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2012 DIGILAW 967 (DEL)

MADHU GUPTA v. NARESH KUMAR

2012-03-06

G.P.MITTAL

body2012
JUDGMENT : G.P. Mittal, J. The Appellants, who are the legal representatives of deceased Dinesh Kumar Gupta seek enhancement of compensation of Rs. 18,80,000/- awarded in a motor accident which occurred on 8.9.2001. 2. The following contentions are raised on behalf of the Appellants:- (i) There should have been deduction of one-fourth towards the personal and living expenses instead of one-third as taken by the Claims Tribunal on the basis of the judgment in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121 . (ii) The Income Tax was deducted @ 30%, whereas the actual liability towards income tax was much less i.e. Rs. 457/- at source by the employer. (iii) The conveyance allowance should be included while computing the loss of dependency. 3. The Claims Tribunal in the impugned judgment accepted the deceased's salary as Rs. 15,000/- per month and deducted Rs. 1500/- which were being paid as conveyance allowance, further deducted 30% towards tax liability, added 50% towards future prospects, deducted 1/4th towards personal and living expenses and applied multiplier of 16' for computing the loss of dependency. 4. In the case of Sarla Verma (supra), it was held that where the number of dependents were 4 to 6, there will be deduction of 1/4 towards the personal and living expenses. A sum of Rs. 1500/- was being paid to the deceased towards conveyance allowance to meet the expenses incidental to employment. The said amount cannot be taken into consideration for computation of loss of dependency. Since the deceased was aged 36 years on the date of the accident, an addition of 50% in the deceased's income was required to be made towards future prospects and 1/4th was required to be deducted towards the personal and living expenses. There was a liability of about Rs. 19,000/- as Income Tax on the income of Rs. 1,62,000/- and on applying the multiplier of 15, the loss of dependency comes to Rs. 24,13,125/- (Rs. 13,500/- X 12 =1,62,000/- - 19,000/-(Income Tax) = 1,43,000/- + 50% X 3/4 X 15). 5. The Claims Tribunal awarded a sum of Rs. 30,000/- towards loss of consortium and Rs. 30,000/- towards loss of love and affection and Rs. 5,000/- towards funeral expenses. 6. A sum of Rs. 25,000/- is normally awarded towards loss of love and affection. Sunil Sharma and Others Vs. 5. The Claims Tribunal awarded a sum of Rs. 30,000/- towards loss of consortium and Rs. 30,000/- towards loss of love and affection and Rs. 5,000/- towards funeral expenses. 6. A sum of Rs. 25,000/- is normally awarded towards loss of love and affection. Sunil Sharma and Others Vs. Bachitar Singh and Others, (2011) 11 SCC 425 , and in Baby Radhika Gupta and Others Vs. Oriental Insurance Co. Ltd. and Others, (2009) 17 SCC 627 ). 7. As per Sarla Verma (Supra) a sum upto Rs. 10,000/- is awarded towards loss of consortium and actuals on funeral expenses. I would reassess the compensation under these heads and would award a sum of Rs. 25,000/- towards loss of love and affection, Rs. 10,000/- each towards loss of state, funeral expenses and loss of consortium. 8. The awarded compensation comes to Rs. 24,68,125/-. The enhanced amount of Rs. 5,88,125/- shall carry interest @ 7.5% per annum from the date of filing of the petition till the payment. 9. The Respondent No. 3 Insurance Company is directed to make the deposit within 30 days to the Registrar General of this Court. 10. 50% of the compensation along with interest shall be payable to the first Appellant and 25% each to the second and third Appellants. The amount payable to Appellant Nos. 2 and 3 shall be held in fixed deposit till they attain the age of 21 years. Out of the amount payable to the first Appellant 25% shall be released forthwith. The remaining amount shall be held in fixed deposit for a period of 2 years, 4 years and 6 years in equal proportion. The deposit shall be made in UCO Bank, Delhi High Court Branch. 11. Appeal is allowed in above terms. 12. No costs.