High CourtsSingle Bench

Ram Rati Goyal and Others vs Harmeet and Others

Delhi High Court · Decided on 23 November 2011 · Citation: (2011) 11 DEL CK 0114

HON’BLE JUDGES
G.P. Mittal, J
ACTS & SECTIONS REFERRED
Income Tax Act, 1961 — Section 80C
CASE NUMBER
Mac. App. 283 of 2011
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Judgment

30 paragraphs · 662 words

G.P. Mittal, J.—The Appellants seek enhancement of the compensation of Rs. 11,51,625/- awarded by the Tribunal by an award dated 23.12.2010. Deceased Salajit Goyal was aged about 42 years on the date of the accident i.e. on 06.01.2010. He was survived by the Appellant Ram Rati Goyal (widow) and three sons. The only ground urged by the learned counsel for the Appellants is that the deceased''s income at Rs. 1,15,632/- was established as per the Income Tax Return for the previous year 2008-2009, yet the Tribunal took an annual income of the deceased to be Rs. 1,00,000/- to calculate the dependency. For the assessment year 2007-2008, the deceased''s income was Rs. 1,08,151/-. There was savings of Rs. 11,648/- u/s 80 C of the Income Tax Act. Income for the year 2008-2009 was Rs. 1,15,632/- and there was no savings u/s 80C. The Tribunal was perhaps under the impression that the amount of Rs. 11,648/- two years prior to the accident was towards expenditure on business and that is why the annual income was assessed to be about Rs. 1,00,000/-. This finding, to my mind, cannot be sustained. The deceased''s income ought to have been taken at Rs. 1,15,632/-.

2.

It is urged by the learned counsel for the Appellant that although the Tribunal noticed that there was gradual increase in the deceased''s income as per the Income Tax Return for the year 2007-2008 and 2008-2009, yet the future prospects were not taken into consideration. During inquiry it was stated by the Appellant No. 1 in her deposition as PW-1 that the deceased was running a Kiryana shop in his house. Apart from the widow (Appellant No. 1), the deceased had three grown up sons who could look after the shop. Appellant No. 1''s testimony that the shop was closed after the deceased''s death has to be taken with a pinch of salt. The Appellants were, therefore, not entitled to any additional compensation on account of future prospects.

3.

No other point was raised. The compensation on the basis of the annual income of Rs. 1,15,632/- after deducting one-fourth towards the personal expenses (as held by the Tribunal) and applying the multiplier of 14 comes to Rs. 12,14,136/-. The amount of Rs. 10,000/- awarded towards the loss of love and affection was also on the lower side. The same needs to be raised to Rs. 25,000/-. The total compensation works out as under:-

Head

Awarded by the Tribunal in (` ) Awarded by This Court in (` )

Increase

Medicines and medical treatment Loss of financial dependency Loss of love & affection Loss of consortium Funeral Expenses Loss of Estate

NIL

66,625/-

66,625/-

10,50,000/-

12,14,136/-

1,64,136/-

10,000/-

25,000/-

15,000/-

10,000/-

NIL

10,000/-

5,000/-

NIL

5,000/-

10,000/-

NIL

10,000/-

TOTAL

1,79,136/-

4.

Thus, the Appellants are entitled to enhancement of compensation to the extent of Rs. 1,79,136/-. Since the vehicle was insured with Respondent No. 3 Oriental Insurance Company Limited, it is directed to make the payment of Rs. 1,79,136/- along with interest @ 7.5 % per annum from the date of filing of the petition before the Tribunal till realization of the amount within six weeks.

5.

The enhanced amount shall be deposited with UCO Bank, Delhi High Court Branch, New Delhi in the name of Appellant No. 1 Smt. Ramrati Goyal wife of the deceased. 30% of the amount shall be transferred to her savings account which she would be entitled to withdraw at her will. Rest 70% of the enhanced amount along with proportionate interest shall be kept in a Fixed Deposit in the name of Appellant No. 1 for a period of three years. Appellant No. 1 shall not be entitled to any loan or withdrawal from the Fixed Deposit without the order of this Court.

6.

The appeal is partly allowed and the impugned award is modified to the extent indicated above. No costs. Copy of the order may be sent to the trial court for information and compliance.