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2023 Supreme(Del) 1102

IN THE HIGH COURT OF DELHI AT NEW DELHI
Rekha Palli, J.
Oriental Insurance Co. Ltd. – Appellant
Versus
Smt. Madhu & Ors. – Respondents
MAC.APP. 223 of 2022 & CM APPL. 33804 of 2022-Stay.
Decided On : 27-02-2023

Advocates appeared:
Mr. Anshul Kumar and Mr. Abhishek Kumar, Advocates, for the Appellant.
Mr. Amit Srivastava, Advocate, for the Respondent.

The court's decision was influenced by the correct computation of loss of dependency and loss of consortium in the context of the death of a claimant during the proceedings.

Headnote:

Motor Vehicle Act - Appeal under Section 173 - Summary of Acts and Sections: Motor Vehicle Act, 1988, Section 173 - The court modified the award by reducing the total compensation and directing the distribution of the revised amount.

Fact of the Case:

The insurer appealed against the award passed by the MACT, which granted compensation to the claimants. The appellant contested the computation of compensation and the award of loss of consortium to a deceased claimant's father.

Finding of the Court:

The court found merit in the appellant's contentions and modified the award by reducing the total compensation and altering the distribution of the revised amount.

Issues: Computation of compensation and award of loss of consortium to a deceased claimant's father.

Ratio Decidendi: The court modified the award based on the death of a claimant during the proceedings and the incorrect computation of loss of dependency and loss of consortium.

Final Decision: The appeal was allowed partly, and the award was modified to reduce the total compensation and alter the distribution of the revised amount.

JUDGMENT

Rekha Palli, J. (Oral)--The present appeal preferred by the insurer under Section 173 of the Motor Vehicle Act, 1988, seeks to assail the award dated 13.05.2022 passed by the learned MACT in MACT No. 245/2017. Vide the impugned award, the learned Tribunal has allowed the claim of respondent nos. 1 to 3 by awarding a sum of Rs.41,26,605/- as compensation with interest @ 6% p.a.

2. The said amount has been computed by taking into account the monthly income of the deceased as Rs.23,917/- and thereafter determining the amount towards loss of dependency by deducting 1/4th of his monthly income towards his personal and living expenses. The compensation also includes a sum of Rs.44,000/- towards loss of consortium for each of the four original claimants, one of whom i.e. Shri Ram Nath, the father of the deceased, expired during the pendency of the trial before the Tribunal itself.

3. Learned counsel for the appellant submits that the grievance of the appellant is confined to two aspects, the first being that taking into account that the father of the deceased, who was one of the claimants, had expired during the pendency of the proceedings before the learned Tribunal and therefore 1/3rd of the income of the deceased was required to be deducted towards his personal and living expenses as against the 1/4th amount deducted by the Tribunal. Furthermore, no amount could have been awarded towards loss of consortium in favour of the father of the deceased who had expired before the passing of the award.

4. Learned counsel for the respondent fairly concedes that both these grounds taken by the appellant are merited. He, therefore, prays that the impugned award be modified to the aforesaid extent.

5. In the light of the aforesaid and taking into account the admitted position that the father of the deceased, namely Ram Nath, had expired during the pendency of the proceedings before the learned Tribunal, the award is required to be modified. Since after the death of Shri Ram Nath, the dependent family members of the deceased stands reduced to three and therefore a deduction of 1/3rd was required to be made towards his personal and living expenses for determining the loss of dependency, as against the deduction of 1/4th directed under the impugned award. Furthermore, once Mr. Ram Nath had already expired before the passing of the award, no amount could have been awarded towards the loss of consortium qua him.

6. The appeal is, accordingly, allowed partly by, modifying paragraphs nos. 21 to 25 of the impugned award which will now read as under:

    "21. Irrespective of this, 1/3rd of the earnings of deceased shall be deducted towards his personal and living expenses in view of the law already discussed above. Further, since this Tribunal has assumed that the age of deceased was 43 years at the time of accident, in view of the law laid down in the case of Pranay Sethi & Ors. (Supra), the petitioner is also held entitled to an addition of 30% of the above amount of his earnings towards future prospects. Thus, the loss of dependency qua the deceased in the present case comes to Rs.34,82,315/- (rounded off) (Rs.23,917/- X 130/100 X 2/3 X 14 X 12). This amount is awarded to the petitioners under this head.

    (ii) COMPENSATION UNDER NON-PECUNIARY HEADS

    23. In terms of propositions laid down by the Hon'ble Supreme Court in the case of Pranay Sethi (Supra), the petitioners are also held entitled to amounts of Rs.16,500/- each under the heads of loss of estate and funeral expenses. Further, in view of subsequent judgments of the Hon'ble Supreme Court in the case of United India Insurance Company Ltd Vs Satinder Kaur & Ors., MANU/HC/0500/2020 and The New India Assurance Company Ltd & Ors. Vs Somwati & Ors., MANU/HC/0674/2020, the petitioners are further entitled to compensation under the head "loss of consortium":

    Filial Consortium: Rs.44,000/-

    Parental Consortium: Rs.44,000/-

    Spousal Consortium: Rs.44,000/-

    24. Hence, the petitioners are awarded a total s

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