$~5

* IN THE HIGH COURT OF DELHI AT NEW DELHI

% Decided on: 16.01.2020

+ MAC.APP. 567/2016
BHAGAT SINGH RAWAT & ORS ..... Appellants
Through: Mr. B.S. Rawat, Adv.

versus

SHRI RAM GENERAL INSURANCE

COMPANY LIMITED ..... Respondent
Through: Mr. Sameer Nandwani, Adv. for R-1.

CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI

NAJMI WAZIRI, J (Oral)

1. This appeal impugns the award of compensation dated 03.03.2016

passed by the learned MACT in Suit No. 168/2014 on the ground that while
computing compensation towards ‘loss of dependency’, the relevant
minimum wages applicable to a Graduate was not applied. The motor
vehicular accident occurred on 21.03.2014; that as per the notification of the
Govt. of NCT of Delhi, the minimum wages applicable to a Graduate w.e.f.
01.10.2013 was Rs. 10,686/- and the same would be applicable.
2. However, the learned counsel for the insurer submits that the
deceased was not a graduate but only a student of Bachelor of Hospitality
Management from Kumaun University, Nainital. It has been proven by the
appellants that the deceased was in the prime of his life, he was 24 years old
at the time of the motor vehicular accident and was earning Rs. 7,688/- by

MAC.APP. No.567-2016 Page 1 of 5

working as an intern with M/s RTC Restaurants India Ltd. This salary of the
deceased was accepted by the learned Tribunal. In this regard, it held as
under:
“20.Income: PW1 in his cross examination stated that his
deceased son was working in hotel but he does not know in
which hotel he was working. His son was getting salary in
cash. He is not aware about which job work and designation
in the said hotels. He has not filed any offer
letter/appointment letter pertaining to the job of his deceased
son. He also does not know since how long his deceased son
was working in the hotel. He does not know about the salary
of his son. He does not know whether his deceased son was
paying income tax or not. For proving the same, he filed on
record salary slips for the month of December 2013 and
March 2014 issued from RTC Restaurants (India) Limited
(Ex, PWl/5 (colly) and his salary is mentioned as Rs. 7688/-
per rnonth. Employee I card of deceased Kuldeep Singh
issued from RTC Restaurants (India) Limited, 705, Chiranjiv
Towaer, 7th Floor, 43, Nehru Place, New Delhi is also on
record which shows that designation of deceased is Server
and his date of joining is 28.10.2013, therefore income of
deceased is assessed as 7688/- per month.”

3. The Court would note that the emoluments in the hotel and catering
industry are not limited to the salary, but a cognizable portion of it comes
through tips given by gratified customers. Ordinarily these tips would
depend upon the class of the restaurant and hotel where the interns or service
providers are engaged. The deceased was working with M/s RTC
Restaurants (India) Ltd., 705, Chiranjiv Tower, 7th Floor, 43, Nehru Place,
New Delhi. Surely this place would be frequented by many patrons, as it is
located in a well known commercial hub of the city. Therefore, a fair
assessment of tips in any restaurant in Nehru Place would be an amount not

MAC.APP. No.567-2016 Page 2 of 5

less than Rs. 6,000/-. Let this amount be added to the monthly salary of the
deceased. The monthly income would then be Rs. 13,688/-.
4. Since the deceased was in private employment and under the age of
40 years, there shall be an addition of 40% towards ‘loss of future
prospects’, in terms of the dicta of the Supreme Court in National Insurance
Co. Ltd. vs. Pranay Sethi & Ors., (2017) 16 SCC 680. Insofar as there are
three claimants, deduction towards ‘personal expenses’ shall be 1/3rd.
5. It is pertinent to note that in terms of the dicta of the Supreme Court
in Magma General Insurance Co. Ltd. vs. Nanu Ram @ Chuhru Ram &
Ors., 2018 SCC OnLine SC 1546, each of the claimants shall be entitled to
and are hereby granted compensation for ‘loss of consortium’ and ‘loss of
love and affection’ @ Rs. 40,000/- and Rs. 50,000/- respectively.
Additionally, in terms of Pranay Sethi (supra), each of the claimants would
be entitled to and are granted compensation for ‘funeral expenses’ and ‘loss
of estate’ @ Rs. 15,000/- each.
6. Following the dicta of the Supreme Court in Magma (supra), this
Court in National Insurance Co. Ltd. vs. Lokesh Verma & Ors., MAC. APP.
762-763/2019, decided on 02.09.2019, had awarded compensation towards
‘loss of love and affection’ and ‘loss of consortium’ @ Rs. 50,000/- and Rs.
40,000/- respectively, to each of the claimants. In the aforesaid judgment, it
was held as under:
“….
10. The Court would note that in terms of Magma
General Insurance Co. Ltd. v. Nanu Ram Alias Chuhru
Ram & Ors., 2018 SCC OnLine SC 1546, each of the two
claimants would be entitled to an award of compensation
at the rate of Rs. 40,000/- and Rs. 50,000/- towards “loss
of consortium” and “loss of love and affection”

MAC.APP. No.567-2016 Page 3 of 5

 respectively. The impugned order has only awarded Rs.
40,000/- towards “loss of consortium”, same would have
to be supplemented by another Rs. 40,000/- towards “loss
of consortium” and Rs. 1,00,000/- towards “loss of love
and affection” (Rs. 50,000/-x2) ”

7. SLP (Civil) No(s). 25316-25317/2019, against the said judgment was

dismissed by the Supreme Court on 24.10.2019.
8. The amount payable to the appellants/claimants shall be:

S.No. Particulars Amount

1. Loss of Dependency Rs. 27,56,741/-
[Rs. 13,688/- (monthly income of the
deceased) x 12 (months) x 18 (multiplier) x
140/100 (loss of future prospects) x 66.6/100
(1/3rd deduction towards personal expenses)]
2. Loss of love and affection Rs. 1,50,000/-
[Rs. 50,000/- x 3 (claimants)]
3. Loss of consortium Rs. 1,20,000/-
[Rs. 40,000/- x 3 (claimants)]
4. Loss of Estate Rs. 15,000/-
5. Funeral Expenses Rs. 15,000/-
TOTAL Rs. 30,56,741/-

9. The aforesaid amount, alongwith interest accrued @ 9% per annum

from the date of filing of the claim petition till its realization, shall be
deposited by the insurance company before the learned Tribunal, within a
period of three weeks from the date of receipt of copy of this order, to be
released to the beneficiary(ies) of the Award in terms of the scheme of
disbursement specified therein.

MAC.APP. No.567-2016 Page 4 of 5

10. The learned counsel for the claimant submits that they lost their son in
the year 2014 and thus far they have received only Rs. 3 lacs approximately
in the year 2016. They need some more monies right away to take care of
their pressing financial needs. Let an amount of Rs. 4 lacs i.e. Rs. 2 lacs
each, be released directly into their respective accounts maintained in a
Bank near their place of residence, within three weeks from the date of
receipt of this order.
11. The appeal is disposed-off in the above terms.

NAJMI WAZIRI, J
JANUARY 16, 2020/kk

MAC.APP. No.567-2016 Page 5 of 5