Vidyawati and Others vs Krishan Kumar and Others

J.R. Midha, J.—The appellants have challenged the award of the learned Tribunal whereby compensation of Rs. 3,90,836/- has been awarded to the appellants. The appellants seek enhancement of the award amount.

The accident dated 20th June, 2000 resulted in the death of Avdesh @ Nanak Yadav. The deceased was survived by his widow, father, three daughters and one son, who filed the claim petition before the learned Tribunal.

The deceased was aged 28 years at the time of the accident and was running a dairy earning Rs. 6,000/- per month. However, in the absence of sufficient evidence, the learned Tribunal took the minimum wages of Rs. 2419/- per month in respect of unskilled worker and applied the multiplier of 18 after deducting 1/3 towards the personal expenses to compute the loss of dependency at Rs. 3,48,336/-. Rs. 5,000/- has been awarded towards funeral expenses, Rs. 5,000/- to each of the children towards loss of love and affection and Rs. 2,500/- to each of the children and father towards loss of estate and Rs. 5,000/- towards loss of consortium. Total compensation awarded is Rs. 3,90,836/-.

Learned Counsel for the appellant has challenged the award on two grounds. The first ground of challenge is that the increase in minimum wages due to inflation and increase in price index has not been taken into consideration. The second ground of challenge is that the personal expenses of the deceased have been taken as 1/3 instead of 1/4.

It is well settled in catena of judgments, namely, Kanwar Devi and Others Vs. Bansal Roadways and Others, ; Lekh Raj and Another Vs. Suram Singh 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 judicial note be taken that minimum wages get doubled over a period of ten years due to inflation and increase in price index, and, therefore, the income of the deceased for computation of compensation is the average of minimum wages and its double. Following the aforesaid judgments, the income of the deceased is taken to be Rs. 3,628.5 [(Rs. 2,419 + Rs. 2,419 X 2)/2].

The deceased has left behind six dependants. According to the recent judgment of the Hon''ble Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , the personal expenses of the deceased have to be deducted @ 1/4 where the deceased has left behind four to six legal representatives. Following the aforesaid judgment, the personal expenses of the deceased are taken to be 1/4th instead of 1/3.

The learned Tribunal has applied the multiplier of 18. The deceased was aged 28 years and the appropriate multiplier according to the recent judgment in the case Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, . The multiplier is reduced from 18 to 17. Taking the income of the deceased to be Rs. 3,628.5, deducting 1/4 towards personal expenses and applying the multiplier of 17, the loss of dependency is computed to be Rs. 5,55,162 (Rs. 3,628.5 X 3/4 = Rs. 2,721.38 X 12 X 17) and adding Rs. 5,000/- towards loss of consortium, Rs. 5,000/- to each of the four minor children towards loss of love and affection, Rs. 2,500/- to each of the children and father towards loss of estate and Rs. 5,000/- towards funeral expenses, the total compensation is computed to be Rs. 5,97,662/- (Rs. 5,55,162 + Rs. 5,000 + Rs. 20,000 + Rs. 12,500 + Rs. 5,000).

The appeal is allowed and the award amount is enhanced from Rs. 3,90,836/- to Rs. 5,97,662/-. The learned Tribunal has awarded interest at the rate of Rs. 9% per annum which is not disturbed on the original award amount of Rs. 3,90,836/-. However, on the enhanced award amount, interest shall be 7.5% from the date of the filing of the petition till realization.

Respondent No. 3 is directed to deposit the enhanced award amount with the learned Tribunal along with interest within 30 days. The shares of the claimants in the award amount shall be in the same proportion as in the original award and the same be released in the mode and manner as in the original award.

After depositing the enhanced award amount along with interest, respondent No. 3 is entitled to recover the same from respondent No. 2 in view of the violation of the terms and conditions of the insurance policy.

Copy of this order be given dasti to learned Counsel for the parties under the signatures of the Court.