United India Insurance Co. Ltd. vs Sumitra Kashyap and Others

J.R. Midha, J.—The appellant has challenged the award of the learned Tribunal whereby compensation of Rs. 41,80,000/- has been awarded to claimants/respondents No. 1, 2 and 5. The appellant is seeking reduction of the award amount. The claimants/respondents No. 1, 2 and 5 have filed cross-objections to seek enhancement of the award amount.

The accident dated 4th December, 2001 resulted in the death of Manoj Kashyap. The deceased was survived by his widow and parents. The parents filed the claim petition before the learned Tribunal.

The deceased was working as Business Analyst with M/s Softlution Web Technologies Pvt. Ltd. The income of the deceased as per salary certificate - Ex.PW1/23 is as under:

Salary Certificate Name : Mr. Manoj Kashyap Designation : Business Analyst Earnings (Rs./month) Basic Salary : Rs. 18,000.00 House Rent Allowance : Rs. 5,400.00 Conveyance : Rs. 7,000.00 Lunch Allowance : Rs. 2,640.00 Outfit Allowance : Rs. 3,600.00 Books : Rs. 3,600.00 Total Earnings : Rs. 40,240.00 Deductions PF : Rs. 2,160.00 Income Tax : Rs. 7,853.00 Total Deductions : Rs. 10,013.00 Net Earnings : Rs. 30,227.00

The learned Tribunal took the income of the deceased to be Rs. 13,387/- and added 50% towards future prospects to compute the income for the purpose of computation of compensation as Rs. 20,080/-. 1/3rd was deducted towards personal expenses and the loss of dependency of the claimants was taken to be Rs. 20,000/- per month. The deceased was aged 32 years at the time of the accident and applying the multiplier of 17, the loss of dependency was computed to Rs. 40,80,000/-. Rs. 1,00,000/- has been awarded towards loss of consortium and loss of progeny and filial affection to the widow considering that the deceased died on 15th day of her marriage. The total compensation awarded is Rs. 41,80,000/-.

The learned Counsel for the appellant has urged only one ground at the hearing of this appeal. The ground of challenge is that 1/3rd towards personal expenses has not been deducted from the income of the deceased. It is submitted by learned Counsel for the appellant that the income of the deceased has been taken to be Rs. 20,080.50 and the learned Tribunal observed that the 1/3rd has to be deducted towards personal expenses but, after deduction, the loss of dependency has been taken to be Rs. 20,000/-whereas it should have been 13,387/- per month.

The learned Counsel for the claimants submit that there is error in calculation and the loss of dependency of the claimants after deduction of 1/3rd towards personal expenses would be Rs. 20,000/-.

As per salary certificate - Ex.PW1/23, the basic salary of the deceased was Rs. 18,000/-. After adding house rent allowance of Rs. 5,400/-, the total comes to Rs. 23,400/-. The learned Tribunal has deducted the provident fund of Rs. 2,160/- and Income Tax of Rs. 7,853/- to arrive at the income of the deceased to be Rs. 13,387/-. The learned Tribunal was in error in deducting provident fund. The learned Tribunal was also in error in deducting Rs. 7,853/-towards Income Tax. The Income Tax of Rs. 7,853/- was paid on total earnings of Rs. 40,240/-. The proportionate Income Tax on Rs. 23,400/- comes to Rs. 4,566/- which should have been deducted from the income of the deceased. The income of the deceased after deduction of Income Tax of Rs. 4,566/- comes to Rs. 18,834/-. The income of the deceased is, therefore, taken to be Rs. 18,834/- instead of Rs. 13,387/-. The deceased was aged 32 years at the time of the accident and had a permanent job and, therefore, 50% is added towards future prospects and the income of the deceased for computation of compensation is computed as Rs. 28,251/-. 1/3rd is deducted towards the personal expenses of the deceased and the loss of dependency is taken to be Rs. 18,834/- per month. Applying the multiplier of 17, the loss of dependency is computed as Rs. 38,42,136/-. The deceased expired in Thiruvananthapuram and the claimants went there to bring back the body by air and a sum of Rs. 1,00,000/- was spent on the travelling of the claimants to Thiruvananthapuram to bring back the body. Rs. 1,00,000/- has been awarded towards funeral expenses and the cost of travelling to Thiruvananthapuram and bringing back the body by air. Rs. 10,000/- is awarded towards loss of consortium, Rs. 10,000/- towards loss of estate and Rs. 35,000/- towards loss of love and affection. The total compensation is computed to be Rs. 39,97,138/-(rounded off as Rs. 40,00,000/-).

The learned Tribunal has awarded Rs. 1,00,000/-towards loss of consortium and loss of progeny and filial affection which is set aside.

The appeal is accordingly allowed and the award amount is reduced from Rs. 41,80,000/- to Rs. 40,00,000/-along with interest thereon. The rate of interest is not disturbed. The cross-objections are dismissed.

The shares of the claimants in the award amount shall be in the same proportion as given by the learned Tribunal.

The learned Counsel for the appellant submits that the entire award amount has been deposited in terms of the order of this Court. The claimants shall refund the excess amount along with interest, if earned on the said amount, to the appellant within 30 days. The remaining amount is directed to be released to the claimants in terms of the award.