Mithlesh & Anr. v. Abbo Kumar & Ors.

Delhi High Court · 10 Aug 2018 · 2018:DHC:5061
J.R. Midha
MAC.APP.25/2018
2018:DHC:5061
civil appeal_allowed Significant

AI Summary

The Delhi High Court enhanced compensation in a motor accident claim by applying income tax deduction, future prospects addition, and an increased multiplier, while disallowing loss of love and affection as a head of damages.

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MAC.APP.25/2018
HIGH COURT OF DELHI
Date of Decision: 10th August, 2018
MAC.APP.25/2018
MITHLESH & ANR. …. Appellants
Through: Mr.Yogendra Kumar Verma, Mr. Vijandra Kumar, Mr.Manoj Goel, Advocates along with appellants in person.
VERSUS
ABBO KUMAR & ORS.
(UNITED INDIA INSURANCE CO. LTD.) …. Respondents
Through: Mr. L.K. Tyagi, Advocate for respondent No.3.
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT
(ORAL)

1. The appellants have challenged the award of the Claims Tribunal whereby compensation of Rs.30,45,404/- has been awarded to the appellants.

2. The accident dated 16th March, 2016 resulted in the death of Ajay Kumar. The deceased was aged 24 years and was self employed as building material supplier. It was claimed that the deceased was earning Rs.30,000/per month. The deceased was survived by his parents who filed the claim petition for compensation before the Claims Tribunal.

3. The Claims Tribunal took the income of Rs.2,77,181/- per annum as income of the deceased, deducted 1/2 towards the personal expenses of 2018:DHC:5061 deceased and applied the multiplier of 14 to compute the loss of dependency as Rs.29,10,404/-. The Claims Tribunal awarded Rs.1,00,000/- towards loss of love and affection, Rs.10,000/- towards loss of estate and Rs.25,000/towards funeral expenses. The total compensation awarded is Rs.30,45,404/.

4. Learned counsel for the appellant urged at the time of hearing that multiplier be enhanced to 18 and the future prospects be taken into consideration in terms of National Insurance Co. Limited v. Pranay Sethi

5. Learned counsel for respondent No.3 submits that compensation for loss of love and affection is no more a permissible head and be set aside and the compensation of loss of estate and funeral expenses be awarded in terms of the principles laid down in National Insurance Co. Limited vs. Pranay Sethi (supra). It is further submitted that the income of the deceased be taken after deducting the Income Tax.

6. This Court is of the view that the income of the deceased be taken after deducting the Income Tax. The claimants are entitled to the addition of 40% of the future prospects in terms of the principles laid down in National Insurance Co. Limited v. Pranay Sethi (supra). However, the compensation of Rs.1,00,000/- awarded towards loss of love and affection is no more a permissible head and is liable to be set aside. The compensation of loss of estate and funeral expenses have to be restricted to Rs.15,000/- each.

7. Taking the income of deceased as Rs.2,75,463/- per annum(after deducting Tax of Rs.1,718/- from Rs.2,77,181/-), adding 40% towards future prospects, deducting ½ towards personal expenses and applying multiplier of 18, the loss of dependency is computed as Rs.34,70,834/-. Adding Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses, the total compensation is computed as Rs.35,00,834/-.

8. The appeal is allowed and the compensation amount is enhanced from Rs.30,45,404/- to Rs.35,00,834/- along with interest @ 9% per annum.

9. Respondent No.3 is directed to deposit the enhanced award amount with the Registrar General of this Court within four weeks.

10. The appellants are present in Court and have produced the passbooks of their savings bank accounts. The particulars of their savings bank accounts are as under:-

(i) Appellant No.1 – Mithlesh

(ii) Appellant No.2 – Bijender Singh @ Vijendra Singh

11. List for disbursement of the compensation amount on 12th October,

2018.

12. Copy of this Judgement be given dasti to counsels for the parties under the signatures of the Court Master.

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AUGUST 10, 2018 J.R.MIDHA, J. dk