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Judgment
Subhash B. Adi
This is claimants appeal seeking enhancement of compensation. The Tribunal has awarded compensation of Rs. 12,62,500/- with interest. Unsatisfied with the same, claimants are before this Court.
The claimants are the wife, daughter, son, father and mother of the deceased. The deceased was working as a Police Constable. He was drawing a salary of Rs. 10,924/- per month. He was aged about 42 years at the time of the accident. The Tribunal has awarded compensation of Rs. 12,62,500/-under the following heads:-
Loss of dependency :
Rs. 12,52,500/-
Loss of consortium to Petitioner No. 1 :
Rs. 5,000/-
Towards funeral, obsequies Ceremonies and transportation of dead body :
Rs. 5,000/-
TOTAL
Rs. 12,62,500/-
Considering the judgement of the Apex Court in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , the Tribunal has rightly calculated the compensation by giving 30% enhancement to the salary. However, the Tribunal has erred in deducting 30% of the said income of the deceased towards income tax and surcharge relying upon the judgement of the Apex Court reported in Shyamwati Sharma and Others Vs. Karam Singh and Others, in the matter of Shyamwati Sharma and Others Vs. Karam Singh And Others.
The Apex Court distinguishing the judgement in the matter of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, has held that in case the income of the deceased comes within the taxable limit, appropriate deduction has to be made towards tax. In the said case, the income of the deceased crossed Rs. 2,48,000/-. It is in those circumstances, the Apex Court held that reasonable amount has to be deducted towards income tax.
However, in this case, even if the salary of the deceased is enhanced by 30%, the income of the deceased would come to Rs. 1,70,412/- (Rs. 14201 x 12) and considering that the same is less than Rs. 1,80,000/-, the income of the deceased will not come within the purview of income tax. As such, deduction of 3096 given by the Tribunal towards income tax is unsustainable. After deducting 1/4th of the income of the deceased towards personal expenses, the claimants are entitled for loss of dependency at Rs. 17,89,368/- (Rs. 10651/- x 12 x 14) as against Rs. 12,52,500/- awarded by the Tribunal. Hence, the claimants are entitled for additional compensation of Rs. 5,36,868/- towards loss of dependency and additional compensation of Rs. 30,000/- under the conventional heads. In all, the claimants are entitled for Rs 5,66,868/-over and above the compensation awarded by the Tribunal with interest.
Accordingly, the appeal is partly allowed.