Back
2015 Supreme(Del) 1189
IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. MIDHA, J.
Rekha & Anr. - Appellants
Versus
BSES Rajdhani Power Ltd. - Respondent
RFA No. 308/2011
Decided on : 8-7-2015
Advocate Appeared:
Ms. Aruna Mehta, Advocate.
Ms. Anjali Sharma, Advocate.
The main legal point established was the application of the multiplier method for determining compensation in death cases, along with the principles related to the computation of compensation by the multiplier method.
Headnote:
Fatal Accidents Act - Compensation Calculation - Sections 1A, 2 - 1885 - 1A, 2
Fact of the Case:
The deceased was electrocuted due to the leakage of electricity. The Trial Court awarded Rs.4,16,000/- compensation. The appellants sought enhancement to Rs. 10 Lakh.
Finding of the Court:
The court found that the deceased's income was presumed to be Rs. 4500/- per month. Applying the multiplier of 16 at the age of 35, the loss of dependency of the deceased was computed at Rs 8,64,000/-. The total compensation was computed to be Rs. 10,00,000/-. The interest rate was enhanced from 6% to 9% per annum.
Issues: The main issues were the calculation of compensation and the applicable interest rate.
Ratio Decidendi: The court applied the multiplier method for determining compensation, as accepted by previous Supreme Court and High Court judgments. It also considered the principles relating to the computation of compensation by the multiplier method.
Final Decision: The appeal was allowed, and the decretal amount was enhanced from Rs. 4,16,000/- to Rs.10,00,000/- along with interest @ 9% from the date of filing of the suit till realization.
1. The appellants have challenged judgments and decree for Rs.4,16,000/- along with interest @ 7.5% passed by the learned Trial Court. The appellants are seeking enhancement of the compensation amount to Rs. 10 Lakh.
2. On 15th June, 2007 at about 02.30 P.M., Raju was crossing Lottery Godown Street. The said area was water logged due to the rains. In order to save himself from the collected water, Raju held the electric pole No. B-286 and he was electrocuted due to the leakage of electricity in the said pole.
3. The deceased Raju was survived by his widow and parents who filed a suit for recovery before the Trial Court. The deceased was aged 35 years at the time of the accident and was carrying on the business of manufacture of card board boxes. The appellants claimed that the deceased was earning Rs.6,000/- per month. The learned Trial Court took the minimum wages of Rs.3,500/- per month deducted 50% towards personal expenses and applied the multiplier of 16 to compute the loss of dependency of Rs.3,36,000/-. The learned Trial Court awarded Rs.75,000/- towards loss of consortium, loss of love and affection, loss of estate and Rs.5,000/- towards funeral expenses. The total compensation awarded is Rs.4,16,000/- along with interest @7.5% from the date of decree.
4. Learned counsel for the appellants has urged following grounds at the time of hearing of the appeal:-
(i) The income of the deceased be taken as Rs.6,000/- per month.
(ii) The future prospects be added to the income of the deceased.
(iii) The interest be awarded @ 9% from the date of the filing of the suit.
5. The appellants are entitled to just compensation under Sections 1A and 2 of the Fatal Accidents Act, 1885 which has to be computed according to the multiplier method. Reference may be made to Gobald Motor Service Ltd. v. R.M.K. Veluswam & Ors, 1962 (1) SCR 929, Dr. Laxman Balkrishna Joshi v. Dr. Trimbak Bapu Godbole, AIR 1969 SC 128, Ishwar Devi Malik. v. Union of India, AIR 1969 Delhi 183, Lachman Singh v. Gurmit Kaur, AIR 1979 P&H 50, Bir Singh v. Hashi Rashi Banerjee, AIR 1956 Cal. 555. The multiplier method has been accepted as legally sound method for determining compensation in death cases by the Supreme Court in Lata Wadhwa v. State of Bihar, (2001) 8 SCC 197; Municipal Corporation of Delhi v. Association of Victims of Uphaar Tragedy, AIR 2012 SC 100 and Delhi High Court in Jaipur Golden Gas Victims Association v. Union of India, 164 (2009) DLT 346; Nagrik Sangarsh Samiti v. Union of India, ILR (2010) 4 Delhi 293; Ram Kishore v. MCD, 2007 (97) DRJ 445; Ashok Sharma v. Union of India, 2009 ACJ 1063.
6. In Lata Wadhwa v. State of Bihar (supra), a fire broke out in a factory in which sixty people died and one hundred and thirteen got injured. The Supreme Court awarded compensation to the victims on the basis of the multiplier method.
7. In Jaipur Golden Gas Victims Association v. Union of India (supra), the Division Bench of this Court awarded compensation to the victims of Jaipur Golden Fire Tragedy by applying the multiplier method.
8. In Ashok Sharma v. Union of India (supra), six children lost their lives by drowning during an annual training camp of NCC on account of negligence on the part of respondents. The compensation was awarded by applying the multiplier method.
9. The compensation in death cases according to the multiplier method is based on the pecuniary loss caused to the dependants by the death of the victim of the road accident. The dependency of the dependants is determined by taking the annual earning of the deceased at the time of the accident. Thereafter, effect is given to the future prospects of the deceased. After the income of the deceased is established, the deduction is made towards the personal expenses of the deceased which he would have spent on himself. If the deceased was unmarried, normally 50% of the income is deducted tow
