New India Assurance Co. Ltd v. Sibaram Mandal and Ors

JUDGMENT (Oral)

¶1The appellant has challenged the award of the learned Tribunal whereby compensation of Rs.5,31,180/- has been awarded to claimants/respondents No.1 and 2.

¶2On 22nd February, 1998 at about 8:30pm, the deceased was travelling in blue line bus bearing No.DL-1P-5235 going from Laxmi Nagar to Gole Market. The deceased had to get down from the bus but the driver suddenly applied the brakes and as a result of the impact, the deceased fell down from the bus and the wheel of the bus ran over the left leg of the deceased. The left leg of the deceased was crushed up

to 1/3rd of thigh level and her left leg had to be amputated. The deceased was removed to Lady Hardinge Medical College where her left leg was amputated. The deceased suffered brain hemorrhage on 26th May, 1998 resulting in her death.

¶3The deceased was survived by her two minor children aged 11 and 14 years who filed the claim petition before the Claims Tribunal. The husband of the deceased had pre-deceased her and, therefore, the minor children filed the claim petition through their maternal aunt.

¶4The learned Tribunal has awarded Rs.1,900/- towards the medicines and medical treatment, Rs.30,000/- towards conveyance and special diet and Rs.4,49,280/- towards the permanent disability and loss of income. Rs.50,000/- has been awarded to the children towards loss of love and affection. The total compensation awarded is Rs.5,31,180/-.

¶5The learned counsel for the appellant submits that while computing the loss of income due to permanent disability, the Claims Tribunal has applied the multiplier of 16 whereas the deceased was aged 38 years at the time of the accident and the appropriate multiplier according to the judgment of the Hon'ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation, 2009 (6) Scale 129 is 15. The learned counsel further submits that the Claims Tribunal has taken the permanent disability to be 70% but while computing the compensation the Claims

Tribunal has not deducted 30% amount.

¶6The impugned award has been perused. The appropriate multiplier at the age of 38 years according to the judgment of the Hon'ble Supreme Court in the case of Sarla Verma vs. DTC (Supra) is 15. The multiplier is, therefore, reduced from 16 to 15. The learned Tribunal has taken the permanent disability of the deceased as 70% but while computing the compensation, the learned Tribunal has not deducted 30% on account of permanent disability. The finding of the Claims Tribunal is, therefore, modified. Respondent Nos.1 and 2 are entitled to compensation of Rs.3,68,550/- towards loss of income (Rs.2,925 x 12 x 15 – 30%).

¶7The total compensation is computed to be Rs.4,50,450/- (Rs.3,68,550 + Rs.1,900 + Rs.30,000 + Rs.50,000). The learned Tribunal has awarded interest @7% per annum which is enhanced to 7.5% per annum in terms of the judgment of the Hon'ble Supreme Court in the case of Dharampal & Ors. vs. U.P. State Road Transport Corporation, III 2008 ACC (1) SC. The direction to pay penal interest on the award amount @ 12% per annum after the expiry of 30 days from the date of the award passed by the Claims Tribunal is set aside.

¶8The appeal is partially allowed and the award amount is reduced from Rs.5,31,180/- to Rs.4,50,450/- along with interest @ 7.5% per annum from the date of filing of the

petition till realization.

¶9The appellant has deposited the entire award amount along with up to date interest with the Claims Tribunal in terms of the order dated 6th April, 2009. However, the said cheques have not been withdrawn by the claimants and the cheques dated 11th May, 2009 must have been expired.

¶10The Claims Tribunal is directed to return the two cheques dated 11th May, 2009 deposited by the appellant with the Claims Tribunal on 26th May, 2009 in terms of the order dated 6th April, 2009 to the appellant within two weeks.

¶11In the meantime, the appellant shall also give the instruction to its Bank to stop the payment of the said cheques.

¶12The appellant is directed to deposit the entire award amount along with up to date interest in terms of this judgment with UCO Bank A/c Sibaram Mandal, Delhi High Court Branch within 30 days.

¶13Upon the aforesaid deposit being made, the UCO Bank is directed to release 5% of the award amount to respondent No.1 and the 5% to respondent No.2 by transferring the said amount to their respective Saving Bank Account. The remaining amount be kept in fixed deposit in the following manner:-

(i) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for the period of six months.

(ii) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of six months.

(iii) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of one year.

(iv) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of one year.

(v) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of one and a half years.

(vi) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of one and a half years.

(vii) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of two years.

(viii) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of two years.

(ix) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of two and a half years.

(x) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of two

and a half years.

(xi) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of three years.

(xii) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of three years.

(xiii) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of three and a half years.

(xiv) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of three and a half years.

(xv) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of four years.

(xvi) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of four years.

(xvii) Fixed deposit in respect of 5% of the amount in the name of respondent No.1 for a period of four and a half years. (xviii) Fixed deposit in respect of 5% of the amount in the name of respondent No.2 for a period of four and a half years.

¶14The interest on the aforesaid fixed deposits shall be paid monthly by automatic credit of interest in the respective Savings Account of respondents No.1 and 2.

¶15Withdrawal from the aforesaid account shall be permitted to respondents No.1 and 2 after due verification and the Bank shall issue photo Identity Card to respondents No.1 and 2 to facilitate identity.

¶16No cheque book be issued to respondents No.1 and 2 without the permission of this Court.

¶17The Bank shall issue Fixed Deposit Pass Book instead of the FDRs to respondents No.1 and 2 and the maturity amount of the FDRs be automatically credited to the Saving Bank Account of the beneficiary at the end of the FDR.

¶18No loan, advance or withdrawal shall be allowed on the said fixed deposit receipts without the permission of this Court.

¶19Half yearly statement of account be filed by the Bank in this Court.

¶20On the request of respondents No.1 and 2, the Bank shall transfer the Savings Account to any other branch according to the convenience of respondents No.1 and 2.

¶21The respondents No.1 and 2 shall furnish all the relevant documents for opening of the Saving Bank Account and Fixed Deposit Account to Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi.

¶22The learned counsel for claimants/respondents No.1 and 2 seek release of more amount at initial stage.

¶23Let the claimants file an appropriate application after utilizing the initial 10% award amount released to them.

¶24The statutory amount of Rs.25,000/- be refunded back to the appellant after the satisfaction of this judgment.

¶25Copy of the order be given dasti to counsel for both the parties under the signatures of the Court Master.

¶26Copy of this order be also sent to Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi (Mobile No. 09310356400) under the signature of Court Master.

J.R. MIDHA, J

MARCH 09, 2010

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*IN THE HIGH COURT OF DELHI AT NEW DELHI + MAC.APP.No.181/2009 Date of Decision : 9th March, 2010 % NEW INDIA ASSURANCE CO. LTD. ..... Appellant Through : Mr. Pankaj Seth, Adv. versus SIBARAM MANDAL AND ORS. ..... Respondents Through : Mr. Arun Sukhija, Adv. for R-1 and 2 along with R-1 & 2. CORAM :- THE HON'BLE MR. JUSTICE J.R. MIDHA 1. Whether Reporters of Local papers may YES be allowed to see the Judgment? 2. To be referred to the Reporter or not? YES 3. Whether the judgment should be YES reported in the Digest?