IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
Ram Rati & Anr. – Appellants
Versus
United India Insurance Co. Ltd. & Ors. – Respondents
MAC.APP. 881 of 2019 & CM APPL. 32486 of 2022
Decided On : 04-08-2023
Compensation - Assessment of Notional Income - Raj Bala & Anr. V. Sumit Dahiya & Ors., 2019(1) TAC 760 (Del.), Ram Vishal Gupta & Ors. v. Shokeen & Ors. (Cholamandlam Gen Ins Co Ltd.), Neutral Citation No. 2019:DHC:4671 - Rs.14,69,208/- - The court discussed the assessment of notional income of the deceased and the principles laid down in the cases of Raj Bala and Ram Vishal Gupta. It held that the deceased's notional income should have been considered higher based on his academic qualifications and future prospects, and awarded compensation accordingly.
Fact of the Case:
The appellants challenged the Award passed by the Motor Accidents Claims Tribunal, seeking higher compensation for the deceased's financial loss. The deceased's income assessment was disputed, and the appellants also claimed loss of consortium.
Finding of the Court:
The court found merit in the appellants' submissions regarding the assessment of notional income and loss of consortium. It modified the Impugned Award, increasing the compensation to Rs.45,36,000/- and awarding an additional amount of Rs.80,000/- for loss of consortium.
Issues: Assessment of notional income, loss of consortium, and modification of compensation amount.
Ratio Decidendi: The court relied on precedents to determine the deceased's notional income based on academic qualifications and future prospects. It also considered the entitlement to loss of consortium as per established legal principles.
Final Decision: The appeal was allowed, and the Impugned Award was modified to increase the compensation to Rs.45,36,000/- and award an additional amount of Rs.80,000/- for loss of consortium.
JUDGMENT
Navin Chawla, J. (Oral)
1. This appeal has been filed by the appellants challenging the Award dated 05.04.2019 passed by the learned Motor Accidents Claims Tribunal, South East District, Saket Court, New Delhi in MACT No.985/2017 (hereinafter referred to as the `Tribunal') awarding compensation of Rs.14,69,208/- to the appellants/claimants, along with the interest @ 9% per annum from the date of the filing of the Claim Petition till its realization.
2. The limited challenge of the appellants is to the assessment of compensation by the learned Tribunal towards financial loss for the family. The learned Tribunal has observed that as the deceased was not earning at the time of the accident, his income will be assessed based on the minimum wages in Haryana for a graduate (Technical) at the time of the accident, which was Rs.9,518/- per month.
3. The first ground of challenge of the appellants to the Impugned Award is on the assessment of the notional income of the deceased.
4. The learned counsel for the appellants submits that the deceased had completed his Bachelor of Technology (Mechanical Engineering) from the Maharshi Dayanand University, Rohtak (hereinafter referred to as the `University') in May, 2017. The appellant no.2, in his statement before the learned Tribunal, had stated that the deceased had been offered a job with a salary of Rs.30,000/- per month. He places reliance on the judgments of this Court in Raj Bala & Anr. V. Sumit Dahiya & Ors., 2019(1) TAC 760 (Del.) and Ram Vishal Gupta & Ors. v. Shokeen & Ors. (Cholamandlam Gen Ins Co Ltd.), Neutral Citation No. 2019:DHC:4671, and submits that the income of the deceased should not have been taken less than Rs.26,600/-. He submits that in Raj Bala (supra), the Court had assessed the notional income of a student, who was studying in the same University as the deceased. The said student, in fact, had not even completed his Bachelor of Engineering, like is the case of the deceased herein. The accident in the said case had occurred on 28.12.2012, whereas in the present case, the accident had taken place on 04.09.2017. He submits that keeping in view the inflation, the notional income of the deceased should be assessed at an even higher amount.
5. On the other hand, the learned counsel for the respondent no.1 submits that no fault can be found in the assessment of the income of the deceased made by the learned Tribunal. He submits that there was no documentary proof of any job offer made to the deceased prior to the accident. He further submits that in the absence of any cogent proof of the income, the learned Tribunal has adopted a fair method by relying upon the minimum wages for a graduate (Technical) as notified by the Government of Haryana.
6. I have considered the submissions made by the learned counsels for the parties.
7. In Raj Bala (supra), this Court has held that the Claims Tribunal has to assess the earning capacity of the deceased student pursuing a professional course considering the nature of the professional course being pursued by the deceased and the prospects of his income after completing the course. On facts of that appeal, considering a motor vehicle accident that had taken place on 28.12.2012, and in which the deceased aged 21 years was a final year student of B.Tech at the same University as deceased herein, this Court held as under:
"8. In the present case, the deceased was a final year student of B.Tech, at Maharshi Dayanand University, Rohtak. The deceased had successfully completed three years of his four years degree programme. On successful completion of B.Tech., the deceased would have had a successful career. M/s Tech Indira IT Solutions Pvt. Ltd., had given placement offer of Rs.3,20,000/- per annum to the deceased. This Court is of the view that the deceased would have certainly earned higher amount in his lifetime but the earning capacity of the deceased is taken as Rs.26,600/- per month (Rs.3,20,000/- per annum) since the
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