The main legal point established in the judgment is the determination of just and reasonable compensation in a motor accident case and the deduction of income tax from the deceased's annual income.

G.M. AKBAR ALI,J.,

1. One Palanichamy, S/o Ramasamy Gounder, aged 36 years who was the proprietor of M/s Spear Tex, a Hosiery Manufacturing Unit, died in a road accident on 17. 97. The accident occurred in the following manner.

2. On17.7,1977, around 1.45 p.m, the deceased was proceeding from West to East in the Thirupur Ramnagar I Street, driving his motorcycle bearing Registration No.TN39A 6800. He was proceeding in a normal speed. One Chandrasekaran was travelling as a pilliar rider. While so, a lorry bearing Registration No.TDQ 2854, driven in a rash and negligent manner, by one Iman Singh, came behind the motor cycle and dashed. In the result of which, both the driver and the pillian driver fell down and the lorry ran over the said Palanichamy causing multiple injuries. He was taken to a private hospital, Thirupathur and then to Government Hospital, where he was declared dead. A case was registered against the driver of the lorry and he admitted the offence.

3. The1st respondent, being the wife and the respondents 2 and 3 being the minor children and the respondents 4 and 5 being the parents of the deceased, made a claim stating that the deceased was carrying on business in manufacturing hosiery garments and his annual income was between Rs.2,50,000/- and Rs.3,00,000/- and claimants have lost their only bread winner, the wife has lost her husband in young age and minor children have lost their caring father and the parents have lost their only hope in the old age and therefore have claimed Rs.60,00,000/-as compensation against the owner and the Insurance Company.

4. The claim was resisted by the Insurance Company denying the liability and also opposing the quantum.

5. The Tribunal, namely, the Fast Track Court-IV , on detailed enquiry found that the driver of the lorry had driven the vehicle in a rash and negligent manner and fixed the statutory liability on the Insurance Company.

6. On quantum, the Tribunal relied on the report of the Auditor relating to Spear Tex Hosiery Unit. The Tribunal considered the Auditors Report for the year 1994 to 1997 which were marked as Exs.A.5 to A.9 and relied on Ex.A.8 which would show that the annual profit of the Company was Rs.4,14,2745. A sum of RS.50,000/-was deducted towards personal expenses and the income was fixed at Rs.3,64,278/-. Considering the age of the deceased as 36 years, the Tribunal had adopted multiplier 16 and awarded Rs.58,28,448/-towards loss of dependency. Under the conventional heads, the Tribunal had awarded Rs.10,000/-to the 1st respondent towards consortium , Rs.10,000/-each towards loss of love and affection, in total the Tribunal had awarded Rs.58,68,500/- at 9% interest.

7. Aggrieved by the quantum, the Insurance Company has prepared the present appeal on various grounds and more particularly, on the ground that the Tribunal had grossly erred in relying upon Exs.A.5 to A.9 and A.12 to 18 without adequate proof and without corroborative proof of income tax assessment and has fixed the annual income at Rs.4,14,278/-. It was also submitted that necessary income tax deduction has to be made in the annual income.

8. Thepoints that arise for consideration in this appeal are,

1. whether the compensation awarded by the Tribunal is just and reasonable?

2. Whether a deduction of 30% from the annual income is to be made towards incometax?

9. Mr.N. Vijayaragahavan, learned counsel for the Insurance Company at the outset pointed out that the Tribunal had awarded a staggering sum of rs.58,58,500/- as against a claim of RS.60,00,000/-and that too for the deceased person who was not shown to be an incometax assessee. The learned counsel pointed out that the Tribunal had relied on Exs.A.5 to A.9 which are the audit report under Sec.44(a)(b) of Income Tax Act 1961 and has relied on the balance sheet of the business concerned M/s Spear Tex, Thirupur. The learned counsel pointed out that all these exhibits would show the annual turnover and the net profit