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R.V.RAVEENDRAN, LOKESHWAR SINGH PANTA
Sarla Verma – Appellant
Versus
Delhi Transport Corporation – Respondent


Judgement Key Points

In motor accident claims involving death, future prospects of advancement in career or income may be factored into the multiplicand by making an addition to the actual income/salary of the deceased at the time of death (less tax, if applicable). (!) [12000300150009]

A standardized rule of thumb applies: an addition of 50% to the actual salary where the deceased had a permanent job and was below 40 years of age; 30% addition if aged 40-50 years; and no addition if above 50 years. This avoids varying yardsticks or methods. Where the deceased was self-employed or on fixed salary without increments, only actual income is taken, absent exceptional circumstances. [12000300150010]

Actual pay revisions or increments occurring after death (e.g., during pendency of proceedings) cannot be used to inflate the income estimate, as this would unfairly reward delays in litigation and ignore life's imponderables (e.g., possible earlier death, job loss). Courts assess based on evidence available proximate to the accident date. [12000300150022]

In the present case (deceased aged 38 years in permanent job), averaging actual salary (Rs.4,004 pm) with a doubled figure (Rs.8,008 pm) at retirement—equating to a 50% addition yielding Rs.6,006 pm—was approved as conforming to the principle. [12000300150021]


ORDER

R.V. Raveendran, J.—The claimants in a motor accident claim have filed this appeal by special leave seeking increase in compensation.

2. One Rajinder Prakash died on account of injuries sustained in a motor accident which occurred on 18.4.1988 involving a bus bearing No. DLP 829 belonging to the Delhi Transport Corporation. At the time of the accident and untimely death, the deceased was aged 38 years, and was working as a Scientist in the Indian Council of Agricultural Research (ICAR) on a monthly salary of Rs.3402/- and other benefits. His widow, three minor children, parents and grandfather (who is no more) filed a claim for Rs.16 lakhs before the Motor Accidents Claims Tribunal, New Delhi. An officer of ICAR, examined as PW-4, gave evidence that the age of retirement in the service of ICAR was 60 years and the salary received by the deceased at the time of his death was Rs.4004/- per month.

3. The Tribunal by its judgment and award dated 6.8.1993 allowed the claim in part. The Tribunal calculated the compensation by taking the monthly salary of the deceased as Rs.3402. It deducted one-third towards the personal and living expenses of the deceased, and arrived at the contribu























































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