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TMI Blog2014 (4) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... e earned from his occupation mentioned in the income tax return submitted for the relevant financial year 1994-1995.
As per the Income Tax return of the financial year 1994-1995 produced on record, the deceased was earning Rs. 88,660/- per annum or Rs. 7330/- per month. Further, the deceased being 46 years of age at the time of death, he is entitled to 30% increase in the future prospects of income - Also, since the deceased was 46 years of age at the time of the accident, a multiplier of 13 seems appropriate for determining the quantum of compensation.
Conclusion - An interest @ 9% per annum on the compensation to be awarded to the Appellants-claimants granted. The compensation awarded shall be apportioned between the Appellants equally with proportionate interest. We direct the Insurance Company to deposit 50% of the awarded amount with proportionate interest in any of the Nationalized Bank of the choice of the Appellants for a period of 3 years.
Appeal disposed off. X X X X Extracts X X X X X X X X Extracts X X X X ..... on the income shown in the Income Tax return. Further, the High Court opined that the Tribunal erred in not deducting 1/3rd for personal expenses of the deceased. Further, according to the High Court, the Tribunal erred in determining the multiplier of 18 instead of 13 considering the age of the deceased which was 46 at the time of the accident. 6. Accordingly, the High Court held that the unsubstantiated oral evidence alone of P.W. 1 cannot be taken into consideration in the light of Exhs. A.8, A.9 and A.10. The monthly income of the deceased is therefore taken as Rs. 3,115/- per month for computation of the multiplicand on the basis of net average income of the deceased calculated as per the income tax return produced as evidence on record. Therefore, the compensation determined under the head of loss of income under the head of 'loss of income' of the deceased was determined by the High Court at 4,86,000/-. Further, the High Court has reduced compensation under the head of funeral expenses from Rs. 25,000/- to Rs. 10,000/-. The Tribunal awarded a consolidated amount for loss of love and affection by the children, loss of income and loss of consortium by the wife at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ives of the victim would lose considerable portion of the income. In view of the settled proposition of law, I am of the view, the Tribunal can make only statutory deductions such as Income tax and professional tax and any other contribution, which is not repayable by the employer, from the salary of the deceased person while determining the monthly income for computing the dependency compensation. Any contribution made by the employee during his life time, form part of the salary and they should be included in the monthly income, while computing the dependency compensation. 15. Similar view was expressed by a learned Single Judge of Andhra Pradesh High Court in S. Narayanamma and Ors. v. Secretary to Government of India, Ministry of Telecommunications and Ors. holding: 13 ...In this background, now we will examine the present deductions made by the tribunal from the salary of the deceased in fixing the monthly contribution of the deceased to his family. The tribunal has not even taken proper care while deducting the amounts from the salary of the deceased, at least the very nature of deductions from the salary of the deceased. My view is that the deductions made by the tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the accident, a multiplier of 13 seems appropriate for determining the quantum of compensation as per the principle laid down by this Court in the case of Sarla Verma and Ors. v. Delhi Transport Corporation and Anr. (2009) 6 SCC 121. 11. Therefore, the total amount of compensation the Appellants-claimants are entitled to under the head of loss of income is: [( Rs. 7330+30/100 x Rs. 7330) x 12 x 13] = Rs. 14,86,524/-.] 12. Further, since the deceased has left behind his wife and two children, the amount to be deducted under the head of personal expenses is 1/3rd of the total income in the light of the principle laid down in Sarla Verma case (supra) which was reiterated in Santosh Devi case (supra). Therefore, the amount to be awarded as compensation to the Appellant is = ( Rs. 14,86,524/- - 1/3 x Rs. 14,86,524/- ) = Rs. 9,91,016/-. 13. The Appellant-claimants sought an amount of Rs. 10,000/- towards damage to the motorcycle. Since, the claim has neither been rebutted with evidence by the Respondent, we grant compensation of Rs. 10,000/- towards the damage caused to the bike. 14. Further, the High Court awarded a sum of Rs. 30,000/- towards loss of consortium and Rs. 20,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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