs.11,15,128/-.

3. Learned counsel for the appellant in MAC.APP.363/2016 urged at the time of hearing that the Claims Tribunal awarded interest @ 12% per annum which should be reduced to @ 9% per annum.

4. Learned counsel for the appellant in MAC.APP.310/2017 urged at the time of hearing that Claims Tribunal has not taken the future prospects into consideration and has deducted 1/2 towards personal expenses of the deceased whereas the appropriate deduction towards personal expenses should have been 1/3rd as the deceased was married.

5. This Court is of the view that as the deceased was aged 31 years at the time of accident and, therefore, 50% is added towards future prospects of the deceased. The deceased was a married person and, therefore, appropriate deduction towards the personal expenses of deceased should have been 1/3rd instead of 1/2. The personal expenses of deceased are reduced from 1/2 to 1/3rd. The Claims Tribunal has awarded interest @ 12% per annum whereas the Supreme Court as well as this Court are consistently awarding interest @ 9% per annum.

6. The claimants are entitled to the total compensation of Rs. 19,95,256 as per the break up given hereunder:- Monthly Income: Rs.9,168/- Add 50% towards future prospects: Rs.4,584/- Deduct 1/3rd towards personal expenses: Rs.4,584/-