Compensation for deceased below 40 years must factor in future prospects and accurate salary assessment, leading to increased total compensation under the Motor Vehicles Act.

JUDGMENT :

Sandeep Jain, J.

1. The instant appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the claimants for enhancement of compensation against the impugned judgment and award dated 29.07.2016 passed by Babita Rani, Motor Accident Claims Tribunal/Additional District Judge, Court No.3, Saharanpur in M.A.C.P. No.159 of 2014 (Smt. Anju Verma and others vs. Sameer Sharma and others), whereby in a claim petition filed under Section 166 of the Motor Vehicles Act, 1988, for the untimely death of Himanshu Verma on 26.06.2014, in a motor accident that occurred on 16.06.2014, a compensation of Rs.21,93,216/- alongwith interest @ 7% per annum has been awarded to claimants, which has been ordered to be indemnified by the insurer of the offending Bus No.UP-11-AT-0178.

2. Since there is no cross-appeal by driver, owner and insurer of the offending bus, as such, the factum of accident and negligence of the offending bus are not being disputed by the respondents.

3. Learned counsel for the claimants submitted that the tribunal has awarded less amount of compensation because the deceased was working as a Recovery Executive in MF Process & Solution Private Ltd. Dehradun and was drawing annual salary of Rs.2,62,404/- but the tribunal has assessed the compensation by taking monthly salary of Rs.16,845/-. It was further submitted that since the deceased was aged below 40 years on the date of accident, as such, the claimants were entitled to get compensation for future prospects at the rate of 50% in accordance with Rule 220-A of the U.P. Motor Vehicle Rules 1998 but the tribunal has not awarded any compensation towards the future prospects. He further submitted that the tribunal has awarded less amount of compensation towards loss of consortium, loss of estate and funeral expenses. It was further submitted that the average salary of the deceased preceding six months from the date of accident be taken for assessing the compensation. 4. Per contra, learned counsel for the respondent insurance company submitted that the tribunal has awarded the right amount of compensation to the claimants. It was further submitted that the tribunal has not deducted any amount towards the income tax paid by the deceased. It was further submitted that the deceased was not in a fixed income job, as such, the tribunal has rightly not awarded future prospect to the claimants.

5. I have heard learned counsel for the parties and perused the impugned judgment and documents submitted with the appeal.

6. It is apparent that at the time of the accident the deceased was working on the post of Recovery Executive in MF Process & Solution Private Ltd. Dehradun and letter of offer of appointment of the above company was filed by the claimants, according to which he was offered annual salary of Rs.2,62,404/-. The claimants also examined PW3 Krishanpal Singh, who has proved the profession and income of the deceased. The claimants also filed the bank statement of the deceased according to which salary drawn by the deceased from 17.12.2013 till his death on 26.06.2014 was directly credited to his bank account, which was as under:-

“Salary for the month of January 2014-Rs.19,601/-, February 2014- Rs.15,660/-, March 2014 Rs.11,872/-, From 01.04.2014 to 26.06.2014 - Rs.82,186/-”

7. In this way the deceased was paid total salary of Rs.1,29,319/- from 01.01.2014 till 26.06.2014 which amounts to approximately Rs.22,000/- per month. The tribunal has only assessed his income at Rs.16,845/- per month which is erroneous. Further, since the annual income of the deceased was falling within the taxable bracket as such, an amount of 10% was deductible towards income tax, from income above Rs.2.50 lac. If that amount is taken into consideration, the annual income of the deceased after making appropriate deduction towards the income tax amounts to Rs.22,000 x 12= Rs.2,64,000 minus Rs.1,442(income tax+education cess) Rs.2,62,558/- per annum.

8. The Constitutional Bench of the Ape