Allowed

M/S Royal Sundaram Alliance Insurance Com. Ltd. v. Ram Diti and Ors.

Punjab & Haryana HC19 Mar 2012FAO/407/2010

Case brief

AI extract

What is this about?

This judgment disposed of two appeals relating to compensation claims arising from a motor vehicular accident. The court reduced the awarded compensation to 12,93,000/ including interest, determining the multiplier based on the mother's age, rejecting future prospects addition for a private-sector job, and recognizing a 50% personal expense deduction.

What did the court decide?

Compensation reduced to 12,93,000/- with interest at 6% per annum from the date of filing the claim petition till realization.

M/S Royal Sundaram Alliance Insurance Com. Ltd. Vs Ram… — Insurance | Punjab & Haryana HC (2012)

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FAO No. 407 of 2010 -1-

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IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

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FAO No. 407 of 2010 (O&M) Date of decision : 19.3.2012 ...

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M/s Royal Sundaram Alliance Insurance Company Ltd.

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................Appellant vs.

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Smt. Ram Diti and others

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.................Respondents

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FAO No. 5552 of 2010 (O&M) ...

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Smt. Ram Diti and another

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................Appellants

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vs.

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Lilu Yadav and others

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.................Respondents

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Coram: Hon'ble Mr. Justice K.C. Puri

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Present: Sh. Ashwani Talwar, Advocate for the appellant (for respondent No.3 in FAO No. 5552 of 2010)

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Sh. Tribhuwan Dahiya, Advocate for respondents No.1 and 2 (for appellants in FAO No.5552 of 2010)

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Ms. Swati Batra, Advocate for Sh. G.P. Singh, Advocate for respondents No. 3 and 4. (for respondents No. 1 and 2 in FAO No. 5552 of 2010)

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K.C. Puri, J.

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Vide this judgment, I intend to dispose of FAO No. 407 of 2010 titled as M/s Royal Sundaram Alliance Insurance Company Ltd.

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FAO No. 407 of 2010 -2-

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vs. Smt. Ram Diti and others and FAO No. 5552 of 2010 titled as Smt. Ram Diti and another vs. Lilu Yadav and others, as both these appeals have arisen out of the same award.

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There is a delay of 50 days in filing the appeal bearing FAO No.5552 of 2010. The same stands condoned on the grounds mentioned in the applications.

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Briefly stated, Smt. Ram Diti – mother and Devi Dayal Chabbra – father filed claim petition claiming compensation on account of death of their son Ankit Chabbra, in a motor vehicular accident and a sum of `15,08,800/- was granted as compensation on account of death of Ankit Chabbra alongwith interest @ 6% per annum.

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Feeling dissatisfied with the said award, the claimants have filed FAO No. 5552 of 2010 for enhancement of compensation, whereas M/s Royal Sundaram Alliance Insurance Company Ltd. has preferred FAO No. 407 of 2010, for reducing the amount of compensation. Since both these appeals have arisen out of the same award and the only question is regarding quantum of compensation and as such these are being disposed of by the common judgment.

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Learned counsel for the Insurance company has submitted that the claimants in this case were the parents. The Tribunal has awarded the compensation taking into account the age of the deceased. The age of the parents should have been taken into account, while assessing the compensation.

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Counsel for the claimants has submitted that income of the

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FAO No. 407 of 2010 -3-

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deceased has not been correctly assessed by the Tribunal. As per Form No. 16, Exhibit P-10, the gross salary of the deceased was 2,88,586.18. This amount should have been taken into account and only a sum of 5,750/- payable as income tax has to be deducted in view of authority reported as Smt. Sarla Verma and others vs. Delhi Transport Corporation and another 2009 (3) RCR (Civil) 77. Counsel for the claimants has further submitted that in view of authority in Smt. Sarla Verma's case (Supra), 50% of the income should have been added in respect of future prospects.

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In reply to the above submission, counsel for the Insurance company has submitted that deceased was not in a permanent job and as such the increase of 50% is not applicable. However, it is conceded, that in view of authority in Smt. Sarla Verma's case (Supra), the gross salary less tax has to be taken into account.

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The foremost point for determination in the present two appeals is that what was the income of the deceased. According to Form No. 16, exhibited as Exhibit P-10, before the Tribunal, the gross salary of the deceased as been taken as 2,88,586.18. So, the income of the deceased is to be taken as 2,88,586/- less 5,750/-, which comes to 2,82,836/-.

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The next point urged before me is that 50% amount should be added regarding future prospects of the deceased. However, I have carefully gone through the authority in Smt. Sarla Verma's case (Supra). From paragraph No. 10 of the said judgment, it is revealed that amount of future prospects is to be taken into account in case the

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FAO No. 407 of 2010 -4-

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deceased is in a stable job i.e. in a government job. The deceased in the present case was serving with a private concern and cannot be said to be in a stable job. So, the observation made in paragraph No. 10 of the judgment in Smt. Sarla Verma's case (Supra), in respect of future prospects, cannot be made applicable on the facts of the present case. So, the claimants are held not entitled for any amount on account of future prospects of the deceased.

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In view of authority in Smt. Sarla Verma's case (Supra), since the deceased was bachelor in the present case and as such 50% cut has to be applied in respect of personal expenses of the deceased. So, the yearly dependency comes to `1,41,418/-.

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The next point for determination is in respect of the multiplier applicable, in case of a bachelor. Whether the age of the deceased is to be taken into account or age of the parents of the deceased has be considered while computing the compensation. The answer to that question has been given by the authority reported as Oriental Insurance Co. Ltd. vs. Sayed Ibrahim and others 2007 ACJ 2816. The Hon'ble Apex Court has held that age of the parents is the relevant factor for applying the multiplier, in case the deceased is bachelor.

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Smt. Ram Diti – mother has given her age as 58 years, whereas Devi Dayal Chhabra – father has given his age as 63 years in the claim petition. In my view, the age of mother is relevant factor. So, keeping in view the authority in Smt. Sarla Verma's case (Supra), the multiplier applicable for the age group of 56 to 60 is 9. So, by

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FAO No. 407 of 2010 -5-

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applying the said multiplier, the amount of compensation comes to 12,72,762/-. In view of authority in **Smt. Sarla Verma's case (Supra),** another sum of 20,000/- stands allowed on account of funeral expenses, loss of consortium, loss of estate, transportation expenses etc. So, in this manner, the claimants are held entitled to claim 12,92,762/- say 12,93,000/- alongwith interest @ 6% per annum from the date of filing of claim petition till realization. The amount shall be paid as ordered by the Tribunal. The liability to pay the amount shall also be the same as ordered by the Tribunal.

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Both the appeals stand disposed of accordingly.

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( K.C. Puri ) 19.3.2012 Judge chugh

M/S Royal Sundaram Alliance Insurance Com. Ltd. v. Ram Diti and Ors.

Case brief

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M/S Royal Sundaram Alliance Insurance Com. Ltd. v. Ram Diti and Ors.

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