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MANASVI JAIN versus DELHI TRANSPORT CORPORATION LTD. & ORS

Citation: [2014] 5 S.C.R. 573 · Decided: 23-04-2014 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2014] 5 S.C.R. 573 
MANASVI JAIN 
v. 
DELHI TRANSPORT CORPORATION LTD. & ORS 
(Civil Appeal No. 7642 of 2009) 
APRIL 23, 2014 
[P. SATHASIVAM, CJI, RANJAN GOGOi AND 
N.V. RAMANA, JJ.] 
. 
Motor Vehicles Act, 1988: s.166 - Compensation in case 
A 
B 
of fatal accident - Assessment of income of the deceased -
C 
Held: While ascertaining the income of the deceased, any 
deductions shown in the salary certificate towards GPF, life 
insurance premium, repayments of loans etc., should not be 
excluded from the income - The deduction towards income 
tax/surcharge alone should be considered to arrive at the net D 
income of the deceased. 
The father of the appellant died in motor accident. He 
was aged 55 years on the date of accident and was 
working as Executive Engineer with the PWD and was 
E 
earning salary of Rs. 26,950 p.m. The Tribunal while 
determining net monthly income of the deceased, 
excluded various deductions towards GPF, House Rent, 
GIS and income tax. The take home salary was 
determined as Rs. 15,784 p.m. Thus, taking into 
consideration his age and monthly salary at Rs. 15, 784 
F 
p.m., the amount of compensation of Rs. 10.10 .lacs was 
held to be payable to the appellant. 
The appellant filed appeal before the High Court 
seeking enhancement of compensation which was G 
dismissed. Hence the instant appeal. 
Allowing the appeal, the Court 
573 
H 
574 
SUPREME COURT REPORTS 
[2014] 5 S.C.R. 
A 
HELD: 1. It is not in dispute that the deceased was 
getting an amount of Rs. 26,924/- as monthly salary and 
Rs. 11,140/- was being deducted under various heads 
such as GPF, House Rent, G.l.S. and Income Tax. After 
taking into account these deductions, the Tribunal arrived 
B at a conclusion that the net salary of the deceased is 
Rs.15, 784/- and awarded a total compensation of 
.. Rs.10,25,176/-, including Rs. 5,000/- towards funeral 
expenses and Rs. 10,000/- towards mental agony. The 
High Court did not interfere with the judgment of the 
c Tribunal. [Para 11] [577-D-F] 
2. It is clear from salary certificate that except an 
amount of Rs. 2,500/- towards Income Tax, rest of the 
amounts were voluntarily contributed by the deceased 
for the welfare of his family. Except contribution towards 
D Income Tax, the other voluntary contributions made by 
the deceased, which are in the nature of savings, cannot 
be deducted from the monthly salary of the deceased to 
decide his net salary or take home salary. Hence, the take 
home salary of the deceased comes to Rs. 24,450/- which 
E can be rounded to Rs. 25,000/- Accordingly, the monthly 
take home salary of the deceased is determined at Rs. 
25,000/-. Applying multiplier 8, the appellant is entitled to 
the compensation of Rs.16.15 lacs. [Paras 13 and 14] [578-
0-H] 
F 
G 
H 
Shyamwati Sharma & Ors. vs. Karam Singh & Ors. (2010) 
12 sec 378: 2010 (8) SCR 417 - relied on. 
Case Law Reference: 
2010 (8) SCR 417 
Relied on 
Para 11 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
7642 of 2009. 
Frorii the Judgment & Order dated 26.03.2008 of the High 
MANASVI JAIN v. DELHI TRANSPORT 
575 
CORPORATION LTD. 
Court of Uttarakhand at Nainital in Appeal from Order No. 484 
A 
of 2006. 
Rajesh Tyagi, Atishi Dipankar for the Appellant. 
M.K. Dua, Kishore Rawat, Avijit Bhattacharjee, Dr. Monika 
Gusain, Hari Om Yadav, Abhinav Jain for the Respondents. 
The Judgment of the Court was delivered by 
N.V. RAMANA, J. 1. This appeal by special leave arises 
B 
out of the Judgment and order dated 26th March, 2008 passed 
C 
by the High Court of Uttarakhand in a Motor Accidents Claims 
Appeal No. 484 of 2006. 
2. The appellant-claimant is the son of deceased Suresh 
Chandra Jain who died in a road accident. He filed a claim 
petition-before th~ Motor Accidents Claim Tribunal, Dehradun 
D 
seeking compensation of an amount of Rs.36,00,000/- on the 
basis that the deceased who was aged 55 years on the date 
of accident, was working as Executive Engineer with the Public 
Works Department of the Government of Uttarakhand and was 
earning a salary of Rs.26,950/- per month. 
E 
3. The Tribunal, after taking into account the evidence on 
record and also the evidence of one eyewitness to the accident, 
namely, Ajay Bansal (PW 2), came to the conclusion that the 
accident took place due to rash and negligent driving of the bus 
driver-Respondent No. 2 and as such, the appellant is entitled 
for compensation. According to the original salary certificate 
F 
of the deceased issued by the Ex

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