Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 2933 of 2015, Judgment Date: Mar 17, 2015

  •  It has also been observed  by  the  High
    Court for the purpose of calculation of future loss  of  dependency  of  the
    appellant that the deceased at the time of the  accident  on  10.7.1990  was
    drawing a salary of Rs.4,214/- per month and was 45 years of  age.  However,
    we are of the view that the salary of the deceased at the time of her  death
    taken by the High Court is on  the  lower  side  considering  that  she  was
    employed as a permanent teacher in a government school  and  she  must  have
    had at least 20-25 years of work  experience  at  the  time  of  her  death.
    Therefore, on considering the facts, circumstances, pleadings  and  evidence
    on record in the present case, we are of the view that it would be just  and
    proper to take the monthly income of the deceased at Rs.6,000/-  per  month.
  • Thus, the total enhanced  compensation  payable  to  the  appellant  by  the
    respondent-Insurance Company will be Rs.10,98,600/-  with  interest  at  the
    rate of 9% p.a. from the date of filing of the application till the date  of
    payment. 
  • The appeal is allowed as per the above said directions.
 



                         IN THE SUPREME COURT OF INDIA
                          CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO.2933 OF 2015
                  (Arising out of SLP(C) NO. 1868 of 2014)

SURTI GUPTA                                               ...APPELLANT

                                     Vs.

UNITED INDIA INSURANCE CO. & ANR.                      ...RESPONDENTS


                               J U D G M E N T

V. GOPALA GOWDA, J.

     Delay condoned. Leave granted.

  This appeal has been filed by the appellant being  dissatisfied  with  the
impugned Judgment and award dated 02.07.2012 passed in FAO No.1647  of  1992
(O & M) by the High Court of Punjab and Haryana at  Chandigarh  wherein  the
High Court has awarded the  compensation  amount  of  Rs.6,30,000/-  to  the
appellant.
   The relevant facts are stated hereunder to appreciate  the  case  with  a
view to determine whether the  appellant  is  entitled  for  enhancement  of
compensation amount as prayed in this appeal.
   On the night intervening 9/10.07.1990 at around 12:30 a.m., Parmod  Bala,
mother  of  the  appellant,  who  along  with  five  other  passengers  were
travelling in a Maruti Car bearing registration No. PBW-8399,  met  with  an
accident near Oasis Tourist Complex on  G.  T.  Road  near  Uchana  village,
Police Station Sadar Karnal, when a truck bearing registration No.  PIB-5733
being driven rashly and negligently by respondent  no.  2  coming  from  the
opposite direction collided with the said car. Parmod Bala succumbed to  the
injuries caused to her due to the accident on the same day. An FIR  No.  262
was registered on 10.7.1990  at  the  Police  Station,  Sadar  Karnal  under
Sections 279/337/304-A of the I.P.C. against respondent no. 2 herein.
   The appellant being the only surviving legal representative, who was  the
adopted child of the deceased, filed a claim petition No.89 of  1990  before
the M.A.C.T., Karnal seeking for compensation for the death of her  deceased
mother. The appellant at the time of the accident was 15 years  of  age  and
was wholly dependent  on  her  mother.  The  Tribunal  by  its  award  dated
11.11.1991 dismissed the said claim petition filed by the appellant  on  the
ground that she could  not  prove  to  be  a  legal  representative  of  the
deceased.
   Aggrieved by the said award of the  Tribunal,  the  appellant  filed  FAO
No.1647 of 1992 before the High Court of Punjab and Haryana  at  Chandigarh.
The High Court allowed the appeal filed by the appellant and set  aside  the
award of the  Tribunal  and  awarded  an  amount  of  Rs.6,30,000/-  to  the
appellant. The relevant portion of the judgment and award of the High  Court
is extracted hereunder to examine the break-up of  figures  and  calculation
made by the High Court  before  arriving  at  the  above  said  compensation
amount of Rs. Rs.6,30,000/- awarded under different  heads  payable  to  the
appellant by the respondent-Insurance Company.

