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2016 DIGILAW 1045 (PNJ)

Ram Rati v. Vishnu Kumar

2016-04-04

K.KANNAN

body2016
JUDGMENT Mr. K.Kannan, J.: (Oral) - The appeal is for enhancement of compensation for death of a male, aged 44 years, who was in government service in the State of Haryana. The claimants were widow, two daughters, son and father. The deceased was getting Rs.18,076/- at the time of his death but the salary had been revised from a retrospective date effective from 01.01.2006 by the 6th Pay Commission enhancing his salary to Rs.21,385/-. If we provide for 30% increase as a prospect of future increase, the income which he would have earned would have been Rs.27,800/-. The counsel for the insurer states that the rate of tax at the relevant time was 10%+cess for income between Rs.1 to Rs.1.5 lakhs, 20% at Rs.1.5 lakhs to Rs.2.50 lakhs+ 3% cess and from Rs.2.50 lakhs to 3 lakhs and above 30%. On a reckoning, the tax payable would have been Rs.51,582/-. If the said amount is deducted and also 1/4th deduction is made for personal expenses, the gross salary less tax, less deduction for personal consumption would be Rs.2,11,513/-. Applying a multiplier of 14, the loss of dependence will be Rs.29,61,182/-. 2. The other heads of claims shall be Rs.1 lakh towards loss of consortium and considering the fact that the accident had taken place in 2008 and a provision of interest will itself make possible an accretion equal to the sums which are granted through the decision of the Supreme Court in Rajesh Versus Rajbir Singh, [2013(4) Law Herald (SC) 3006 : 2013(3) Law Herald (P&H) 2274 (SC)] : 2013(9) SCC 54 and the subsequent decisions, I will take the component of love and affection for each of the daughter, son and father at Rs.50,000/- and provide for Rs.10,000/- as loss to estate and Rs.25,000/- for funeral expenses. The several heads of claims are tabulated as under:- Accident 24.12.2008 Age 44 Occupation Government service Claimants Widow, 2 daughters, son and father Heads of claim Tribunal Hihg court Sr. No. Amount (Rs.) Amount (Rs.) 1. Income 21,385 2. Add,% of increase 30%/50% 27,800 less tax Rs.51,582 3. Deduction ½, 1/3, ¼, 1/5 4. Multiplicand 2,11,513 5. Multiplier 14 6. Loss of dependence 29,61,182 7. Medical expenses 8. Loss of consortium 1,00,000 9. Loss of love and affection 2,00,000 10 Loss to estate 10,000 11 Funeral expenses 25,000 Total 4,53,360 32,96,182 3. Income 21,385 2. Add,% of increase 30%/50% 27,800 less tax Rs.51,582 3. Deduction ½, 1/3, ¼, 1/5 4. Multiplicand 2,11,513 5. Multiplier 14 6. Loss of dependence 29,61,182 7. Medical expenses 8. Loss of consortium 1,00,000 9. Loss of love and affection 2,00,000 10 Loss to estate 10,000 11 Funeral expenses 25,000 Total 4,53,360 32,96,182 3. It is argued that the wife has secured compassionate assistance by being paid the salary which her husband was earning and that shall be duly factored for deduction. I reject the argument made by the counsel for the insurer and apply the law laid down by this court in FAO No.1322 of 2010, decided on 21.12.2012- Reliance General Insurance Company Limited Versus Purnima and others, [2013(2) Law Herald (P&H) 968 (DB)] and hold the entire amount as assessed to be payable to the claimants. 4. In the manner of apportionment, the entitlement will be distributed amongst the widow, daughters, son and father in the ration of 2:2:2:2:1. As regards one share granted to the father, he has expired and it shall be distributed equally amongst the legal heirs which would include the widow, 2 daughters and son representing the share of the deceased and all other sons and daughter of the father. As regard the share relatable to the father, it shall be distributed immediately and as regards the share of the widow, daughters and son, 75% of the same shall be distributed to the widow and any of the major children and the rest of 25% shall be detained by another period of 3 years, splitting it in 3 portions, the first portion for a period of 1 year, the second portion for a period of two years and the third portion for a period of 3 years. If there is any minor child, the entire amount shall be retained during the minority in a fixed deposit and on attaining majority, the amount will be distributed in the same manner as referred to above, namely, 75% of the amount shall be distributed immediately and the rest of 25% shall be detained by another period of 3 years, splitting it in 3 portions, the first portion for a period of 1 year, the second portion for a period of two years and the third portion for a period of 3 years. The amount shall be disbursed by the bank directly to the claimants without having to file any application on the respective dates of majority by electronic transfer or any other mode of transmission of funds which is acceptable banking practice with advice to the Motor Accident Claims Tribunal. 5. It is stated by the counsel for the respondent that some amount has been paid towards satisfaction of the award. Any amount already paid shall be given due credit. 6. The award stands modified and the appeal is allowed to the above extent.