Dismissed

New India Assurance Company Ltd. v. Seema Gupta & Ors.

Delhi HC7 Dec 2011MAC.APP./689/2010

Case brief

AI extract

What is this about?

The Delhi High Court dismissed the appeal filed by New India Assurance Company Ltd. against a motor accident compensation award of approximately 15.94 lakhs, holding the rate of interest at 8% was not excessive and the overall award was justified.

What did the court decide?

The appeal was dismissed and the statutory deposit of ₹25,000 to be released to the appellant.

New India Assurance Company Ltd. Vs Seema Gupta & Ors. — Bail and Remand | Delhi HC (2011)

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$~19

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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Date of decision: 7^th December, 2011

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- MAC APP. 689/2010

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NEW INDIA ASSURANCE COMPANY LTD. ..... Appellants Through: Ms. Neerja Sachdeva, Adv.

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Versus

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SEEMA GUPTA & ORS. ..... Respondents Through: Mr. Sanjeev Srivastava, Adv. for R-1 to R-4.

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CORAM:

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HON'BLE MR. JUSTICE G.P.MITTAL

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J U D G M E N T

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G. P. MITTAL, J. (ORAL)

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The Appellant New India Assurance Co. Ltd. impugns the award dated 12.07.2010 whereby a compensation of ` 15,94,027/- was awarded by the Tribunal in respect of death of Sandeep Gupta, who died in a motor accident, which took place on 17.04.2007.

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The award is challenged on the following grounds: -

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(i) The income of the deceased as per the last income tax return was taken into consideration. The Tribunal ought to have considered income tax return for the last 3 years.

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Page 1 of 3

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MAC APP 689/2010

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(ii) The interest was granted @ 8% whereas it ought to have been granted @ 7.5% per annum as per Sarla Verma v. DTC , (2009) 6 SCC 121.

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(iii) A compensation of ` 30,000/- was awarded towards loss of love and affection, which was on the higher side.

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The deceased was the proprietor of Prakash Cable Network and as per the income tax return for the year 2006 – 2007, he had an income of ` 1,23,088/- per annum. The deceased was aged 35 years. The calculation of dependency on the last income tax return of the deceased in the circumstances cannot be said to be unjustified.

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In Sarla Verma v. DTC (supra) the interest was awarded @ 7.5% per annum but there are judgments where the interest at higher rates have been granted. The interest granted @ 8% cannot be said to be excessive. As far as grant of compensation of 30,000/- towards loss of love and affection is concerned, normally a compensation of 25,000/- is awarded under this head. In some cases compensation higher than this amount has been granted. It may be noticed that no amount was awarded towards loss of estate. The overall compensation of ` 15,94,027/- awarded by the Tribunal cannot be said to be excessive or arbitrary. There is no ground to interfere with the award.

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The appeal is devoid of any merit and is accordingly dismissed.

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Page 2 of 3

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MAC APP 689/2010

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The statutory amount of ` 25,000/-, if deposited, shall be released to the Appellant New India Assurance Co. Ltd.

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(G.P. MITTAL) JUDGE

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DECEMBER 7, 2011 hs

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Page 3 of 3

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MAC APP 689/2010

New India Assurance Company Ltd. v. Seema Gupta & Ors.

Case brief

What is this about?

What did the court decide?

New India Assurance Company Ltd. v. Seema Gupta & Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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