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Delhi District Court

Smt Mamta vs Sh. Vinod Kumar Sharma on 16 March, 2012

          IN THE COURT OF SHRI CHANDRA BOSE: 
                         JUDGE:MACT:DELHI


MACT NO.               : 228/11
Case ID NO.            : 02404C0206722011

1. Smt Mamta, W/o Late Sh. Vishal Kumar, 

2. Ms. Megha, D/o Late Sh. Vishal Kumar, 

3. Ms. Nancy, D/o Late Sh. Vishal Kumar, 

4. Smt Suita, W/o Sh. Pardeep Kumar, 

5. Sh. Pardeep, S/o Sh. Brahmn Prakash, 

All R/o JB­3/30­40, Gali No. 2, JB­3, Welcome, 

Seelampur, Delhi. 

Also at:­ JN­3­30, 40, Welcome Colony, 

Seelampur, Delhi.                         ..........Claimants/Petitioners of 

                                              deceased Vishal Kumar.

                               

1. Sh. Prem Kumar, S/o  Sh. Kishori, 

2. Smt Sheela, W/o Sh. Prem Kumar, 

Both R/o JB­3/38, JB2­III, Welcome, 

Seelampur, Delhi­53.                      ..........Claimants/Petitioners of 

                                                deceased Sh. Vikas. 


MACT No. 228/11                                                     1 of 16
                                    Versus

1. Sh. Vinod Kumar Sharma, S/o Sh. GC Sharma, 

R/o 97, Block B, Pkt­4, Sector 11, 

Rohini, Delhi­85.                                      ........... Driver/R1

2. Sh. Arun Jain @ Arun Kumar Jain, 

S/o Sh. PP Jain, 

R/o 64­65, Govind Market, 

Clock towner, Subzi Mandi, New Delhi.         ..... Regd.Owner/R2

3. National Insurance Company Ltd.                       

17­18, Inderprastha Bhawan, 

IInd Floor, New Sabzi Mandi, 

Azadpur­110033.                                     .....Insurance co./R3 



DATE OF INSTITUTION (PETITIONS): 02.06.11

DATE OF INSTITUTION (DAR)             : 06.07.11

DATE OF RESERVING ORDER             : 03.11.11

DATE OF PRONOUNCEMENT              : 16.03.12


                                    AWARD

01.        Two petitions were filed on 02.06.11 in respect of death of 


MACT No. 228/11                                                     2 of 16
 two deceased namely Sh. Vishal Kumar and Sh. Vikas and same were 

kept pending for awaiting of DAR for 13.07.11. On 06.07.11, DAR 

was filed and said claim petitions were taken and clubbed with DAR 

and were registered as such and case was adjourned for filing legal 

offers   on   behalf   of   insurance   company   and   thereafter,   case   was 

adjourned for consideration of legal offers by the petitioner/Lrs of both 

deceased. On 03.11.11, it was submitted by counsel for Lrs of both the 

deceased   that   legal   offers   are   not   acceptable   and   as   such,   I   heard 

arguments  of counsel for Lrs of both the deceased and counsel for 

insurance company on the point of quantum of compensation. 

02.          In its legal offer filed for compensation in respect of death 

of deceased Vishal Kumar, insurance company has considered income 

of the deceased on the basis of minimum wage applicable on the date 

of   accident.   It   is   submitted   by   counsel   for   Lrs   of   deceased   Vishal 

Kumar that he was working as a caretaker in Department of Social 

Welfare, Government of N.C.T of Delhi, on contract basis at the time 

of his death and was drawing a consolidated salary of Rs. 12,000/­ per 

month.   This   fact   has   not   been   disputed   on   behalf   of   insurance 

company   but   insurance   company   has   not   considered   the   salary   of 

deceased on the ground that contract was only for one year and was to 

expire on 06.05.11. I do not agree with the contention of counsel for 

insurance company in this regard since I have to see as to what the 

MACT No. 228/11                                                                3 of 16
 deceased was earning at the time of his death. Moreover, the contract 

of deceased may have been renewed. Therefore, I take the income of 

deceased Vishal Kumar as Rs. 12,000/­ per month on the date of 

his death. 

03.            In its legal offer filed for compensation in respect of death 

of deceased Vishal Kumar, insurance company has rightly deducted 

1/4th  towards personal and living expenses of the deceased from his 

income as per case law namely Smt. Sarla Verma & Ors Vs. Delhi 

Transport Corporation & Anr. 2009 (V) AD(136).    If we deduct 

1/4th  from   his   monthly   income   i.e.   12,000   -   3,000  (1/4th  of   Rs. 

