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Panchkula

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MOTOR VEHICLES ACT, 1988: Fatal motor accident – Claim petition – Compensation – Computation of income of deceased – Deductions – Multiplier – Compensation towards revision in pay, loss of love and affection and consortium – Held : Deduction from the income of deceased towards HRA, CCA, EPF, GIS, medical allowance should not have been made by Tribunal – As deceased was married, 1/3rd should be deducted from her income towards personal expenses – Annual income of deceased, thus, calculated to Rs. 1,89,640/- – Addition of 30% by way of future prospects allowed – Deceased being 41 years of age, multiplier 14 to be applied – Accordingly compensation calculated to Rs. 22,34,960/- – Further, a sum of Rs. 25,000/- awarded towards loss of love and affection and consortium – Thus, total compensation payable to claimants rounded off to Rs. 22,60,000/- with 6% interest from date of filing of claim petition – Respondents jointly and severally liable to make the payment. The legal heirs and dependants of a victim of fatal motor accident filed a claim petition before the Motor Accident Claims Tribunal, claiming Rs.40,00,000/- as compensation. The deceased was 41 years of age at the time of the accident and was employed. The Tribunal deducted House Rent Allowance, City Compensatory Allowance and Medical allowance etc and calculated her total carry home salary to be Rs.10,000/- (annual equivalent being Rs.1,20,000/-. It made further deduction of 40% towards personal expenses and, applying the multiplier 11, awarded Rs.7,92,000/- as compensation along with 6% interest. The High Court applied the multiplier of 14 and accordingly enhanced the compensation by a further sum of Rs.2,16,000/- In the instant appeal filed by the claimants, it was contended for the appellants that the Tribunal should not have deducted HRA, CCA, EPF, contribution towards Group Insurance Scheme, and repayment of computer advance from the income of the deceased; that the deduction of 40% towards personal expenses was not correct; that the revision of pay scale which had come into force before the death of the victim should have been taken into consideration; and that compensation towards loss of love and affection, consortium and funeral rites should also have been allowed. =Partly allowing the appeal, the Court HELD: (a) Computation of Income : 1.1 The deductions made by the Tribunal on account of HRA, CCA and medical allowance are done on an incorrect basis and should have been taken into consideration in calculation of the income of the deceased. Further, deduction towards EPF and GIS should also not have been made in calculating the income of the deceased. However, the computer advance should not form a part of the monthly income. The monthly income of the deceased thus amounts to Rs.15,351/-. Accordingly, the annual income of the deceased would amount to Rs. 1,84,212/-. [para 11-12] [583-B-C] Raghuvir Singh Matolya & Ors. v. Hari Singh Malviya & Ors., 2009 (5) SCR 379=(2009) 15 SCC 363 and Sarla Verma (Smt.) and others v. Delhi Transport Corporation & Anr., 2009 (5) SCR1098=(2009) 6 SCC 121 – relied on. (b) Deduction for Personal Expenses : 1.2 As the deceased was married, a deduction of 1/3rd should be made to her income by way of personal expenses. After such deduction, the income of the deceased would thus amount to Rs.1,22,808/-, which is rounded off to Rs.1,22,800/-. [para 14] [583-G-H] (c) Revision in Pay Scale : 1.3 In Sarla Verma this Court laid down a `rule of thumb’ with respect to addition in income due to future prospects and observed that the addition should be only 30% if the age of the deceased was 40 to 50 years. In the instant case, the deceased was aged 41 years. Thus, an addition of 30% by way of future prospects is allowed. The annual income of the deceased would thus be Rs.1,59,640/-. Considering the age of the deceased, a multiplier of 14 is to be applied. Accordingly, annual dependency comes to Rs.22,34,960/-. [para 15-16] [584-A-C] Compensation for Loss of Love and Affection and Consortium: 1.4 In cases of fatal motor accidents, some amount must always be awarded by way of compensation for loss of love and affection and consortium. It is of course impossible to compensate for the loss of a life, in the instant case, that of a wife and mother, in terms of money. However, a sum of Rs.25,000/- is awarded for loss of love and affection and consortium. [para 17] [534-D-E] 1.5 Thus, total compensation payable to the claimants-appellants would be Rs.22,59,960/- which is rounded off to Rs.22,60,000/- with interest at the rate of 6% from the date of filing the claim petition. The respondents are jointly and severally liable to make the payment. [para 18 and 20] [534-F- G] Case Law Reference: 2009 (5) SCR379 relied on para 9 2009 (5) SCR1098 relied on para 13 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1440 of 2011. From the Judgment & Order dated 07.08.2009 of the High Court of Punjab & Haryana at Chandigarh in First Appeal No. 2662 of 2008. Ashwani Kumar, Kalyan V. for the Appellants. Manjeet Chawla for the Respondents.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.1440 OF 2011 (Arising out of Special Leave Petition(C) No.36770/2009) Sunil Sharma & Ors. …Appellant(s) VERSUS Bachitar Singh & Ors. …Respondent(s) J U D G M E N T GANGULY, J. 1. Leave granted. 2. On 2.08.2006, around 4.40 PM, one Mrs. Sunita … Continue reading

