Renu and Others vs Rehmat and Others

G.P. Mittal, J.

CM APPL.18838/2010 (delay)

There is a delay of 483 days in filing the Appeal. For the reasons stated in the application, the same is allowed. Delay of 483 days in filing the Appeal is condoned.

The application stands disposed of.

MAC.APP. 698/2010

The Appellants seek enhancement of the compensation of Rs. 10,81,423/- awarded for the death of Mr. Sanjay Kumar Jain who died in an accident which occurred on 28th April, 2006. The deceased was working with the Government of Uttar Pradesh. He was aged about 34 years at the time of accident

The Motor Accident Claims Tribunal (the Claims Tribunal) took the deceased''s income to be Rs. 7379/- per month, deducted one-third towards the personal and living expenses and applied multiplier of 17 to compute the loss of dependency. The compensation awarded is extracted from para 19 of the impugned judgment as under:-

Sl. No.

Compensation under various heads

Awarded by the Tribunal

1.

Loss of Dependency

Rs. 10,03,544/-

2.

Loss of Consortium

Rs. 10,000/-

3.

Funeral Expenses

Rs. 4,000/-

4.

Loss of Estate & Love & Affection

Rs. 12,500/-

5.

Cost of Medicine

Rs. 51,379/-

TOTAL

Rs. 10,81,423/-

Learned counsel for the Appellants submits that the Claims Tribunal erred in not considering the future prospects; the number of dependents were four, the Claims Tribunal ought to have deducted one-fourth towards personal living expenses of the deceased instead of one-third in view of the judgment of Hon''ble Supreme Court in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another,

On the other hand, learned counsel for the Respondent-Insurance Company submits that considering the age of the deceased to be 34 years the multiplier should have been 16 instead of 17.

The Supreme Court in the case of Sarla Verma (supra) laid down the following principles for grant of compensation in death cases:-

"I. MULTIPLIER

Age of the deceased (in years)

Multiplier

15-20

18

21-25

18

26-30

17

31-35

16

36-40

15

41-45

14

46-50

13

51-55

11

56-60

09

61-65

07

Above 65

05

II. DEDUCTION FOR PERSONAL AND LIVING EXPENSES

Deceased - unmarried

(i)

Deduction towards personal expenses.

:

1/2 (50%)

(ii)

Deduction where the family of the bachelor is large and dependent on the income of the deceased.

:

1/3rd (33.33%)

Deceased - unmarried

(i)

2 to 3 dependent family members.

:

1/3rd

(ii)

4 to 6 dependent family members

:

1/4th

(iii)

More than 6 family members

:

1/5th

(iv)

Subject to the evidence to the contrary.

Father, brother and sisters will not be considered as dependents.

III. FUTURE PROSPECTS

(i)

Permanent job Below 40 years of age

:

Actual salary � tax + 50% towards future prospects.

(ii)

Permanent job Between 40-50 years

:

Actual salary � tax + 30% towards future prospects.

(iii)

More than 50 years with permanent job.

:

Actual salary only. No addition for future prospects.

(iv)

Deceased employed at a fixed Salary (without provision for Annual increments)

:

Only actual income to be taken. No addition.

Since the deceased was 34 years of age, 50% addition ought to have been made towards future prospects and the appropriate multiplier ought to be ''16'' instead of 17. It is also apparent that since the number of dependents were 4, 1/4th ought to have been deducted towards the personal living expenses.

In view of the law laid down in Sarla Verma (Supra) the compensation is re-computed as under:-

Sl. No.

Compensation under various Heads

Awarded by High Court

1.

Loss of Dependency (7379 + 50% X 3/4 X 12 X 16)

Rs. 15,93,864/-

2.

Loss of Consortium

Rs. 10,000/-

3.

Funeral Expenses

Rs. 4,000/-

4.

Loss of Estate & Love & Affection

Rs. 25,000/-

5.

Cost of Medicines

Rs. 51,379/-

TOTAL

Rs. 16,84,243/-

The overall compensation is enhanced from Rs. 10,81,423/- to Rs. 16,84,243/-

The enhanced compensation shall carry interest @7.5% per annum. 10% each of the enhanced amount shall be payable to Appellants No. 2 and 3 and Sarla Jain (mother of the deceased who was Petitioner No. 4 before the Claims Tribunal). Rest of the amount shall be payable to Appellant No. 1. The amount awarded to Appellants No. 2 and 3 shall be held in a Fixed Deposit Receipt till they attain the age of 21 years in UCO Bank, Delhi High Court Branch. New Delhi.

50% of the amount awarded to Appellant No. 1 shall be held in a Fixed Deposit for a period of three years in UCO Bank, Delhi High Court Branch, New Delhi. Rest of the amount shall be released to the Appellants/Claimants.

The enhanced amount be deposited with the Registrar General of this Court within 30 days. The Appeal is allowed in above terms. No costs.