12,000/­), we arrive at a figure of Rs. 9,000/­. This can be said to be 

the loss of monthly dependency to the claimants of deceased Vishal 

Kumar and annual loss of dependency comes to Rs. 1,08,000/­ (Rs. 

9,000/­  * 12 months). 

04.           In its legal offer filed for compensation in respect of death 

of deceased Vishal Kumar, insurance company has rightly considered 

the multiplier of '18' in view of ratio of case law namely Smt. Sarla 

Verma Vs DTC(Supra)  for the purpose of calculating the loss of 

dependency   of  the  claimants of  deceased  Vishal  Kumar. Hence, 

after   applying   multiplier   of   '18'   to   the   multiplicand   of   Rs. 


MACT No. 228/11                                                           4 of 16
 1,08,000/­,   we   arrive   at   a   figure   of   Rs.   19,44,000/­   towards 

compensation on account of loss of dependency of the claimants of 

deceased Vishal Kumar. 

05.          In addition to it, claimants of deceased Vishal Kumar are 

entitled to be compensated for loss of love and affection. They will 

miss through out their life. Nothing can ever compensate the actual 

loss.  Only a humble attempt is made by the Tribunal to apply soothing 

balm over their wounds. As such, they are granted  Rs. 25,000/­ for 

loss   of   love   and   affection.  Rs.   10,000/­  is   also   granted   to   them 

towards loss of estate and Rs. 10,000/­ is also granted to claimant 

no. 1 towards loss of consortium. 

06.          In addition to it, claimants of deceased Vishal Kumar are 

entitled to be compensated for funeral expenses.  The second schedule 

has prescribed a figure of Rs. 2,000/­ which is very much on the lower 

side.  When price of all the commodities are revised from time to time 

and even minimum wages are being periodically increased, there is no 

point in sticking to low figure of Rs. 2,000/­.   Let they be paid Rs. 

5,000/­ towards funeral expenses as lot of money is required to be 

spent   on   numerous   religious   rites   and   ceremonies   and   also   on 

transportation of body.  



MACT No. 228/11                                                            5 of 16
 07.            In view of above additions, total compensation payable 

to claimants of deceased Vishal Kumar is as under:­ 

1. Loss of dependency                           :                     Rs. 19,44,000/­

2. Loss of Love & Affection                     :                     Rs. 25,000/­

3. Loss of Estate                               :                     Rs. 10,000/­

4. Loss of consortium                           :                     Rs. 10,000/­

5. Funeral Expenses                             :                     Rs. 5,000/­

                                                                        ­­­­­­­­­­­­­­­­­­

      Total                                     :                     Rs. 19,94,000/­

                                                                           ­­­­­­­­­­­­­­­­­­

08.            In view of the aforesaid discussions, I hereby hold that 

claimants of deceased Vishal Kumar are entitled to  net amount of 

Rs. 19,94,000/­. 

09.             In its legal offer filed for compensation in respect of death 

of   another   deceased   Vikas,   insurance   company   has   wrongly 

considered minimum wage of Rs. 6,084/­ applicable on the date of 

death  of  his  death   as  on 27.04.11, Rs. 6,422/­  was minimum wage 

under   the   category   of   unskilled.   Insurance   company   has   also   not 

considered  increase in minimum wages to meet the increase in price 

index and inflation rate.  Therefore,  I take Rs. 6,422/­ as monthly 


MACT No. 228/11                                                                                 6 of 16
 income of deceased which is minimum wage under the category of 

unskilled on the date of death of deceased Vikas. 

10.          It is well settled by Catena of Judgments of the Hon'ble 

High Court that our own Hon'ble High Court has taken judicial notice 

of the increase in minimum wages to meet the increase in price index 

and   inflation   rate.   Hon'ble   High   Court   has   taken   the   view   that   the 

minimum wages get doubled over the period of 10 years and increase 

in minimum wages is not akin to future prospects. 

11.          I rely upon the case law namely Santosh Devi, Appellant, 

Vs. Abdul Kareem & Others Respondents  decided on 08th October, 

2009 in MAC.APP No. 440/2009 and Reshma & Ors. Appellant Vs. Harish Kaushik & Ors Respondents decided on 11th December, 2009 MAC.APP 560/2007 in which it was held that " the income of the deceased should be computed by taking the average of minimum wages at the time of accident and its double".

12. In recent judgment namely Smt Kiran Devi and others, appellants Vs Surjit Yadav and others, respondents, in MAC.APP No. 511/09 decided on 18.01.10, it has been held by considering earlier judgments by Hon'ble Justice JR Midha of Hon'ble High Court that "Judicial notice be taken by Tribunal of the fact that MACT No. 228/11 7 of 16 Minimum Wages gets almost doubled over a period of ten years".

