POONAM PAUL Vs. STATE OF UTTARANCHAL THROUGH SECRETARY TRANSPORT DEPARTMENT GOVERNMENT OF UTTARANCHAL

JUDGEMENT

(1.) FAO No. 3591 of 2007 is for enhancement of claim of compensation filed at the instance of the parents and sister. The State of Uttaranchal is itself in appeal in FAO No. 4812 of 2007.

(2.) In FAO No. 3591 of 2007, the deceased was a 27 years old Engineering Graduate with Management Degree and was an Area Sales Manager in a multinational company that manufactures soft drinks under the brand name Coke. The proved salary on record was Rs. 6,54,790 per annum. The Tribunal had taken 50% deduction for personal expenses and applied a multiplier of 5 and awarded compensation of Rs. 15,94,475. Learned Counsel has submitted that the multiplier must have been taken on the basis of the age of the deceased or at any rate, the multiplier is relatable to the younger of the claimants between the parents. He also contends that the Tribunal must have provided for a prospect of increase in the income and awarded appropriate compensation for the same.

(3.) I would place the entire reckoning of compensation which conforms to what has been laid down by the decision in Sarla Verma v. DTC, 2009 3 ACC 708 as explained subsequently in a decision in Shanti Devi v. New India Insurance Company, 2010 12 JT 106. Since, the deceased was in a high income group, the tax assessed was Rs. 1,52,437 and the net amount will, therefore, be Rs. 4,82,293. If an amount of 50% is added as prospect of future increase, the amount will be Rs. 2,41,150 which will also take component to tax and I will take the prospect of increase minus tax to a sum of Rs. 2 lacs, take average salary to be Rs. 6,82,293. 50% of the same shall be deducted for personal expenses and contribution to the family would mean Rs. 3,41,146.50. If a multiplier of 13 is to be adopted taking the age of the younger of the parents to be relevant, the amount of compensation will be Rs. 44,34,904. I will not take the entire amount as the amount payable when we are factoring the compensation for higher income group. Even the choice of multiplier has to be reasonable to ensure that it throws a return which approximates to what we take as dependent or contribution to the family. If we must assume that the return to the family would be in the range of about Rs. 30,000-40,000 even then a compensation of Rs. 44,34,905 is still be excessive. This issue of choice of multiplier in cases of higher income group and compensation for a lesser value was suggested by the Hon'ble Supreme Court in United India Insurance Ltd. v. Patricia Jean Mahajan, 2002 2 ACC 460 In my view, the appropriate compensation would still be about Rs. 35 lacs. For that still make an annual return close to about Rs. 35,000-40,000 per month. I have scaled down the amount even less than of the value the multiplier fetches to conform to what I think will be appropriate and just. In all cases of compensation there is a definite approximation that the Court makes and when we are applying some definite yardstick, it is only to ensure that there is a homogeneous approach and certitude in the compensation determined. If I make a deviation from a multiplier suggested in Sarla Verma's case, it is to satisfy my own judicial conscience that the compensation awarded is not a lottery, but shall still be what would ultimately justify as appropriate and just. The amount of compensation which was determined by the Tribunal was Rs. 15,00,000 and I am increasing to another Rs. 20,00,000 in the manner in which I have worked out. The increased amount of compensation shall also attract interest @ 6% from the date of the petition till the date of payment. In the presence of the parents, an unmarried sister cannot be taken as dependent, except that in Indian social conditions that a brother voluntarily cares for an unmarried sister and contributes substantively to the parents to settle their daughter. I will not, therefore, make any separate provision for the sister and make the compensation which is determined to be distributed to the parents equally.