High Court Punjab-Haryana High Court

Smt. Krishna Devi And Others vs Nirbhai Singh And Others on 23 December, 2008

Punjab-Haryana High Court
Smt. Krishna Devi And Others vs Nirbhai Singh And Others on 23 December, 2008
FAO No.680 of 2002                         -1-

      IN THE HIGH COURT OF PUNJAB AND HARYANA
                    AT CHANDIGARH

                                           FAO No.680 of 2002
                                           Date of decision 23.12.2008

Smt. Krishna Devi and others                           .....Appellants

                           versus

Nirbhai Singh and others                               .....Respondents

Coram:-     Hon'ble Mr. Justice K. Kannan.

Present:    Mr. O. P. Sharda, Advocate,
            for the appellants.

            Mr.R. C. Gupta, Advocate,
            for Insurance Company.

K. Kannan, J.

1. The appellants seek for enhancement of compensation arising

out of the death of one Prem Chand on 31.3.1998, who had been employed

as Desk Operator at Government of India, FCI. The net salary drawn after

all compulsory deductions had been shown to be Rs.5,576/-.

2. The Tribunal found that the accident had been rendered by the

rash and negligent driving of the driver and found the respondents jointly

and severely liable. On the question of quantum the Tribunal found that

after providing for deduction of 1/3rd for personal consumption, the

contribution to the family was taken as Rs.3,717/- and arrived at an amount

of Rs.4,90,644/- by adopting a multiplier of 11 as most suitable and

reasonable one.

3. Before me, it is contended that the Tribunal did not make

adequate provision for the increase in salary and the promotion prospects of

the deceased person, he being an employee of Public Sector Undertaking.

The contention also was that the choice of multiplier was low for the person
FAO No.680 of 2002 -2-

who has aged 48 years when the appropriate multiplier could have been 15.

The interest claim was 12 % but the Tribunal had awarded only interest at

the rate of 9 % . The Tribunal had also not awarded any amount towards

funeral expenses or loss to estate or towards loss of consortium. According

to the appellants the income should have been taken at least Rs.10,000/- per

month and the extent of dependence must have been reckoned on such an

estimation. The learned counsel for the Insurance Company refers to the

judgment of Supreme Court in New India Insurance Company Limited

versus Kalpana and others reported in 2007 ACJ 825, where the Supreme

Court had awarded a compensation of Rs.4,68,000/-, in the case of a

deceased who was aged 33 years, a taxi driver, engaged also in agriculture

and was earning Rs.8,000/- per month. The Supreme Court had assessed the

dependency at Rs.3,000/- per month and adopting a multiplier had reduced

the award made by the High Court from 8,16,000/- to 4,68,000/-.

4. It cannot be denied that a person who is working on a technical

post in a Government of India undertaking would have earned increments

and also obtained promotion. It is only expected that in life that a

successful bread-winner in the family tries to do everything to improve the

quality of life and maximise his earnings to the benefit of himself and for

other members of the family. Courts have always considered promotional

prospects as relevant for increasing the income factor while determining

compensation. Of course it has always to be seen that there are greater

uncertainty of life and we cannot arrive at the quantum by merely making

unrealistic projections that the deceased if he had survived would have

brought home larger amount over a period of time. It was held in Sarla

Dixit versus Balwant Yadav AIR 1996 SC 1274, that Courts would be
FAO No.680 of 2002 -3-

competent to provide for increased contribution to the family taking into

account the promotional prospects. In this case there is no evidence about

the tiers of promotion that would have been available to the deceased or

how his scales of pay could have been increased and to what extent. Even

in the absence of definite evidence it will be impossible to yield to

conjectures but it will not be unrealistic to assume that instead of Rs.3,717/-

taken by the Tribunal as extent of dependence per month on his net salary of

Rs.5,975/-, I would assume that the income could have been taken even as

high as 1 ½ times of what he was earning at the time of his death. But I

assume even a lesser sum, viz at least Rs.7,500/- and taking the family of

himself, his wife and three minor childern at the time of his death the total

number of units would have been 2 units each for the wife and the deceased

and one unit each for the minor childern. The contribution to the family

would be 5/7th of his net income. Consequently the monthly contribution of

the family must have been taken as Rs.5,357/- and for 12 months, the annual

dependency would have been Rs.64,285/-. The Trial Court has taken 11 as

per the appropriate multiplier. Schedule II to the Motor Vehicles Act

provides for 13 as a person between the age i.e. 45 years to 50 years.

Having regard to the fact that have been providing for promotion prospects I

take the multiplier an appropriate multiplier 11 instead of 13 as provided in

the Schedule II. So considered the total extent of dependency in the family

would be Rs.7,07,135/-. I provide for a sum of Rs.5,000/- towards funeral

expenses and also award an additional sum of Rs.10,000/- towards loss of

estate, loss of consortium to the wife and loss of love and affection of the 3

minor childern, I estimate at Rs.25,000/-. In sum, the total amount payable

as compensation would be Rs.7,47,135/-. The Court below is awarded
FAO No.680 of 2002 -4-

Rs.4,90,644/- and excess over the said amount viz Rs.2,56,491/- rounded

off to Rs.2,56,500/- shall be additional amount payable by the Insurance

Company in favour of the petitioners with interest at the rate of 7.5 % from

the date of petition till the date of payment.

5. The appeal is allowed in the above terms, however, no

directions as to costs.




                                                       ( K. KANNAN )
23.12.2008                                                 JUDGE
A. KAUNDAL