Arti Devi and Others vs Rajesh and Others

G.P. Mittal, J.—The Appeal is for enhancement of compensation of Rs. 20,06,800/- awarded by the Motor Accident Claims Tribunal(the Claims Tribunal) for the death of Munna Lal who died in a motor vehicle accident which occurred on 16.12.2009. The finding on negligence is not challenged by the driver, the owner or the insurer and has thus attained finality.

On appreciation of evidence, the Claims Tribunal found that the deceased had returned an income of Rs. 1,25,260/- (Ex.PW1/A) for the A.Y. 2008-09 and Rs. 1,64,312/- (Ex.PW1/B) for the A.Y. 2009-10. The Claims Tribunal accepted the deceased''s income to be Rs. 1,64,312/-, deducted 1/4th towards the personal and living expenses(as the number of dependents were 6) and applied a multiplier of ''16'' as per the deceased''s age (32 years) to compute the loss of dependency as Rs. 19,71,800/-. On adding a compensation of Rs. 35,000/- towards non-pecuniary heads, a compensation of Rs. 20,06,800/- was awarded.

It is urged by the Learned Counsel for the Appellants that there was positive evidence in the shape of ITRs that the deceased''s income was increasing. Thus, the Appellants were entitled to an addition of 50% in the deceased''s income towards future prospects.

During inquiry before the Claims Tribunal, it was established that the deceased was running a photo studio. He had filed Income Tax Returns for two years before death. There was an increase of over 20% in the deceased''s income in just one year.

In Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , the Supreme Court simply stated that in case of self employed person; actual income at the time of the death should be taken into consideration. Since in this case the income was increasing and the deceased was aged just 32 years, I would grant him future prospects on the scale of Sarla Verma i.e. 50% on the average income for two years. Similar view was taken by this Court in Santosh Khandelwal & Ors. v. Abbas & Ors., (MAC. APP. 31/2010) decided on 16.03.2012. The loss of dependency thus comes to Rs. 26,06,148/- ( Rs. 1,25,260/- + 1,64,312 �2 = 1,44,786/- +50% x 3 �4 x 16).

On adding a sum of Rs. 25,000/- towards loss of love and affection, Rs. 10,000/- each towards loss to estate, funeral expenses and loss of consortium, the overall compensation comes to Rs. 26,61,148/-.

The enhanced compensation of Rs. 6,54,348/- shall carry interest @ 7.5% per annum. 10% of the enhanced compensation shall be payable to each of the Appellants No. 2 to 5; 20% to Appellant No. 6 and rest 40% shall be payable to the Appellant No. 1. In case of the Appellants No. 2 to 5, the compensation shall be held in Fixed Deposit till each one of them attains the age of 21 years. 80% of the compensation payable to the First Appellant shall be held in Fixed Deposit for a period of three years. Similarly, 50% of the compensation payable to the Appellant No. 6 shall be held in Fixed Deposit for a period of three years. Rest of the compensation shall be released to Appellant No. 1 and 6 on deposit.

The Respondent No. 3 Oriental Insurance Company Ltd. is directed to deposit the enhanced amount of compensation along with interest in the name of the Appellants No. 1 to 6 in the UCO Bank, Delhi High Court Branch within six weeks.

The Appeal is allowed in above terms. Pending Applications stand disposed of.