Sushma Pahwa & Ors. vs Attar Singh & Ors.
2010 Latest Caselaw 2873 Del

     *        IN THE HIGH COURT OF DELHI AT NEW DELHI

                                        Date of Reserve: 10th May, 2010
                                         Date of Order: June 01, 2010

+        FAONo. 453/1998

%                                                          01.06.2010
         SUSHMA PAHWA & ORS.                                ...Appellant
                         Through:              Mr. O.P. Mannie, Advocate.

                     Versus

         ATTAR SINGH & ORS                                ...Respondents
                                 Through:      None.

         CORAM :

         HON'BLE MR. JUSTICE SHIV NARAYAN DHINGRA

         1.    Whether reporters of local papers
               may be allowed to see the judgment?

         2.    To be referred to the reporter or not?

         3.    Whether judgment should be reported in Digest?

         JUDGMENT

1. By this appeal the appellants have assailed the order of

the Tribunal awarding compensation of Rs. 9,20,400/- on the

ground that the Tribunal did not apply correct parameters for

calculating the compensation and it is submitted that the

compensation, as prayed for, by the appellant, i.e.,

Rs.50,00,000/- should have been awarded.

2. A perusal of the Award would show that the deceased in

this case was aged around thirty five years. He was employed

as a Grade D Mechanic with M/s Godrej GE Appliances Limited,

Godrej Bhawan, Okhla Industrial Area, New Delhi and his

salary was proved by calling the official of the employer. The

salary certificate exhibited as Ex. PW1/A shows that the total

salary of the deceased was Rs.8435.65/-. He was an income

tax payee and an advance monthly income tax of Rs.614/-

was being deducted from his salary. The evidence of

employer's official also shows that the deceased was getting

20% bonus on basic and dearness allowance. The Tribunal

took average of the present income and future income, which

the Tribunal considered would have at least doubled and

considered monthly average income of the deceased as

Rs.12,652/-. However, the Tribunal assumed that the

deceased would have paid income tax @ 30% on this amount

and would have been left with income of Rs.8,857/-.

Thereafter, the Tribunal deducted one third of this left over

amount towards his own upkeep and arrived at a loss of

monthly dependence of Rs.5,900/-. Tribunal applied multiplier

of 13 and calculated total compensation of Rs.9,20,400/-.

3. There is an apparent error in the Award of the Tribunal.

The tribunal has wrongly taken 30% of the total income of the

deceased as tax liability. 30% tax liability is only in the case

of higher income group people and 30% tax is charged over

and above the slab of 10% and 20%. The tax, in this case, as

shown in the pay slip should have been deducted from the

income of the deceased to arrive at net present income and

future prospects should have been added to that income and

thereafter amount for personal expenses should have been

reduced. The tribunal also failed to take into account the fact

that deceased was getting a bonus of 20% on dearness

allowance and basic, which was also his deferred income and

being paid to him once in a year. I consider that bonus amount

should also have been added to his income.

4. The calculation of the compensation should be as

under:-

           Income of deceased                             Rs.8,435/-

           20% bonus on basic and dearness allowance      Rs.1,421/-
           (basic of deceased as per salary slip was
           7105 with D.A.)

           Gross monthly income of deceased           =    Rs.9856/-

           less income tax                            =    Rs.614/-

           Net monthly income of the deceased after
           Payment of the tax would be                     Rs.9242/-

By adding 50% as future prospects, the income for the

purpose of calculating compensation would be Rs.13,863/-,

reducing this income by one third for personal expenses, the

income of the deceased available to the dependents should

come to Rs.9,424/-.

5. Since the age of the deceased was thirty five years, the

appropriate multiplier as per Sarla Varma V/s DTC; 2009 ACJ

1298 should be 16. Thus, the compensation payable to the

dependents of deceased should be 9242 X 12 X 16 =

Rs.17,74,464/-. The Tribunal had also not awarded any

amount against funeral expenses, loss of consortium, loss of

love and affection to the child. I consider that the appellant

were entitled to Rs.5,000/- towards funeral expenses,

Rs.5,000/- towards loss of estate, Rs.5,000/- towards loss of

consortium to the wife and Rs.10,000/- for loss of love and

affection for the two children.

6. Thus, the total compensation payable to the appellant

would be 17,74,469/- that is 17,99,469/-, rounded to

Rs.18,00,000/-.

7. The appeal of the appellant is allowed to the above

extent. The Award of the Tribunal is modified. The appellant

should be entitled to a compensation of Rs. 18,00,000/- along

with interest @ 7.5% instead of 12% as allowed by the

Tribunal from date of petition till realization.

8. After adjusting the amount already paid, the insurance

company is directed to pay the rest of the compensation to

the appellant within sixty days from today.

9. The appeal stands allowed in the above said terms.

      June 01,          2010                  SHIV NARAYAN DHINGRA J.
      AK