2011 (9) TMI 142 - HC - Indian Laws

Distribution of insurance claim - claim against accident - enhancement of the amount of compensation - the award amount is enhanced by a sum of Rs.17,52,750/-. Interest at the rate of 7.5% per annum shall be payable on the enhanced amount from the date of the filing of the petition till the date of realization. Forty percent of the enhanced amount shall enure to the benefit of the widow and the remaining amount shall enure to the benefit of two children and the mother of the deceased in the proportion of twenty percent each.

Summary

Issues:
- Appeal for enhancement of compensation amount awarded by Motor Accident Claims Tribunal, Delhi.
- Assessment of income of the deceased for compensation calculation.

Analysis:

Issue 1: Appeal for enhancement of compensation amount
The appellants, as legal representatives of the deceased involved in a road accident, sought enhancement of compensation awarded by the Motor Accident Claims Tribunal. The Tribunal had assessed the monthly income of the deceased based on evidence presented, awarding a sum of Rs.4,78,000 with interest. The appellants contended that this amount was inadequate, leading to the appeal for a higher compensation amount.

Issue 2: Assessment of income for compensation calculation
The learned counsel for the appellants argued that the Tribunal erred in assessing the income of the deceased. They presented evidence of the deceased's income tax returns and advance tax payments to support their claim for a higher income assessment. The court scrutinized the evidence and concluded that the income of the deceased was not properly assessed by the Tribunal. Considering the advance tax paid and income declared in tax returns, the court determined a higher income figure for the deceased, leading to an enhanced compensation amount of Rs.22,30,750 being awarded to the appellants. The court also directed the respondent to satisfy the modified award within a specified timeframe.

In summary, the Delhi High Court, in the judgment delivered by Reva Khetrapal, J., allowed the appeal for enhancement of compensation amount to the legal representatives of the deceased involved in a road accident. The court found that the income of the deceased had not been properly assessed by the Tribunal, considering evidence of advance tax payments and income tax returns. Consequently, the compensation amount was increased to Rs.22,30,750, with specific allocations for funeral expenses and non-pecuniary damages. The judgment directed the respondent to comply with the modified award and specified the distribution of the enhanced amount among the beneficiaries.