National Insurance Company Limited vs Sarojini Devi and Others

G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs.17,45,572/- awarded for the death of Rattan Mani who was working in MTNL; was aged 51 years and getting a salary of Rs.18,403/- p.m. The Appellant Insurance Company disputes the quantum of compensation on the grounds:

(i) There were two or three dependents; the deduction towards the personal and living expenses should have been 1/3rd instead of 1/4th.

(ii) Deduction towards liability of Income Tax was not made.

On the other hand, it is submitted by the learned counsel for the Respondents/Claimants that the deceased was survived by a widow, daughter aged 18 years and two sons aged 23 and 27 years. The son who was aged 23 years at least must be considered as a dependent. It is submitted that the compensation of Rs.10,000/- towards loss of love and affection was on the lower side. It is stated that the liability towards Income Tax was to be taken into consideration while computing loss of dependency from only out of the income which was subject to Income Tax.

Admittedly, the widow and the daughter aged 18 years were financially dependent on the deceased. A son aged 23 years would be in the process of settling in his life and, therefore, he was also to be considered as a dependent. In any case, there would be deduction of 1/3rd towards the personal and living expenses irrespective of the fact whether the number of dependents are two or three in view of the report in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another,

The compensation of Rs.10,000/- towards loss of love and affection was on the lower side. Loss of love and affection can never be measured in terms of money. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma and Others Vs. Bachitar Singh and Others, and in Baby Radhika Gupta and Others Vs. Oriental Insurance Co. Ltd. and Others, granted ` 25,000/- (in total to all the claimants) under the head of loss of love and affection. Thus, I would enhance the compensation under this head to ` 25,000/-.

After the deduction of an amount of `650/- which was the payment made towards transport allowance and washing allowance from the gross salary of the deceased and excluding Rs.2,736/- paid towards the house rent allowance from the calculation made towards liability of Income Tax, the deceased was expected to pay Income Tax of Rs.5959/-. Thus the loss of dependency comes to Rs.15,18,564/- (Rs.17753/- X 12 - 5959 X 2/3 X 11). On adding a sum of Rs.25,000/- towards loss of love and affection and Rs.10,000/- each towards loss of consortium, loss to estate and funeral expenses, the overall compensation comes to Rs.15,73,564/-.

The amount of compensation along with interest @ 7.5% as awarded by the Claims Tribunal and interest, if any, accrued during pendency of the Appeal shall be released to the Claimants in the proportion and the manner as directed by the Claims Tribunal.

The excess amount of Rs.1,72,008/- along with proportionate interest and the interest accrued during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

The statutory amount of Rs.25,000/- shall be refunded to the Appellant Insurance Company. The Appeal is allowed in above terms.