2018 Supreme(Del) 2917
IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. MIDHA, J.
Raj Bala & Anr - Appellants
Versus
Sumit Dahiya & Ors. (M/S United India Insurance Co. Ltd) – Respondents
MAC.APP. No. 462 of 2018
Decided On : 22-10-2018
For the Appellant :Ms. Neha Jain and Mr. Luv Manan, Advocates
For the Respondent:Mr. Pradeep Gaur, Advocate
Headnote:
Claims Tribunal - Motor Vehicles Act - Section 168, Section 169 - The court discussed the earning capacity of a deceased student pursuing a professional course and referred to various judgments to determine the compensation. The court emphasized that the earning capacity should be assessed considering the nature of the professional course and the prospects of income after completing the course. The court also highlighted the importance of future prospects and the principles laid down in National Insurance Co. Limited v. Pranay Sethi, (2017)16 SCC 680. The court set aside the compensation awarded under the head of loss of love and affection based on the principles established in the mentioned case.
Fact of the Case:
The deceased, a final year student of B.Tech., was hit by a DTC bus resulting in his death. The Claims Tribunal awarded compensation to the deceased's parents, which was challenged by the appellants.
Finding of the Court:
The court analyzed the earning capacity of the deceased student and the principles established in various judgments to determine the compensation. The court set aside the compensation awarded under the head of loss of love and affection based on the principles laid down in National Insurance Co. Limited v. Pranay Sethi, (2017)16 SCC 680. The court allowed the appeal and enhanced the compensation amount.
Issues: Assessment of earning capacity of a deceased student pursuing a professional course, applicability of future prospects, and the permissible heads for compensation.
Ratio Decidendi: The court emphasized the assessment of earning capacity considering the nature of the professional course and the prospects of income after completing the course. The court also highlighted the importance of future prospects and set aside the compensation awarded under the head of loss of love and affection based on established legal principles.
Final Decision: The court allowed the appeal, enhanced the compensation amount, and directed the respondent to deposit the enhanced amount with the Registrar General of the Court.
1. The appellants have challenged the award of the Claims Tribunal whereby compensation of Rs.23,38,000/-has been awarded to the appellants.
2. On 28th December, 2012 at about 8:15 A.M, Manish Kumar was going on a motorcycle in front of Kali Mata Mandir, Main Bawana Road, Delhi when he was hit by a DTC bus bearing No. DL-1 PC 0113. The accident resulted in death of Manish Kumar. The police registered FIR No.465/2012 dated 28th December, 2012 under Sections 279/304A of IPC against the driver of the DTC bus.
3. The deceased aged 21 years at the time of accident, was a final year student of B.Tech. at Maharshi Dayanand University, Rohtak. The deceased was survived by his parents who claimed compensation.
4. The Claims Tribunal took the earning capacity of the deceased as Rs.15,000/-per month, added 40% towards future prospects, deducted 50% towards his personal expenses and applied the multiplier of 18 to compute the loss of dependency as Rs.22,68,000/-. The Claims Tribunal awarded Rs.40,000/-towards loss of love and affection, Rs.15,000/-towards loss of estate and Rs.15,000/-towards funeral expenses. The total compensation awarded is Rs.23,38,000/-.
5. Learned counsel for the appellants urged at the time of the hearing that the earning capacity of deceased be taken as Rs.3,20,000/-per annum as per the appointment offer of the deceased and the future prospects be enhanced from 40% to 50%.
6. Learned counsel for the respondent urged at the time of hearing that income of the deceased has been fairly taken as Rs.15,000/-per month. It is further submitted that the notional income has to be taken as earning capacity of the deceased. It is further submitted that the deceased is not entitled to future prospects. It is further submitted that loss of love and affection is no more a permissible head in terms of principles laid down in National Insurance Co. Limited v. Pranay Sethi, (2017)16 SCC 680 and the compensation of Rs.40,000/-awarded under the head of loss of love and affection be set aside.
7. The law with respect to the earning capacity of a student pursuing a professional course is well-settled that the Claims Tribunal has to assess the earning capacity of the deceased considering the nature of the professional course being pursued by the deceased and the prospects of his income after completing the course. The relevant judgments on this principle are as under:
7.1. In Oriental Insurance Company Ltd. v. Deo Patodi, (2009) 13 SCC 123, the accident dated 12th June, 2003 resulted in the death of a 22 year old brilliant student who had completed Business Administration Course and had a job offer from a US based company at the time of the accident. The Claims Tribunal took his earning capacity as Rs.18,000/-per month. The Supreme Court enhanced the earning capacity of the deceased from Rs.18,000/-per month to Rs.25,000/-per month.
7.2. In New India Assurance Company Limited v. Ganga Devi, MANU/DE/3623/2009, the accident dated 12th August, 2003 resulted in the death of an MBBS graduate who was doing internship and was getting a stipend of Rs.5,000/-per month. The Claims Tribunal took minimum wages of Rs.3,543/-per month in respect of a graduate. This Court rejected the principle of minimum wages applied by the Claims Tribunal and took the earning capacity of the deceased as Rs.18,000/-per month and added 50% towards future prospects. This Court enhanced the compensation from Rs.9,60,352/-to Rs.21,36,000/-.
7.3. In Ramesh Chand Joshi v. New India Assurance Company Limited, MAC. APP. 212-13/2006 decided on 20th January, 2010, the accident dated 30th July, 2004 resulted in the death of a first year student of B. Tech in Delhi College of Engineering. The Claims Tribunal took the minimum wages of Rs.1,875/-per month which was challenged before this Court. This Court again rejected the principle of the minimum wages applied by the Claims Tribunal. Following the Supreme Court judgment in Deo Patodi, (supra), this Court assessed the earning