Pushpa Gupta and Others vs Munna Lal and Others

G.P. Mittal, J.—The Appeal is for enhancement of compensation of Rs. 39,35,800/- awarded for the death of Anil Kumar Gupta who died in a motor accident which occurred on 04.07.2010. It is urged by the learned counsel for the Appellants that the deceased was working as a Farm Technician in Indian Agricultural Research Institute, Pusa, New Delhi. He was a meritorious employee and had very good future prospects. The Claims Tribunal erred in making lumpsum calculation towards the income tax. Future prospects ought to have been granted more than 30% as this would fall under an exception to Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another,

The deceased was in settled Govt. employment and considering his age to be less than 44 years, he was entitled to addition of 30% towards the future prospects.

I do not find any extraordinary circumstance so as to deviate from the principle as laid down in Sarla Verma (supra). I would agree with the learned counsel for the Appellants that the deduction towards the income tax has to be actual and has to be made before making addition towards the future prospects.

The payment of House Rent Allowance made to an employee would be treated as tax free. Normally, this amount is spent for the purpose of providing housing to the deceased employee and to the members of his family.

On this principle, the loss of dependency comes to Rs. 46,80,475/- (29,616/- x 12 - 12,500 (tax) + 30% x 3/4 x14).

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. 47,35,475/-.

The compensation is thus enhanced from Rs. 39,35,800/- to Rs. 47,35,475/-.

The enhanced compensation of Rs. 7,99,675/- shall carry interest @ 7.5% per annum from the date of filing of the Petition till its deposit with the Claims Tribunal.

Respondent No.3 National Insurance Company Limited is directed to deposit the enhanced compensation along with interest with the Claims Tribunal within six weeks.

Out of the enhanced compensation, a sum of Rs. 2,00,000/- along with proportionate interest shall be payable to the Fourth Appellant. Rest of the amount along with proportionate interest shall enure for the benefit of the First Appellant.

The amount payable to the Fourth Appellant shall be held in fixed deposit in equal proportion for a period of two years and four years.

The amount payable to the First Appellant shall be held in fixed deposit for a period of two years, four years and six years in equal proportion. The Appeal is allowed in above terms.