The Delhi High Court allowed the appeal filed by the insurance company challenging an award for death compensation. The court reduced the love and affection damages from `1,00,000 to `25,000.
Compensation reduced to `4,07,070; excess amount refunded to appellant; balance held in FDR.
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Date of decision: 5th December, 2011
ORIENTAL INSURANCE CO. LTD. ..... Appellant Through: Mr. L. K. Tyagi, Adv.
Versus
BIRMA DEVI & ORS. ..... Respondents Through: Mr. Mohinder Malhotra, Adv. for R-1.
CORAM: HON'BLE MR. JUSTICE G.P.MITTAL
J U D G M E N T
G. P. MITTAL, J. (ORAL)
4,470/- added 50% towards future prospects deducted 50% towards personal living expenses and applied the multiplier of ‘9’ to arrive at dependency of 3,60,070/-.Page 1 of 2
MAC APP 209/2010
higher side. In Sarla Verma v. DTC , (2009) 6 SCC 121, it was held that a nominal sum of 5,000/- to 10,000/- may be awarded towards loss of estate, 5,000/- to 10,000/- towards loss of consortium apart from funeral expenses. The award of compensation of 1,00,000/- towards love and affection was on the higher side. It needs to be reduced to 25,000/-. Overall compensation works out to be 4,07,070/-. After deducting the amount of 50,000/-, if paid towards interim compensation, the balance amount shall be payable to Respondent No.1. 50% of award amount was released to Respondent No.1 in terms of order dated 22.11.2010. Rest of the awarded amount shall be held in FDR for a period of 3 years in UCO Bank, Delhi High Court Branch. The excess amount shall be refunded to the Appellant Oriental Insurance Co. Ltd. along with statutory deposit, if any.
(G.P. MITTAL) JUDGE
DECEMBER 5, 2011 hs
Page 2 of 2
MAC APP 209/2010
1 issue framed by the court
Whether the compensation of ` 1,00,000/- awarded towards love and affection is excessive and requires reduction.
Colour shows how this judgement treated each authority
Sarla Verma v. DTCReferred¶13
Sarla Verma v. DTC, (2009) 6 SCC 121 · Who else cites this
ORIENTAL INSURANCE CO. LTD.
BIRMA DEVI & ORS.
G.P. Mittal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court