New India Assurance Co. Ltd vs Parkasho Devi & Ors
2012 Latest Caselaw 4570 Del

$~9
*      IN THE HIGH COURT OF DELHI AT NEW DELHI

                                           Decided on: 1st August, 2012

+      MAC.APP. 401/2010

       NEW INDIA ASSURANCE CO. LTD. ..... Appellant
                    Through  Ms. Geetanjali Chaudhary, Advocate

                        versus


       PARKASHO DEVI & ORS                        ..... Respondents
                   Through             Mr. Ashok Popli, Advocate for the
                                       Respondents No.1 & 2(Claimants)


       CORAM:
       HON'BLE MR. JUSTICE G.P.MITTAL
                         JUDGMENT

G. P. MITTAL, J. (ORAL)

1. The Appeal is for reduction of compensation of `22,00,552/- awarded by the Motor Accident Claims Tribunal(the Claims Tribunal) for the death of Manoj Kumar who died in a motor vehicle accident which occurred on 20.05.2006.

2. The facts are not very much in dispute.

3. On account of implementation of 6th Pay Commission, the salaries of all the Government employees were revised retrospectively w.e.f. 01.01.2006. The salary of the deceased was revised to `26,858/- including transport allowance of `800/- per month. This allowance of ` 800/- was personal to the deceased and was incidental to his employment. This is to be deducted

while computing the loss of dependency.

4. It is urged by the learned counsel for the Appellant that deduction towards Income Tax was not made by the Claims Tribunal. Reliance is placed on Sarla Verma & Ors v. Delhi Transport Corporation & Anr., (2009) 6 SCC

121. It is well settled that the Income Tax has to be deducted for awarding loss of dependency. The loss of dependency thus comes to `18,06,948/- (26,858/- - 800/- =26058 x 12 - 45,000/- (Income Tax) =`2,67,696/- + 50% ÷ 1/2 x 9).

5. I would further award a sum of `25,000/- towards loss of love and affection and `10,000/- each towards loss to estate and funeral expenses. The overall compensation thus comes to `18,51,948/-.

6. The excess amount of `3,48,604/- along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

7. The compensation held payable to the Claimants shall be released in terms of the orders passed by the Claims Tribunal.

8. Statutory amount of `25,000/- shall be refunded to the Appellant Insurance Company.

9. Pending Applications stand disposed of.

10. No costs.

(G.P. MITTAL) JUDGE AUGUST 01, 2012 pst