M S SHERAWAT Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) THE Appeal is for enhancement of compensation of RS.9,45,703/- awarded for the death of Smt. Santosh who died in an accident which occurred on 04.12.2006.

(2.) THE deceased was a self employed person working as a steno- typist. As per the Income Tax Return for the A.Y. 2006-07, she returned an Income Tax of RS.2,12,000/-. Since her husband was also working, the Claims Tribunal following the Division Bench judgment of the Karnataka High Court in A. Manavalagan v. A. Krishnamurthy & Ors., 2005 ACJ 1992 which was relied upon by this Court in Keith Rowe v. Prashant Sagar & Ors., 2011 ACJ 1734 held that where the husband and wife are working and the other legal heirs were not dependent, the Claimants would be entitled to a compensation towards loss to estate only to the extent of 1/3rd of the deceased's income. THE Claims Tribunal further made a deduction of 1/3 rd towards the personal and living expenses to award an overall compensation of RS.9,45,703/-.

(3.) AS far as the first contention is concerned, the learned counsel for the Appellants is right that there cannot be deduction of 1/4 th towards the personal and living expenditure of the deceased because 2/3rd of the deceased's income has already been taken as her personal and living expenditure and 1/3rd is taken as the saving which ultimately comes in the hands of the legal representatives as loss to estate. No such deduction of 1/4th was made either in A. Manavalagan(supra) or in Keith Rowe(supra). The Claims Tribunal erred in making a deduction of 1/4th towards the personal and living expenses of the deceased.