National Insurance Company Ltd. vs Satish Kumar Verma
- SCC(2019) 8 SCC 660
- Neutral2019 INSC 995
Ratio decidendi
The rule this decision rests on
Where a deceased person was earning income comprised of multiple components (salary and fellowship) supported by official documentation from their employer, both components must be included in computing loss of dependency, notwithstanding that one component might be characterized as supplementary, where excluding it would result in an unreasonably low income figure inconsistent with the deceased's qualifications and position. For a bachelor claimant whose parents depend on him for support, a deduction of 50% of annual income towards the deceased's own personal and living expenses—rather than one-third—is the appropriate measure when calculating the loss of dependency, as the deceased would in normal course have married and had children requiring support, in accordance with the principles established in National Insurance Company Limited v. Pranay Sethi and Sarla Verma v. Delhi Transport Corporation. Awards for loss of love and affection and funeral expenses made by the High Court should not be interfered with in a case where the parents have lost a young adult child of exceptional promise and achievement, where the parents have received no compensation for loss of filial consortium, and the award is proportionate to the circumstances, even if such awards have not been granted in other cases.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
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)
VERSUS
SATISH KUMAR VERMA AND ANOTHER …. RESPONDENT(S)
JUDGMENT
SANJIV KHANNA, J
Leave granted.
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 Signature Not Verified
fellowship of Rs.12,000/- per month to the salary of Rs.3,000/- per Digitally signed by CHARANJEET KAUR Date: 2019.09.05 17:00:49 IST Reason:
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
Rs.25,50,000/-.
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
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free