FAO No.505 of 1988 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.505 of 1988 DATE OF DECISION: February 4, 2011 SMT. SUDHA TAMBIA AND OTHERS ...APPELLANTS VERSUS SHRI RAM KUMAR AND OTHERS ...RESPONDENTS CORAM: HON'BLE MR. JUSTICE K.KANNAN. 1. Whether reporters of local papers may be allowed to see the judgement? Yes/No 2. To be referred to the reporters or not? Yes/No 3. Whether the judgement should be reported in the digest? Yes/No ---- PRESENT: MR. R.M. SURI, ADVOCATE FOR THE APPELLANTS. NONE FOR THE RESPONDENTS NO.1 TO 4. SH. SANJIV PABBI, ADVOCATE FOR RESPONDENT NO.5. K.KANNAN, J.(ORAL) 1. The appeal is for enhancement of compensation for death of first claimant's husband. The deceased was a partner in the business running under the name and style of M/s Ravi Enterprises and he was later appointed as a Director in M/s Poly Foams. His educational qualifications are not very clearly known, but he held a high position and belonged to a well-to-do family. Both his parents were income tax assessee and he was also an income tax assessee as well. The I.T. Returns from the year 1982-83 to 1985-86 showed that his share from income from M/s Ravi Enterprises were in the range of `22647/- to `6391/- and the salary paid in a new company was shown to be as `2750/-. However, the Board Resolution also showed that he was forfeiting his income till the income turn round the corner and was making the profits. The Tribunal noted that there was a gradual fall of profit in the business and therefore, rejected the plea of the FAO No.505 of 1988 -2- claimant that he was earning about `10,000/- per month and took the income to be `1500/- per month. A Director in a company who forfeits his income till profits were made ought not to be take as a person who was rendering gratuitous services. If there was a document to show that there had been over all salary of `2500/- per month, I would take that to be the value of services for that particular company. Again, for participation in M/s Ravi Enterprises as a partner and Director having brought through I.T. Returns, the fact that there had been a gradual fall in the income for two years in the year 1984-85 and 1985-86 ought not to be allowed to prevail over the assessed income for the firm and his share of profits which have been shown to be in the range of `22,647/- and `26,168/- for 1982-83 and 1983-84, respectively. Taking the average salary to be at least `1250/- and the income from both the sources, I will assess the income at `48,000/- per year. The Tribunal adopted 1/3 deduction which I will retain. I will provide for `5000/- for loss of consortium to the wife and `2500/- for loss of love and affection to the child. The conventional heads of claim for funeral expenses and loss to estate shall also be provided. The amount of compensation under various heads are tabulated below:- Fatal Accidents Age: 30 Occupation Executive Director Claimants Widow, Minor son and parents Heads of Claim Tribunal High Court Sr.No. Amount ` Amount ` 1. Annual Income 1500 4000 2. Add % of increase 30%/50% 3. Deduction (1/2,1/3, 1/4, 1/5) 1/3 1/3 4. Multiplicand - Tax 12,000 32,000 5. Multiplier 16 17 FAO No.505 of 1988 -3- Fatal Accidents 6. Loss of Dependence 1,92,000 5,44,000 7. Medical Expenses 8. Loss of Consortium + loss of love and affection 7500 9. Loss to Estate 5000 10. Funeral Expenses 2500 Total 1,92,000/- 5,59,000/- 2. The total amount of compensation will be `5,59,000/-. The amount in excess over what has already been awarded by the Tribunal shall attract interest @ 6% from the date of petition till the date of payment. 3. The Tribunal while awarding the compensation of `1,92,000/- provided to the mother `38,000/- as compensation and provided for the widow and minor child a compensation of `76,800/-, while still rejecting the claim of compensation for the father. As regards the amount determined for the widow, the Tribunal provided for `9600/- as the compensation payable to the widow, since at the time of trial, she had re-married allowing the remaining to abate for the whole estate. Any amount which could have been denied to the widow ought not to have caused abatement of the claim itself, for, what we are determining is not merely the issue of contribution to the family, if he had been alive but also which will go as accretion to the estate as well. It may be that amongst the claimants one may give up a claim and allow the other to take a larger slice of compensation. But this cannot result as benefit to the person who is liable to make the payment. Consequently, if the Tribunal had found justification for denying to the widow an equal as that of son, then that amount which was being denied must be given to the son and ought not to have been removed out of the amount payable to the family of the deceased. FAO No.505 of 1988 -4- 4. The amount of enhanced compensation shall be taken in the ratio of 3:1:1 between the son and the parents of the deceased respectively. The appeal is allowed in the above terms. February 4, 2011 (K.KANNAN) Gulati JUDGE