SUMAN Vs. JOGA SINGH

JUDGEMENT

(1.) THE appeal in FAO 4645 of 2010 is for enhancement of compensation claimed for death of a male, aged 36 years. The deceased was working as Beldar in BBMB, Nangal Dam, and drawing salary @ Rs.14,432/ - per month. As regards the liability, while assessing compensation, the Tribunal found that the driver did not have valid driving licence and discarded the evidence given by the owner that he has caused the verification of the license to be made not as true version and consequently, found that there had been violation of terms and conditions of policy. The Insurance Company was therefore fully exonerated. The learned counsel appearing on behalf of the appellants seeks for reassessment of compensation in the light of judgement of Supreme Court in Sarla Verma Versus Delhi Transport Corporation and another, 2009 6 SCC 121 that mandates that the provisions for future increase in salary must also be provided. Learned counsel would also argue that the Tribunal's direction that the payment of interest to be effected only from the date of award, if the amount was not paid within the stipulated period is not appropriate. The counsel would also state that the Insurance Company could not have been exonerated even if there was violation of terms of the policy in terms of law laid down by Supreme Court in National Insurance Company Limited Versus Swaran Singh, 2004 3 SCC 297.

(2.) AS regards the salary, the learned counsel for the Insurance Company points out the salary certificate produced before the Tribunal includes arrears of rent of DA @ Rs.2,045/ - and salary must have been taken taken Rs.12,087/ -. I accept this contention and provide 50% for prospect of increase in salary and find monthly average income at Rs.18,518.50/ -. There had been no income tax already as evident from the salary certificate and therefore, there shall also be no scope for deduction for tax. I will provide for 1/4th deduction for personal expenses and take the monthly dependency at Rs.13,935/ - and apply multiplier of 15 to find the loss of dependency at Rs. 25,08,767.50/ -. To this will be added Rs. 1 lac towards loss of consortium and Rs.1 lac for loss of supervision and guidance of the parent for the minor children and also another Rs.25,000/ - for funeral expenses and provide for further sum of Rs.10,000 towards loss of estate. The total compensation would be Rs.27,43,767/ -.

(3.) AS the accident had taken place in the year 2008, I will provide for multiplier of 15, considering the fact that widow was herself a young lady and there were two minor children at the time of accident of the deceased I would direct that as regard her share the 40% of the amount will be permitted to be withdrawn and remaining 60% of the amount to be split in 8 equal portions, first portion shall be invested for the period of one year, second portion for two year and so on up to eight years. The amount shall be paid to the widow on the respective dates of maturity. As regards the share of the minors the same shall be retained during the period of minority and on attaining majority 75% amount shall be permitted to be withdrawn and the remaining 25% shall be deposited for the period of 3 years and again the amount shall be split in three portions, first for period of one year, second for period of two years and third for period of three years. Interest on amount during the period of minority of the children shall be paid to the mother at quarterly intervals of a year for maintenance and support of the children. As regards the apportionment the same shall be in ratio 2:2:2:1 among the wife, children and mother of the deceased. As regards the share of mother the entire amount of compensation is ordered to be paid without any restriction of deposit. The additional amount of compensation as awarded will also attract interest @ 7.5%. The direction already given by the Tribunal as regards the interest shall also stand modified and it should be taken that the interest shall be payable on the original amount as awarded from the date of petition till the date of payment.