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2018 Supreme(Del) 2596

IN THE HIGH COURT OF DELHI AT NEW DELHI
SUNIL GAUR, J.
ICICI Lombard General Insurance Co Ltd. - Appellant
Versus
Nafe Singh & Ors. – Respondents
MAC.APP. 719-721 of 2016 & CM 32307, 32322, 32324 of 2016
Decided On : 10-08-2018

Advocates Appeared:
For the Appellant :Mr. A.K. Soni and Mr. Pavan Kumar, Advocates
For the Respondent:Mr. Jatinder Kamra, Advocate

The main legal point established in the judgment is that compensation assessment under Section 163-A of The Motor Vehicles Act, 1988 must adhere to the provisions of the Second Schedule, including the assessment of 'non-pecuniary heads' and 'loss of dependency'.

Headnote:

Motor Vehicle Accident - Compensation Assessment - The Motor Vehicles Act, 1988, Section 163-A

Fact of the Case:

The case involved a vehicular accident resulting in the death of three individuals. The Tribunal awarded compensation to the legal heirs of the deceased based on the evidence and documentary records. The appellants contested the compensation granted by the Tribunal.

Finding of the Court:

The Court found that the Tribunal erred in assessing the compensation under the 'non-pecuniary heads' and 'loss of dependency' without adhering to the Second Schedule of the Motor Vehicles Act, 1988. The Court reassessed the compensation for each deceased individual based on the legal provisions.

Issues: The main issue was the correct assessment of compensation under Section 163-A of The Motor Vehicles Act, 1988, and adherence to the Second Schedule for 'non-pecuniary heads' and 'loss of dependency'.

Ratio Decidendi: The Court held that the compensation under the 'non-pecuniary heads' and 'loss of dependency' must be in accordance with the Second Schedule of the Act. It also emphasized the mandatory deductions and assessment criteria provided in the Second Schedule.

Final Decision: The Court modified the compensation awarded by the Tribunal for each deceased individual, reducing the amounts and directing the release of the modified compensation with interest. The appeals and pending applications were disposed of accordingly.

JUDGMENT :

1. The above-captioned three appeals relate to one vehicular accident, which took place on 20th August, 2007 in which a self employed-Amit S/o Nafe Singh, aged 18 years; a labourer-Joginder@ Kala S/o Surat Singh, aged 30 years and labourer-Raman S/o Krishan Kumar, aged 19 years, had died. With the consent of learned counsel for the parties, the above-captioned three appeals have been heard together and are being decided by this common judgment. As per last order, service is complete. During the pendency of these appeals, Nafe Singh, one of the legal heirs of deceased-Amit, had died and now, the sole surviving legal heir of deceased-Amit is his mother-Bimla Devi.

2. To render the impugned Award, the Tribunal has relied upon evidence of Claimants/legal heirs of deceased and other documentary evidence on record. The compensation awarded by the Tribunal to Claimants with interest @ 9% p.a. in these appeals, is as under:-      

S. No.

Name of Claimants

Compensation Awarded

1.

Nafe Singh & Ors.

Rs.8,88,400/-

2.

Munesh & Ors.

Rs.11,35,000/-

3.

Krishan Kumar & Ors.

Rs.8,25,000/-

3. The factual background of this case, as noticed in the impugned Award, is as under:-

“This is a claim petition U/s 163-A of The Motor Vehicle’s Act, 1988 filed by parents of victim Amit @ Amit Kumar. The latter died in a vehicular accident occurred on 20.08.07 at about 22 hrs. at Katewara Mor, near Sarvodaya Senior Secondary School, Qutabgarh, Village Qutubgarh, Delhi. According to petitioners, on that day i.e. 19.08.07, their son Amit @ Amit Kumar was going somewhere alongwith his friends. They were riding a motorcycle no. HR-26A-3840. At about 22 hrs., when they reached near Katewara Mor, Sarvodya Senior Secondary School, Qutab Garg, Village Qutabgarh, Delhi, they met with an accident. Amit suffered severe injuries and died having succumbed to those injuries.

XXXXX

…….Apart from Amit Kumar and two other persons namely Joginder @ Kala and Raman Kumar @ Raman reportedly died in same accident.”

4. While computing the “loss of dependency”, the income of deceased-Amit was assessed by the Tribunal at Rs.3,964/- per month, i.e. minimum wages payable to an unskilled person, and multiplier of 14 was applied. Deduction of 1/3rd towards “personal expenses” was made. No addition towards “future prospects” was made by the Tribunal. The compensation granted by the Tribunal to the legal heirs of deceased-Amit is as under:-

1.

Loss of dependency

Rs.4,44,192/-

2.

Composite non pecuniary damages

Rs.4,44,192/-

Total

Rs.8,88,384/- (rounded of to Rs.8,88,400/-)

5. The Tribunal has assessed the income of deceased-Joginder at Rs.3,709/- per month while taking the minimum wages of an unskilled person and no addition towards “future prospects” has been made. The multiplier applied is of 17 and 1/4th towards “personal expenses” has been deducted. The compensation granted to the legal heirs of deceased-Joginder is as under:-

1.

 Loss of dependency

Rs.5,67,477/-

2.

Composite non pecuniary damages

 Rs.5,67,477/-

Total

Rs.11,34,954/- (rounded of to Rs.11,35,000/-)

6. In the case of deceased-Raman, minimum wages of a matriculate i.e. Rs.3,964/- per month were made the basis to assess the “loss of dependency” by the Tribunal while making no addition towards “future prospects” and by applying multiplier of 13. Deduction of 1/3rd towards “personal expenses” was made. The compensation granted by the Tribunal to legal heir of deceased-Raman is as under:-     

1.

Loss of dependency

Rs.4,12,308/-

2.

Composite non pecuniary damages

Rs.4,12,308/-

Total

Rs.8,24,616/-

7. Despite service, the driver and owner of the insured vehicle have not contested before the Tribunal and this Court as well.

8. The challenge to the impugned Award by learned counsel for appellant-Insurer is on the ground












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