Sarup Singh @ Ram Sarup Versus HDFC Ergo General Insurance Company Ltd. and Ors.

Sarup Singh @ Ram Sarup Versus HDFC Ergo General Insurance Company Ltd. and Ors.

Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 7283-7284 OF 2022

(@ SLP (C) Nos. 31198-31199/2017)

Sarup Singh @ Ram Sarup …Appellant(s)

Versus

HDFC Ergo General Insurance

Company Ltd. and Ors. …Respondent(s)

J U D G M E N T

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment

and order passed by the High Court reducing the amount of

compensation from Rs. 20,64,000/- as awarded by the learned Motor

Accident Claims Tribunal (hereinafter referred to as the “Tribunal”) to

Rs.11,34,136/- alongwith interest @ 6% p.a., the original claimants

have preferred the present appeals.

2. The deceased at the time of accident was of 28 years of age.

The original claimants – wife of the deceased, minor daughter, father

and sister of the deceased filed the claim petition before the Tribunal.

The learned Tribunal considered the notional income of the deceased

at Rs. 10,000/- per month and thereafter adding 30% towards the

1

future prospect and thereafter deducting 1/4th towards the personal

expense of the deceased, awarded Rs. 19,89,000/- under the head

loss of dependency. The learned Tribunal also awarded Rs. 25,000/-

towards loss of consortium or loss of love and affection and Rs.

50,000/- under the conventional head (funeral expenses and loss of

estate). Thus, the learned Tribunal awarded a total sum of

Rs.20,64,000/- with interest @ 9% p.a. towards the compensation for

the death of the deceased.

3. In an appeal preferred by the insurance company, the High Court

has reduced the amount of compensation to Rs. 11,34,136/- by

considering the notional income @ Rs. 6,500/- per month and

thereafter deducting 1/3rd towards the personal expense of the

deceased and determined/awarded Rs. 8,84,136/- under the head loss

of dependency. The High Court has also awarded a further sum of Rs.

1,00,000/- towards loss of consortium and Rs. 1,00,000/- towards loss

of love and affection for the child and Rs. 50,000/- for loss of estate.

However, the High Court has also reduced the rate of interest from 9%

p.a. to 6% p.a. The impugned judgment and order passed by the High

Court is the subject matter of the present appeal.

2

4. Having heard the learned counsel appearing on behalf of the

respective parties and having gone through the impugned judgment

and order passed by the High Court, we are of the opinion that the

amount awarded by the High Court can be said to be on lower side.

While awarding the loss of dependency, the High Court has not

awarded/considered the future prospects at all. As per the decision of

this Court in the case of National Insurance Company Limited Vs.

Pranay Sethi and Ors., (2017) 16 SCC 680, there shall be 40% rise

towards future prospects. Therefore, even if we consider the notional

income @ Rs. 6,500/- per month as determined by the High Court and

adding 40% towards future prospects and deducting 1/3rd towards

personal expense of the deceased and by applying the multiple of 17,

the claimant shall be entitled to Rs. 12,37,790/- under the head loss of

dependency. Considering the decision of this Court in the case of

Pranay Sethi and Ors. (supra) and the recent decision of this Court in

the case of Janabai and Ors. Vs. I.C.I.C.I. Lombard General

Insurance Company Ltd., 2022 ACJ 2003, the claimant shall also be

entitled to Rs. 40,000/- towards parental consortium for minor child;

Rs. 40,000/- towards spousal consortium for wife and Rs. 40,000/-

towards filial consortium for the father of the deceased. Thus, the

claimants shall be entitled to Rs. 1,20,000/- under the head loss of

consortium. The claimants shall also be entitled to Rs. 30,000/- under

3

the conventional head (funeral expense and loss of estate). The High

Court has also erred in reducing the interest from 9% p.a. to 6% p.a.

Considering the fact that the deceased died in the year 2012, the

claimants shall be entitled to the interest @ 7.5% p.a. Thus, the

claimants shall be entitled to Rs. 13,87,790/- with interest @ 7.5% p.a.

5. In view of the above and for the reasons stated above, the

present appeals are allowed in part. The impugned judgment and

order passed by the High Court is modified and it is held and directed

that the appellants shall be entitled to a total sum of Rs. 13,78,790/-

with interest @ 7.5% p.a. from the date of filing of the claim petition till

realization towards the compensation for the death of the deceased.

Present appeals are accordingly allowed to the aforesaid extent.

However, in the facts and circumstances of the case, there shall be no

order as to costs.

………………………………….J.

 [M.R. SHAH]

NEW DELHI; ………………………………….J.

OCTOBER 17, 2022. [C.T. RAVIKUMAR]

4