LexSUNIL SHARMA & ORS. versus BACHITAR SINGH & ORS
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A 8 [2011] 2 S.C.R. 576 SUNIL SHARMA & ORS. v. BACHITAR SINGH & ORS. (Civil Appeal No. 1440 of 2011) FEBRUARY 07, 2011 [G.S. SINGHVI AND ASOK KUMAR GANGULY, JJ.] MOTOR VEHICLES ACT, 1988: c Fatal motor accident - Claim petition - Compensation - Computation of income of deceased - Deductions - Multiplier - Compensation towards revision in pay, loss of love and affection and consortium - Held : Deduction from the income of deceased towards HRA, CCA, EPF, GIS, 0 medical allowance should not have been made by Tribunal - As deceased was married, 1/3rd should be deducted from her income towards personal expenses - Annual income of deceased, thus, calculated to Rs. 1,89,6401- -Addition of 30% by way of future prospects allowed - Deceased being 41 years of age, multiplier 14 to be applied "'.'" Accordingly E compensation calculated to Rs. 22,34,9601- - Further, a sum of Rs. 25,0001- awarded towards loss of love and affection and consortium - Thus, total compensation payable to claimants rounded off to Rs. 22, 60, 0001- with 6% interest from date of filing of claim petition - Respondents jointly and severally F liable to make the payment. The legal heirs and dependants of a victim of fatal motor accident filed a claim petition before the Motor Accident Claims Tribunal, claiming Rs.40,00,000/- as G compensation. The deceased was 41 years of age at the time of the accident and was employed. The Tribunal deducted House Rent Allowance, City Compensatory Allowance and Medical allowance etc and calculated her total carry home salary to be Rs.10,000/- (annual H 576 ·~·· SUNIL SHARMA & ORS. v. BACHITAR SINGH & 577 ORS. equivalent beh .g Rs.1,20,000/-. It made further deduction A of 40% towards personal expenses and, applying the multiplier 11, awarded Rs. 7,92,000/- as compensation along with 6% interest. The High Court applied the multiplier of 14 and accordingly enhanced the compensation by a further sum of Rs.2,16,000/- B In the instant appeal filed by the claimants, it was . contended for the appellants that the Tribunal should not have deducted HRA, CCA, EPF, contribution towards Group Insurance Scheme, and repayment of computer advance from the income of the deceased; that the C . deduction of 40% towards personal expenses was not correct; that the revision of pay scale which had come into force before the death of the victim should have been taken into consideration; and that compensation towards loss of love and affection, consortium and funeral rites D should also have been allowed. Partly allowing the appeal, the Court HELD: E (a) Computation of Income : 1.1 The deductions made by the Tribunal on account of HRA, CCA and medical allowance are done on an incorrect basis and should have been taken into F consideration in calculation of the income of the deceased. Further, deduction towards EPF and GIS should also not have been made in calculating the income of the deceased. However, the computer advance should not form a part of the monthly income. The G monthly income of the deceased thus amounts to Rs.15,351/-. Accordingly, the annual income of the deceased would amount to Rs. 1,84,212/-. [para 11-12) [583-B-C] Raghuvir Singh Mato/ya & Ors. v. Harl Singh Ma/viya & H 578 SUPREME COURT REPORTS [2011] 2 S.C.R. A Ors., 2009 (5) SCR 379 =(2009) 15 SCC 363 and Sar/a Verma (Smt.) and others v. Delhi Transport Corporation & Anr., 2009 (5) SCR 1098 =(2009) 6 sec 121 - relied on. (b) Deduction for Personal Expenses : B 1.2 As the deceased was married, a deduction of 1/ c 3rd should be made to her income by way of personal expenses. After such deduction, the income of the deceased would thus amount to Rs.1,22,808/-, which is rounded off to Rs.1,22,800/-. [para 14) [583-G-H] (c) Revision in Pay Scale : 1.3 In Sar/a Verma this Court laid down a 'rule of thumb' with respect to addition in income due to future 0 prospects and observed that the addition should be only 30% if the age of the deceased was 40 to 50 years. In the instant case, the deceased was aged 41 years. Thus, an addition of 30% by way of future prospects is allowed. The annual income of the deceased would thus be Rs.1,59,640/-. Considering the age of the deceased, a E multiplier of 14 is to be applied. Accordingly, annual dependency comes to Rs.22,34,960/-. [para 15-16) [584- A-C] Compensation for Loss of Love and Affection and F Consortium: 1.4 In cases of fatal motor ac
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