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2016 Supreme(Del) 2899
IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. MIDHA, J.
THE ORIENTAL INSURANCE CO LTD – Appellant
Versus
SUMAN & ORS – Respondents
MAC.APP. 981/2015 & CM No. 31038/2015
Decided On : 09-08-2016
For the Appellants : Mr. A.K. Soni, Adv.
For the Respondents: Mr. S.N. Parashar, Adv.
The court applied the principles of the Uphaar tragedy case and the Evidence Act to compute and uphold the compensation awarded by the Claims Tribunal.
Headnote:
Compensation - Claims Tribunal - Evidence Act - [Section 167 of the Evidence Act, Uphaar Tragedy Case, Municipal Corporation of Delhi v. Association of Victims of Uphaar Tragedy, AIR 2012 SC 100] - The court applied the principles laid down in the Uphaar tragedy case to compute the compensation and upheld the award of the Claims Tribunal based on the evidence presented.
Fact of the Case:
The appellant challenged the award of the Claims Tribunal, which awarded compensation to the claimants following the death of the deceased in an accident. The appellant raised concerns about the computation of future prospects and the amount awarded for loss of love and affection.
Finding of the Court:
The court found that the occupation of the deceased as a professional driver was sufficiently proved, and the income of the deceased was presumed based on this occupation. The court also referenced the Uphaar tragedy case and other similar cases to support its decision.
Issues: The issues revolved around the computation of future prospects and the amount awarded for loss of love and affection.
Ratio Decidendi: The court applied the principles laid down in the Uphaar tragedy case to compute the compensation and upheld the award of the Claims Tribunal based on the evidence presented.
Final Decision: The court dismissed the appeal, upholding the award of the Claims Tribunal. The appellant was directed to release the remaining amount to the respondents as per the modified distribution.
1. The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs. 11,30,418.88 has been awarded to claimants/respondents No. 1 to 6.
2. The accident dated 04th August, 2005 resulted in the death of Satish, hereinafter referred as deceased, who was survived by his widow, two daughters, one son and parents, who filed the claim petition. The deceased was working as a driver earning Rs. 4,500/- per month. However, the Claims Tribunal took the minimum wages of Rs. 3589.90 per month, added 50% towards future prospects, deducted 1/4th towards personal expenses and applied the multiplier of 16 to compute the loss of dependency at Rs. 7,75,418/-. The Claims Tribunal awarded Rs. 50,000/- to each of the claimants towards loss of love and affection, Rs. 25,000/- towards funeral expenses, Rs. 10,000/- towards loss of consortium and Rs. 20,000/- towards loss of estate. The total compensation awarded by Claims Tribunal is Rs. 11,30,418.88.
3. The appellant has challenged the impugned award on the two grounds, first that 50% of future prospects should not be awarded and second that the compensation of Rs. 50,000/- for loss of love and affection to each of the claimants is on a higher side.
4. The Claims Tribunal has taken the minimum wages of Rs. 3,589.90 and after adding 50% towards the future prospects, the total income of the deceased has been taken as Rs. 5,384.85 (Rs. 3589.90 + Rs. 1,794.95). This Court is of the view that the occupation of the deceased as a professional driver having been sufficiently proved, the income of the deceased can be safely presumed as Rs. 5,384.85 per month even if future prospects are not awarded. It is not mandatory to resort the minimum wages in each and every case. Reference in this regard may be made to the judgment of the Supreme Court in Municipal Corporation of Delhi v. Association of Victims of Uphaar Tragedy, AIR 2012 SC 100 in which 59 persons died in Uphaar tragedy and the Supreme Court granted compensation of Rs. 10,00,000/- to the victims of above 20 years of age and Rs. 7,50,000/- to the victims below 20 years of age on the basis of multiplier method. The Supreme Court applied the multiplier of 15 and deducted 1/3rd towards the personal expenses. The income of the victims aged more than 20 years was assumed to be Rs. 8,333/- per month and that of victims aged less than 20 years was assumed to be Rs. 6,249/- per month. The computation of the compensation awarded by the Supreme Court would be as under :
For victims aged more than 20 years:-
(Rs. 8,333/-less 1/3rd) x 12 x 15 = Rs. 10 lakhs.
For victims aged less than 20 years:-
(Rs. 6249/-less 1/3rd) x 15 = Rs. 7.5 lakhs.
5. It is relevant to note that the Uphaar tragedy took place on 13th June, 1997 and the minimum wages at the relevant time were less than Rs. 2600/-. Although there was no proof of the income of the victims, the Supreme Court did not find it proper to apply the minimum wages.
6. This Court has applied the principles laid down in Uphaar tragedy case to compute the compensation in United India Insurance Co. V. Kanwar Lal, 2012 SCC Online Del 2411, New India Assurance Co. Ltd. v. Bal Kishan Pawar, 2012 SCC Online Del 3201, National Insurance Co. Ltd. v. Chander Dutt, 2012 SCC Online Del 2412, National Insurance Co. Ltd. v. Sewa Ram, 2012 SCC Online Del 2413 and National Insurance Co. Ltd. v. Komal, 2014 ACJ 1540, National Insurance Co. Ltd. v. Gaje Singh, 2012 ACJ 2346 and National Insurance Co. Ltd. v. Bhateri, 2012 SCC Online Del 2409.
7. Applying the principles laid down in Uphaar tragedy case, the income of the deceased is presumed to be Rs. 5,384.85. With respect to the compensation for love and affection, the Claims Tribunal has awarded Rs. 50,000/- to each of the six claimants does not warrant any interference, considering that lower compensation has been awarded towards loss of consortium and loss of estate. Applying Section 167 of the Evidence Act, the award of the learned Tribunal is upheld
