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2021 Supreme(Del) 2175

IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. Midha, J.
Sukhdev Prasad - Appellant
Versus
Sunil Kumar & Ors. (iffco Tokio General Insurance Co. Ltd.) - Respondent
Mac. App. No. 1075 of 2018
Decided On : 25-05-2021

Advocates appeared:
Rajesh Dabas, Advocate, A.K. Soni, Advocate, Pavan Kumar Vashishth, Advocate

The main legal point established in the judgment is the entitlement of parents to compensation for loss of dependency under the Motor Vehicles Act, based on the principles laid down in various Supreme Court judgments.

Headnote:

Dependency - Compensation under Motor Vehicles Act - Section 125 of Code of Criminal Procedure, 1973; Section 20 of Hindu Adoption and Maintenance Act, 1956, and Maintenance and Welfare of Parents and Senior Citizens Act, 2007 - Filial consortium - Loss of dependency - Principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, Indrawati v. Ranvir Singh, (2021) 276 DLT 415 - United India Insurance Company Ltd. v. Satinder Kaur, SLP (C) No. 28548/2014 - New India Assurance Company v. Somwati, (2020) 9 SCC 644 - Sarla Verma v. D.T.C., (2009) 6 SCC 121 - Legal principles regarding dependency and compensation under Motor Vehicles Act.

Fact of the Case:

The petitioner challenged the award passed by the Claims Tribunal, seeking enhanced compensation for the death of Avdhesh Kumar in a motor accident. The deceased's father claimed compensation, but the Claims Tribunal awarded a lower amount based on the deceased's income and dependency. The petitioner argued for higher compensation based on recent judgments.

Finding of the Court:

The Court found that the parents of the deceased are considered dependent on their children, both financially and emotionally, and are entitled to compensation for loss of dependency. The Court applied principles from various judgments to enhance the compensation awarded by the Claims Tribunal.

Issues: The main issue was the determination of dependency and compensation for the parents of the deceased under the Motor Vehicles Act.

Ratio Decidendi: The Court relied on legal principles established in National Insurance Co. Ltd. v. Pranay Sethi, Magma General Insurance Co. Ltd. v. Nanu Ram, Indrawati v. Ranvir Singh, United India Insurance Company Ltd. v. Satinder Kaur, New India Assurance Company v. Somwati, and Sarla Verma v. D.T.C. to establish the dependency of parents and the entitlement to compensation under the Motor Vehicles Act.

Final Decision: The Court allowed the appeal and enhanced the compensation awarded by the Claims Tribunal from Rs.4,49,004.48 to Rs.15,17,000/- along with interest. Respondent No.1 was directed to deposit the enhanced award amount with DSLSA within four weeks, and the DSLSA was directed to disburse the amount to the appellant.

JUDGMENT

J.R. Midha, J. - The petitioner has challenged the award dated 02nd August, 2018 passed by the Claims Tribunal whereby the Claims Tribunal awarded compensation of Rs.4,49,004.48 along with interest @ 9% per annum to the appellant.

2. The accident dated 16th April, 2016 resulted in death of Avdhesh Kumar. The deceased was aged 25 years at the time of accident and was survived by his father who claimed compensation. According to the claimant, 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.9,568/- per month as income of the deceased, added 40% towards future prospects and deducted 85% towards personal expenses. The Claims Tribunal awarded 15% towards loss to the estate to the appellant on the ground that the father was not dependent upon the deceased. The Claims Tribunal assessed the loss of estate as Rs.4,34,004.48. The Claims Tribunal awarded Rs.15,000/- towards funeral expenses. The total compensation is Rs.4,49,004.48 along with interest @ 9% per annum.

3. Learned counsel for the appellant submits that the appellant was dependent upon the deceased and entitled to loss of dependency according to principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. Reliance is placed on Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130 in which the Supreme Court awarded the compensation to the parents of the deceased according to the principles laid down in Pranay Sethi (supra). Reliance is also placed on the recent judgment of this Court in Indrawati v. Ranvir Singh, (2021) 276 DLT 415.

4. Learned counsel for the respondent submits the compensation awarded by the Claims Tribunal is just, fair and reasonable.

5. This case is squarely covered by the recent judgment of this Court in Indirawati (supra) in which this Court had held that the parents of the deceased are considered in law as dependent on their children, considering that the children are bound to support their parents in their old age, when the parents would be unable to maintain themselves and the law imposes a responsibility on the children to maintain their parents. Even if the parents are not dependent on their children at the time of the accident, they will certainly be dependent, both financially and emotionally, upon their children at the later stage of their life, as the children were dependent upon their parents in their initial years. It would be unfair as well as inequitable to deny compensation for loss of dependency to a parent, who may not be dependent on his/her child at the time of accident per se but would become dependent at his/her later age. Relevant portion of the said judgment is reproduced hereunder: -

    "11. The first question arises for consideration is whether appellant No. 1 (mother of the deceased) is entitled to compensation for death of her son. Appellant No. 1 is the mother of the deceased and she has no independent source of income. She deposed that she was dependent upon the deceased as well as on her husband.

      12. This Court is of the view that the parents of the deceased are considered in law as dependent on their children, considering that the children are bound to support their parents in their old age, when the parents would be unable to maintain themselves and the law imposes a responsibility on the children to maintain their parents. Even if the parents are not dependent on their children at the time of the accident, they will certainly be dependent, both financially and emotionally, upon their children at the later stage of their life, as the children were dependent upon their parents in their initial years. It would therefore be unfair as well as inequitable to deny compensation for loss of dependency to a parent, who may not be dependent on his/her child at the time of accident per se but would become dependent at his/her later age.

        13. Section 125 of Code of Criminal Procedure, 1973; Sec

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