Partly allowed

Reliance General Insurance Co. Ltd. v. Suman and Ors.

Delhi HC6 Dec 2016MAC.APP./824/2012

Case brief

AI extract

What is this about?

This appeal challenged an award of Rs.16.63 lakh compensation for a motor accident death. The High Court held the quantum was fair but set aside the payment of legal fees and out-of-pocket expenses. The court ordered the release of a portion of the award to beneficiaries while retaining the balance in fixed deposits.

What did the court decide?

Set aside direction to pay legal fees and out-of-pocket expenses of Rs.55,000; balance award directed to be placed in fixed deposits for beneficiaries.

Reliance General Insurance Co. Ltd. Vs Suman and Ors. — Motor Accident Claims | Delhi HC (2016)

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$~46

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IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 06^th December, 2016

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+ MAC.APP. 824/2012

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RELIANCE GENERAL INSURANCE CO. LTD. ..... Appellant Through: Mr. A.K. Soni and Mr. Pawan Kumar, Advocates

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Versus

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SUMAN AND ORS.

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..... Respondents Through: Mr. Peeush Sharma, Mr. Shaurya Tomar and Mr. Kartikey Nayyar, Advocates for respondent No.2 & 3

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CORAM: HON'BLE MR. JUSTICE J.R. MIDHA

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JUDGMENT (ORAL)

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The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.16,63,726/- has been awarded to respondents No.1 and 3.

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The accident dated 25^th June, 2009 resulted in the death of Surender Kumar. The deceased was aged 45 years at the time of the accident and was survived by his widow and two sons who filed the claim petition before the Claims Tribunal. The deceased was a practicing ayurvedic doctor. The Claims Tribunal took the income of the deceased as Rs.1,12,395/- per annum as per the Income Tax Return for the assessment year 2008-09, added 30% towards future prospects, deducted 1/3^rd towards personal expenses and applied the

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MAC. APP. 824/2012

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Page 1 of 4

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multiplier of 14 to compute the loss of dependency at Rs.13,63,726/-. The Claims Tribunal awarded Rs.1,50,000/- towards loss of love and affection, Rs.50,000/- towards loss of consortium, Rs.90,000/- towards loss of estate and Rs.10,000/- towards funeral charges. The total compensation awarded is Rs.16,63,726/-.

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Learned counsel for the appellant urged at the time of hearing that the compensation awarded by the Claims Tribunal is exorbitant and liable to be reduced. It is further submitted that the Claims Tribunal has awarded the counsel’s fee of Rs.50,000/- and out of pocket expenses of Rs.5,000/- without any justification.

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This Court is of the view that the compensation awarded by the Claims Tribunal is just, fair and reasonable and does not warrant any reduction. However, the direction of the Claims Tribunal to pay the legal fees and out of pocket expenses is set aside. 5. The appeal is partially allowed to the extent of setting aside of the counsel fee and out of pocket expenses of Rs.55,000/-. 6. The appellant has deposited the award amount with UCO Bank, Delhi High Court Branch in terms of order dated 30th July, 2012. UCO Bank, Delhi High Court Branch is directed to release a sum of Rs.1 lakh to respondent No.1, Rs.50,000/- to respondent No.2 and Rs.50,000/- to respondent No.3 by transferring the said amount to their savings bank accounts.

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The balance amount be kept in fixed deposit in the following manner:

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Sr. Duration of Resp. 1	Resp. 2 Resp. 3

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MAC. APP. 824/2012

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Page 2 of 4

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No.	FDR	Wife (60%)	Son (20%)	Son (20%)
1.	1 year	6%	4%	4%
2.	2 years	6%	4%	4%
3.	3 years	6%	4%	4%
4.	4 years	6%	4%	4%
5.	5 years	6%	4%	4%
6.	6 years	6%	-	-
7.	7 years	6%	-	-
8.	8 years	6%	-	-
9.	9 years	6%	-	-
10.	10 years	6%	-	-
	TOTAL	60%	20%	20%
	GR	AND TOTAL		100%

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The respondents shall intimate the particulars of their savings bank accounts to UCO Bank, Delhi High Court Branch.

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The monthly interest on the FDRs of respondents shall be credited in their individual savings bank accounts near the place of their residence.

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At the time of maturity, the fixed deposit amount shall be automatically credited in the savings bank accounts of the beneficiaries near the place of their residence.

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All the original FDRs shall be retained by UCO Bank, Delhi High Court Branch. However, the photocopies of the same shall be provided to the claimants/respondents.

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No cheque book or debit card be issued to the

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MAC. APP. 824/2012

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Page 3 of 4

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claimants/respondents without permission of this Court.

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No loan or advance or pre-mature discharge shall be permitted without the permission of this Court.

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The claimants/respondents shall approach the UCO Bank for completing the formalities for the disbursement of the award amount in terms of this order.

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UCO Bank, Delhi High Court Branch shall ensure that the savings bank accounts of respondents are individual accounts and not joint accounts.

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The statutory amount be refunded back to the appellant.

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Dasti .

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DECEMBER 06, 2016 rsk

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J.R. MIDHA, J.

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MAC. APP. 824/2012

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Page 4 of 4

Reliance General Insurance Co. Ltd. v. Suman and Ors.

Case brief

What is this about?

What did the court decide?

Reliance General Insurance Co. Ltd. v. Suman and Ors.

Case brief

What is this about?

What did the court decide?

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