High Court Of Delhi
VED PRAKASH - Appellant
Versus
GURMIT SINGH - Respondent
First Appeal Order 186 of 1982
Decided On : 08/21/1991
Compensation - Personal Injury - Calculation of Compensation
Fact of the Case:
An accident caused the death of Asa Ram, and a claim petition was filed on behalf of his widow and two minor sons for compensation. The Tribunal awarded Rs. 35,000.00 as compensation, based on the deceased's monthly income and age.
Finding of the Court:
The court allowed the appeal for enhancement of compensation, setting aside the deduction of 1/3rd of the deceased's income towards personal expenses. The appellants were awarded Rs. 64,800.00 as compensation, along with simple interest at 12% per annum on the enhanced amount.
Issues: Calculation of compensation, deduction of deceased's income towards personal expenses, and entitlement to interest.
Ratio Decidendi: The court held that no deduction should be made towards personal expenses of the deceased if the income is as low as the minimum wages, and families at a mere subsistence level cannot be deprived of compensation. The court applied a multiplier of 12 for the deceased's age and increased the compensation amount.
Final Decision: The appeal was allowed, and the appellants were awarded Rs. 64,800.00 as compensation, along with simple interest at 12% per annum on the enhanced amount. The respondent Insurance Company was directed to deposit the enhanced amount of compensation and interest costs with the Registrar of the Court within two months.
( 1 ) IN an accident caused on 31. 3. 78 by Vehicle No. DEP 2382, Asa Ram was killed. The claim petition is filed on behalf of his widow and two sons who were minors at that time. The claimants have claimed Rs. l,00,000. 00 as compensation. The Tribunal has awarded Rs. 35,000. 00 as the compensation. The Tribunal further noted that as the delay was caused by the claimants in producing the witnesses, they were not entitled to interest. The amount of Rs. 3,6000. 00 was arrived at by the Tribunal on the basis of the evidence that the deceased was earning Rs. l5. 00 per day, i. e. he had a monthly income of Rs. 450. 00. The Tribunal deducted one-third of the monthly income towards personal expenses of the deceased. The Tribunal found that the deceased could have contributed Rs. 300. 00 p?r month for the maintenance of the family. The deceased was 53 years old at the time of accident. The Tribunal applied the multiplier of 12 and, thus, arrived at the figure of Rs. 36,000. 00.
( 2 ) IN this appeal for enhancement of compensation the counsel for the appellant submits that the monthly income of the deceased was Rs. 600. 00 per month and that the Tribunal should have applied the multiplier of 20. There is no evidence on record to support the appellants contention that the deceased was earning Rs. 600. 00 per month. Considering the age of the deceased, the multiplier of 12 applied by the Tribunal also does not appear to be unreasonable. However, something can be said in regard to the deduction of l/3rd of the earning towards personal expenses of the deceased. I have held In a number of cases that where the income of the deceased is as low as the minimum wages, no deduction should be made towards personal expenses of the deceased. Families which are required to eke out their living at a mere subsistence level cannot be deprived of the compensation by mechanically following the rule of deduction of l/3rd income towards personal expenses. I, therefore, set aside that part of the order of the Tribunal. The appellants are, therefore, entitled to Rs. 64. 800. 00 towards compensation. They would also be entitled to simple interest @ 12% per annum on the enhanced amount of compensation from the date of Award till the date of payment.
( 3 ) COUNSEL for the respondent Insurance Company states that they have already paid the sum of Rs. 26,000. 00 , awarded by the Tribunal, within the prescribed time period. The cheque for the enhanced amount of compensation and interest costs should be deposited with the Registrar of this Court within two months from today. The appellants/claimants would be entitled to withdraw the said amount without any security.
( 4 ) THE appeal is allowed with costs.
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