IN THE HIGH COURT OF DELHI AT NEW DELHI
Gaurang Kanth, J.
HDFC Agro General Insurance Co. Ltd. – Appellant
Versus
Mam Kaur & Ors. (Reliance General Insurance Co. Ltd.) – Respondent
MAC. APP. 674 of 2015, CM No. 6778 of 2019, 36391 of 2019 &
Decided On : 11-07-2023
Motor Vehicles Act - Compensation under various heads - 173 - 54, 59, 60
Fact of the Case:
The deceased and his friend were hit by a vehicle in a rash and negligent manner, resulting in the death of the deceased. The claimants sought compensation for the loss.
Finding of the Court:
The court modified the compensation awarded by the Tribunal based on the legal principles established by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. The compensation under various heads was recalculated and reduced from Rs.8,56,282 to Rs.7,71,310.
Issues: Quantum of compensation under different heads, application of legal principles established by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors.
Ratio Decidendi: The court applied the legal principles established by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. to determine the compensation under various heads, including 'Loss of Dependency', 'Loss of Consortium', 'Loss of Estate', 'Funeral Expenses', and 'Love and Affection'.
Final Decision: The compensation awarded by the Tribunal was modified, and the court directed the release of the differential amount with accrued interest to the Appellant and the balance amount with accrued interest to the legal heirs of the deceased Respondent.
JUDGMENT
Gaurang Kanth, J. The present appeal has been preferred by the Appellant under Section 173 of the Motor Vehicles Act, 1988 against the Award dated 03.06.2015 passed by the Court of learned Presiding Officer, Motor Accident Claims Tribunal, North East District, Karkardooma Courts, Delhi (hereinafter referred to as the `Tribunal') in MACT No. 324/2012.
2. Facts borne out of the records are that on 10/09/2011 at about 02:45 AM deceased and his friend Sushil were coming from Durga Puri Chowk after taking the dinner and when they both reached near Gokul Puri Flyover, Ganda nala near Gas Godown, at the same time driver of the offending vehicle came from back side, allegedly in a rash and negligent manner, and hit the deceased with great force due to which deceased sustained multiple injuries. Deceased was immediately taken to GTB Hospital where he died during the treatment. The FIR No. 315/11 under Sections 279/337/304-A of the Indian Penal Code, 1860 was also registered at P.S. Gokul Puri in this respect. Being severally affected physically, mentally and financially by the accident, the respondents have filed a claim petition before the Tribunal seeking compensation.
3. By way of impugned Award dated 03.06.2015 the Tribunal awarded a compensation of Rs.8,56,282/- with an interest @ 9% per annum from the date of filing of the claim petition till realization of the amount and directed the Insurance Company to pay the entire awarded amount within a period of one month. The Tribunal granted the compensation under the following heads:
| Head | Amount |
| Loss of Dependency | Rs.7,01,282/- |
| Love and Affection | Rs.1,00,000/- |
| Funeral Expenses | Rs.25,000/- |
| Loss of Estate | Rs.10,000/- |
| Cost of Litigation | Rs.20,000/- |
| Total | Rs.8,56,282/- |
SUBMISSIONS OF THE APPELLANT
4. Mr. A.K. Soni, learned counsel for the Appellant/Insurance Company, limited his arguments on quantum of compensation and contended that in terms of dicta of Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. reported as (2017) 16 SCC 680, an addition of 25% of the established income of the deceased instead of 30% has to be granted under the head `Future Prospects'. Learned counsel while placing reliance on the case of Pranay Sethi (supra) contends that compensation under the head `Love and Affection' needs to be deducted. Learned counsel fairly concedes that in terms of dicta of Pranay Sethi (Supra), compensation under the heads `Loss of Consortium', `Loss of Estate' and `Funeral Expenses' needs to be modified.
SUBMISSIONS OF THE RESPONDENT
5. Mr. S.N. Parashar, learned counsel appearing on behalf of Respondents/Claimants fairly conceded that in terms of dicta of Pranay Sethi (Supra), compensation under the head `Love and Affection' needs to be deducted. He also accepted that an addition of 25% of the established income of the Respondent/Claimant is to be calculated for assessing compensation under the head `Future Prospects'. Learned counsel further agreed that in terms of the dicta of Pranay Sethi (Supra), compensation under the heads `Loss of Consortium', `Loss of Estate' and `Funeral Expenses' needs to be modified.
LEGAL ANALYSIS
6. The arguments raised by the learned counsel for the parties are purely legal and based on the law settled by the Hon'ble Apex Court in the case of Pranay Sethi (Supra). Hon'ble Apex Court in the case of Pranay Sethi (Supra) with regard to compensation under the heads `Future Prospects' and `Non-Pecuniary' has held as under:
"54. As far as the conventional heads are concerned, we find it difficult to agree with the view expressed in Rajesh. It has granted Rs.25,000/- towards funeral expenses, Rs.1,00,000/- loss of consortium and Rs.1,00,000/- towards loss of care and guidance for minor children. The head relating to loss of care and minor children does not exist. Though Rajesh refers to Santosh Devi, it does not seem to follow the same. The conventional and traditional heads, needless to say, cannot be determined on percentage
The main legal point established in the judgment is the application of legal principles set by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. to determine ....
The main legal point established in the judgment is the application of legal principles from the case of Pranay Sethi (Supra) to determine the compensation under various heads, including future prosp....
The main legal point established in the judgment is the assessment and modification of compensation under various heads in accordance with legal precedents and established income of the deceased.
The main legal point established in the judgment is the application of legal principles related to compensation under the Motor Vehicles Act, specifically focusing on loss of dependency, future prosp....
The main legal point established in the judgment is that the determination of compensation under the Motor Vehicles Act, 1988 should consider the notional income of the deceased, future prospects, an....
The main legal point established in the judgment is the applicability of the Supreme Court judgment in National Insurance Co. Ltd. Vs Pranay Sethi & Ors. and the proper calculation of compensation ba....
The main legal principle established in the judgment is the standardization of addition to income for future prospects and the need for uniformity and consistency in determining compensation in motor....
Rule 220A-3(i) of Rules is future prospects of a deceased, shall be added in actual salary or minimum wages of deceased.
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