Full Judgment Text
* IN THE HIGH COURT OF DELHI AT NEW DELHI
th
Decided on: 19 January, 2012
+ MAC.APP. 400/2011
ICICI LOMBARD GENERAL INSURANCE CO LTD
..... Appellant
Through: Ms. Suman Bagga, Adv.
versus
RAM CHANDER YADAV & ORS ..... Respondents
Through: Mr. S.N. Parashar, Adv.
+ MAC.APP. 466/2011
NARESH YADAV & ORS ..... Appellant
Through: Mr. S.N. Parashar, Adv.
versus
LAKSHMI MANDAL & ORS ..... Respondent
Through: Ms. Suman Bagga, Adv. for R-
3.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
J U D G M E N T
G. P. MITTAL, J. (ORAL)
1. These are two Cross Appeals filed by the parties in respect of
award of compensation of Rs.18,29,375/- by the order dated
22.01.2011 passed by the Motor Accident Claims Tribunal (the
Tribunal).
MAC APP 400/2011 & 466/2011 Page 1 of 5
2. Deceased Vijay Pal died on account of injuries suffered by him
in a motor accident on 13.12.2009. His date of birth was
01.04.1969 and thus, he was aged about 40 years and eight
months on the date of his death.
3. The grievance of the Appellant ICICI Lombard General
Insurance Co. Ltd (the Insurer) in MAC.APP. 400/2011 is that
the multiplier of ‘15’ selected by the Tribunal was on the higher
side, whereas the learned counsel for the Respondents No. 1 to
4 (Appellants No.1 to 4 in MAC APP.466/2011 as per amended
memo of parties) submits that in the last Return filed for the
financial year 2008-09 the deceased returned the income of
Rs.4,51,587/-, therefore, the compensation ought to have been
awarded on the basis of the last Income Tax Return (ITR).
4. I do not see any reason to disbelieve the last ITR of
th
Rs.4,51,587/- which appears to have been filed on 30 July,
2009 i.e. before the deceased succumbed to the injuries he
suffered in the accident. Moreover, in respect of various bills
raised by the deceased in favour of various parties in
Maharastra, TDS was deducted by them. In the ITR filed for
the years 2008-09 Advance Tax/TDS of Rs.52,603/- was
deducted against his liability of Rs. 26,078/-.
5. By the Income Tax Return in question, the deceased claimed a
refund of income tax of Rs.26,530/-, which was obviously
deducted before March, 2009 i.e. almost nine months before the
MAC APP 400/2011 & 466/2011 Page 2 of 5
accident.
6. At the same time, it is important to note that there was a spurt in
the deceased’s income during the assessment year 2009-10 from
the previous income of Rs.1,44,466/- to Rs.1,54,385/-.
7. In the circumstances, the ITR for the last year alone cannot
form the basis for the computation of the loss of dependency.
The average of three years comes to Rs.2,50,146/- on which
there was a liability of income tax of ` 8014/-
8. Since the deceased was aged about 40 years and eight months as
per the date of birth mentioned in the ITR, the appropriate
multiplier was ‘14’ instead of ‘15’ taken by the Tribunal. On
applying the multiplier of ‘14’ the loss of dependency comes to
`
25,42,386/- (2,50,146/- - 8014/-(income tax) - 1/4 x 14).
9. In addition, the Respondents Claimants are entitled to a sum of
Rs.25,000/- towards the loss of love and affection, Rs.10,000/-
towards loss of estate, Rs.10,000/- towards loss of consortium
and Rs.5,000/- towards funeral expenses.
10. After addition of the notional sum under conventional heads,
the revised compensation comes to ` 25,92,386/- ( 25,42,386/- +
50,000/-)
11. The overall compensation is enhanced from Rs.18,29,375/- to `
25,92,386/- which shall carry interest @ 7.5% per annum from
the date of filing of the petition till the date of payment.