"At the time of death, the deceased was said  to  have  been  working  as  a
teacher, drawing a salary of Rs.4,214/-. She was 45 years of age and as  per
the formula prescribed in the judgment  of  the  Hon'ble  Supreme  Court  in
Sarla Verma Versus  Delhi  Transport  Corporation  and  another  [2009(6)SCC
121,] the prospect of increase in salary must have been  duly  provided  for
by escalating the  salary  by  another  30%.  The  average  salary  must  be
Rs,5,478/- and  if  1/3rd  deduction  were  to  be  made  for  the  personal
consumption of the deceased, the dependency for the appellant must be  taken
as Rs.3,652/- per month. Providing for a  multiplier  of  14,  the  loss  of
dependency will be Rs.6,13,536/-. To this sum shall be  added  the  loss  to
estate, funeral expenses and loss of love and affection, all  of  which,  in
my view, add to another 15,000/-. In all, the total amount  of  compensation
that  become  payable,  shall  be  Rs.6,28,536/-,  which  I  round  off   to
Rs.6,30,000/-."

   Being aggrieved of the compensation amount awarded by the High  Court  in
its impugned judgment  and  award,  the  appellant  has  filed  this  appeal
seeking for enhancement of compensation urging various  grounds  in  support
of her claim.
   It is contended by the learned counsel for the appellant  that  the  High
Court has failed to appreciate the fact that at the time of the  unfortunate
incident, the appellant was only 15 years of age and  since  then  i.e.  for
the last 25 years, the appellant has  been  suffering  from  mental  trauma,
loss of love and affection of her deceased mother  and  virtually  lost  the
higher education and initial career building period of her life.
   It is further contended by him that the  High  Court  erred  by  awarding
only an addition of 30% to the actual salary of the deceased at the time  of
her death towards future income prospects by  ignoring  the  fact  that  the
deceased had a permanent job  as  a  teacher  in  a  Government  school  and
further the High Court has erred in taking the salary  of  the  deceased  at
the time of her death at Rs.4,214/- when the actual salary  drawn  was  much
higher as she was working as a permanent teacher in a Government school.
On the other hand, the above contentions of the learned  counsel  on  behalf
of the  appellant  have  been  rebutted  by  the  learned  counsel  for  the
respondent-Insurance Company by contending that the High Court has passed  a
detailed  and  reasoned  judgment  and  award  after  due   application   of
principles of law and after taking into consideration the  legal  principles
laid down in the latest judgments  of  this  Court  on  the  above  relevant
aspects of the case. Hence, the same does not require interference  by  this
Court and prayed for dismissal of the appeal.
We have heard the learned counsel for both the  parties  and  also  examined
the facts and circumstances of the case and the evidence on  record.  It  is
clear that the deceased at the time of her death was working  as  a  teacher
in a Government school. It has been observed by  the  High  Court  that  the
appellant had been adopted by the deceased, and was wholly dependent on  her
mother at the time of the accident. It has also been observed  by  the  High
Court for the purpose of calculation of future loss  of  dependency  of  the
appellant that the deceased at the time of the  accident  on  10.7.1990  was
drawing a salary of Rs.4,214/- per month and was 45 years of  age.  However,
we are of the view that the salary of the deceased at the time of her  death
taken by the High Court is on  the  lower  side  considering  that  she  was
employed as a permanent teacher in a government school  and  she  must  have
had at least 20-25 years of work  experience  at  the  time  of  her  death.
Therefore, on considering the facts, circumstances, pleadings  and  evidence
on record in the present case, we are of the view that it would be just  and
proper to take the monthly income of the deceased at Rs.6,000/-  per  month.
Further, on addition of 30% to the income of  the  deceased  towards  future
prospects as per the principles laid down by  this  Court  in  the  case  of
Sarla Verma v. Delhi  Transport  Corporation  and  Another[1],  the  monthly
income for the calculation of future loss of  dependency  of  the  appellant
would be Rs.7,800/- (Rs.6,000/- + 30% of Rs.6,000/-). Therefore, the  annual
income comes to Rs.93,600/-. On deduction of  1/3rd  of  the  annual  income
towards personal expenses and applying the  appropriate  multiplier  as  per
the principles laid down by this Court in the case of Sarla  Verma  (supra),
the future loss of dependency suffered by the  appellant  is  calculated  at
Rs.8,73,600/- [(Rs.93,600/-       (-) 1/3rd of Rs.93,600/-) X 14].
Further, the High Court has certainly erred in awarding a meagre  amount  of
only Rs.15,000/- for loss of estate, loss of love and affection and  funeral
expenses. Therefore,  we  award  Rs.1,00,000/-  towards  loss  of  love  and
affection as per the decision of this Court in the case of Juju  Kuruvila  &
Ors. v. Kunjujamma Mohan & Ors.[2]. We also award an amount of Rs.1,00,000/-
 towards loss of estate as per the decision of this Court  in  the  case  of
Kalpanaraj & Ors. v. Tamil Nadu State Transport Corporation[3].  Further,  a
sum  of  Rs.25,000/-  is  awarded  towards  funeral  expenses  as  per   the
principles laid down by this Court in the case of Rajesh &  Ors.  v.  Rajbir
Singh & Ors.[4]
The High Court has further erred in awarding an interest at the rate  of  6%
per annum only, instead of 9% per annum on the compensation  amount  as  per
the principles laid by this Court in the case of  Municipal  Corporation  of
Delhi v. Association of Victims of Uphaar Tragedy[5]. We  accordingly  award
an interest at the rate of 9% per annum on the compensation amount.

