High Court Of Delhi
DELHI TRANSPORT CORPORATION - Appellant
Versus
KAMLESH ARORA - Respondent
First Appeal Order 124 of 1979
Decided On : 02/16/1989
Compensation - Motor Accidents Claims Tribunal - The court increased the compensation awarded by the Tribunal based on the deceased's potential future earnings and retirement age, and also awarded simple interest on the enhanced amount.
Fact of the Case:
The deceased was earning Rs. 1,158.00 at the time of the accident. The Tribunal awarded compensation of Rs. 1,44,000.00, which was later increased by the court to Rs. 2,40,000.00. The D.T.C. had already paid Rs. 1,00,000.00 in time.
Finding of the Court:
The court increased the compensation to Rs. 2,40,000.00 and awarded simple interest on the enhanced amount. The surety bond furnished by the claimants was discharged, and the amount was to be disbursed to the claimants within two months.
Issues: Dispute over the quantum of compensation and entitlement to interest on the awarded amount.
Ratio Decidendi: The court considered the deceased's potential future earnings and retirement age in increasing the compensation. It also awarded simple interest on the enhanced amount.
Final Decision: The claimants were entitled to Rs. 2,40,000.00 as compensation, and simple interest on a sum of Rs. 1,40,000.00 from the date of the award of the Motor Accidents Claims Tribunal till the date of payment.
( 1 ) THIS is an appeal filed by the D. T. C. claiming that the compensation of Rs. 1,00,000. 00 awarded by the Tribunal is incorrect. There is a cross-appeal also claim- ing the enhancement of compensation. In the claim petition the claimants had claimed a sum of Rs. 9,97,844. 00 as compensation. The facts of the accident and the liability of the offending vehicle are not disputed. The question now is only of the quantum of compensation. The accident took place on 20. 9. 1971. The deceased was 35 years old at that time and was earning Rs. 1,158. 00 as an employee of Siemens India. The Tribunal held that the family dependency was to the extent of Rs. 800. 00 and applying the multiplier of 15 the Tribunal came to the conclusion that the claimants were entitled to a sum of Rs. 1,44,000. 00. The Tribunal thereafter made deductions to the extent ofrs. 44,000. 00 due to uncertainties and payment in lump sum. The counsel for the appellants could not convince me as to why the compensation should not be increased. The counsel for the claimants, on the other hand, submits that besides salary of Rs. 1,158. 00 the deceased was entitled to bonus, house rent allowance and similar benefits. His complaint is that the Tribunal has not taken into consideration all these factors while fixing the compensation. He has also referred to a letter produced in the Tribunal written by his employer company stating that the deceased would have risen to the position of Manager in the company earning a salary ofrs. 3,000. 00 per month. The age of retirement, according to the counsel, was 60 years in the company. I have considered the question of increase of compensation carefully. The question of additional payments for the allowances and the increase in salary in future, to my mind, would not be correct position as regards the dependency of the family. I would, therefore, maintain Rs. 800. 00 as the dependency as upheld by the Tribunal. However, since the age of retirement was sixty years, the multiplier of 15 is raised to 25. The Tribunal was also not right in making deductions after arriving at the figure of compensation. The claimants are, therefore, entitled to Rs. 2,40,000. 00 as the compensation.
( 2 ) SINCE the D. T. C. has already paid a sum of Rs 1,00,000. 00 in time, there is no question of payment of any interest on this amount. However, the claimants will be entitled to six per cent simple interest on a sum of Rs. 1,40,000. 00 from the date of the award of the Motor Accidents Claims Tribunal till the date of payment. The surety bond furnished by the claimants before the Tribunal stands discharged. The cheque for the amount in question shall be drawn in the name of Mrs. Kamlesh Arora and deposited with the Registrar of this court within a period of two months from today. The Registrar, after issuing notices to them, will disburse the amount to them.
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