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2006 DIGILAW 40 (AP)

RACHNA AGGARWAL v. RAMJI SINGH

2006-01-18

ASHUTOSH MOHUNTA

body2006
ASHUTOSH MOHUNTA, J. ( 1 ) A Maruti Esteem car bearing the registration No. CH 01-S 3144, being driven by Manoj Kumar aggarwal while going from Chandigarh to the holy shrine of Mata Vaishno Devi on 8. 11. 1997, met with an accident with the truck bearing registration No. PB-06 2298 (for short 'the offending truck'), which was being driven by Ramji Singh, respondent no. 1, near village Saror in Jammu District. Manoj Kumar Aggarwal died at the spot. His father Parmod Kumar Aggarwal lost his life on 9. 11. 1997 on account of the injuries suffered by him in the said accident. Kshitiz Singh, minor child of virender Singh, i. e. , sister's son of Manoj kumar Aggarwal, received severe injuries. Three separate claim petitions were filed by Shashi Aggarwal (widow of Parmod kumar Aggarwal), Rachna Aggarwal (widow of Manoj Kumar Aggarwal) along with her minor children, and the minor Kshitiz singh injured through his father Virender singh. Motor Accidents Claims Tribunal, chandigarh (for short 'the Tribunal') vide a consolidated judgment dated 24. 4. 2002 awarded compensation to the tune of rs. 31,20,000 to the widow and the children of Manoj Kumar Aggarwal deceased; rs. 9,43,000 to Shashi Aggarwal, widow of Parmod Kumar Aggarwal deceased and his other legal heirs; and Rs. 25,000 were awarded to Kshitiz Singh for the personal injuries suffered by him. Besides this, the tribunal also awarded interest at the rate of 9 per cent per annum of the total amount of compensation from the date of claim petition till payment. The truck was insured with respondent Nos. 3 and 4 but respondent no. 1 Ramji Singh driver of the offending truck was held to be not holding a valid and effective driving licence at the time of the accident. The Tribunal held respondent Nos. 1, 3, 4 and 9 liable jointly and severally to pay the amount of compensation awarded in all the three claim petitions. However, it was ordered by the tribunal that the insurance company can recover the amount of compensation from the insured, if so advised. United India insurance Co. Ltd. had earlier filed 3 separate appeals, namely, F. A. O. Nos. 5108, 5109 and 5110 of 2002 wherein challenge had been made to the award of Tribunal. However, this court vide judgment dated 18. 10. 2002 has dismissed the appeals filed by the insurance company. United India insurance Co. Ltd. had earlier filed 3 separate appeals, namely, F. A. O. Nos. 5108, 5109 and 5110 of 2002 wherein challenge had been made to the award of Tribunal. However, this court vide judgment dated 18. 10. 2002 has dismissed the appeals filed by the insurance company. Present appeal has been filed by Rachna Aggarwal, widow of Manoj Kumar Aggarwal and her two minor sons, wherein prayer has been made for enhancement of the amount of the compensation awarded by the Tribunal. ( 2 ) THE primary contention raised by Mr. C. B. Goel, learned counsel for appellant, is that the Tribunal has erred in making a deduction of Rs. 5,000 per month (total rs. 60,000 per annum) out of the income of deceased Manoj Kumar Aggarwal under the head 'for proper running and profits of the business'. The counsel contended that all the expenses incurred in the running of the business are already debited in the accounts and the income tax returns are filed accordingly. ( 3 ) THE contentions raised by Mr. C. B. Goel, learned counsel for the appellant are vehemently controverted by Mr. Maharaj baksh Singh, learned counsel appearing on behalf of the insurance company. ( 4 ) AFTER hearing the learned counsel for the parties and on examining the case file, i am of the considered opinion that the claims Tribunal had illegally deducted a sum of Rs. 5,000 per month (Rs. 60,000 per annum) under the head 'for proper running and profits of the business' on the ground that the deceased certainly would have ploughed part of his profits into his business. A look at the impugned judgment shows that the Tribunal had worked out the average income of the deceased on the basis of the income tax returns filed by him during the years 1995-96, 1996-97, 1997-98 and 1998-99. It is the common knowledge that at the time of filing of the income tax returns, all the expenses incurred in running the business are debited in the accounts of the business. All the profits and loss statements are prepared at the time of filing of the income tax returns. Thus, the deduction made under the head 'for proper running and profits of the business' was improper and illegal. Consequently, the deduction made by Tribunal to the tune of Rs. All the profits and loss statements are prepared at the time of filing of the income tax returns. Thus, the deduction made under the head 'for proper running and profits of the business' was improper and illegal. Consequently, the deduction made by Tribunal to the tune of Rs. 60,000 in the annual income of deceased Manoj Kumar Aggarwal is set aside being illegal. The average annual income of Manoj Kumar Aggarwal deceased as worked out by the Tribunal comes to rs. 5,90,000. After deducting the income tax paid by him, the net income of the deceased comes to Rs. 4,20,000. Out of this amount, one-third is to be deducted as personal expenses of the deceased and in this way the annual dependency for the claimants comes to Rs. 2,80,000. In the present case, Manoj Kumar Aggarwal deceased was 37 years of age at the time of his death in the accident. The Tribunal has erred in applying the multiplier of 13' for calculating the compensation to be paid to the legal heirs of Manoj Kumar Aggarwal deceased as per the Second Schedule appended to Motor Vehicles Act, 1988 (for short 'the Act') multiplier of 16' ought to have been applied while calculating the compensation to be paid to the claimants. By multiplying the annual dependency to tune of Rs. 2,80,000 by 16, total amount of compensation comes to Rs. 44,80,000. The widow and the minor sons of Manoj kumar Aggarwal deceased are also held entitled to a sum of Rs. 5,000 as funeral expenses and another sum of Rs. 5,000 for loss of consortium. Thus, total amount of compensation to be paid to the widow and the minor sons of Manoj Kumar Aggarwal comes to Rs. 44,90,000. They are also held entitled to the grant of interest at the rate of 9 per cent per annum with effect from the date of filing of the claim petition till realisation. Out of the amount of compensation, a sum of Rs. 4,90,000 is to be paid to Shashi Aggarwal, mother of Manoj Kumar aggarwal deceased; Rs. 16,00,000 is to be paid to his widow Rachna Aggarwal and the remaining sum of Rs. 24,00,000 is to be shared equally by the two minor sons, namely, Tarun Aggarwal and Arjun aggarwal. Out of the amount of compensation, a sum of Rs. 4,90,000 is to be paid to Shashi Aggarwal, mother of Manoj Kumar aggarwal deceased; Rs. 16,00,000 is to be paid to his widow Rachna Aggarwal and the remaining sum of Rs. 24,00,000 is to be shared equally by the two minor sons, namely, Tarun Aggarwal and Arjun aggarwal. The entire share of the minors, i. e. , Tarun Aggarwal and Arjun Aggarwal, will be deposited in the nationalised bank in some beneficial scheme, which shall be paid to them on attaining majority. Respondent nos. 1, 3, 4 and 9 are held liable jointly and severally to make the payment of compensation to the claimant-appellant. The appeal is, accordingly, disposed of. Appeal allowed. - .