MAC APP 400/2011 & 466/2011 Page 3 of 5
12. By order of this Court dated 06.05.2011 passed in MAC
APP.400/2011, only 75% of the awarded amount was ordered to
be released in favour of the Claimants. Rest 25% of the awarded
amount was ordered to be kept in a Fixed Deposit Receipt with
some nationalized Bank in the name of the Registrar General of
this Court.
13. Since the Appellant Ram Chander, father of the deceased Vijay
Kumar died after passing of the impugned order and a sum of
Rs.2,00,000/- was ordered to be paid to him, the said amount
shall be payable to Appellant No.1 Smt. Naresh Yadav widow
of the deceased Vijay Pal Yadav.
`
14. 55% of the enhanced amount (of 7,63,011/-) shall be payable
to Smt. Naresh Yadav, the deceased’s widow. Rest 15% each
shall be equally paid to Appellants No.2, 3 and 4 Vijender
Yadav, Ms. Neelam Yadav and Master Rahul Yadav
respectively and shall be held in a fixed deposit in UCO Bank,
Delhi High Court Branch, New Delhi for a period of three
years. Appellants No.2,3 and 4 shall be entitled to apply to the
Tribunal for premature encashment of FDR, in case the money
is needed for their higher education.
15. The enhanced amount payable to Appellant No.1 shall be held
in fixed deposit for a period of seven years. The Appellants
would be entitled to payment of interest on quarterly basis.
16. Respondent No.3 ICICI Lombard General Insurance Company
MAC APP 400/2011 & 466/2011 Page 4 of 5
Limited is directed to deposit the enhanced amount alongwith
the interest @ 7.5 per annum from the date of filing of the
petition till the payment, within 30 days in UCO Bank, Delhi
High Court Branch, New Delhi.
17. MAC APP. 400/2011 preferred by the Insurance Company is
dismissed and MAC APP.466/2011 filed by the Claimants is
allowed in above terms. No costs.
(G.P. MITTAL)
JUDGE
JANUARY 19, 2012
vk
MAC APP 400/2011 & 466/2011 Page 5 of 5
th
Decided on: 19 January, 2012
+ MAC.APP. 400/2011
ICICI LOMBARD GENERAL INSURANCE CO LTD
..... Appellant
Through: Ms. Suman Bagga, Adv.
versus
RAM CHANDER YADAV & ORS ..... Respondents
Through: Mr. S.N. Parashar, Adv.
+ MAC.APP. 466/2011
NARESH YADAV & ORS ..... Appellant
Through: Mr. S.N. Parashar, Adv.
versus
LAKSHMI MANDAL & ORS ..... Respondent
Through: Ms. Suman Bagga, Adv. for R-
3.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
J U D G M E N T
G. P. MITTAL, J. (ORAL)
1. These are two Cross Appeals filed by the parties in respect of
award of compensation of Rs.18,29,375/- by the order dated
22.01.2011 passed by the Motor Accident Claims Tribunal (the
Tribunal).
MAC APP 400/2011 & 466/2011 Page 1 of 5
2. Deceased Vijay Pal died on account of injuries suffered by him
in a motor accident on 13.12.2009. His date of birth was
01.04.1969 and thus, he was aged about 40 years and eight
months on the date of his death.
3. The grievance of the Appellant ICICI Lombard General
Insurance Co. Ltd (the Insurer) in MAC.APP. 400/2011 is that
the multiplier of ‘15’ selected by the Tribunal was on the higher
side, whereas the learned counsel for the Respondents No. 1 to
4 (Appellants No.1 to 4 in MAC APP.466/2011 as per amended
memo of parties) submits that in the last Return filed for the
financial year 2008-09 the deceased returned the income of
Rs.4,51,587/-, therefore, the compensation ought to have been
awarded on the basis of the last Income Tax Return (ITR).
