Resham and Others vs Harish Kaushik and Others

J.R. Midha, J.—The appellants have challenged the award of the learned Tribunal whereby compensation of Rs. 3,05,000/- has been awarded to the appellants. The appellants seek enhancement of the award amount.

The accident dated 14th November, 2004 resulted in the death of Budh Ram. The deceased was survived by his widow, three daughters, two sons and parents who filed the claim petition before the learned Tribunal.

The deceased was aged 40 years at the time of the accident and was carrying on the business of cloth merchant. However, in the absence of any documentary evidence of income, the learned Tribunal has presumed the income of Rs. 22,500/- per annum. 1/4th was deducted towards personal expenses of the deceased and the multiplier of 16 was applied to compute the loss of dependency at Rs. 2,70,000/-. Rs. 25,000/- has been awarded towards loss of love and affection and Rs. 10,000/- has been awarded towards funeral expenses. The total compensation awarded is Rs. 3,05,000/-.

The learned Counsel for the appellants has urged the following grounds at the time of hearing of this appeal:

(i) The income of the deceased be taken into consideration according to the minimum wages.

(ii) The increase in minimum wages due to inflation and rise in price index be taken into consideration.

(iii) The personal expenses of the deceased be reduced from 1/4th to 1/5th.

(iv) The compensation be awarded for loss of consortium and loss of estate.

The learned Tribunal has taken the notional income of the deceased to be Rs. 22,500/- in the absence of any documentary proof of income. The proper course in the event of the appellants not succeeding in proving the income of the deceased by documentary evidence is to take the minimum wages. The finding of the learned Tribunal in this regard is, therefore, set aside. The income of the deceased is taken to be Rs. 3,060.90 per month as per the minimum wages for a semi-skilled person as on 1st August, 2004.

It has been held by this Court in the cases of Kanwar Devi and Others Vs. Bansal Roadways and Others, , National Insurance Company Ltd. Vs. Renu Devi and Others, and UPSRTC v. Munni Devi MAC.APP. No. 310/2007 decided on 28.07.2008 that the Court should take judicial notice of increase in minimum wages to meet the increase in price index and inflation rate. The Court has taken the view that the minimum wages get doubled over the period of 10 years and increase in minimum wages is not akin to future prospects and the income should be computed by taking the average of minimum wages and its double.

Following the aforesaid judgments, the income of the deceased for computation of compensation is taken to be Rs. 4,591.35 [(Rs. 3,060.90 + Rs. 6,121.80)/2]. The learned Tribunal has applied the multiplier of 16. However, the appropriate multiplier at the age of 40 years is 15 as per the judgment of the Hon''ble Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, . The multiplier is, therefore, reduced from 16 to 15.

The learned Tribunal has deducted 1/4th towards personal expenses of the deceased. However, according to the judgment of the Hon''ble Supreme Court in the case of Sarla Verma (supra), the appropriate deduction where the deceased has left behind eight legal representatives is 1/5th.

Following the aforesaid judgment of the Hon''ble Supreme Court, the personal expenses of the deceased are reduced from 1/4th to 1/5th.

Taking the income of the deceased as Rs. 4,591.35, deducting 1/5th towards personal expenses and applying the multiplier of 15, the loss of dependency is computed to be Rs. 6,61,154/- (Rs. 4,591.35 x 12 x 15 x 4/5). Adding Rs. 25,000/- towards loss of love and affection and Rs. 10,000/- towards funeral expenses, the total compensation is computed to be Rs. 6,96,154/- (Rs. 6,61,154 + Rs. 25,000 + Rs. 10,000).

The learned Tribunal has not awarded any compensation for loss of consortium and loss of estate. However, considering that the compensation for loss of love and affection is on a higher side, the compensation of Rs. 25,000/- towards loss of love and affection shall be treated to be towards loss of love and affection, loss of consortium and loss of estate and no further amount is awarded on this account.

The appeal is allowed and the award amount is enhanced from Rs. 3,05,000/- to Rs. 6,96,154/- along with interest @7.5% per annum from the date of filing of the petition till realization.

The enhanced award amount along with interest be deposited by respondent No. 3 with UCO Bank A/c Resham through Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi (Mobile No. 09310356400) within 30 days.

The order of disbursement shall be passed after examining the claimants who are directed to remain present in the Court on the next date of hearing.

List on 22nd January, 2010.

Copy of this order be given ''Dasti'' to learned Counsel for the parties under signature of Court Master.