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2017 Supreme(Del) 786

IN THE HIGH COURT OF DELHI AT NEW DELHI
SUNIL GAUR, J.
Suresh Chand Jain - Appellant
Versus
Rakesh Singh - Respondent
MAC.APP. 269 of 2008
Decided On : 07-03-2017

Advocates Appeared:
For the Appellant : Mr. D.D. Singh, Mr. Navdeep Singh
For the Respondent: Mr. Pradeep Gaur

The main legal point established in the judgment is the determination of the appropriate multiplier based on the age of the deceased, the consideration of evidence in assessing 'future prospects', and the adequacy of compensation under the non-pecuniary heads.

Headnote:

Compensation - Road Accident - Income Tax Return - Multiplier - Future Prospects - Non-Pecuniary Heads - Supreme Court's Decisions - Age of Claimants - Dependency - Future Prospects - Non-Pecuniary Heads - Interest - [Rs.4,72,600/-, Death of Yogesh Chand Jain, Road Accident, Income Tax Return, Multiplier, Future Prospects, Non-Pecuniary Heads] - The court discussed the appropriate multiplier to be adopted, consideration of Income Tax Returns filed after the accident, assessment of 'future prospects', and the adequacy of compensation granted under the non-pecuniary heads. The court relied on Supreme Court decisions to determine the age to be considered for the multiplier and emphasized the importance of evidence in assessing future prospects. The court also enhanced the compensation under the non-pecuniary heads and modified the interest rate.

Fact of the Case:

The impugned Award granted compensation for the death of a businessman in a road accident. The deceased was a shop-keeper engaged in selling garments. The income of the deceased was assessed based on an Income Tax Return filed prior to his death. The appellant sought enhancement of compensation, citing Supreme Court's decision and the consideration of Income Tax Returns filed after the accident.

Finding of the Court:

The court found that the appropriate multiplier should be based on the age of the deceased, and not the claimants. It also rejected the claim for 'future prospects' due to lack of evidence. The court enhanced the compensation under the non-pecuniary heads and modified the interest rate.

Issues: The issues included the determination of the appropriate multiplier, consideration of Income Tax Returns filed after the accident, assessment of 'future prospects', adequacy of compensation under the non-pecuniary heads, and the interest rate.

Ratio Decidendi: The court emphasized the importance of evidence in assessing future prospects and relied on Supreme Court decisions to determine the age to be considered for the multiplier. It also highlighted the need for adequate compensation under the non-pecuniary heads.

Final Decision: The court enhanced the compensation and modified the interest rate, granting the respondent-insurer four weeks to deposit the enhanced compensation with interest.

JUDGMENT :

Impugned Award of 8th February, 2008 grants compensation of Rs.4,72,600/- with interest @ 7% per annum on account of death of one businessman-Yogesh Chand Jain, aged 23 years, in a road accident on the intervening night of 30th June and 1st July, 2005. The facts are already noted in impugned Award and so needs no reproduction. Suffice to note that deceased – a shop-keeper, was engaged in business of selling garments at Pahari Dheeraj. To assess the income of deceased, learned Tribunal has relied upon Income Tax Return (Ex.PW-5/3), which is of a period prior to his death, and on its basis, the income of deceased has been quantified to be Rs.73,200/- per annum. Pertinently, the Income Tax Return filed after the death of deceased has been left out of consideration. While taking the age of claimant to be 52 years and 48 years respectively and by applying the multiplier of 11 and deducting 50% towards ‘personal expenses’, ‘loss of dependency’ has been assessed by learned Tribunal at Rs.4,02,600/-. Under the non-pecuniary heads, Rs.10,000/- has been awarded towards ‘funeral expenses’, Rs.40,000/- towards ‘loss of love and affection’ and Rs.20,000/- towards ‘loss of estate’. On the basis of evidence recorded, impugned Award has been rendered.

2. In this appeal, enhancement of compensation is sought by learned counsel for appellant while relying upon Supreme Court’s decision in Munna Lal Jain and Another v. Vipin Kumar Sharma and Others, (2015) 6 SCC 347 to submit that the multiplier to be adopted is as per the age of deceased and not as per the age of claimants and that learned Tribunal has erred in not applying the appropriate multiplier of 18 while taking the age of deceased into consideration.

3. It is pointed out by appellant’s counsel that the Income Tax Returns filed after the accident ought to have been considered and adequate compensation ought to have been granted towards ‘future prospects’. It is also submitted by appellant’s counsel that compensation granted under the non-pecuniary heads is on lower side and it needs to be suitably enhanced.

4. On the other hand, learned counsel for respondent-Insurer supports impugned Award and submits that no case for enhancement is made out as the age of claimants has been rightly taken into consideration. To submit so, attention of this Court is drawn to a Three Judge Bench decisions of Supreme Court in UPSRTC v. Trilok Chandra & Ors., 1994 (3) SCC 302 and New India Assurance Company Limited v. Shanti Pathak (Smt.) & Ors., (2007) 10 SCC 603. Nothing else is urged by either side.

5. Upon hearing and on perusal of impugned Award, evidence on record and the decisions cited, I find that Supreme Court in Trilok Chandra (supra) and Shanti Pathak (supra) has reiterated that age of claimants or the age of the deceased, whichever is higher, is to be taken into consideration while applying the appropriate multiplier whereas in a later decision of same strength in Munna Lal (supra) while considering an earlier decision in Reshma Kumari & Ors. v. Madan Mohan & Anr. (2013) 9 SCC 65, it has been ruled that multiplier ought to be in reference to the age of deceased.

6. When there is conflict of opinion between two Benches of same strength, then the decision of earlier Bench has to prevail. It has been so reiterated by Supreme Court in Union of India v. S.K. Kapoor, (2011) 4 SCC 589. So, while relying upon Supreme Court’s earlier decisions in Trilok Chandra (supra) and Shanti Pathak (supra), this Court has no hesitation in holding that learned Tribunal has rightly taken into consideration the age of claimants. It is noted in impugned Award that as per Election I-card, age of mother of deceased comes to 44 years and 7 months, or say, 45 years. However, learned Tribunal, while relying upon statement of Insurer’s counsel, has taken the age of mother of deceased to be 50 years. It needs no reiter







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