Ajbun Bibi vs New India Assurance Co. Ltd

Gautam Kumar Choudhary, J

Appellants/Claimants are before this Court in appeal for enhancement of compensation.

It is argued by the learned counsel on behalf of appellants that admittedly the deceased was serving as Orderly in the office of Divisional Manager, Minor Forests Project, Garhwa and was earning Rs.6585/- per month. It is also not in dispute that the appellants/claimants are the legal heirs and dependents of the deceased.

The main contention of the appellant is that compensation has not been computed as per the ratio laid down in National Insurance Company Ltd. Versus Pranay Sethi, (2017) 16 SCC 680. Future prospect has not been computed and the meagre amount of compensation has been allowed under the conventional heads. Further, the interest has been awarded from the date of framing of issues and not from the date of filing of claim application. Compensation is calculated by taking net income and not the gross income.

It is submitted by learned counsel, Mr. G.C. Jha that the Tribunal has computed compensation on the basis of the last drawn salary of Rs.5815/- which was the salary for the month of July, 2006. The salary certificate has been adduced into evidence and marked as Exhibit 3 and there is no error on this part. It is further argued that as per the ratio laid down by the Hon’ble Supreme Court in Sarla Verma & Others Verus Delhi Transport Corporation & Another, (2009) 6 SCC 121, living expenses of the deceased has to be deducted as 1/4 whereas in the present case, deduction of 1/5 has been made. The deceased was aged 55 years at the time of accident and there is no error in taking multiplier of 11 for his age group.

Having heard submissions advanced on behalf of both sides and on perusal of record of the case, it appears that there is a case of enhancement of compensation by considering the future prospect of the deceased and under the conventional heads as per the ratio laid down in Pranay Sethi case (supra). I also find merit in the argument advanced on behalf of appellant that compensation has to be computed on the basis of the gross salary and not the salary of Rs.6585/- per month at the time of accident. It is submitted by learned counsel that as per the ratio laid down in Sarla Verma (supra) and affirmed in Pranay Sethi case, admissible interest will only 6% from the date of application.

Under the circumstance the final compensation amount awarded is as under: -

Annual Income Rs.6586/-x12

Rs.79032/-

Annual dependency after deducting ¼ on the living and personal expenses of the deceased

Rs.59274/-

Loss of dependency on taking a multiplier of 11

Rs.59274/-  x  11  =  Rs. 652014/-

Future Prospect @ 15%

Rs.97802/-

Conventional head

Rs. 70,000/-

Total

Rs. 8,19,816/-

Insurance Company is directed to make full and final payment of the compensation amount of Rs 8,19,816/- with interest @ of 6 % from the date of filing of the claim application. Amount will be deposited within one month from date of order before the learned Tribunal and the amount shall be disbursed by the Tribunal to the claimants as per the apportionment of share decided by it.

Statutory amount deposited by the appellant at the time of filing of appeal, be remitted to the Tribunal for being adjusted to the final compensation amount to be paid to the claimant.

Miscellaneous Appeal is accordingly allowed. Interlocutory Application, if any, is disposed of.