Kuldeep Singh Bawa and Others vs Tika Ram and Others

G.P. Mittal, J.—The Appellants seek enhancement of compensation of Rs. 6,54,000/- awarded for the death of Veena Bawa who died in an accident which occurred on 27.09.1994.

The ground of challenge is that the judgment is silent on the aspect that the Claims Tribunal erred in calculating the Income Tax. Instead of calculating the Income Tax on the income beyond Rs. 35,000/-, it deducted Income Tax @ 20% on the entire income of the deceased. It is submitted that the Appellants were not granted any compensation under the head of loss of love and affection.

The Appeal must succeed. The liability of Income Tax on the income of Rs. 52,020/- for the Assessment Year 1995-96 would come to Rs. 3,400/-. On applying the principle as suggested by Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , i.e. adding 50% towards future prospects, deducting 1/3rd towards personal and living expenses and applying the multiplier of 15, the loss of dependency comes to Rs. 7,29,300/-.

In addition to this, the Appellants would also be entitled to a sum of Rs. 10,000/- towards loss of love and affection.

The compensation is re-computed as under:

S.No.

Head of Compensation

Granted by the Claims Tribunal

Granted by this Court

1.

Loss of Dependency

Rs. 6,24,240/-

Rs. 7,29,300/-

2.

Loss of Love and Affection

-

Rs. 10,000/-

3.

Loss of Consortium

Rs. 10,000/-

Rs. 10,000/-

4.

Funeral Expenses

Rs. 10,000/-

Rs. 10,000/-

5.

Loss to Estate

Rs. 10,000/-

Rs. 10,000/-

Total

Rs. 6,54,240/-

Rs. 7,69,300/-

The overall compensation is thus enhanced from Rs. 6,54,240/- to Rs. 7,69,300/- which shall carry interest @ 7.5% per annum from the date of filing of the Petition till the date of payment.

The Respondent No. 3 National Insurance Company Ltd. is directed to deposit the enhanced amount of Rs. 1,15,060/- along with interest within six weeks with the Registrar General of this Court.

The amount shall be equally disbursed between the three Appellants and shall be released on deposit.

The Appeal is allowed in above terms.