Allowed

The Oriental Insurance Co. Ltd. v. Sabra & Ors.

Delhi HC13 Jul 2018MAC.APP./1020/2015

Case brief

AI extract

What is this about?

The High Court of Delhi allowed the appellant's appeal against an award of the Motor Accident Claims Tribunal. Relying on the Supreme Court's decision in Pranay Sethi, the Court reduced the compensation for future prospects to 40%, disallowed the head for loss of love and affection, adjusted funeral and loss of estate expenses, and reassessed the total compensation payable.

What did the court decide?

The appeal and application were disposed of with the modified compensation of Rs. 13,35,148/- to be released forthwith to the injured and the excess deposit refunded to the insurer.

The Oriental Insurance Co. Ltd. Vs Sabra & Ors. — Motor Accident Claims | Delhi HC (2018)

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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Date of Decision: July 13, 2018

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+ MAC.APP. 1020/2015 & C.M. 32600/2015

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THE ORIENTAL INSURANCE CO LTD .....Appellant Through: Mr. J.P.N. Shahi, Advocate

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Versus

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SABRA & ORS. .....Respondents Through: Mr. Kartikay Sharma, Advocate

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CORAM: HON'BLE MR. JUSTICE SUNIL GAUR

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JUDGMENT

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(ORAL)

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Impugned Award of 17^th October, 2015 grants compensation of `14,58,384/- with interest @ 9% p.a. to respondents-claimants on account of death of one- Chand Mohd. in a vehicular accident on 5^th October, 2014.

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The factual background of this case, as noticed in the impugned Award, is as under:-

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“The case of the petitioners is that on 05/10/2014 at about 05:15 p.m. the deceased was standing at ISBT Kashmere Gate behind the offending vehicle i.e. bus bearing No. HR66-7524. The offending vehicle was parked at the Counter No.28. Suddenly the driver of the offending vehicle reversed the vehicle in very rash and negligent manner and at very high speed without caring for the deceased and hit the deceased. Due to the impact the deceased fell down on the

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MAC.APP. 1020/2015

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Page 1 of 4

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ground. The driver without even caring about the deceased fled away from there. One person namely Bhramanand Mishra who was available there took the deceased to the ambulance. The deceased was taken to Aruna Asaf Ali Hospital, where MLC No.3751/14 was recorded in respect of the deceased and the deceased was declared brought dead at 06:15 p.m. The post mortem was conducted on the dead body of the deceased at Aruna Asaf Ali Hosptial vide post mortem 1830/14.”

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On the basis of evidence led, impugned Award has been rendered by Motor Accident Claims Tribunal (henceforth referred to as “the Tribunal”) and the breakup of compensation awarded is as under:-

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1.) Loss of dependency : 13,98,384/2.) Love and affection : 25,000/3.) Funeral expenses : 25,000/4.) Loss of estate : 10,000/-

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_________ Total : `14,58,384/-

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The challenge to impugned Award by learned counsel for Insurer is on the ground that addition of 50% towards “future prospects” awarded by the Tribunal is on the higher side and in view of the Constitution Bench decision of Supreme Court in National Insurance Co.Ltd. Vs. Pranay Sethi & Ors. (2017) 16 SCC 680, addition of 40% only is to be made towards the “future prospects” and compensation granted under the non-pecuniary heads ought to be suitably reduced in light of Constitution Bench decision of Supreme Court in Pranay Sethi (supra).

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On the contrary, learned counsel for Injured supports the impugned Award and submits that the compensation awarded is just and fair. So, it is submitted by learned counsel for respondents that this appeal deserves

MAC.APP. 1020/2015

Page 2 of 4

to be dismissed.

Upon hearing and on perusal of impugned Award and material on record, I find that in view of Constitution Bench decision of Supreme Court in Pranay Sethi (supra) , addition towards “future prospects” ought to be 40% and not 50%. In view of Supreme Court’s decision in Pranay Sethi (supra), compensation granted by the Tribunal under the head of „loss of love & affection‟ is disallowed and “funeral expenses” are reduced from 25,000/- to 15,000/-. However, compensation granted under the head “loss of estate” is increased from 10,000/- to 15,000/-. 7. In light of the aforesaid, the compensation under the head “loss of dependency” is re-calculated as under:-

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8,632/-p.m. X 12 X 18 X 140/100 X 50 /100=13,05,148/-

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Accordingly, the compensation payable to respondents-claimants is reassessed as under:-

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S.No.	Description	Amount
1.	Loss of Dependency	`13,05,148/-
2.	Funeral Expenses	`15,000/-
4.	Loss of Estate	`15,000/-
	Total	`13,35,148/-

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Consequentially, the compensation amount payable stands reduced from 14,58,384/- to 13,35,148/-. The modified compensation be released forthwith to Injured in the manner and ratio as indicated in the impugned Award. Statutory deposit along with excess deposit, if any, be refunded to appellant-Insurer.

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MAC.APP. 1020/2015

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Page 3 of 4

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With aforesaid directions, this appeal and application are disposed

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(SUNIL GAUR) JUDGE

JULY 13, 2018

MAC.APP. 1020/2015

Page 4 of 4

The Oriental Insurance Co. Ltd. v. Sabra & Ors.

Case brief

What is this about?

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The Oriental Insurance Co. Ltd. v. Sabra & Ors.

Case brief

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