$~60 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 10^th December, 2024 + MAC.APP. 646/2024, CM APPL. 72165/2024 (stay)

SBI GENERAL INSURANCE COMPANY LIMITED

46, 3rd Floor, Pussa Road, Karol Bagh Opposite Metro Pillar No.129, New Delhi -110005. ......Appellant Through: Mr. Sameer Nandwani, Advocate.

versus

1. SMT ABIDA ALAM W /o Sh. Ummid Alam, R/ o. H.No.332, Pocket -05, Sector A -6, Narela, Delhi. .....Respondent No.1.

2. Sh. Ummid Alam S / o Sh. Ikramuddin, R/ o. H.No.332, Pocket -05, Sector A -6, Narela, Delhi. .....Respondent No.2.

3. Sh. Noor Hasan S / o. Sh. Ali Sher R/ o. 68, Mandapa Dankaur, Gautam Budha Nagar, U.P. .....Respondent No.3.

4. Sh. Asif Ali, S / o. Sh. Lukman Khan, R/o Andhel, Bulandshahr, Signature Not Verified Digitally Signed UP. .....Respondent No.4.

Through: None CORAM:

HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA J U D G M E N T (oral)

CM APPL. 72166/2024 (Exemption)

1. Exemption allowed, subject to all just exceptions.

2. The Application stands disposed of.

MAC.APP. 646/2024

3. An Appeal under Section 173 of the Motor Vehicle Act, 1988 (‘M.V. Act’, hereinafter) has been filed on behalf of the Appellant-Insurance Company against the Award dated 23.10.2024, wherein the compensation in the sum of Rs.20,85,000/- along with the interest @ 7.5% p.a. has been granted, on account of demise of a five year child, Arhan in a road accident on 25.12.2020.

4. Briefly stated, on 25.12.2020 at about 1:00 p.m., Master Arhan, aged 5 years suffered fatal injuries in a road accident on Peripheral-Highway, near Ratol underpass, Uttar Pradesh, wherein one Canter Eicher bearing No. UP13T9163 (the offending vehicle) being driven by the Respondent No. 1-

Noor Hasan, in a rash and negligent manner, hit the deceased.

5. The FIR No. 490/2020 under Sections 279/304A of the Indian Penal Code, 1860 was registered at Police Station Khekra, Bhagpat, Uttar Pradesh. 6. The Claim Petition was filed under Section 166/140 of the Motor Vehicle Act, 1988, by the Parents to claim compensation, which has been Signature Not Verified Digitally Signed allowed and compensation in the sum of Rs.20,85,000/- along with the interest @ 7.5% p.a. has been granted, vide the impugned Award.

7. The Award has been challenged by the Insurance Company on the following grounds:

i. that the compensation has been calculated on the basis of Minimum Wages with 40% towards Future Prospects, instead of Notional Income as Rs.15,000/- per month; and ii. that the penal interest has been imposed in case of non- deposit of the Award amount within one month, which is contrary to the Act and the Judgements of the Apex Court.

8. Submissions heard and Record Perused.

Loss of Dependancy:-

Calculation of Loss of Income:-

9. The first ground of challenge taken by the Insurance Company is that the compensation has been calculated on the basis of Minimum Wages when in fact, it should have been calculated on the basis of Notional Income of the child as Rs.15,000/- per month.

10. The Minimum Wages of an Unskilled Person were taken as Rs. 15,492/- per month as on the date of accident and hence, Rs. 19,51,992/- (Rs. 15,492/- X 1/2 X 140/100 X 12 X 15) was awarded as the total loss of dependency.

11. The first and foremost issue at for consideration is regarding the calculation of Loss of Income of a deceased child.

Signature Not Verified Digitally Signed

12. In the landmark judgment of R.K. Malik vs. Kiran Pal, (2009) 14 SCC 1, the Apex Court, while considering the Claims arising on account of demise of 29 children in a road accident in November 1997, succinctly observed that in motor accident cases, the goal is to return the dependents or claimants to the pre-accident state. Compensation is awarded to repair the damage caused by the accident, ensuring that the victim or their dependents are put in the same position as they would have been in if the accident had not occurred. This compensation includes future financial losses, such as lost income or dependency. However, no amount of compensation