13. Following the aforesaid Judgments cited as above, the income of the deceased is computed by taking the average of minimum wage of Rs. 6,422/­ per month at the time of accident and its double which comes to Rs. 9,633/­ (6,422+12,844/2).

14. Since deceased Vikas was bachelor and only mother can be considered as financially dependent upon him, as such, the deduction would be 50% towards personal and living expenses of the deceased from his income as per case law namely Smt. Sarla Verma & Ors Vs. Delhi Transport Corporation & Anr. 2009 (V) AD(136). If we deduct 50% from his monthly income i.e. Rs. 9,633 - 4,816.50 (50% of 9,633/­), we arrive at a figure of Rs. 4,817/­. This can be said to be the loss of monthly dependency to the claimants of deceased Vikas and annual loss of dependency comes to Rs. 57,804/­ (Rs. 4,817/­ * 12 months).

15. In amended legal offer filed by insurance company for deceased Vikas, insurance company has considered the multiplier as '11' as per age of father of deceased whereas as per case law namely Smt. Sarla Verma & Ors Vs. Delhi Transport Corporation & Anr. 2009 (V) AD(136) , mother has been considered as financially MACT No. 228/11 8 of 16 dependent upon the income of deceased bachelor and therefore, multiplier would be applicable as per her age. The age of mother of deceased Vikas as per photocopy of her election ID card is 36 years as on 01.01.02. The date of death of deceased is 27.04.11. Therefore, the age of mother of deceased Vikas was more than 45 years on the date of death of deceased Vikas. Therefore, I am of the view that in view of ratio of case law namely Smt. Sarla Verma Vs DTC(Supra), the multiplier of '13' is applicable in the present case for the purpose of calculating the loss of dependency of the claimants of deceased Vikas. Hence, after applying multiplier of '13' to the multiplicand of Rs. 57,804/­, we arrive at a figure of Rs. 7,51,452/­ towards compensation on account of loss of dependency of the claimants of deceased Vikas.

16. In addition to it, claimants of of deceased Vikas are entitled to be compensated for loss of love and affection. They will miss through out their life. Nothing can ever compensate the actual loss. Only a humble attempt is made by the Tribunal to apply soothing balm over their wounds. As such, they are granted Rs. 20,000/­ for loss of love and affection. Rs. 10,000/­ is also granted towards loss of estate.

17. In addition to it, claimants of deceased Vikas are entitled to MACT No. 228/11 9 of 16 be compensated for funeral expenses. The second schedule has prescribed a figure of Rs. 2,000/­ which is very much on the lower side. When price of all the commodities are revised from time to time and even minimum wages are being periodically increased, there is no point in sticking to low figure of Rs. 2,000/­. Let they be paid Rs. 5,000/­ towards funeral expenses as lot of money is required to be spent on numerous religious rites and ceremonies and also on transportation of body.

18. In view of above additions, total compensation payable to claimants of deceased Vikas is as under:­

1. Loss of dependency : Rs. 7,51,452/­

2. Loss of Love & Affection : Rs. 20,000/­

3. Loss of Estate : Rs. 10,000/­

4. Funeral Expenses : Rs. 5,000/­ ­­­­­­­­­­­­­­­­­­ Total : Rs. 7,86,452/­ ­­­­­­­­­­­­­­­­­­

19. In view of the aforesaid discussions, I hereby hold that claimants of deceased Vikas are entitled to net amount of Rs. 7,86,452/­.

MACT No. 228/11 10 of 16

20. In its legal offer, insurance company has deducted 50% of the compensation amount from total compensation of both the deceased on the ground that motorcycle no. DL7S­AM­5991 has contributed to the alleged accident but it has not been mentioned in the legal offer as to how driver of the said motorcycle was responsible for contributory negligence. It has also not been stated as to how the driver of said motorcycle vehicle was responsible for contributory negligence. Therefore, I do not agree with the contention of counsel for insurance company in this regard and as such, no deduction on this count may be made from the compensation amount of both the deceased. Therefore, insurance company is liable to pay compensation without any deduction.

21. In view of the above, insurance company is directed to pay compensation amount of both the deceased as awarded above, within 45 days from today and in case of delay, insurance company shall be liable to pay interest at the rate of 12% per annum for delayed period.

