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DELHI HIGH COURT
Mr. J.R. Midha, J.
BABLI DIXIT - Appellant
Vs.
SATENDRA KUMAR - Respondent
MAC.APP. 163 of 2018
Decided on : 14-12-2018
For the Appellant :S.N. Parashar, Advocate
For the Respondent:Pankaj Gupta, Advocate Ms. Suman Bagga, Advocate
The earning capacity of a student pursuing a professional course should be assessed based on the nature of the course and the prospects of income after completion.
Headnote:
Motor Vehicles Act - Compensation - 168, 169 - Earning capacity of deceased student pursuing professional course - Relevant judgments: Oriental Insurance Co. Ltd. vs. Deo Patodi, New India Assurance Company Limited vs. Ganga Devi, Ramesh Chand Joshi vs. New India Assurance Company Limited, HDFC Ergo General Insurance Co. Ltd. vs. Rattan Kumar Dwivedi, HDFC Ergo General Insurance Co. Ltd. vs. Lalta Devi, United India Insurance Company Limited vs. Anita, Bharti AXA General Insurance Co. Ltd. vs. Upender Kumar Shastri, New India Assurance Co. Ltd. vs. Dilip Kumar - Court enhanced compensation from Rs. 13,80,000 to Rs. 30,54,000 based on earning capacity, future prospects, personal expenses, and appropriate multiplier.
Fact of the Case:
The deceased, a student of B.Tech (ME), died in a road accident. The Claims Tribunal awarded compensation of Rs. 13,80,000 to the deceased's parents, which they sought to enhance.
Finding of the Court:
The Court enhanced the compensation to Rs. 30,54,000 based on the deceased's earning capacity, future prospects, personal expenses, and appropriate multiplier.
Issues: Enhancement of compensation amount.
Ratio Decidendi: The earning capacity of a student pursuing a professional course should be assessed considering the nature of the course and the prospects of income after completion. The appropriate multiplier should be applied according to the age of the deceased.
Final Decision: The appeal is allowed, and the compensation amount is enhanced from Rs. 13,80,000 to Rs. 30,54,000 along with interest at 9% from the date of filing of the claim petition.
JUDGMENT :
J.R. Midha, J.
1. The appellants have challenged the award of the Claims Tribunal whereby the compensation of Rs. 13,80,000/- has been awarded to appellants. The appellants seek enhancement of the award amount.
2. On 24th January, 2015 at about 12:15 A.M., Ravi Dixit was returning to his home along with his friend Gaurav on a motorcycle from Indirapuram, Ghaziabad when they were hit from behind by truck bearing No.HR 55K 8094 in front of MR Hyundai, Shalimar Garden, Sahibabad which resulted in the death of Ravi Dixit. The deceased was aged 20 years at the time of accident and was a student of second year in B.Tech (ME) in Krishna Engineering College, Ghaziabad. The deceased was survived by his parents who claimed compensation.
3. The Claims Tribunal took minimum wages of Rs. 11,414/- per month in respect of a graduate, added 50% towards future prospects, deducted 1/2nd towards the personal expenses of the deceased and applied the multiplier of 11 according to the age of mother to compute the loss of dependency as Rs. 11,29,986/-. 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 by the Claims Tribunal is Rs. 13,79,986/- (rounded off to Rs. 13,80,000/-).
4. Learned counsel for the appellant urged at the time of hearing that the deceased was aged 20 years and the appropriate multiplier at the age of 20 is 18 whereas the Claims Tribunal had applied multiplier of 11. It is further submitted that the earning capacity of the deceased be taken as Rs. 25,500/- considering that the deceased was a student of second year of B.Tech (ME). Reliance is placed on National Insurance Co. Limited vs. Pranay Sethi (2017) 16 SCC 680 and New India Assurance Co. Ltd. vs. Dilip Kumar
5. Learned counsel for respondent No.3 urged at the time of hearing that the Claims Tribunal has rightly applied the minimum wages to compute the compensation. It is submitted that the deceased was pursuing B.Tech (ME) from an institute at Ghaziabad and no evidence has been led with respect to earning capacity of the students who passed out from there. It is further submitted that the future prospects be reduced from 50% to 40%. It is further submitted that the compensation for love and affection is no more a permissible head. It is further submitted that the compensation towards loss of estate and funeral expenses be reduced to Rs. 15,000/- each. Reliance is placed on National Insurance Co. Limited vs. Pranay Sethi (Supra).
6. 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:
6.1 In Oriental Insurance Company Ltd. vs. 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 an offer of job 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.
6.2 In New India Assurance Company Limited vs. Ganga Devi, 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 the 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,
