1. Motor accident claim — Compensation for death of employee — Determination of loss of dependency. (Para 1 , 2 )
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2019 Supreme(SC) 1941
SUPREME COURT OF INDIA
S.A. Bobde, Sanjay Kishan Kaul, Deepak Gupta, JJ.
Sandeep Kaur & Ors. - Appellants
Versus
Murtaza Hasan & Ors. - Respondents
Civil Appeal No. 18374 of 2017
Decided On : 14-02-2019
Advocates Appeared:
Aishwarya Kumar, Adv., Vipin Gupta, Adv., G. Balaji, Adv., M.K. Dua, Adv., Viresh B Saharya, Adv., Yunus Malik, Adv., Anish Maheshwari, Adv., Sanjeev Agarwal, Adv., Arvind S Avhad, Adv., Khushali, Adv., Saroj Bala, Adv., Farha Malik, Adv., Samir Malik, Adv., Garvesh Kabra, Adv., S.D. Raman, Adv., Vijay Kumar, Adv., Vithika Garg, Adv., Vidushi Garg, Adv., C.D. Singh, Adv., Amit Kumar Singh, Adv., K. Enatoli Sema, Adv., Amith J, Adv., K.K. Bhat, Adv., P.K. Seth, Adv., Manjeet Chawla, Adv.
Aishwarya Kumar, Adv., Vipin Gupta, Adv., G. Balaji, Adv., M.K. Dua, Adv., Viresh B Saharya, Adv., Yunus Malik, Adv., Anish Maheshwari, Adv., Sanjeev Agarwal, Adv., Arvind S Avhad, Adv., Khushali, Adv., Saroj Bala, Adv., Farha Malik, Adv., Samir Malik, Adv., Garvesh Kabra, Adv., S.D. Raman, Adv., Vijay Kumar, Adv., Vithika Garg, Adv., Vidushi Garg, Adv., C.D. Singh, Adv., Amit Kumar Singh, Adv., K. Enatoli Sema, Adv., Amith J, Adv., K.K. Bhat, Adv., P.K. Seth, Adv., Manjeet Chawla, Adv.
Future prospects of the deceased should be considered in the calculation of compensation.
Headnote:
Compensation - Future Prospects - The court enhanced the compensation amount by considering the deceased's future prospects as per the decision in National Insurance Co. Ltd vs Pranay Sethi & Ors. (2017) 16 SCC 680
Fact of the Case:
The deceased was a Trainee Supervisor in a private company with a certain annual salary. The High Court did not consider future prospects while computing compensation.
Finding of the Court:
The court enhanced the compensation amount by considering the deceased's future prospects and directed the payment of interest at the rate of 9% per annum on the enhanced amount.
Issues: Calculation of compensation, consideration of future prospects, payment of interest
Ratio Decidendi: The court applied the decision in National Insurance Co. Ltd vs Pranay Sethi & Ors. to include future prospects in the calculation of compensation.
Final Decision: The court modified and enhanced the compensation amount, directed the payment of interest, and disposed of the appeal.
Legal Category Hierarchy
Table of Contents
2. Claim for enhancement of compensation — Non-consideration of future prospects in the computation of loss of dependency. (Para 2 )
3. Future prospects must be added to the income of a deceased in permanent employment to accurately compute compensation. (Para 2 )
4. Future prospects are to be added to the annual income of a deceased person in permanent employment for calculating compensation. (Para 2 )
5. Appeal disposed of with compensation enhanced, interest awarded, and directions for payment and adjustment. (Para 2 , 3 , 4 , 5 )
6. How is the income of a deceased person in permanent employment treated for compensation purposes?
Future prospects must be added to the annual income of the deceased when they were in permanent employment to determine the total income for compensation calculations. (Para 2 )
7. What is the process for calculating loss of dependency after determining the total annual income?
The total annual income, including future prospects, is reduced by a portion for personal expenses, and the remaining balance is multiplied by a multiplier based on the deceased's age. (Para 2 )
8. What other heads of compensation are typically awarded in death claim cases?
In addition to loss of dependency, claimants are entitled to compensation for loss of consortium, funeral expenses, and loss to the estate. (Para 2 )
ORDER
1. The deceased was aged about 43 years and working as a Trainee Supervisor in a private company and his annual salary was Rs.99,372/- (Rs.8,281/- x 12).
2. The High Court while computing the compensation has not taken into consideration the future prospects. The deceased was in permanent employment and keeping in view the decision rendered by this Court in the case of National Insurance Co. Ltd vs Pranay Sethi & Ors. , (2017) 16 SCC 680, thirty per cent or Rs.29,811/-towards the future prospects has to be added to his income keeping in view the age of the deceased and the fact that he was in permanent employment. Adding this amount towards future prospects, the annual income comes to Rs.1,29,183/-. After deducting 1/4th for his personal expenses, the balance amount comes to Rs.96,887/-. Applying multiplier of 14, the loss of dependency works out to Rs.13,56,418/-. The claimants are also entitled to Rs.70,000/- for loss of consortium, funeral expenses and loss to the estate. The total enhanced compensation amount comes to Rs.14,26,418/- which is rounded off to Rs.14,27,000/-. The award is accordingly modified and compensation is enhanced to Rs.14,27,000/-.
3. We also direct that interest at the rate of 9% per annum shall be payable on the aforesaid amount from the date of filing of the claim petition till the date of realisation. The enhanced amount shall be paid to the claimants within three months from today.
4. Needless to say that any amount already paid or deposited shall be adjusted while depositing the enhanced compensation awarded by this Court.
5. With the aforesaid directions, the appeal is disposed of.
