RASHMI DEVI Vs. SANJEEV KUMAR

JUDGEMENT

(1.) THE Appellants, who are the legal heirs of deceased Pritam Singh seek enhancement of compensation for the deceased's death in a motor accident, which took place on 15.02.2007. It was alleged that the deceased was 54 years at the time of accident. His salary was retrospectively revised to the basic pay of Rs. 24,060/- apart from payment of 6% as dearness allowance on the date of the accident. It was claimed that the deceased was entitled to the transport allowance @ Rs. 1,830/- per month in the revised pay scale. THE Tribunal took the deceased's income as Rs. 24,460/- per month and deducted 1/4th towards personal living expenses, applied the multiplier of '11' to compute the loss of dependency as Rs. 24,21,540/- after awarding notional sums towards non pecuniary damages, the overall compensation of Rs. 19,16,540/- was awarded.

(2.) THE contentions raised on behalf of Claimants are: -

(3.) IT has come in the evidence of the second Appellant Naveen Kumar that he was married. He deposed that he was employed only on part time basis. In any case, he cannot be treated as financially dependent on his deceased father. The deduction towards personal living expenses, therefore, should have been 1/3rd instead of 1/4th. Since, the amount of HRA is not taxable if utilized for payment of rent, there would not be any deduction towards income tax on this amount. On the basis of above discussion, the loss of dependency comes to Rs. 25,80,227/- [Rs. 24,060/- (basic pay) + Rs. 1,443/- (6% DA) x 12 ? Rs. 40,810/- (income tax) + Rs. 86,616/- (HRA Rs. 7218/- x 12) ? 1/3rd x 11 = Rs. 25,80,227/-].