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2017 Supreme(Del) 3332
IN THE HIGH COURT OF DELHI AT NEW DELHI
R.K. GAUBA, J.
New India Assurance Co. Ltd. - Appellant
Versus
Shambhu & Ors. - Respondents
MAC. APP. 491 of 2010 & 25 of 2011
Decided On : 12-10-2017
Advocate Appeared:
For the Appellant : Mr. Sameer Nandwani
For the Respondents: Mr. S.N. Parashar, Mr. Kameshwar Singh, Mr. Ravindra Kumar Singh
The court recalculated the compensation for loss of estate and non-pecuniary damages, and increased the rate of interest based on previous rulings and consistent views taken by the court.
Headnote:
Motor Vehicle Accident - Compensation Claim - The court upheld the claim for compensation due to the negligent driving of a truck, awarding a sum of Rs. 6,58,032 inclusive of loss of dependency, love and affection, estate, and funeral expenses. The court modified the award, recalculating the loss of estate and non-pecuniary damages, and increased the rate of interest to 9% per annum.
Fact of the Case:
Rajinder Singh died in a motor vehicular accident due to negligent driving. The tribunal upheld the claim for compensation and awarded a sum of Rs. 6,58,032. The insurer and the registered owner of the truck appealed, questioning the dependency loss and the awarded amount.
Finding of the Court:
The court found substance in the exception taken to the award inclusive of loss of dependency and modified the award, recalculating the loss of estate and non-pecuniary damages. The rate of interest was increased to 9% per annum.
Issues: The issues revolved around the dependency loss and the awarded compensation for the motor vehicle accident.
Ratio Decidendi: The court recalculated the loss of estate and non-pecuniary damages, and increased the rate of interest based on previous rulings and consistent views taken by the court.
Final Decision: The court modified the award, recalculated the compensation, and increased the rate of interest. Both appeals were disposed of accordingly.
1. Rajinder Singh @ Rajan, then 34 years old, a bachelor, living with his brother (the first respondent in these appeals) died in a motor vehicular accident that had occurred on 12.02.2006 due to the negligent driving of Truck bearing No. UP-78-AT-2586 which was admittedly insured against third party risk with New India Assurance Company Ltd. (appellant in MAC APP. 491/2010). The truck was registered in the name of Keshav Singh (Appellant in the MAC APP. 25/2011). The accident claim case was instituted on 20.03.2006 by the first respondent in which two appellants herein were impleaded as party respondents. Later the claimant also impleaded his two married sisters they being Ms. Lilam and Ms. Manor Devi who are respondents in these appeals in addition to Mr. Anil Kumar, the driver of the truck at the relevant point of time.
2. On the basis of the inquiry held, the tribunal, by judgment dated 26.05.2010, upheld the claim that the death had occurred due to the negligent driving of the truck. It awarded compensation in the sum of Rs. 6,58,032/-, the said amount inclusive of loss of dependency in the sum of Rs. 6,28,032/- besides Rs. 10,000/- each towards loss of love and affection, loss of estate and funeral expenses. The insurer was directed to pay the said amount with interest 7.5% p.a. However, its plea about breach of terms and condition of the insurance policy having been accepted on the basis of the evidence led, primarily on the ground that there was no permit shown to be existing on the date in question, it was granted recovery rights against the owner of the offending vehicle who is the appellant in MAC APP. 25/2011.
3. The insurer, by its appeal (MAC APP. 491/2010), has questioned the award on the ground that since the deceased was a bachelor, the claim being for and on behalf of the siblings, no dependency loss was required to be compensated, the only permissible award being towards loss to estate. The registered owner of the offending vehicle, on the other hand, has also raised similar issues about the dependency loss having being improperly granted.
4. Having heard the learned counsel from on all sides, this court finds substance in the exception taken to the award inclusive of one under the head of loss of dependency. Against the above backdrop of facts loss of estate primarily should have been included though with non-pecuniary damages under the head of loss of love and affection and funeral expenses added.
5. The tribunal concluded the notional income of the deceased at Rs. 4906/-. The loss to estate in the present case will have to be assessed taking it to be a bachelor’s death, thus, to the extent of 50%. Against the age of 34 years the multiplier of 16 is applied. The loss of estate is recomputed as (4906/2 x12 x16) Rs. 4,70,976/- rounded off to Rs. 4,71,000 (Rupees four lakhs seventy one thousand only).
6. It is noted that the non pecuniary damages awarded under the heads of loss of love and affection and funeral expenses are deficient. Following the rulings in Rajesh & Ors. v. Rajbir Singh & Ors., (2013) 9 SCC 54 and Shashikala V. Gangalakshmamma (2015) 9 SCC 150, the award of Rs. 1,00,000/- is granted towards loss of love and affection and Rs. 25,000/- on the account of funeral expenses. Thus, the total compensation payable in the case is computed as (Rs. 4,71,000/- + Rs. 1,00,000/- + Rs. 25,000/-) Rs. 5,96,000/- (Rupees Five Lakh Ninety Six Thousand only).
7. Following the consistent view taken by this Court [see judgment dated 22.02.2016 in MAC.APP. 165/2011 Oriental Insurance Co Ltd v. Sangeeta Devi & Ors.], the rate of interest is increased to 9% (nine per cent) per annum from the date of filing of the petition till realization.
8. The award is modified accordingly.
9. By the order dated 27.08.2010 in MAC appeal No.491/2010, the insurance company had been directed to deposit the entire awarded amount and out of such deposit 30% was allowed to be released to the claimants, the balance retained. The regis
