NATIONAL INSURANCE COMPANY LTD. Vs SATISH KUMAR VERMA
Bench: HON'BLE MS. JUSTICE INDIRA BANERJEE, HON'BLE MR. JUSTICE SANJIV KHANNA
Judgment by: HON'BLE MS. JUSTICE INDIRA BANERJEE
Case number: C.A. No.-007032-007032 / 2019
Diary number: 38039 / 2017
Advocates: RANJAN KUMAR PANDEY Vs
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7032 OF 2019 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 33338 OF 2017)
NATIONAL INSURANCE COMPANY LIMITED …. APPELLANT(S)
SATISH KUMAR VERMA AND ANOTHER …. RESPONDENT(S)
J U D G M E N T
SANJIV KHANNA, J
2. We have heard counsel for the appellant – National Insurance
Company Limited, but there is no appearance despite service on
behalf of Satish Kumar Verma and Indira Verma (respondent Nos.
1 and 2), father and mother of the deceased Amol Verma.
3. We do not see any justification and ground to interfere with the
findings recorded by the High Court of Uttarakhand in adding
fellowship of Rs.12,000/- per month to the salary of Rs.3,000/- per
month for computing the loss of dependency. The Motor
Civil Appeal arising out of SLP (C) No. 33338 of 2017 Page 1 of 4
Accidents Claims Tribunal had clearly erred in excluding the
fellowship component notwithstanding the Annual Income
Certificate issued by the Indian Institute of Technology (IIT),
Roorkee, affirming that the deceased was being paid consolidated
fellowship as Fellow-‘A’ (Hydro Power). Notably, late Amol Verma
was having an M.Tech degree and was working in one of the most
prestigious engineering institutes in the country. Given this
background, salary of Rs.3,000/- per month would be ridiculously
low. Entire compensation package has to be taken into account.
Thus, the High Court was right in computing annual income of the
deceased at Rs.3,00,000/- per annum by giving benefit of future
prospects. The High Court has also rightly applied the multiplier of
seventeen in view of the decision of this Court in M/s. Royal
Sundaram Alliance Insurance Co. Ltd. v. Mandala Yadagiri
Goud and Others1.
4. However, we agree with the counsel for the appellant that the
deceased being a bachelor, 50% deduction should have been
made towards personal and other living expenses to compute the
dependency of parents, i.e. respondent Nos. 1 and 2. In normal
course, the deceased would have got married and had children.
Deduction of 1/3rd annual income towards personal expenses in
the present case is not appropriate and would not be in 1 Civil Appeal No. 6600 of 2015 decided on 9th April 2019. Civil Appeal arising out of SLP (C) No. 33338 of 2017 Page 2 of 4
consonance with the Constitution Bench judgment in National
Insurance Company Limited v. Pranay Sethi and Another2,
which affirms the view in Sarla Verma and Others v. Delhi
Transport Corporation and Another3. Accordingly, the
compensation payable towards dependency to the first and
second respondents would get reduced from Rs.34,00,000/- to
5. However, we do not find any good ground and reason to interfere
with the direction given by the High Court for payment of
Rs.1,00,000/- towards loss of love and affection and funeral
expenses of Rs.25,000/-. The reason being, this is an
extraordinary case wherein the first and second respondents have
lost a brilliant and young son who was barely 26 years of age. We
would exercise our discretion not to reduce the amount awarded
as nothing has been paid for loss of filial consortium. We also do
not find any justification to interfere with the award of interest @
9% per annum in the facts of the present case.
6. Accordingly, the total quantum of compensation payable by the
appellant to the first and second respondents would be
Rs.26,75,000/- with interest @ 9% per annum from the date of
2 (2017) 16 SCC 680 3 (2009) 6 SCC 121 Civil Appeal arising out of SLP (C) No. 33338 of 2017 Page 3 of 4
filing of the claim petition till the actual date of payment. Amounts
already paid would be adjusted.
7. The civil appeal is disposed of without any order as to costs.
......................................J. (INDIRA BANERJEE)
......................................J. (SANJIV KHANNA)
NEW DELHI; SEPTEMBER 03, 2019.
Civil Appeal arising out of SLP (C) No. 33338 of 2017 Page 4 of 4