Smt. Shakti Mahajan and Others vs UOI and Another

J.R. Midha

The appellants have challenged the award of the Claims Tribunal whereby compensation of Rs. 5,20,000/- has been award to them. The appellants seek enhancement of the award amount. The accident dated 15th February, 2000 resulted in the death of Anand Prakash Mahajan. The deceased was survived by his widow and two sons who filed the claim petition before the Claims Tribunal. The deceased aged 55 years, at the time of the accident, was a practicing advocate. The Claims Tribunal took the income of the deceased as Rs. 7,500/- per month, deducted 1/3rd towards his personal expenses and applied the multiplier of 8 to compute the loss of dependency at Rs. 4,80,000/-. Rs. 25,000/- has been awarded towards loss of consortium and Rs. 15,000/- towards funeral expenses. The total compensation awarded is Rs. 5,20,000/-.

The learned counsel for the appellant seeks enhancement of the award amount on the following grounds:-

(i) The income of the deceased be taken as Rs. 30,000/- per month.

(ii) The multiplier be enhanced from 8 to 11.

(iii) The compensation be awarded for loss of love and affection and loss of estate.

(iv) The rate of interest be enhanced from 7% per annum to 12% per annum.

The learned counsel for the respondents submit as under:-

(i) The income of the deceased has not been sufficiently proved.

(ii) The penal rate of interest @12% per annum be set aside.

The widow of the deceased appeared in the witness box as PW-1 and proved the enrolment certificate and law degree of the deceased as Ex.P-1 and Ex.P-2. She also proved the Income Tax Returns and assessments as Ex.P-13 to Ex.P-22. As per the Income Tax Return for the year 1996-97, the professional income of the deceased was Rs. 54,470/- per annum. The professional income of the deceased for the assessment year 1997-98 was Rs. 65,280/- per annum. No Income Tax Return was filed after 1997-98. The Claims Tribunal assumed the income of the deceased as Rs. 7,500/- per month ( Rs. 90,000/- per annum). However, the Claims Tribunal has not given any basis for assessing the income of the deceased as Rs. 7,500/- per month. The Claims Tribunal ought to have taken the annual income of the deceased as Rs. 65,280/- as per his last Income Tax Return. The finding of the Claims Tribunal with respect to income of the deceased is modified and the income of the deceased is reduced from Rs. 7,500/- per month ( Rs. 90,000/- per annum) to Rs. 5,440/- per month ( Rs. 65,280/- per annum).

The Claims Tribunal has applied the multiplier of 8 whereas appropriate multiplier according to the judgment of the Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, as the deceased was aged 55 years at the time of the accident. The multiplier is therefore enhanced from 8 to 11.

The Claims Tribunal has not awarded any compensation towards loss of love and affection. Rs. 25,000/- is awarded towards loss of love and affection.

The Claims Tribunal has also not awarded any compensation towards loss of estate. Rs. 10,000/- is awarded towards loss of estate.

The Claims Tribunal has awarded interest @ 7% per annum. However, the appropriate rate of interest as per the judgment of the Supreme Court in the case of Municipal Corporation of Delhi, Delhi Vs. Association of Victims of Uphaar Tragedy and Others, is 9% per annum. The rate of interest is enhanced from 7% per annum to 9% per annum. The Claims Tribunal has also awarded penal interest @ 12% per annum which is not justified in the facts and circumstances of this case. The direction of the learned Trial Court with respect to the penal rate of interest is therefore set aside.

Taking the annual income of the deceased as Rs. 65,280/-, deducting 1/3rd towards his personal expenses and applying the multiplier of 11, the loss of dependency is computed to be Rs. 4,78,720/-. Adding Rs. 25,000/- towards loss of consortium, Rs. 25,000/- towards loss of love and affection, Rs. 15,000/- towards funeral expenses and Rs. 10,000/- towards loss of estate, the total compensation is computed to be Rs. 5,53,720/-.

The appeal is allowed and the award amount is enhanced from Rs. 5,20,000/- to Rs. 5,53,720/- along with interest @ 9% per annum from the date of filing of the claim petition till realization. The share of the appellants in the enhanced award amount shall be as under:-

Appellant No.1 (widow)

- 50%

Appellant No.2 (son)

- 25%

Appellant No.3 (son)

- 25%

The enhanced award amount along with interest be paid by respondent No. 1 within 30 days with UCO Bank by means of a cheque drawn in the name of UCO Bank A/c Shakti Mahajan. Upon the aforesaid amount being deposited, UCO Bank shall release the same to the appellants as per their shares by transferring the same to their savings bank accounts. Copy of this judgment be sent to Mr. M.S. Rao, AGM, UCO Bank, Delhi High Court Branch, New Delhi (Mobile No. 09871129345).