Delhi High Court
United India Insurance Co. Ltd vs Sumitra Kashyap & Ors. on 9 July, 2009
Author: J.R. Midha
22
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP. 483/2004
Date of Decision: 09th July, 2009
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UNITED INDIA INSURANCE CO. LTD ..... Appellant
Through : Mr. K. Singhal and
Mr. Vineet Malhotra, Advs.
versus
SUMITRA KASHYAP & ORS. ..... Respondents
Through : Mr. Ataul Haque and
Mr. A. Ahmed, Advs.
for R-1 and 2.
Ms. Veena Goswami, Adv.
for R-5.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
1. Whether Reporters of Local papers may Yes
be allowed to see the Judgment?
2. To be referred to the Reporter or not? Yes
3. Whether the judgment should be Yes
reported in the Digest?
JUDGMENT (Oral)
1. The appellant has challenged the award of the learned
Tribunal whereby compensation of Rs.41,80,000/- has been
awarded to claimants/respondents No.1, 2 and 5. The
appellant is seeking reduction of the award amount. The
claimants/respondents No.1, 2 and 5 have filed cross-
objections to seek enhancement of the award amount.
2. The accident dated 4th December, 2001 resulted in the
death of Manoj Kashyap. The deceased was survived by his
widow and parents. The parents filed the claim petition
before the learned Tribunal.
3. The deceased was working as Business Analyst with M/s
Softlution Web Technologies Pvt. Ltd. The income of the
deceased as per salary certificate - Ex.PW1/23 is as under:-
"SALARY CERTIFICATE
Name : Mr. Manoj Kashyap
Designation : Business Analyst
Earnings (Rs./month)
Basic Salary : Rs.18,000.00
House Rent Allowance : Rs.5,400.00
Conveyance : Rs.7,000.00
Lunch Allowance : Rs.2,640.00
Outfit Allowance : Rs.3,600.00
Books : Rs.3,600.00
Total Earnings : Rs.40,240.00
Deductions
PF : Rs.2,160.00
Income Tax : Rs.7,853.00
Total Deductions : Rs.10,013.00
Net Earnings : Rs.30,227.00"
4. The learned Tribunal took the income of the deceased
to be Rs.13,387/- and added 50% towards future prospects
to compute the income for the purpose of computation of
compensation as Rs.20,080/-. 1/3rd was deducted towards
personal expenses and the loss of dependency of the
claimants was taken to be Rs.20,000/- per month. The
deceased was aged 32 years at the time of the accident and
applying the multiplier of 17, the loss of dependency was
computed to Rs.40,80,000/-. Rs.1,00,000/- has been
awarded towards loss of consortium and loss of progeny and
filial affection to the widow considering that the deceased
died on 15th day of her marriage. The total compensation
awarded is Rs.41,80,000/-.
5. The learned counsel for the appellant has urged only
one ground at the hearing of this appeal. The ground of
challenge is that 1/3rd towards personal expenses has not
been deducted from the income of the deceased. It is
submitted by learned counsel for the appellant that the
income of the deceased has been taken to be Rs.20,080.50
and the learned Tribunal observed that the 1/3 rd has to be
deducted towards personal expenses but, after deduction,
the loss of dependency has been taken to be Rs.20,000/-
whereas it should have been 13,387/- per month.
6. The learned counsel for the claimants submit that there
is error in calculation and the loss of dependency of the
claimants after deduction of 1/3rd towards personal expenses
would be Rs.20,000/-.
7. As per salary certificate - Ex.PW1/23, the basic salary of
the deceased was Rs.18,000/-. After adding house rent
allowance of Rs.5,400/-, the total comes to Rs.23,400/-. The
learned Tribunal has deducted the provident fund of
Rs.2,160/- and Income Tax of Rs.7,853/- to arrive at the
income of the deceased to be Rs.13,387/-. The learned
Tribunal was in error in deducting provident fund. The
learned Tribunal was also in error in deducting Rs.7,853/-
towards Income Tax. The Income Tax of Rs.7,853/- was paid
on total earnings of Rs.40,240/-. The proportionate Income
Tax on Rs.23,400/- comes to Rs.4,566/- which should have
been deducted from the income of the deceased. The
income of the deceased after deduction of Income Tax of
Rs.4,566/- comes to Rs.18,834/-. The income of the
deceased is, therefore, taken to be Rs.18,834/- instead of
Rs.13,387/-. The deceased was aged 32 years at the time of
the accident and had a permanent job and, therefore, 50% is
added towards future prospects and the income of the
deceased for computation of compensation is computed as
Rs.28,251/-. 1/3rd is deducted towards the personal
expenses of the deceased and the loss of dependency is
taken to be Rs.18,834/- per month. Applying the multiplier of
17, the loss of dependency is computed as Rs.38,42,136/-.
The deceased expired in Thiruvananthapuram and the
claimants went there to bring back the body by air and a
sum of Rs.1,00,000/- was spent on the travelling of the
claimants to Thiruvananthapuram to bring back the body.
Rs.1,00,000/- has been awarded towards funeral expenses
and the cost of travelling to Thiruvananthapuram and
bringing back the body by air. Rs.10,000/- is awarded
towards loss of consortium, Rs.10,000/- towards loss of
estate and Rs.35,000/- towards loss of love and affection.
The total compensation is computed to be Rs.39,97,138/-
(rounded off as Rs.40,00,000/-).
8. The learned Tribunal has awarded Rs.1,00,000/-
towards loss of consortium and loss of progeny and filial
affection which is set aside.
9. The appeal is accordingly allowed and the award
amount is reduced from Rs.41,80,000/- to Rs.40,00,000/-
along with interest thereon. The rate of interest is not
disturbed. The cross-objections are dismissed.
10. The shares of the claimants in the award amount shall
be in the same proportion as given by the learned Tribunal.
11. The learned counsel for the appellant submits that the
entire award amount has been deposited in terms of the
order of this Court. The claimants shall refund the excess
amount along with interest, if earned on the said amount, to
the appellant within 30 days. The remaining amount is
directed to be released to the claimants in terms of the
award.
J.R. MIDHA, J
JULY 09, 2009
aj
