2008 Supreme(Del) 218
IN THE HIGH COURT OF DELHI AT NEW DELHI
KAILASH GAMBHIR, J.
Smt. Avantika Aggarwal and Ors. ..... Appellants
Versus
Sh.Vinod Kumar Yadav ..... Respondent
MAC No. 409-12/2006
Decided on : February 20, 2008
Through: Mr.Ashok K. Mahajan and Ms. Kamlesh Mahajan, Advs.
Through:Mr.S.L. Gupta, Advocate.
The main legal point established in the judgment is the correct application of legal principles in determining compensation under the Motor Vehicles Act, including the inclusion of specific allowances in the deceased's income and the appropriate interest rate.
Headnote:
Motor Vehicles Act - Compensation - Section 166, Section 140
Fact of the Case:
The appellants sought enhancement in compensation awarded by the Motor Accident Claims Tribunal. The deceased was involved in a fatal accident, and the appellants claimed entitlement to various allowances based on legal principles established by the court in Mamta Mohindra case.
Finding of the Court:
The court found that the Tribunal had not correctly applied the legal principles established in Mamta Mohindra case and awarded enhanced compensation based on the principles laid down in National Insurance Co. Ltd. Vs. Indira Srivastava and Ors. The court also addressed the respondent's contentions and dismissed them as legally impermissible.
Issues: The main issue was the correct application of legal principles in determining the compensation amount, including the inclusion of various allowances and the appropriate interest rate.
Ratio Decidendi: The court applied the legal principles established in Mamta Mohindra case and National Insurance Co. Ltd. Vs. Indira Srivastava and Ors. to determine the entitlement to compensation and the inclusion of specific allowances in the deceased's income. The court also addressed the appropriate interest rate based on various Supreme Court judgments.
Final Decision: The court modified and enhanced the compensation amount from Rs. 77,18,000 to Rs. 83,81,492, along with interest at 7.5% per annum. The matter was remanded back to the Tribunal for necessary calculation and apportionment of the award amount.
KAILASH GAMBHIR, J.
1. By way of this appeal, the appellants seek enhancement in the compensation. The Motor Accident Claims Tribunal has awarded a sum of Rs.77,18,000/-in favour of the appellants and against the respondent along with interest @7.5% per annum on the award amount from the date of institution of the petition till the date of realisation. Feeling not satisfied with the amount of compensation, the appellants have preferred the present appeal and sought enhancement in the said compensation to the extent of Rs.3,67,20,000/-as claimed by them in their petition moved under Section 166 read with Section 140 of the Motor Vehicles Act. The appellants are also aggrieved with the interest rate and have claimed interest @9% per annum in place of 7.5% per annum as awarded by the Tribunal.
2. The conspectus of facts relevant for deciding the present appeal in brief are that on 30th August at about 8.00 a.m., the deceased Shri Alok Aggarwal along with his wife and son, appellant Nos.1 and 2 started for Jaipur from their residence. Deceased Shri Alok Aggarwal was driving Santro Car bearing registration No. DL 3C S 4971, owner of which was his employer, M/s. Modi Revlon. On Delhi-Jaipur Highway on reaching Dharuheara, a Tata Sumo bearing registration No. HR 34A 9920 being driven in a very rash and negligent manner by driver Shri Vinod Kumar Yadav, respondent No.1 herein, collided head on with the Santro Car driven by the deceased. The deceased was taken to the hospital. Pursuant to this, the appellants filed a claim petition on 8.2.2002, which led to the passing of award on 1.3.2005 and being aggrieved with the said award, present appeal has been preferred by the appellants.
3. I have heard learned counsel for the parties at a considerable length and have perused the record.
4. The principal contention raised by the counsel for the appellants is that the Tribunal has not correctly applied the legal principles as settled by this Court in the case of Mamta Mohindra and Ors. Vs. Deputy Commissioner of Police and Anr., 2004 ACJ 395. The contention of the counsel for the appellants is that although while deciding the quantum of compensation, the Tribunal has relied upon the said judgment of Mamta Mohindra (Supra) but yet missed its sight and glossed over the amount of compensation allowed by this Court towards various allowances by holding that other allowances mentioned in the exhibit PW-1/R-6(salary slip) shall not be considered. The Tribunal, thus, completely ignored the medical expenses, provident fund, leave travel allowance and bonus amount while taking into consideration the salary slip duly exhibited as Ex.PW-1/R-6 and returned the wrong finding by denying the said legally permissible allowances. The counsel for the appellants thus confined his argument for the enhancement of the compensation limited to the extent as has been allowed by this Court in the aforesaid judgment giving benefit of grant of aforesaid allowances to which the deceased would have been entitled as would be evident from the salary slip duly exhibited by the appellants as Ex. PW-1/R-6. Counsel for the appellants contended that deriving strength from the judgment of this Court, the Tribunal has taken into consideration the basic salary and house rent allowance while calculating the loss of dependency but has wrongly ignored other allowances as were being reimbursed to the deceased to which the dependents become legally entitled after the death of Sh. Alok Aggarwal.
5. The counsel for the appellants has invited my attention to paras 13 and 14 of the said judgment in which this Court has considered the said allowances for granting compensation to the dependent members and on the same analogy, counsel contends that the appellants being dependent on the deceased are entitled for the grant of compensation under the Act. It would be appropriate to refer to the said paras of the judgment as under:
“13. As regards the plea regarding enhancement of compensat