Oriental Insurance Company Limited vs Jyotirmoy Das and Others

Deepak Gupta, C.J.—By means of this appeal, the insurance company has challenged the award passed by the learned Motor Accident Claims Tribunal, North Tripura, Dharmanagar whereby he awarded sum of Rs. 31,20,464/- in favour of the claimants and held the insurance company liable to pay the same.

The claim petition was filed by the parents and brother of the deceased Debabrata Das, who died in a motor vehicle accident. The deceased was aged 32 years and was serving as Agriculture Officer, TAFS Grade I and was drawing salary of Rs. 21,656/- per month. The learned Tribunal added 50% of the income of the deceased deducted 50% for his personal expenses since he was a bachelor, applied multiplier of 16 and thus, assessed the compensation.

The main ground raised by Mr. P. Gautam, learned counsel for the insurance company is that though the learned Tribunal has referred to Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, case while fixing the datum figure and also while applying the multiplier and while making addition to the income on account of future prospects, but the learned Tribunal did not make any deduction for income tax which has also been provided for in the same judgment.

In Sarla Verma''s (supra) case, the Court has also specifically laid down that where incomes calculated are taxable deduction for income tax must be made.

The deceased was drawing Rs. 21,656/- per month and his total involvement was therefore almost Rs. 2,60,000/- per year. While taking the future prospects 50% would been added which should make the income Rs. 3,90,000/- per year approximately. On this income, income tax is definitely payable. In the case of a saddled individual the income tax payable where the income is Rs. 3,90,000/- would be almost Rs. 24,000/- a year assuming that the person may take benefit of some tax rebates then also the income tax would not be less than Rs. 2,000/- a month. Therefore, the net taxable income is taken Rs. 21,656/- + 50% - Rs. 2,000/-=Rs.30,484/- deducting 50% of the expenses of the deceased, the amount works to Rs. 15,242/- per month or Rs. 1,82,904/- per year, applying a multiplier of 16, the compensation works out Rs. 29,26,464/-. In addition thereto, the mother is held entitled to Rs. 50,000/- for loss of love and affection and another sum of Rs. 7,500/- is awarded for funeral expenses and the total compensation assessed at Rs. 29,83,964/- (Rs. 29,26,464/- + Rs. 50,000/- + Rs. 7,500/-).

In view of the above discussion, the appeal is partly allowed and the compensation reduced from Rs. 31,20,464/- to Rs. 29,83,964/-. The claimants on this amount shall also be entitled to interest @7.5% per annum from the date of filing of the claim petition till payment/deposit of the awarded amount. It appears that the insurance company has already satisfied the awarded amount and, therefore, the insurance company is directed to deposit the amount of compensation along with proportionate interest thereupon in the Registry of this Court within 4(four) months from today. Obviously, the insurance company shall be entitled to adjust the amount(s), if any, which it has already paid or deposited.

Out of the awarded amount, the mother shall be entitled to Rs. 25,00,000/- (Rupees Twenty five lakhs) and the father to Rs. 4,83,964/- (Rupees Four lakhs eighty three thousand nine hundred sixty four) only. The amount payable to the father may be released, but out of the amount payable to the mother only Rs. 5,00,000/- (Rupees Five lakhs) shall be released and the balance amount shall be kept in a fixed deposit for the period of 5 years at the first instance.

The appeal is disposed of. Send down the LCRs forthwith.