2019 Supreme(Del) 741
IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. Midha, J.
SHALINI & ANR - Appellant
Vs.
KULDEEP SINGH AND OTHERS (HDFC ERGO GENERAL INSURANCE CO LTD - Respondent
Motor Accident Claims Appeal No. 458 of 2018
Decided On : 13-03-2019
Sarika Goel, Adv., Pankaj Singh, Adv., Thakur, Adv.
The main legal point established in the judgment is the application of principles from National Insurance Co. Limited v. Pranay Sethi to determine compensation for motor vehicle accidents, including considerations for future prospects and permissible heads for compensation.
Headnote:
Compensation - Motor Vehicle Accident - National Insurance Co. Limited v. Pranay Sethi - Future Prospects - Loss of Dependency - Loss of Love and Affection - Loss of Estate - Funeral Expenses
Fact of the Case:
The appellants challenged the compensation awarded by the Claims Tribunal for a motor vehicle accident resulting in the death of two individuals and injuries to others. The deceased, Deepak, was aged 19 and working as an office boy. The Claims Tribunal awarded compensation of Rs.9,78,000/- to the claimants.
Finding of the Court:
The court found that the minimum wages and future prospects had not been adequately considered by the Claims Tribunal. It set aside the compensation for loss of love and affection, and reduced the compensation for loss of estate and funeral expenses. The court enhanced the compensation amount to Rs.13,98,100/- along with interest.
Issues: The issues included the calculation of compensation based on the deceased's income, future prospects, and permissible heads for compensation.
Ratio Decidendi: The court applied the principles laid down in National Insurance Co. Limited v. Pranay Sethi, 2017 SCC Online (SC) 1270, to address the calculation of compensation, future prospects, and permissible heads for compensation.
Final Decision: The appeal was allowed, and the compensation amount was enhanced to Rs.13,98,100/- along with interest. The court also ruled that the insurance company was not entitled to recovery rights from the registered owner of the offending vehicle.
J.R. Midha, J.
The appellants have challenged the award of the Claims Tribunal whereby compensation of Rs.9,78,000/- has been awarded to the claimants. The appellants seek enhancement of the award amount.
2. On 22nd May, 2015 at about 11.30-12.00 A.M., Deepak along with Pawan, Sunny, Ravish and respondent no.1 were travelling in a Duster car bearing No.DL-13C-6613 being driven by respondent No.1. Respondent No.1 was driving the car rashly and negligently because of which he lost control over the car and hit the car against a road divider near Dharmshila Hospital Road after which the car hit an ambulance and thereafter, the car fell in the Ghazipur Canal. The accident resulted in the death of Deepak and Pawan and injuries to the driver and two other occupants of the car.
3. The deceased, Deepak was aged 19 years at the time of the accident and was working as an office boy. It was claimed that the deceased was earning Rs.15,000/- per month. However, in the absence of any documentary proof of income, the Claims Tribunal took the minimum wages of Rs.6,735/-, deducted 50% towards his personal expenses and applied the multiplier of 18 to compute the loss of dependency as Rs.7,28,000/-. The Claims Tribunal awarded Rs.1,50,000/- towards loss of love and affection, Rs.50,000/- towards loss of estate and Rs.50,000/- towards funeral expenses. The total compensation awarded is Rs.9,78,000/-.
4. Learned counsel for the appellant urged at the time of the hearing that the minimum wages at the relevant time were Rs.9,048/- whereas the Claims Tribunal has taken the minimum wages of Rs.6,735/-. It is submitted that the income of the deceased be taken as Rs.9,048/-. It is further submitted that the future prospects have not been taken into consideration in terms of principles laid down in National Insurance Co. Limited v. Pranay Sethi, 2017 SCC Online (SC) 1270.
5. Learned counsel for respondent No.3 submits that the deceased was working in Noida and therefore, the minimum wages of Rs.6,735/- has been rightly taken by the Claims Tribunal as the income of the deceased. It is further submitted that compensation for loss of love and affection awarded by the Claims Tribunal is no more a permissible head in terms of principles laid down in Pranay Sethi (supra). It is further submitted that the compensation for loss of estate and funeral expenses be reduced to Rs.15,000/- each in terms of Pranay Sethi (supra).
6. The deceased was a resident of Delhi and the claimants claimed that the deceased was working as a office boy in Noida earning Rs.15,000/- per month. However, the Claims Tribunal rejected the evidence on the ground that the proof of employment and income/salary has not been placed on record. In that view of the matter, the Claims Tribunal should have taken the minimum wages of Rs.9,048/- as the deceased was a resident of Delhi. In the connected case relating to the death of Pawan, the Claims Tribunal has taken minimum wages of Rs.9,048/- to compute the compensation. The claimants are entitled to future prospects at the rate of 40% of the deceased whereas the Claims Tribunal has not added the future prospects. The claimants are awarded future prospects at the rate of 40%.
7. The Claims Tribunal has awarded Rs.1,50,000/- towards loss of love and affection which is no more a permissible head and is therefore, set aside. The compensation for loss of estate and funeral expenses are reduced to Rs.15,000/- each.
8. Taking the income of the deceased as Rs.9,048/-, adding 40% towards future prospects, deducting 50% towards personal expenses and applying the multiplier of 18, the loss of dependency is computed as Rs.13,68,057.6. Adding 15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses, the total compensation is computed as Rs.13,98,057.6, rounded off to Rs.13,98,100/-.
9. The appeal is allowed and the compensation amount is enhanced from Rs.9,78,000/- to Rs.13,98,100/- along with interest @ 9% per annum from the date of instituti