MOTOR VEHICLES ACT, 1988: Fatal motor accident – Claim petition – Compensation – Computation of income of deceased – Deductions – Multiplier – Compensation towards revision in pay, loss of love and affection and consortium – Held : Deduction from the income of deceased towards HRA, CCA, EPF, GIS, medical allowance should not have been made by Tribunal – As deceased was married, 1/3rd should be deducted from her income towards personal expenses – Annual income of deceased, thus, calculated to Rs. 1,89,640/- – Addition of 30% by way of future prospects allowed – Deceased being 41 years of age, multiplier 14 to be applied – Accordingly compensation calculated to Rs. 22,34,960/- – Further, a sum of Rs. 25,000/- awarded towards loss of love and affection and consortium – Thus, total compensation payable to claimants rounded off to Rs. 22,60,000/- with 6% interest from date of filing of claim petition – Respondents jointly and severally liable to make the payment. The legal heirs and dependants of a victim of fatal motor accident filed a claim petition before the Motor Accident Claims Tribunal, claiming Rs.40,00,000/- as compensation. The deceased was 41 years of age at the time of the accident and was employed. The Tribunal deducted House Rent Allowance, City Compensatory Allowance and Medical allowance etc and calculated her total carry home salary to be Rs.10,000/- (annual equivalent being Rs.1,20,000/-. It made further deduction of 40% towards personal expenses and, applying the multiplier 11, awarded Rs.7,92,000/- as compensation along with 6% interest. The High Court applied the multiplier of 14 and accordingly enhanced the compensation by a further sum of Rs.2,16,000/- In the instant appeal filed by the claimants, it was contended for the appellants that the Tribunal should not have deducted HRA, CCA, EPF, contribution towards Group Insurance Scheme, and repayment of computer advance from the income of the deceased; that the deduction of 40% towards personal expenses was not correct; that the revision of pay scale which had come into force before the death of the victim should have been taken into consideration; and that compensation towards loss of love and affection, consortium and funeral rites should also have been allowed. =Partly allowing the appeal, the Court HELD: (a) Computation of Income : 1.1 The deductions made by the Tribunal on account of HRA, CCA and medical allowance are done on an incorrect basis and should have been taken into consideration in calculation of the income of the deceased. Further, deduction towards EPF and GIS should also not have been made in calculating the income of the deceased. However, the computer advance should not form a part of the monthly income. The monthly income of the deceased thus amounts to Rs.15,351/-. Accordingly, the annual income of the deceased would amount to Rs. 1,84,212/-. [para 11-12] [583-B-C] Raghuvir Singh Matolya & Ors. v. Hari Singh Malviya & Ors., 2009 (5) SCR 379=(2009) 15 SCC 363 and Sarla Verma (Smt.) and others v. Delhi Transport Corporation & Anr., 2009 (5) SCR1098=(2009) 6 SCC 121 – relied on. (b) Deduction for Personal Expenses : 1.2 As the deceased was married, a deduction of 1/3rd should be made to her income by way of personal expenses. After such deduction, the income of the deceased would thus amount to Rs.1,22,808/-, which is rounded off to Rs.1,22,800/-. [para 14] [583-G-H] (c) Revision in Pay Scale : 1.3 In Sarla Verma this Court laid down a `rule of thumb’ with respect to addition in income due to future prospects and observed that the addition should be only 30% if the age of the deceased was 40 to 50 years. In the instant case, the deceased was aged 41 years. Thus, an addition of 30% by way of future prospects is allowed. The annual income of the deceased would thus be Rs.1,59,640/-. Considering the age of the deceased, a multiplier of 14 is to be applied. Accordingly, annual dependency comes to Rs.22,34,960/-. [para 15-16] [584-A-C] Compensation for Loss of Love and Affection and Consortium: 1.4 In cases of fatal motor accidents, some amount must always be awarded by way of compensation for loss of love and affection and consortium. It is of course impossible to compensate for the loss of a life, in the instant case, that of a wife and mother, in terms of money. However, a sum of Rs.25,000/- is awarded for loss of love and affection and consortium. [para 17] [534-D-E] 1.5 Thus, total compensation payable to the claimants-appellants would be Rs.22,59,960/- which is rounded off to Rs.22,60,000/- with interest at the rate of 6% from the date of filing the claim petition. The respondents are jointly and severally liable to make the payment. [para 18 and 20] [534-F- G] Case Law Reference: 2009 (5) SCR379 relied on para 9 2009 (5) SCR1098 relied on para 13 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1440 of 2011. From the Judgment & Order dated 07.08.2009 of the High Court of Punjab & Haryana at Chandigarh in First Appeal No. 2662 of 2008. Ashwani Kumar, Kalyan V. for the Appellants. Manjeet Chawla for the Respondents.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.1440 OF 2011 (Arising out of Special Leave Petition(C) No.36770/2009) Sunil Sharma & Ors. …Appellant(s) VERSUS Bachitar Singh & Ors. …Respondent(s) J U D G M E N T GANGULY, J. 1. Leave granted. 2. On 2.08.2006, around 4.40 PM, one Mrs. Sunita … Continue reading

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