KALPANARAJ versus TAMIL NADU STATE TRANSPORT CORPORATION

Citation: [2014] 6 S.C.R. 577 · Decided: 22-04-2014 · Supreme Court of India · Bench: GYAN SUDHA MISRA · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2014] 6 S.C.R. 577 
KALPANARAJ 
v. 
TAMIL NADU STATE TRANSPORT CORPORATION 
(Civil Appeal No.3461 of 2003) 
APRIL 22, 2014 
[GYAN SUDHA MISRA AND V. GOPALA GOWDA, JJ.] 
Motor Vehicles Act, 1988 -
s. 166 - Fatal Accident -
Compensation - Determination of - Deceased aged 46 years 
A 
B 
- Claimants-wife and two minor children - Tribunal awarded c 
compensation of Rs. 20. 90 lacs while High Court reduced it 
to Rs. 5. 76 lacs by determining monthly income on the basis 
of income tax return of the deceased -
Appeal for 
enhancement of compensation -
Held: High Court was 
correct in determining the monthly income on the basis of the o 
income tax return, however, erred in making deductions under 
various heads to arrive at the net income instead of 
ascertaining the gross income of the deceased - Moreover, 
since deceased was 46 years of age at the time of death, 
compensatiOn ought to have been determined by taking 30% E 
increase in the future prospects of income and by adopting a 
multiplier of 13 .:.... Award of Rs. 30, 0001- towards loss of 
consortium and Rs. 20, 0001- each towards loss of love and 
affection by the minor children awarded by High Court was on 
the lower side - Accordingly, compensation of Rs. 1 lakh each 
F 
awarded towards loss of consortium and towards loss of love 
and affection - Apart from this, Rs. 1 lakh awarded towards 
loss of estate and Rs. 1 lakh towards loss of expectation of the 
life of the deceased - Further, ·Rs. 50, 0001- also awarded for 
funeral expenses and cost of litigation - Thus, total sum of 
Rs. 14. 51 lakh awarded to appellants-claimants as G 
compensation alongwith interest@ 9% p.a .. 
A 46 year old person died when the motor cycle 
' 
577 
H 
578 
SUPREME COURT REPORTS 
[2014] 6 S.C.R. 
A driven by him collided with the bus of respondent-
Corporation. His wife and two minor children filed claim 
petition before the MACT. The MACT hel·d that the 
accident occurred due to rash and negligent driving of 
the driver of the bus of the respondent-corporation. lt 
s further determined monthly income of the deceased at 
Rs.15,000 and adopting a multiplier of 18, assessed 
compensation at Rs.32.40 lacs, however awarded 
Rs.20.90 lacs since that was the amount claimed by 
appellants. 
c 
On appeal by respondent-corporation, the High 
Court held that the Tribunal erred in determining monthly 
income of the deceased at Rs.15,000 instead of taking the 
income shown in income tax return and further erred in 
not deducting 1/3rd towards personal expenses of the 
D deceased. Accordingly, the High Court took monthly 
income of the deceased as Rs.3, 115 on the basis of net 
average income of the deceased calculated as per 
income tax return and reduced the compensation under 
the head of loss of income, funeral expenses, loss of love 
E and affection by the children, loss of income and loss of 
consortium by wife. The High Court awarded a total 
amount of Rs.5.76 lacs as compensation to the 
appellants. Hence the present appeal for enhancement of 
cor:npensation. 
F 
Allowing the appeal, the Court 
HELD: 1. The only a.vailable documentary evidence 
on record of the monthly income of the deceased was the 
income tax return filed by him with the Income Tax 
G Department. The High Court was correct, therefore, to 
determine the monthly income on the basis of the income 
tax return. However, the High Court erred in ascertaining 
the net income of the deceased as the amount to be 
taken into consideration for calculating compensation. In 
H 
KALPANARAJ v. TAMIL NADU STATE TRANSPORT 579 
CORPORATION 
the light of the principle of law laid down in *Indira 
A 
Srivastava case, the High Court erred in making 
deductions under various heads to arrive at the net 
income instead of ascertaining the gross income of the 
deceased out of the annual income earned from his 
occupation mentioned in the income tax return submitted 
B 
for th~ relevant financial year 1994-1995. [Paras 7, 8] [583-
G-H; 584-A; 586-D] 
. 
*National Insurance Company Ltd. v. Indira Srivastava 
and Ors. (2008) 2 sec 763 - relied on. 
2. As per the Income Tctx return of the financial year 
1994-1995 produced on record, the deceased was 
earning Rs. 88,6601- per annum or Rs. 73301- per month. 
Further, the deceased being 46 years of age at the time 
c-
of death, he is entitled to 30% increase in the future 
D 
prospects of income as per the legal principle laid down 
in ** Santosh Devi. Also, since the deceased was 46 years 
of age

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