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2023 Supreme(Del) 6020

IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
The Oriental Insurance Co. Ltd. - Appellant
Versus
Rajinder Singh Dangi & Ors. - Respondents
MAC.APP. 797 of 2017 & CM Appls. 32256 of 2017, 32257 of 2017 and MAC.APP. 186 of 2019
Decided On : 18-09-2023

Advocates appeared:
Mr.Pradeep Gaur, Advocate, for the Appellant in MAC.APP. 797 of 2017 & CM Appls. 32256 of 2017, 32257 of 2017 & for the Respondent in MAC.APP. 186/2019.
Mr.Jatinder Kamra, Advocate, for the Respondent in MAC.APP. 797 of 2017 & CM Appls. 32256 of 2017, 32257 of 2017 & for the Petitioner in MAC.APP. 186/2019.

IMPORTANT POINT
The age of the deceased should be the basis for applying the multiplier in determining loss of dependency, and an addition of 40% of the income should be made towards future prospects in cases where the income was determined based on minimum wages for a Matriculate as notified by the Govt. of NCT of Delhi.

Headnote:

Motor Accident Claims Tribunal - Compensation - National Insurance Company Ltd. v. Pranay Sethi & Ors. - [MAC No. 40A of 2013 (New No.753/2016)] - The court discussed the determination of loss of dependency, future prospects, and the appropriate multiplier in the context of the deceased's age and income. It modified the award by considering the deceased's age for determining the proper multiplier and adding 40% of the income towards future prospects.

Fact of the Case:

The case involved a motor accident resulting in the death of the claimants' son and others. The claimants sought compensation for loss of dependency based on the deceased's income and future prospects.

Finding of the Court:

The court found that the determination of loss of dependency and future prospects by the tribunal was not in accordance with the legal principles established in National Insurance Company Ltd. v. Pranay Sethi & Ors. The court modified the award by considering the deceased's age for determining the proper multiplier and adding 40% of the income towards future prospects.

Issues: The issues included the determination of loss of dependency, future prospects, and the appropriate multiplier in the context of the deceased's age and income.

Ratio Decidendi: The court applied the legal principle established in National Insurance Company Ltd. v. Pranay Sethi & Ors., which clarified that the age of the deceased should be the basis for applying the multiplier and that an addition of 40% of the income should be made towards future prospects in cases where the income was determined based on minimum wages for a Matriculate as notified by the Govt. of NCT of Delhi.

Final Decision: The court modified the compensation amount payable to the claimants on account of loss of dependency and ordered the Insurance Company to deposit the enhanced compensation along with interest with the learned Tribunal within a specified period.

JUDGMENT

Navin Chawla, J. (Oral) - These cross appeals have been filed challenging the Award dated 20.04.2017 passed by the learned Motor Accident Claims Tribunal, Shahdara, Karkardooma Court (hereinafter referred to as the `Tribunal') in MAC No. 40A of 2013 (New No.753/2016), titled Sh.Rajender Singh Dangi & Ors. v. Sh.Dinesh Kumar & Ors..

2. It was the case of the claimants before the learned Tribunal, that on 24.03.2013 at 6.00 a.m., at the crossing ahead of Police Chowki: Morta, Police Station: Sihani Gate, Ghaziabad, Uttar Pradesh, the deceased Neeraj Dangi along with Avinash @ Lavi, and Piyush, were coming on a motorcycle bearing no. DL-7SAY-3901, when a truck trolla bearing no. HR-38F-5523 being driven in a rash and negligent manner by the Sh. Dinesh Kumar, hit the motorcycle of the victims. As a result of the accident, the victims sustained fatal injuries leading to their death on the spot. Subsequently an FIR bearing no. 251/13 was registered at the Police Station: Sihani Gate, Ghaziabad, Uttar Pradesh against the driver of the offending vehicle.

3. The claimants further contended that their deceased son, Sh. Neeraj Dangi, was working in a call centre and taking tuitions, earning a monthly income of Rs.14,000/-.

Challenge to the Impugned Award by the Insurance Company:

4. As far as the Insurance Company is concerned, the challenge to the Impugned Award is on two counts:

    a) That the learned Tribunal having found that there is no evidence led by the claimants on their claim of the deceased taking tuitions or of income or employment, it has erred in awarding loss of dependency in favour of the claimants by taking the minimum wages of a matriculate as notified by the Government of NCT of Delhi as on the date of the accident as measure of income of the deceased;

    b) That the learned Tribunal has erred in awarding interest @10% per annum, which the Insurance Company claims to be excessive.

5. I have considered the above challenge of the appellant/Insurance company to the Impugned Award.

6. As far as the minimum wages for a matriculate being taken into account is concerned, the learned Tribunal has observed that the deceased was enrolled as a student for a Training Programme sponsored by Tech Mahindra. Though the said document did not show that the deceased was working in Tech Mahindra in any capacity, nor the claimants could prove his employment or income, the learned Tribunal has taken the minimum wages for a matriculate worker notified by the Government of NCT of Delhi as a measure of his income. I find no fault with the same. As it is not denied that the deceased had completed B.Com (First Year), the adoption of the Minimum Wages for a matriculate would give a fair estimate of the income that the deceased would have earned but for his life being cut-short by the unfortunate accident.

7. As far as the rate of interest is concerned, I find merit in the submission made by the learned counsel for the Insurance company. The rate of interest awarded by the learned Tribunal appears to be excessive.

8. Keeping in view that the accident had occurred on 24.03.2013, while the Award was passed on 20.04.2017, in my opinion, interest @9% per annum should have been awarded by the learned Tribunal. In fact, I must note that this Court, vide its order dated 05.09.2017 passed in MAC App. 797/2017, had directed the Insurance Company to deposit the compensation amount along with interest @ 9% per annum with the learned Tribunal.

9. The Impugned Award stands modified to this extent.

Challenge to the Impugned Award by the Claimants:

10. As far as the Claimants are concerned, they challenge the Impugned Award on the following:

    a) That the learned Tribunal has adopted a multiplier of 13 depending on the age of the mother of the deceased for determining the loss of dependency, whereas it should be considered on the age of the deceased himself.

    b) That the learned Tribunal has erred in not granting future prospects to the deceased.

11. I have considered the above

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