Compensation for road traffic accidents must be calculated based on gross income less tax, including future prospects and adequate general damages as per legal precedents.

JUDGMENT :

Prasenjit Biswas, J.

1. This appeal is directed against the judgment and award dated 7th April, 2014 passed by the learned Judge, Motor Accident Claims Tribunal, Additional District and Sessions Judge, 2nd Court, Sealdah, South 24 Parganas in connection with M.A.C.C. No. 2 of 2009 (Arising out of M.A.C.C. No. 120 of 2008).

2. By passing the impugned judgment and award learned Tribunal awarded compensation to the tune of Rs. 12,42,000/- in favour of the claimants which should be given within two months from the date of impugned order and in default interest should be given to the claimants at the rate of 10% of their respective amount till realization.

3. The victim, Tapan Ghosh faced an unnatural death on 26.06.2008 due to a road traffic accident. On that fateful date the deceased being the husband and father of the claimants was returning home from his office at about 8:00 P.M. and since he reached at Lake Town Road and VIP road and was on moving towards West along Southern footpath of Southern flank of V.I.P. Road, at that moment the victim was dashed from behind by the offending vehicle (Ambassador being No. WB-19D/4276). In consequence to that incident the victim fell down on the road side footpath and he was taken to R.G. Kar Medical College and Hospital where he was declared brought dead by the doctors. It is stated by the claimants that the accident occurred due to rash and negligent act of the driver of the offending vehicle. Over the said death of the victim the claimants being the heirs/ legal representatives of the deceased filed a case claiming compensation from the respondent/Insurance Company. Over the self-same incident concerned police station started a case being Lake Town P.S. Case No. 126 dated 26.06.2008 under Section 279/338/304A of IPC.

4. Insurance Company/respondent appeared before the Tribunal and contested the claim case by filing written statement denying all the allegations/averments as made in the petition.

5. Although notice was served upon the owner of the offending vehicle but he did not venture to appear and contest the case and as such, the case was proceeded exparte by the tribunal. In the present case, also after getting notice from the Court, the said owner did not choose to appear and contest it.

6. Mr. Ashique Mondal, learned Advocate appearing on behalf of the appellants/ claimants said that the learned Tribunal committed error of law and fact in computing the income of the deceased. He submitted that the income of the deceased ought to be calculated as “gross income less income tax” for the purpose of assessment of income of the deceased but the Tribunal only considered the net income of the deceased at the time of computing the compensation granted to the claimants. To buttress his submission learned Advocate cited a decision rendered by the Hon’ble Apex Court in case of National Insurance Company Ltd.-vs- Indira Srivastava & Ors., (2008) 2 SCC 763.

7. It is said by the learned Advocate that in view of the decision rendered by the Hon’ble Apex Court in Pranay Sethi and Ors. actual salary should be read as actual salary less tax and in view of the decision rendered by the Apex Court in Indira Srivastava & Ors. (supra), the Tribunal can make only statutory deductions such as Income tax and Professional tax and any other contribution, which is not repayable by the employer from the salary of the deceased person while determining the monthly income for computing the dependency compensation. The recovery of the housing loan, vehicle loan, festival advance and other deductions, if any, to the benefit of the estate of the deceased cannot