IN THE HIGH COURT OF DELHI AT NEW DELHI
Gaurang Kanth, J.
New India Assurance Co. Ltd - Appellant
Versus
Farzana Rahat & Ors. - Respondents
M.A.C. APP. 555 Of 2013, M.A.C. APP. 834 Of 2013
Decided On : 24-11-2022
Criminal Procedure Code, 1973 – Section 173 – Civil Procedure Code, 1908 – Order XXI Rule 1 – Liability of Insurance Company – Claim Compensation – Motor Accident Claims – Report of police officer on completion of investigation – Against impugned award, has been preferred by Appellant/ New India Assurance Company Ltd. for setting aside impugned Award whereas has been preferred by Claimants for enhancement of compensation amount in terms of impugned Award.
Finding of the court: Computation of compensation by learned Claims Tribunal is enhanced to be paid to claimants – Insurance Company is directed to deposit differential amount within a period of 4 weeks with Registrar General of this Court – It is pertinent to note that vide order of this Court, 70% of awarded amount was released in favour of claimants by Registrar General and rest was directed to be kept in form of FDR with UCO Bank, Delhi High Court Branch, New Delhi initially for a period of six months to be renewed periodically – On deposit of differential amount, Registry is directed to release balance amount along with interest and differential amount to claimants in terms of impugned Award – Statutory deposit along with interest accrued thereon shall be released to Appellants in both matters.
Results: Appeals disposed of.
JUDGMENT :
[Gaurang Kanth, J.]
1. The subject-matter of challenge in the present case is the award dated 16.04.2013 (“impugned award”) passed by the learned Presiding Officer, Motor Accident Claims Tribunal, Saket Courts, New Delhi, in suit no. 61/2012 titled as Smt. Farzana Rahat v. Mr. Aas Mohammad. Vide the impugned award, the learned Claims Tribunal awarded a sum of Rs.25,31,583/- (Rupees Twenty Five Lacs Thirty One Thousand Five Hundred and Eighty Three only) along with interest @ 7.5% per annum including interim award if any, from the date of filing the petition i.e. 19.11.2012 till the notice under Order XXI Rule 1 CPC was given by the respondents. Respondent no. 3 i.e. the insurance company, was directed to deposit the award amount within a period of thirty days. The Insurance Company was also directed to pay further interest @ 12% per annum in case of non-payment of the said amount within thirty days.
2. Against the impugned award, MAC.APP. 555/2013 has been preferred by the Appellant/New India Assurance Company Ltd. for setting aside the impugned Award dated 16.04.2013 whereas MAC.APP. 834/2013 has been preferred by the Claimants for enhancement of compensation amount in terms of the impugned Award dated 16.04.2013.
3. Both these appeals arise out of the impugned Award dated 16.04.2013 passed by the learned Claims Tribunal and have their genesis in the same incident. Hence, both these appeals are being heard together and disposed of by this common judgment.
4. Learned Claims Tribunal vide the impugned Award dated 16.04.2013 granted the following relief:
| a. Salary | Rs. 26, 117/- |
| b. Conveyance allowance | Rs. 1000/- |
| c. Monthly income for purpose of calculating compensation amount | Rs. 25,117/- |
| d. Future Prospects (50% enhancement) | Rs. 25, 117/- + Rs. 12, 558.50 = Rs. 37,675.50 |
| e. Deduction towards personal expenses | 1/2 of Rs. 37, 675.50= Rs. Rs.18,837.75 |
| f. Multiplier applicable | 11 |
| Head | Compensation awarded |
| Loss of dependency | Rs.24,86,583/- (Rs.18,837.75 x 12 x 11) |
| Loss of love and affection | Rs. 25,000/- |
| Funeral expenses | Rs. 10,000/- |
| Loss of estate | Rs, 10,000/- |
| Total compensation awarded | Rs. 25,31,583/- |
FACTUAL MATRIX
5. On the unfortunate day of the accident, i.e. 27.04.2008, the deceased was hit by tractor no. RJ-05-RA-2064 attached with trolley being driven by the driver (Respondent No. 1 before the learned Claims Tribunal). The aforesaid accident happened at Gali No. 7 in front of Govindpuri, Ravidas Marg, PS Kalkaji, New Delhi. The injured was taken to the hospital where he was declared brought dead. An FIR was registered against the driver of the offending vehicle.
6. A claim petition was filed by the parents of the deceased. The driver, owner and insurer of the alleged offending vehicle were made Respondent Nos. 1, 2 and 3 respectively. Respondent Nos. 1 and 2 filed a joint written statement denying the claim of the petitioners and contending that they had been falsely implicated in the case. A written statement was also filed by respondent No. 3/Insurance Company denying the claim of the petitioners but admitting the fact that the offending vehicle bearing registration No. RJ-05-RA-2064 was insured with it vide policy valid from 16.06.2007 to 15.06.2008.
7. Upon going through the pleadings of the parties, the learned Claims Tribunal framed the following issues :
2. Whether the petitioners are entitled for compensation? If so to what amount and from whom?
3. Relief”
8. In support of their claim, the claimants got examined three witnesses: (i) Mr. Rahat Habib Khan, father of the deceased (PW-1); (ii) Mr. Imran Ali, eye-witness
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Motor Vehicles Act, 1988 is a beneficial legislation which has been framed with object of providing relief to victims, or their families, in cases of genuine claims.
The Court applied the principles laid down by the Supreme Court in determining compensation under the Motor Vehicles Act, emphasizing the retrospective applicability of Supreme Court decisions.
Compensation under the Motor Vehicles Act is statutory and distinct from contractual benefits, ensuring claimants receive just compensation for loss due to negligence.
The main legal point established in the judgment is the proper calculation of compensation in motor accident claims, including the deceased's income, loss of dependency, future prospects, and loss of....
The liability of the Insurance Company and the calculation of compensation under various heads were the central legal points established in the judgment.
The main legal point established in the judgment is the need to consider future prospects and deductions for personal expenses while calculating compensation, as per the legal principles established ....
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