FAO No. 1808 of 1999 1 IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH FAO No. 1808 of 1999 Date of decision July 2, 2010 The New India Insurance Company ....... Appellant Versus Gurbachan Kaur and others ........ Respondents CORAM: HON'BLE MR. JUSTICE K. KANNAN ***** Present:- Mr. N. K. Khosla , Advocate for the appellant. Mr. A. P. Kaushal, Advocate for the respondents. K. Kannan, J (oral) 1. In the appeal filed by the Insurance Company, the challenge is to the interest component which is determined by the Tribunal at 18%. The Insurance Company has claimed with interest ought not to have been more than 12%. The interest on the amount awarded by the Tribunal shall stand scaled down to 12% on the amount already awarded. 2. There is a cross appeal for enhancement of the same for compensation. The counsel appearing for the claimants points out that the deceased left behind seven dependents, wife, four children and aged parents. The Tribunal has allowed 1/3rd deduction for personal expenses. Learned counsel states, applying the principle of uniformity, the law laid down by the Hon'ble Supreme Court in Tirlok Chand and approved by the Court in Sarla Verma's case, the deduction ought to have been only 1/5th of the amount for personal expenses. The remaining amount ought to have been taken as contribution to the family. The FAO No. 1808 of 1999 2 Tribunal has taken Rs.3,500/- as monthly income and if 1/5th of the amount were to be deducted, the remaining amount shall constitute the extent of dependence of the family. Learned counsel states that the Tribunal has not provided for the other heads namely loss of estate, funeral expenses, loss of consortium and damages for loss for love and affection to the four children. The contention made by the learned counsel merits acceptance. 2. I provide therefore that the compensation shall be reworked in the following manner:- 3,500 x 4 x 5 x 12 x 15 = 5,0,4,000/- loss of consortium to the wife Rs.10,000/- loss of love and affection to the four children @ 5,000/-= 20,000/- funeral expenses= 5,000/- Loss of estate = 2,500/- Total = 5,30,000/- The Tribunal has awarded Rs.4,20,000/-. There shall be, therefore an award for excess of Rs. 1,10,000/- which shall attract interest at the rate of 7.5% from the date of petition till the date of payment. The award of the Tribunal shall stand modified to the above extent and the appeal is allowed in part. (K. KANNAN) JUDGE July 2, 2010 archana