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SUPREME COURT OF INDIA
Dhananjaya Y. Chandrachud, Ajay Rastogi, JJ.
Triveni Kodkany and Others – Appellants
Versus
Air India Limited and Others – Respondents
Civil Appeal No 2914 of 2019 and with Civil Appeal No 5862 of 2019
Decided On : 03-03-2020
Consumer Protection Act, 1986 – Section 23 – Airlines – Death of passenger in plane crash – Compensation of Rs 70 lakhs awarded by NCDRC – Material on record does not indicate that deceased was entitled to a specified quantum of employees’ stock options (ESOPs) as a matter of right – These would be linked to performance – Apart from letter of employer, no evidence was produced before NCDRC to indicate that ESOPs were payable at a certain rate or quantum every year – These were incentives paid to deceased – Similarly, other financial benefits have not been demonstrated to be a matter of right – Deceased was eligible for certain benefits on an annual basis – In absence of cogent evidence indicating that this was a part of salary package which was payable to deceased as an entitlement irrespective of performance, Court not inclined to accept submission that incentive benefits should be added back to income for the purposes of computation – NCDRC made deduction of one fifth on account of personal expenses – It is three complainants before NCDRC and mother who were dependent on deceased – Appropriate deduction on account of personal expenses should have been one-fourth and not one-fifth as determined by NCDRC – Deceased was not self-employed – He was in employment of a multi-national corporation, based in Dubai and was paid his salary in AED – Record indicates that he was a long standing employee of employer – Deceased was evidently, a confirmed employee of his employer – This should be entitled to adequate weightage in terms of determination of compensation in event of an untimely demise – Thirty per cent should be allowed on account of future prospects – Total amount which is payable works out to Rs 7,64,29,437 – Interest at the rate of nine per cent per annum shall be paid on same basis as has been awarded by NCDRC. (Paras 11, 12, 14 and 18)
Facts of the Case:
Complaint out of which the present appeals arise was instituted on 18 May 2012 by the surviving spouse, son and daughter of the deceased before the NCDRC, claiming compensation of INR 13.42 crores, together with interest at the rate of 18 per cent per annum from the date of the accident and other consequential payments.
Findings of the Court:
The total amount which is payable on account of the aforesaid heads works out to Rs 7,64,29,437. Interest at the rate of nine per cent per annum shall be paid on the same basis as has been awarded by the NCDRC. The balance, if any, that remains due and payable to the complainants, after giving due credit for the amount which has already been paid, shall be paid over within a period of two months from the date of receipt of a certified copy of this order.
Result : Appeals disposed of.
JUDGMENT
Dr. Dhananjaya Y. Chandrachud, J.
1 On 22 May 2010, flight IX 812 of Air India Express from Dubai to Mangalore crashed at Mangalore airport. One of the passengers aboard the ill-fated aircraft, who died in the accident, was Mahendra Kodkany. Mahendra was an expat employed as a Regional Director for the Middle Eastern Region with GTL Overseas (Middle East) FZ- LLC. His spouse, Triveni Kodkany submitted a claim on 10 March 2011 for compensation from Air India. Air India paid an amount of Rs 4,00,70,000 to her on 20 March 2012 against an indemnity. Apart from this, an amount of Rs 40 lakhs was in addition paid to the parents of the deceased. On 18 April 2012, the parents and the brother of the deceased instituted a suit against Air India to claim compensation. The Trial Court by its judgment dated 27 September 2018 decreed the claim of the mother of the deceased in the amount of Rs 70 lakhs. The claims of the father and the brother were dismissed.
2 The complaint out of which the present appeals arise was instituted on 18 May 2012 by the surviving spouse, son and daughter of the deceased before the NCDRC, claiming compensation of INR 13.42 crores, together with interest at the rate of 18 per cent per annum from the date of the accident and other consequential payments. Air India contested the proceedings before the NCDRC. The NCDRC allowed the complaint and awarded compensation of AED 58,81,135 equivalent to Rs 7,35,14,187 on the basis of a conversion rate of Rs 12.50 per AED. The NCDRC noted that an amount of Rs 40 lakhs has been paid to the parents of the deceased apart from a sum of Rs 4 crores which was paid to the complainants. Both those sums were directed to be deducted from the rupee equivalent of AED 58,81,135. The balance of the principal sum due was determined at Rs 2,95,14,187. Simple interest at the rate of 9 per cent per annum was awarded from 22 May 2010 till the date on which an amount of Rs 40 lakhs was paid to the parents of the deceased. The complainants were held to be entitled to interest on the amount of Rs 6,95,14,187 with effect from the date on which the payment was made to the parents of the deceased till the date on which Rs 4 crores was paid to the complainants. They were also held entitled to interest on the remaining amount with effect from the date on which Rs 4 crores were paid to the complainants until the date on which the entire principal sum is actually paid.
3 Cross appeals have been filed in these proceedings. Chronologically, the first appeal was filed by the complainants. Air India has also filed an appeal challenging the order of the NCDRC. For convenience of reference, we will refer to the parties as the complainants and Air India.
4 The deceased was, at the time of the accident, working with GTL Overseas (Middle East) FZ LLC as its Regional Director in the Middle Eastern Region, a position which he held since May 2009. The breakup of his Annual Cost to Company (CTC) is indicated in the following table:
| Basic (AED) | HRA (AED) | Transport Allowance (AED) | Telephone Allowance (AED) | Gross Salary per year (AED) | LTA (AED) | Medical (AED) | Gratuity (AED) | Total CTC per year (AED) |
| 266,398 | 102,569 | 40,957 | 30,000 | 439,924 | 12,000 | 15,144 | 15,327 | 482,395 |
5 By its judgment dated 10 December 2018, the NCDRC determined the total income as AED 4,52,395 by deducting the telephone allowance of AED 30,000. A deduction of twenty per cent was taken towards personal expenses of the deceased on the basis that he was survived by four dependents; the mother, spouse and two minor children. An addition of twenty-five per cent was made on account of future prospects.
The NCDRC applied a multiplier of thirteen (the deceased being forty five years old at the date of the accident). On this basis, the total compensation which was payable to the complainants was computed at AED 58,81,135. This was conve
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