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2023 Supreme(Bom) 807
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Shivkumar Dige, J.
Reliance General Insurance Co. Ltd. – Appellant
Versus
Manjula Kabiraj Das & Ors. – Respondents
First Appeal No. 180 of 2023
Decided On : 17-03-2023
Ms. Kalpana R. Trivedi, for the Appellant; Mr. Vasant M. More for the Respondent
Proper assessment of salary income by deducting professional tax and income tax, and the distinction between ex-gratia payment and compensation under the M.V. Act.
Headnote:
Deduction of Salary - Motor Accident Claims - Section 165 of M.V. Act - The court discussed the deduction of salary, future prospects, and ex-gratia amount in the context of the Motor Vehicles Act, 1988. It highlighted the principles of considering salary income by deducting professional tax and income tax, proper assessment of future prospects, and the distinction between ex-gratia payment and compensation under the M.V. Act.
Fact of the Case:
The appeal involved issues of deduction of deceased's salary, future prospects, and entitlement to compensation due to the deceased's wife receiving ex-gratia amount and joining service on compassionate basis.
Finding of the Court:
The court found that the salary considered by the Tribunal after deducting professional tax and income tax was proper. It also upheld the Tribunal's decision on future prospects. Additionally, it held that the wife's employment on compassionate basis did not preclude the claimants from receiving compensation.
Issues: The issues involved deduction of deceased's salary, assessment of future prospects, and the impact of the wife's employment on the claimants' entitlement to compensation.
Ratio Decidendi: The court emphasized the principles of considering salary income by deducting professional tax and income tax, proper assessment of future prospects, and the distinction between ex-gratia payment and compensation under the M.V. Act.
Final Decision: The appeal was dismissed, and the claimants were permitted to withdraw the awarded amount along with accrued interest. The statutory amount along with accrued interest was to be transmitted to the Tribunal.
JUDGMENT
1. Heard learned counsel for the Appellant and learned counsel for the Respondents.
2. The issues involved in this Appeal are deduction of salary, deduction of arrears allowance mentioned in the salary and future prospects amount.
3. It is contention of learned counsel for Appellant that the salary of deceased was around Rs.30,000/- per month and the deceased was getting various allowances, by deducting those allowances, the salary would be less than Rs.25,000/-, but Tribunal has considered Rs.25,000/- as salary of the deceased, which is improper. The learned counsel further submits that, at the time of accident, deceased was 44 year old, the Tribunal has given 30% future prospects which is improper. The learned counsel further submits that the wife of deceased has been taken in service in the place of her deceased-husband on compassionate basis and she gets Rs.20,000/- salary per month. She received ex-gratia amount of Rs.6,50,000/- from her Company. When wife of deceased got a job, the claimants are not entitled for compensation. But these facts are not considered by the Tribunal. Hence, requested to allow the Appeal.
4. The learned counsel for the Respondents-claimants submits that deceased was working as Assistant Technician in the Telecom Company and his salary was Rs.30,491/- per month. He was permanent Government Employee, and after deduction of Income Tax and the Professional Tax i.e. TDS from the employees salary, the Tribunal has considered his salary at Rs.25,000/- per month. The learned counsel further submits that it is settled principle of law that while considering the salary of deceased, Tribunal has to consider deduction of Income Tax and Professional Tax and not other allowances. The learned counsel for the claimants further submits that at the time of accident, deceased was 40 year old, hence, the future prospects awarded by the Tribunal is proper and requested to dismiss the Appeal.
5. I have heard both learned counsel. Perused judgment and order passed by the Motor Accident Claims Tribunal, Mumbai (for short 'the Tribunal').
6. In respect of the issue of salary, it is contention of learned counsel for the Appellant that it should be around Rs.20,000/- by deducting other allowances. Perused the salary slip at Exhibit-37. This salary slip shows that the deceased was getting amount of Rs.30,491/- per month as salary. The Tribunal has deducted the TDS and Professional Tax, and after deducting it, the Tribunal has considered Rs.25,000/- per month as salary of the deceased. I do not find any infirmity in it. In my view it is settled principle of law that, salary income should be considered by deducting professional tax and income tax. The Tribunal has considered this fact. The salary considered by the Tribunal is proper.
7. In respect of issue of future prospects, deceased was 45 year old at the time of accident. As per the view of the Hon'ble Apex Court in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors., 2017 ACJ 2700 (SC) the Tribunal has considered 30% future prospects. The future prospects considered by the Tribunal is proper and I do find any infirmity in it.
8. It is contention of the learned counsel for the Appellant that since the wife of deceased had joined the service in place of her husband and ex-gratia amount was given to her by the company, she is not entitled for compensation, but these facts are not considered by the Tribunal. In my view, giving service to the wife of deceased in place of her deceased-husband on compassionate basis, cannot be a ground to deny her compensation, which she is entitled under provisions of the Motor Vehicles Act, 1988 (for short 'M.V Act'). Giving service on compassionate basis is the policy decision of that company or department. The void which occurred in the life of that lady due to death of her husband cannot be filled by giving service on compassionate basis. Section 165 of M.V. Act states about. Claims Tribunal, which reads as under :-
165. Claim
