MALA DUTTA GUPTA Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) THIS appeal is directed against the judgment and award of the Motor Accidents Claims Tribunal dated 31.12.2000, whereby a sum of ` 13,89,000/- (Rupees Thirteen Lac Eighty Nine Thousand Only) was awarded to the appellants alongwith interest @ 12% per annum from the date of the petition till realisation (inclusive of the interim award).

(2.) CONCISELY, the facts are that the appellants are the widow and minor son of the deceased Shri Onkar Dutta Gupta, who met with a fatal accident on 17.07.1996, near the Chittranjan Park Chowk, with a TSR bearing No.DL 1RB 0048. The deceased was aged 36 years and was working as a Manager Executive (Selections) in M/s. Quest Consultants and Engineering Pvt. Ltd. on a salary of ` 14,700/- per month. A Claim Petition was filed by the appellants claiming compensation in the sum of ` 40 lacs for his untimely demise against the respondent No.3-driver, the respondent No.2-owner and the respondent No.1-M/s. National Insurance Co. Ltd., the insurer of the offending vehicle. The Motor Accidents Claims Tribunal after conducting an enquiry held that the accident was the outcome of the rash and negligent driving of the aforesaid TSR by the respondent No.3 and proceeded to compute the compensation payable to the legal representatives of the deceased by assessing the income of the deceased to be in the sum of ` 1,37,400/- per annum on the basis of his salary certificate (Ex.PW4/1) and his income-tax return for the financial year 1995-96 (Ex.PW4/2). The Tribunal adopted the formula laid down by the Supreme Court in the case of Smt. Sarla Dixit and Anr. vs. Balwant Yadav and Ors., AIR 1996 SC 1274 to assess the future emoluments of the deceased and then deducting one-third (1/3rd) therefrom computed the annual loss of dependency of the appellants at ` 1,37,400/-. To the aforesaid multiplicand, the Tribunal applied a multiplier of 10 and held that, calculated in this manner, the capitalized sum came to ` 13,74,000/-, to which it added a sum of ` 15,000/- towards the loss of consortium and funeral expenses of the deceased. The learned Tribunal thus passed an award in the sum of ` 13,89,000/- with interest at the rate of 12% per annum from the date of the petition till realisation.

(3.) THERE is no manner of doubt that it is well established that income for the purpose of assessment of compensation payable to victims of motor accidents is the actual income less income-tax payable thereon. Accordingly, it is proposed to deduct the income-tax payable by the deceased from his annual income. Thus calculated, the annual income of the deceased for the financial year 1995-96 comes to ` 1,37,400/- minus ` 4,840/- = ` 1,32,560/-. His average annual income after addition of 50% towards his anticipated future earnings thus works out to ` 1,32,560/- (actual earnings) plus ` 66,280/- (50% increase) = ` 1,98,840/- per annum. Deducting one-third (1/3rd) therefrom, the average annual loss of dependency of the appellants comes to ` 1,32,560/-. Adopting the multiplier of 15 to augment the aforesaid amount in consonance with the judgment of the Supreme Court in the case of Sarla Verma (supra), the total loss of dependency of the appellants comes to ` 1,32,560/- x 15 = ` 19,88,400/- (Rupees Nineteen Lac Eighty Eight Thousand and Four Hundred Only).