22. The compensation amount of Rs. 19,94,000/­ awarded to the claimants of deceased Vishal Kumar is apportioned between them as under :

1. Claimant no.1 : Rs. 6,69,000/­
2. Claimant no.2 : Rs. 6,00,000/­ MACT No. 228/11 11 of 16
3. Claimant no.3 : Rs. 6,00,000/­
4. Claimant no.4 : Rs. 1,00,000/­
5. Claimant no.5 : Rs. 25,000/­

23. The compensation amount of Rs. 7,86,452/­ awarded to the claimants of deceased Vikas is apportioned between them as under :

1. Claimant no.1 : Rs. 86,452/­
2. Claimant no.2 : Rs. 7,00,000/­

24. As such insurance company is directed to deposit the cheques of the awarded amount in the name of claimants of both deceased in Union Bank of India, Sector­9, Rohini, Delhi through its Branch Manager in the accounts to be opened by them, within 45 days from today and in case of delay, insurance company shall be liable to pay interest at the rate of 12% per annum for delayed period.

25. Upon the aforesaid amount of claimants of deceased Vishal Kumar being deposited, the Union Bank of India, is directed to release Rs. 69,000/­ out of awarded amount of claimant no. 1 of deceased Vishal Kumar and entire awarded amount of claimants no. 4 and 5 of deceased Vishal Kumar by transferring the same into their saving bank accounts. The entire awarded amount of claimants no. 2 MACT No. 228/11 12 of 16 and 3 of deceased Vishal Kumar be kept in FDRs in their names till their age of majority. The remaining amount of claimant no. 1 of deceased Vishal Kumar be kept in fixed deposit in her name in the following manner :

(i) Fixed deposit in respect of 20% of the remaining awarded amount for a period of one year.
(ii) Fixed deposit in respect of 20% of the remaining awarded amount for a period of two years.
(iii) Fixed deposit in respect of 20% of the remaining awarded amount for a period of three years.
(iv) Fixed deposit in respect of 20% of the remaining awarded amount for a period of four years.
(v) Fixed deposit in respect of 20% of the remaining awarded amount for a period of five years.

26. Upon the aforesaid amount of claimants of deceased Vikas being deposited, the Union Bank of India, is also directed to release entire awarded amount of claimant no. 1 of deceased Vikas by transferring the same into his saving bank account. The entire awarded amount of claimant no. 2 of deceased Vikas be kept in fixed deposit in her name in the following manner :

MACT No. 228/11 13 of 16

(i) Fixed deposit in respect of 10% of the remaining awarded amount for a period of one year.

(ii) Fixed deposit in respect of 10% of the remaining awarded amount for a period of two years.

(iii) Fixed deposit in respect of 10% of the remaining awarded amount for a period of three years.

(iv) Fixed deposit in respect of 10% of the remaining awarded amount for a period of four years.

(v) Fixed deposit in respect of 10% of the remaining awarded amount for a period of five years.

(vi) Fixed deposit in respect of 10% of the remaining awarded amount for a period of six years.

(vii) Fixed deposit in respect of 10% of the remaining awarded amount for a period of seven years.

(viii) Fixed deposit in respect of 10% of the remaining awarded amount for a period of eight years.

(ix) Fixed deposit in respect of 10% of the remaining awarded amount for a period of nine years.

(x) Fixed deposit in respect of 10% of the remaining awarded amount for a period of ten years.

MACT No. 228/11 14 of 16

27. The interest on the aforesaid fixed deposits shall be paid quarterly by automatic credit of interest in the Saving Account of the claimants.

28. The claimants shall not be having any facility of loan or advance on these FDRs. However, in case of emergent need, they may approach this court for pre­mature withdrawal of any amount.

29. Withdrawal from the aforesaid account shall be permitted to the claimants after due verification and the Bank shall issue photo identity Card to them to facilitate identity.

30. No cheque book be issued to the claimants without the permission of this court.

31. The Bank shall issue Fixed Deposit Pass Book instead of the FDRs to the claimants and the maturity amount of the FDRs be automatically credited to the Saving Bank Account of the beneficiaries at the end of the FDRs.

32. On the request of the claimants, Bank shall transfer the Saving Account to any other branch according to their convenience.

33. The claimants shall furnish all the relevant documents for opening of the Saving Bank Account to the Branch Manager, Union Bank of India, Sector­9, Rohini, Delhi­85. No joint account be opened in their names.

MACT No. 228/11 15 of 16

34. Copies of this order be given to parties for compliance. Copy of this order be also sent to Branch Manager, Union Bank of India, Sector­9, Rohini, Delhi­85.

35. DAR is disposed of on aforesaid terms. File be consigned to record room.

ANNOUNCED IN THE OPEN                      (CHANDRA BOSE)
COURT ON 16.03.12                                   JUDGE/MACT:ROHINI
                                                           DELHI




MACT No. 228/11                                                         16 of 16