Radhika Gupta & Ors. Vs. Oriental Insurance Co. Ltd. & Ors.  INSC
1755 (24 November 2009)
APPELLATE JURISDICTION CIVIL APPEAL NO.7736 OF 2009 (Arising out of S.L.P. (C)
No.3289 of 2008) Baby Radhika Gupta and Ors. ...Appellant(s) Versus Oriental
Insurance Co. Ltd. and Ors. ...Respondent(s)
O R D E R
learned counsel for the parties.
appeal is directed against the judgment of the Delhi High Court delivered in
Motor Accident Claims Appeal No.239 of 2004 on 9th July, 2007.
May, 1995, Pankaj Gupta, aged 32 years, died in vehicular accident. The Motor
Accident Claims Tribunal gave compensation of Rupees forty five lakhs to his
wife, minor daughter and his parents. The Oriental Insurance Company [for
short, `the Insurance Company'], being aggrieved by the said judgment, filed an
appeal before the High Court.
Court reduced the compensation to Rs.5,82,132/-.
thereby, the dependents of the deceased have preferred this appeal by way of
to the appellants, the High Court has erred in applying the multiplier of 14,
when, according to the second schedule to the Motor Vehicles Act, 1988, the correct multiplier ought to be 17, because at the
time of death, the deceased was 32 years' of age. The learned counsel appearing
for the appellants also submitted that, out of the total income, the High Court
deducted two-third of the amount as personal expenditure of the deceased;
whereas, according to the settled legal position crystallised in number of
cases, it should be one-third. We find substance in the contentions of the
learned counsel for the appellants and deem it appropriate to modify the order.
If we deduct one-third as personal expenditure from the annual income of
Rs.1,18,314/- of the deceased, then it comes to Rs.39,438/- and the remaining
amount would be Rs.78,876/- and if it is multiplied by 17, then the amount would
work-out to be Rs.13,40,892/-.
deceased was 32 years' of age when the accident took place and looking to the
peculiar facts and circumstances of the case, we deem it appropriate to grant
Rupees two lakhs on account of future prospects. The appellants would also be
entitled to the amount of Rupees five thousand, given by the High Court,
towards funeral expenses and Rupees twenty five thousand towards loss of love
modification, the civil appeal is disposed of. In case the Insurance Company
desires to recover this amount from the owner of the vehicle, it would be at
liberty to do so in accordance with law.
the Insurance Company to pay the balance amount to the appellants within four
weeks from today with interest at the rate of nine per cent per annum.
facts and circumstances of the case, the parties to bear their own costs.
......................J. [DALVEER BHANDARI]
......................J. [A.K. PATNAIK]
November 24, 2009.