Mithlesh & Anr vs Abbo Kumar & Ors(United India Insurance Co. Ltd.)

J.R. MIDHA, J

The appellants have challenged the award of the Claims Tribunal whereby compensation of Rs.30,45,404/- has been awarded to the appellants.

The accident dated 16th March, 2016 resulted in the death of Ajay Kumar. The deceased was aged 24 years and was self employed as building

material supplier. It was claimed that the deceased was earning Rs.30,000/-per month. The deceased was survived by his parents who filed the claim

petition for compensation before the Claims Tribunal.

The Claims Tribunal took the income of Rs.2,77,181/- per annum as income of the deceased, deducted 1/2 towards the personal expenses of

deceased and applied the multiplier of 14 to compute the loss of dependency as Rs.29,10,404/-. The Claims Tribunal awarded Rs.1,00,000/- towards

loss of love and affection, Rs.10,000/- towards loss of estate and Rs.25,000/-towards funeral expenses. The total compensation awarded is

Rs.30,45,404/.

Learned counsel for the appellant urged at the time of hearing that multiplier be enhanced to 18 and the future prospects be taken into consideration

in terms of National Insurance Co. Limited v. Pranay Sethi (2017) 16 SCC 680.

Learned counsel for respondent No.3 submits that compensation for loss of love and affection is no more a permissible head and be set aside and

the compensation of loss of estate and funeral expenses be awarded in terms of the principles laid down in National Insurance Co. Limited vs. Pranay

Sethi (supra). It is further submitted that the income of the deceased be taken after deducting the Income Tax.

This Court is of the view that the income of the deceased be taken after deducting the Income Tax. The claimants are entitled to the addition of

40% of the future prospects in terms of the principles laid down in National Insurance Co. Limited v. Pranay Sethi (supra). However, the

compensation of Rs.1,00,000/- awarded towards loss of love and affection is no more a permissible head and is liable to be set aside. The

compensation of loss of estate and funeral expenses have to be restricted to Rs.15,000/- each.

Taking the income of deceased as Rs.2,75,463/- per annum(after deducting Tax of Rs.1,718/- from Rs.2,77,181/-), adding 40% towards future

prospects, deducting ½ towards personal expenses and applying multiplier of 18, the loss of dependency is computed as Rs.34,70,834/-. Adding

Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses, the total compensation is computed as Rs.35,00,834/-.

The appeal is allowed and the compensation amount is enhanced from Rs.30,45,404/- to Rs.35,00,834/- along with interest @ 9% per annum.

Respondent No.3 is directed to deposit the enhanced award amount with the Registrar General of this Court within four weeks.

The appellants are present in Court and have produced the passbooks of their savings bank accounts. The particulars of their savings bank

accounts are as under:-

(i) Appellant No.1 â€" Mithlesh A/c No.6572000100042197 with Punjab National Bank, Najafgarh Road, Delhi-110061 (IFSC Code: PUNB0657200)

(ii) Appellant No.2 â€" Bijender Singh @ Vijendra Singh A/c No.6572000100042179 with Punjab National Bank, Najafgarh

List for disbursement of the compensation amount on 12th October, 2018.

Copy of this Judgement be given dasti to counsels for the parties under the signatures of the Court Master.