   In the result, the appellant shall be entitled to compensation under  the
following heads:

|1.       |Loss of dependency         |Rs.8,73,600/-            |
|2.       |Loss of Estate             |Rs.1,00,000/-            |
|3.       |Loss of love and affection |Rs.1,00,000/-            |
|4.       |Funeral expenses           |Rs.25,000/-              |
|         |TOTAL                      |Rs. 10,98,600/-          |

Thus, the total enhanced  compensation  payable  to  the  appellant  by  the
respondent-Insurance Company will be Rs.10,98,600/-  with  interest  at  the
rate of 9% p.a. from the date of filing of the application till the date  of
payment. The respondent-Insurance Company shall either pay by way of  demand
draft in favour of the appellant  or  deposit  the  same  with  interest  as
awarded,  before  the  Motor  Accidents  Claims  Tribunal,   Karnal,   after
deducting the amount already paid to  the  appellant,  if  any,  within  six
weeks from the date of receipt of the copy of this judgment.

   The appeal is allowed as per the above said directions. No Costs.


..............................................................................
                                                                          J.
                                                      [V.GOPALA GOWDA]



..............................................................................
                                                                          J.
                                                       [C. NAGAPPAN]


New Delhi,
March 17, 2015


ITEM NO.1A-For Judgment      COURT NO.9               SECTION IVB

               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

Civil Appeal  No(s)........./2015 arising from SLP(C) No.1868/2014

SURTI GUPTA                                        Appellant(s)

                                VERSUS

UNITED INDIA INSURANCE CO. & ANR.              Respondent(s)

Date : 17/03/2015 This petition was called on for pronouncement of JUDGMENT
today.

For Appellant(s)
                     Mr. Abhay Kumar,Adv.

For Respondent(s)
                     Ms. Manjeet Chawla,Adv.

            Hon'ble Mr. Justice V.Gopala Gowda pronounced  the  judgment  of
the Bench comprising His Lordship and Hon'ble Mr. Justice C. Nagappan.
            Delay condoned.
            Leave granted.
            The appeal is allowed in terms of the signed      Non-Reportable
Judgment.

    (VINOD KR.JHA)                            (TAPAN KUMAR CHAKRABORTY)
      COURT MASTER                                COURT MASTER
            (Signed Non-Reportable Judgment is placed on the file)

-----------------------
[1]    2009(6)SCC 121
[2]    (2013)9 SCC 166
[3]    2014 (5) SCALE 479
[4]     (2013) 9 SCC 54
[5]    (2011) 14 SCC 481

-----------------------
|NON REPORTABLE    |