Smt. Dhanwanti Devi and Others vs Om Prakash and Others

Reva Khetrapal, J.—This appeal is directed against the judgment and award of the Motor Accident Claims Tribunal dated 18.09.1999, whereby an award in the sum of Rs. 1,89,400/- with interest at the rate of 12% per annum from the date of the filing of the petition till realisation was passed in favour of the Appellants and against the Respondents, for the untimely demise of Shri Om Prakash in a motor vehicular accident which took place on 13.01.1989.

Mr. Kundan Kumar Lal, the counsel for the Appellants, contends that the computation of compensation payable to the Appellants made by the learned Tribunal is not in accordance with the well-settled principles of law. A three fold contention is raised by the counsel for the Appellants as follows:

(i) The learned Tribunal erred in not taking into account the prospects of increase in the income of the deceased, who was only 37 years of age on the date of the accident, his date of birth being 02.07.1952 and the accident having occurred on 30.01.1989.

(ii) The deceased having left behind his wife, four daughters and mother, the learned Tribunal ought to have deducted not more than one-fourth of the income of the deceased towards his personal expenses and maintenance; instead the Tribunal deducted one-third of the income of the deceased on account of his personal expenses. (iii) No. amount whatsoever was awarded by the Tribunal towards the loss of estate and loss of love and affection of the deceased.

Mr. Pankaj Seth, the learned Counsel for the Respondent No. 3-Insurance Company, on the other hand, sought to support the award and to contend that the compensation awarded to the Appellants was just and fair.

Having heard the learned Counsel for the parties and gone through the evidence which is placed on record by the learned Counsel for the Appellants, I am inclined to agree with the contention of the Appellants'' counsel that the learned Tribunal ought to have taken into consideration the future prospects of increase in the income of the deceased while assessing the average annual income of the deceased and computing the loss of dependency of the Appellants. I say so on the strength of the judgment of the Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , wherein it is laid down that where the deceased is in a stable job and below 40 years of age, a fifty percent addition towards future increase in his income to his actual salary income on the date of the accident is warranted.

In the present case, there is on record the testimony of PW3-P.S. Bisht, an official from the Central Vehicle Depot, Delhi Cantt, where the deceased was employed, to the effect that the deceased joined the C.V.D. Delhi Cantt as ''Packer'' (male) on 24.11.1977. The said witness also proved on record the pay certificate of the deceased (Exhibit PW3/1), which is signed by the Assistant Personal Official (Finance) of the concerned department. It is not in dispute that the deceased in the present case was 37 years of age and he, being in a stable job, his average annual income on the date of the accident is assessed to be in the sum of Rs. 2,100/- per month [ Rs. 1,400/- (actual income on the date of the accident) + Rs. 700/- (anticipated income)], that is to say, Rs. 25,200/- per annum.

On the aspect of deduction to be made from the income of the deceased towards his personal expenses and maintenance, the Supreme Court in the case of Sarla Verma (supra) has laid down the following guidelines:

Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardized deductions. Having considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependant family members is 4 to 6, and one-fifth (1/5th) where the number of dependant family members exceed six.

Deducting one-fourth from the income of the deceased in view of the fact that the deceased was survived by six legal representatives, the average annual loss of dependency of the Appellants come to Rs. 18,900/- per annum. It is well-settled that the aforesaid multiplicand constituting the loss of dependency has to be augmented by applying a proper multiplier to it. Learned Counsel for the Appellants does not dispute that the appropriate multiplier in the instant case would be the multiplier of 15 instead of the multiplier of 16, which has been adopted by the learned Tribunal. Thus calculated, the total loss of dependency of the Appellants comes to Rs. 2,83,500/-. In addition, the Appellants are also held entitled to the sum of Rs. 5,000/- towards the loss of consortium and Rs. 2,000/- towards the funeral expenses of the deceased as awarded by the Tribunal and a further award of Rs. 10,000/- each under the heads of loss of estate and loss of love and affection of the deceased is also deemed to be just and fair, that is, in all a sum of Rs. 3,10,500/- is awarded to the Appellants.

The award amount is accordingly enhanced to the extent of Rs. 1,21,100/-, i.e., Rs. 3,10,500/- minus Rs. 1,89,400/-. Interest at the rate of 7.5% per annum shall be payable on the enhanced amount from the date of the accident till the date of realisation. The Insurance Company is directed to deposit the award amount along with interest thereon with the Registrar General of this Court within 30 days from the date of the passing of this order after deducting the amount already paid. The enhanced amount shall enure solely to the benefit of the Appellant No. 1, the widow of the deceased.

The appeal is allowed in the above terMs.

There shall be No. order as to costs.