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IN THE HIGH COURT OF DELHI
NAJMI WAZIRI, J.
Ram Vishal Gupta and Others – Appellants
Versus
Shokeen and Others – Respondents
MAC. APP. No. 266 of 2019
Decided On : 17-09-2019

Important Points

The main legal point established in the judgment is the need to assess each individual's circumstances and academic record to determine future earnings, and the importance of considering loss of consortium and love and affection in determining the total compensation payable.

Subject

Civil Law - Compensation Law

Headnote

Compensation - Future Earnings - Minimum Wages Act - [NAJMI WAZIRI, J.] - [Compensation] - [Minimum Wages Act] - [The court discussed the future earnings of the deceased student and the application of the Minimum Wages Act in determining the compensation. It compared the deceased's academic record and potential future earnings with similar cases and considered the minimum and maximum pay packages offered to students through campus placements. The court emphasized the need to assess each individual's circumstances and academic record to determine future earnings. The court also highlighted the importance of considering loss of consortium and love and affection in determining the total compensation payable.]

Fact of the Case:

The deceased, a student pursuing his Masters in Computer Application (MCA), was involved in a motor-vehicular accident. The appellant challenged the compensation awarded by the MACT, arguing that it was on the lesser side due to the deceased's potential future earnings not being considered. The deceased's earning capacity and the application of the Minimum Wages Act were key points of contention.

Finding of the Court:

The court analyzed the deceased's academic record, potential future earnings, and the application of the Minimum Wages Act. It emphasized the need to assess each individual's circumstances and academic record to determine future earnings. The court also highlighted the importance of considering loss of consortium and love and affection in determining the total compensation payable.

Issues: The key issues revolved around the deceased's potential future earnings, the application of the Minimum Wages Act, and the assessment of total compensation considering loss of consortium and love and affection.

Ratio Decidendi: The court emphasized the need to assess each individual's circumstances and academic record to determine future earnings. It also highlighted the importance of considering loss of consortium and love and affection in determining the total compensation payable.

Final Decision: The court upheld the appellant's challenge and awarded a total compensation of Rs. 39,90,000 to be deposited before the learned Tribunal for disbursement to the beneficiaries of the Award.

Advocates:
Advocate Appeared:
For the Appellant : S.N. Parashar.
For the Respondent: Pankaj Gupta.

JUDGMENT :

NAJMI WAZIRI, J.

1. The appellant impugns the award of compensation dated 11.05.2018 passed by the learned MACT in Suit No. 503/2017, on the ground that it is on the lesser side. The deceased had attained a degree in Bachelor of Computer Applications (BCA) and was pursuing his Masters in Computer Application (MCA) from a private institute namely, Krishna Institute of Engineering and Technology, Ghaziabad. He had claimed to be earning Rs. 30,000/- per month by imparting tuition. This earning was not proven. The claimants had put forth documents to show that the students who passed out from the said institution would be getting approximately Rs. 4 lacs per annum. However, the learned Tribunal had not taken the same into consideration. It has reasoned that employment of an MCA is dependent on a host of factors, such as the individual merit of the candidate, his response to the queries by the prospective employers, his performance, his personality; etc. as well as economic condition prevailing in the industry and the overall robustness of the economy. It thus concluded that all those who qualify MCA from KIET will not necessarily get an annual compensation package of Rs. 4 lacs per annum. On the contrary, as per the data i.e. Exhibit PW1/5 supplied by KIET, the minimum annual compensation offered in 2017 was Rs. 1.86 lacs and the maximum was Rs. 3.50 lacs i.e. salary offered ranged between Rs. 15,500/- per month to Rs. 19,000/- per month.

2. The impugned order has reasoned as under:-

"19. The age of the deceased at the time of accident was 21 years as per his educational certificate (Mark A). It is stated that the deceased was MCA 2nd year student of KIET (Krishna Institute of Engineering and Technology), Ghaziabad and was also imparting tuition and was earning Rs. 30,000/- per month. It was argued on behalf of the petitioner that as per the placement record of KIET, income of the deceased should be assumed @ Rs. 4 Lacs p.a., it being the average compensation package offered to the candidates in campus placement. The argument raised does not appeal. The deceased was a student of MCA 2nd year. The placement of candidates depend upon various factors including track record of the candidate, his response to the queries raised by the prospective employers, his performance, his personality etc. etc. As such, it cannot be assumed that all those who qualify MCA from KIET will get an annual compensation package of Rs. 4 Lacs p.a. Even as per the data Ex. PW/1/5 supplied by KIET the minimum annual compensation offered in 2017 was Rs. 1.86 Lacs whereas the maximum was Rs. 3.50 Lacs, In other words the salary offered ranged between Rs. 15,500/- per month to about Rs. 19,000/- per month to those who qualified MCA and were hired in campus placement. As the deceased was only a student of MCA and hiring depend on various factors as noted above, after passing MCA, notional salary can not be assumed.

20. There is no documentary evidence of occupation of deceased that he was earning Rs. 30,000/- pm by imparting tuition. Since the accident took place at Muradnagar, U.P. and the deceased was also resident of U.P. the minimum wages applicable to U.P. shall apply in this case. Hence, income of deceased is taken as per the Minimum Wages Act For skilled category (as he was graduate at the time of accident) which was Rs. 9119/- p.m. on the date of accident Deceased was unmarried and as such the deductions For personal expenses are to be effected at the rate of 50% of monthly salary."

3. The learned counsel for the appellant relies on the dicta of the Supreme Court in Ashvinbhai Jayantilal Modi vs. Ramkaran Ramchandra Sharma and Another, (2015) 2 SCC 180. He submits that in a related circumstance, the Supreme Court has granted a higher compensation apropos a 19 year old medical student, who was pursuing his MBBS course but lost his life on account

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