4. I do not see any reason to disbelieve the last ITR of
th
Rs.4,51,587/- which appears to have been filed on 30 July,
2009 i.e. before the deceased succumbed to the injuries he
suffered in the accident. Moreover, in respect of various bills
raised by the deceased in favour of various parties in
Maharastra, TDS was deducted by them. In the ITR filed for
the years 2008-09 Advance Tax/TDS of Rs.52,603/- was
deducted against his liability of Rs. 26,078/-.
5. By the Income Tax Return in question, the deceased claimed a
refund of income tax of Rs.26,530/-, which was obviously
deducted before March, 2009 i.e. almost nine months before the
MAC APP 400/2011 & 466/2011 Page 2 of 5
accident.
6. At the same time, it is important to note that there was a spurt in
the deceased’s income during the assessment year 2009-10 from
the previous income of Rs.1,44,466/- to Rs.1,54,385/-.
7. In the circumstances, the ITR for the last year alone cannot
form the basis for the computation of the loss of dependency.
The average of three years comes to Rs.2,50,146/- on which
there was a liability of income tax of ` 8014/-
8. Since the deceased was aged about 40 years and eight months as
per the date of birth mentioned in the ITR, the appropriate
multiplier was ‘14’ instead of ‘15’ taken by the Tribunal. On
applying the multiplier of ‘14’ the loss of dependency comes to
`
25,42,386/- (2,50,146/- - 8014/-(income tax) - 1/4 x 14).
9. In addition, the Respondents Claimants are entitled to a sum of
Rs.25,000/- towards the loss of love and affection, Rs.10,000/-
towards loss of estate, Rs.10,000/- towards loss of consortium
and Rs.5,000/- towards funeral expenses.
10. After addition of the notional sum under conventional heads,
the revised compensation comes to ` 25,92,386/- ( 25,42,386/- +
50,000/-)
11. The overall compensation is enhanced from Rs.18,29,375/- to `
25,92,386/- which shall carry interest @ 7.5% per annum from
the date of filing of the petition till the date of payment.
MAC APP 400/2011 & 466/2011 Page 3 of 5
12. By order of this Court dated 06.05.2011 passed in MAC
APP.400/2011, only 75% of the awarded amount was ordered to
be released in favour of the Claimants. Rest 25% of the awarded
amount was ordered to be kept in a Fixed Deposit Receipt with
some nationalized Bank in the name of the Registrar General of
this Court.
13. Since the Appellant Ram Chander, father of the deceased Vijay
Kumar died after passing of the impugned order and a sum of
Rs.2,00,000/- was ordered to be paid to him, the said amount
shall be payable to Appellant No.1 Smt. Naresh Yadav widow
of the deceased Vijay Pal Yadav.
`
14. 55% of the enhanced amount (of 7,63,011/-) shall be payable
to Smt. Naresh Yadav, the deceased’s widow. Rest 15% each
shall be equally paid to Appellants No.2, 3 and 4 Vijender
Yadav, Ms. Neelam Yadav and Master Rahul Yadav
respectively and shall be held in a fixed deposit in UCO Bank,
Delhi High Court Branch, New Delhi for a period of three
years. Appellants No.2,3 and 4 shall be entitled to apply to the
Tribunal for premature encashment of FDR, in case the money
is needed for their higher education.
15. The enhanced amount payable to Appellant No.1 shall be held
in fixed deposit for a period of seven years. The Appellants
would be entitled to payment of interest on quarterly basis.
16. Respondent No.3 ICICI Lombard General Insurance Company
MAC APP 400/2011 & 466/2011 Page 4 of 5
Limited is directed to deposit the enhanced amount alongwith
the interest @ 7.5 per annum from the date of filing of the
petition till the payment, within 30 days in UCO Bank, Delhi
High Court Branch, New Delhi.
17. MAC APP. 400/2011 preferred by the Insurance Company is
dismissed and MAC APP.466/2011 filed by the Claimants is
allowed in above terms. No costs.
(G.P. MITTAL)
JUDGE
JANUARY 19, 2012
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MAC APP 400/2011 & 466/2011 Page 5 of 5