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2017 DIGILAW 272 (ALL)

Jai Prakash Gupta v. Puran Chand

2017-01-19

PANKAJ MITHAL, SHASHI KANT

body2017
JUDGMENT Pankaj Mithal & Shashi Kant, JJ. Heard Sri S. D. Ojha holding brief of Sri R. C. Gupta, learned counsel for the claimant appellants. The contesting party in this appeal is the respondent no. 3, Insurance Company who is represented but none has appeared on its behalf. 2. The claimant appellants has preferred this appeal against the award dated 30.04.2003 passed by Motor Accident Claims Tribunal for Rs.1,02,000/- with 9% interest awarded to the claimant appellants on account of death of their son in a motor accident. 3. The Tribunal had taken the income of the deceased to be Rs. 50000/- per annum and after deducting 1/3rd towards personal expenses and then by applying the multiplier of 5 on the basis of the age of the parents awarded the compensation. 4. The argument of claimant appellants is that the Tribunal has failed to take into account the future prospects. The multiplier applied is incorrect as is ought to have been on the basis of the age of the deceased. Moreover some compensation for loss of love and affection and for other expenses ought to have been awarded. 5. There is no dispute regarding the quantum of the income of the deceased, which has been taken to be Rs. 50,000/- per annum. It is settled law that in case of death of a young person, certain addition on account of future prospects in life to the extent of 50% is permissible. The Tribunal has not allowed any addition in the income on account of future prospects. Thus, taking the future prospects, the income of the deceased is assessed to be Rs. 50,000/- + 25,000/- = Rs. 75,000/- per annum. 6. The deceased was a bachelor and under normal circumstances, he would have been spending half of the income up on himself. Therefore, according to the settled view in such cases, 50% of assessed income is ought to be deducted towards personal expenses. The Tribunal has only allowed deduction of 1/3rd which is incorrect. Accordingly, the income of the deceased of Rs.75,000/- per annum as assessed is reduced to the half and the loss of dependency is assessed to be Rs.37,500/- per annum. 7. The Tribunal has applied multiplier of 5 only in determining the compensation payable by taking of the age of the parents as the basis. 8. Accordingly, the income of the deceased of Rs.75,000/- per annum as assessed is reduced to the half and the loss of dependency is assessed to be Rs.37,500/- per annum. 7. The Tribunal has applied multiplier of 5 only in determining the compensation payable by taking of the age of the parents as the basis. 8. It has been settled in the case of Smt. Sarla Verma and others vs. Delhi Transport Corporation and another 2009 (75) ALR 638 (SC) and has been followed by three Judges Bench in Munna Lal Jain and another vs. Vipin Sharma and others, 2015 (3) TAC 1 (SC) that in the case of a death of a bachelor, the multiplier has to be applied on the basis of the age of the deceased and not on the basis of the age of the parents. 9. The aforesaid decisions have been followed by the two Division Benches of this Court in the case of New India Insurance Co. Ltd. vs. Gulab Singh and others 2015 (110) ALR 292 and Jai Kumari Devi (Smt.) and others vs. Smt. Pushpa Gupta and another, 2015 (111) ALR 434. 10. Therefore, we are of the opinion that the Tribunal committed a manifest error of law in applying the multiplier of 5 instead of 17 which is applicable as per Sarla Verma's case, looking to the age of the deceased which was 26 years, at the time of accident. Accordingly, the compensation payable to be claimant appellants would be Rs. 37,500/- x 17 = Rs. 6,07,500/-. 11. Apart from the above, the Tribunal has not awarded any compensation towards non pecuniary losses. 12. There is no material on record which may help us in assessing the non pecuniary losses such as loss of love and affection, etc. Thus, avoiding all technicalities and arbitrariness and to be fair and reasonable, we are of the opinion that Rs. 15,000/- towards cremation expenses and Rs. 50,000/- towards the loss of love and affection to the parents would suffice the purpose. 13. Accordingly, the compensation payable to the claimant appellants is worked out to be Rs. 6,07,500/- + 15,000/- + 50,000/- = Rs. 6,72,500/- along with interest of 9% as awarded by the Tribunal from the date of filing of the claim petition i.e. on 9.8.2003 till the date of actual payment. 14. The appeal is allowed as above.