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2016 Supreme(J&K) 242

JAMMU & KASHMIR HIGH COURT
Ramalingam Sudhakar, J.
Raman Malhotra & Ors. - Appellant
Versus
Union of India & Ors. - Respondent
CIMA No. 197/2009
Decided On : 23-09-2016

Advocates:
For the Appellants :Mr. Kamal Gupta, Advocate.
For the Respondents: Mrs. Sindhu Sharma, ASGI.

The main legal point established in the judgment is the determination of appropriate compensation for fatal accidents, including the calculation of the deceased's income and the application of the multiplier, based on established legal principles.

Headnote:

Compensation - Fatal Accident - The court modified the compensation awarded by the Tribunal, increasing the amount for loss of income, loss of consortium, and adding compensation for loss of love and affection to the minor children.

Fact of the Case:

The deceased was involved in a fatal accident caused by the rash and negligent driving of an Army vehicle. The claimants, including the husband and two minor children, sought compensation for the death of the deceased.

Finding of the Court:

The court found that the income of the deceased was wrongly fixed by the Tribunal and that the multiplier adopted was on the lower side. It also recognized that the Tribunal erred in reducing the income by deducting amounts that should not have been considered as statutory deductions. The court modified the compensation, increasing the amount for loss of income, loss of consortium, and adding compensation for loss of love and affection to the minor children.

Issues: The issues revolved around the determination of the appropriate compensation for the fatal accident, including the calculation of the deceased's income and the application of the multiplier for assessing the compensation.

Ratio Decidendi: The court relied on the legal principle established in the case titled Sarla Verma and ors v. Delhi Transport Corporation & anr, reported as (2009) 6 SCC 121, which determined that a multiplier of 14 was appropriate in similar cases. The court also emphasized that only statutory deductions should be considered when assessing the income of the deceased.

Final Decision: The court allowed the appeal, enhancing the award of the Tribunal and granting the claimants an increased compensation for loss of income, loss of consortium, and adding compensation for loss of love and affection to the minor children.

JUDGMENT

1. The Appellants-claimants are on appeal challenging the award dated 30.01.2009 passed by the Motor Accidents Claims Tribunal, Jammu.

2. It is a case of fatal accident. Appellants-Claimants claimed compensation on account of death of deceased Reeta Rani Kakkar, who died in a road accident on 22.08.2005. The deceased was driving a Scooter and was hit by the Army vehicle. The finding of the Tribunal for rash and negligent driving of driver of the Army Vehicle and causing death of Reeta Rani Kakkar, is not under challenge.

3. The claimants are husband and two minor children, namely, Anjali Malhotra (Daughter) and Amit Malhotra (son), aged 17 and 15 respectively. At the time of accident, the deceased was 43 years old and was working as TSO in Bharat Sanchar Nigam Limited (BSNL) and was drawing Rs. 14,504/- (Exhibit EXPW/R), as per the certificate issued by the Senior Accounts Officer, BSNL.

4. The Tribunal, however, fixed the income of the deceased at Rs. 6000/- per month and after deducting 1/3rd of the income by adopting multiplier 13 granted the following compensation along with interest at the rate of 7.5% per annum from the date of filing of claim petition--

1.For loss of income-Rs. 6,24,000/-

2.For funeral expenses.-Rs. 15,000/-

3.For loss of consortium.-Rs. 15,000/-

Total-Rs. 6,54,000/-

5. The claimants are seeking enhancement of compensation by stating that income of the deceased has been wrongly fixed by the Tribunal, when even the income certificate has been produced on record and it is further pleaded that the multiplier adopted is also on lower side. No amount has been granted for loss of love and affection for two minor children and meager amount of Rs. 15000/- has been granted for loss of consortium to the husband. The reasoning given by the Tribunal to reduce the income from Rs. 14,504/- to Rs. 6,000/- appears to be inappropriate because deductions should be only statutory deductions and not others. The major amount subscribed towards General provident Fund cannot be deducted while assessing the income. Therefore, the Tribunal fell into error by reducing the income. As far as the multiplier of 13 is concerned, as already decided and laid down by the Hon’ble Apex Court in case titled Sarla Verma and ors v. Delhi Transport Corporation & anr, reported as (2009) 6 SCC 121, the multiplier of 14 shall be appropriate in this case.

6. Deducting 1/3rd towards the personal expenses of the deceased out of Rs. 14,504/-, (Rs. 14,504 divided by 3 =Rs. 4834/-) the total loss of income to the dependents comes to Rs. 9,670/-(Rs. 14.504-4834/-= Rs. 9,760/-) per month. Therefore the total pecuniary loss will be (Rs. 9670 X 12 X14) =Rs. 16,24,560/-. Two minor children will be entitled to Rs. 30,000/- each for loss of love and affection. The husband will be entitled to Rs. 30,000/- on account of loss of consortium.

7. The award of the Tribunal is modified and the claimants are entitled to the following enhanced compensation along with interest at the rate of 7.5% per annum from the date of filing of claim petition before the Tribunal--

S. NoHeadingAward of the TribunalModified award

1.For loss of incomeRs. 6,24,000/-Rs. 16,24,560/-

2.For funeral expensesRs. 15,000/-Rs. 15,000/-

3.For loss of consortiumRs. 15,000/-Rs. 30,000/-

4.For loss of love and affection.NilRs. 60,000/-

TotalRs. 6,54,000/-Rs. 17,29,560/-

8. Mrs. Sindhu Sharma, learned Assistant Solicitor General of India seeks 12 weeks’ time to deposit the enhanced award and it is granted.

9. This appeal is allowed in the above terms enhancing the award of the Tribunal.


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