Kusum Ranjan and Others vs Sh. Rajesh Kumar and Others

Reva Khetrapal, J.—The Appellants in this appeal seek enhancement of the compensation awarded to them by the Motor Accident Claims Tribunal by Award dated 25th July, 2002.

The facts are not in dispute. The Appellants, who are the legal heirs of Sh. Ashok Kumar Ranjan, had filed a petition for compensation on account of his death in a road accident on 27th July, 1994 at 7.25 p.m. on Old Rohtak Road. The deceased was driving his two-wheeler scooter on the left side of the road at Azad Market when he was hit by the offending bus bearing registration No. DL-1P-2037 from behind. The deceased, after he fell down, was run over by the front wheel of the bus and died at the spot.

The Motor Accident Claims Tribunal, by its judgment dated 25th July, 2002 passed an award in the sum of Rs. 7,73,200/- (Rupees Seven Lakh Seventy Three Thousand and Two Hundred Only) including the interim award with interest @ 9% per annum from the date of the institution of the petition till the date of the award. Dissatisfied with the award amount, the claimants, who are the Appellants in this appeal, pray for modification of the award amount.

At the time of hearing, Mr. Navneet Goyal, the learned Counsel for the Appellants assailed the award on three grounds, which are as follows:

(i) The Tribunal wrongly assessed the total salary of the deceased at Rs. 4645/-, though as per the salary certificate of the deceased (Ex. PW2/1), the salary of the deceased was Rs. 5005/-. The monthly earning of the deceased ought to have been calculated by adding to the income of the deceased (at the time of his death), a sum of Rs. 17,669/- (income at the age of superannuation) and dividing the total sum by the figure of 2.

(ii) The Tribunal erroneously applied the multiplier of 12 instead of applying the multiplier of 15 which was the correct multiplier; and

(iii) The Tribunal, while granting the non-pecuniary damages to the Appellants, neglected to award any amount towards loss of estate and funeral expenses; instead, awarded a sum of Rs. 10,000/- in all for loss of consortium, parental support and loss of estate.

Mr. Madhurendra Kumar, the learned Counsel for the Respondent No. 5- M/s. Oriental Insurance Company Ltd., on the other hand supported the award passed by the learned Tribunal. According to him the impugned award was passed on the documentary and oral evidence on record and no modification thereto was warranted on facts or in law.

Having heard the learned Counsel for the parties who have taken me through the record, I am unable to agree with the submission made by the learned Counsel for the Respondent No. 5. It is not in dispute that the deceased was in a regular and stable job and was working in Mata Jai Kaur Public School, Ashok Vihar, Delhi. PW-2, the Accountant from the said school has proved the salary statement of the deceased at the time of his death, which is Ex.PW2/1. As per this certificate, the deceased was earning a sum of ` 5005/- at the time of his death. Ex.PW2/6 is a statement under the signatures of the Principal of Mata Jai Kaur Public School showing how the salary of the deceased would have risen from year to year, i.e. from 1995 to 2013. As per the said exhibit, (Ex.PW2/6) in the year of the passing of the award, i.e. in the year 2002, the total salary of the deceased would have been Rs. 13,200/- per month and Rs. 17,669/- per month at the time of superannuation. The deceased, at the time of his death was 39 years of age and he had left behind five dependants including his mother, who died during the pendency of the claim petition.

Applying the law laid down by the Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , an addition of 50% must be made to the actual salary income of the deceased towards future prospects. The relevant part of the judgment states: -

In view of imponderables and uncertainties, we are in favour of adopting as a rule of thumb, an addition of 50% of actual salary to the actual salary income of the deceased towards future prospects, where the deceased had a permanent job and was below 40 years.

The record reveals that the deceased had a permanent job as a teacher in Mata Jai Kaur Public School and was below 40 years of age. Thus, though the evidence indicates a different and larger percentage of increase, this Court as mandated by the Supreme Court, is adopting the standardized addition. In this manner, the salary of the deceased works out to Rs. 5005/- (actual salary) + Rs. 2502.50 (50% increase) = Rs. 7507.50, which may be rounded off to Rs. 7507/-. Deducting 1/4th towards the personal and living expenses of the deceased, in view of the fact that the number of the dependant family members of the deceased fell in the bracket of 4 to 6, the loss of dependency of the family comes to Rs. 7507 - ` 1877 (rounded off) = Rs. 5630/- (per month). The annual income, thus, comes to ` 5630 x 12 = ` 67560/-. Applying the multiplier of 15 in accordance with the column No. 4 of the chart set out in the paragraph 19 of the judgment in the case of Sarla Verma (supra), the total loss of dependency works out to Rs. 67560 x 15 = Rs. 10,13,400/-.

In addition, the Appellants will be entitled to a sum of ` 5000/- under the head loss of estate and Rs. 5000/- towards funeral expenses, apart from the sum of Rs. 10,000/- awarded by the Tribunal towards loss of consortium. Thus, the total compensation will be ` 10,33,400/-. After deducting the amount awarded by the Tribunal, i.e. Rs. 7,73,200/-, the enhancement would be Rs. 2,60,200/- in addition to the amount awarded by the Tribunal (i.e. 7,73,200/- with interest @ 9% per annum). Interest @ 7.5 % per annum shall be payable by the Respondents No. 5 on the enhanced amount from the date of the filing of the appeal till the date of realization. The enhanced amount along with the interest shall enure to the benefit of the widow of the deceased, the Appellant No. 1 herein.

The Respondent No. 5 is directed to make the payment of the award amount within one month, failing which the award shall carry a further interest @ 10% per annum from the date of the award till the date of realization of the compensation. 11. The appeal stands allowed in the above terms.