THE HONOURABLE SRI JUSTICE GHULAM MOHAMMED M.A.C.M.A.Nos.666 and 708 of 2007 COMMON JUDGMENT Since both these appeals under Section 173 of the Motor Vehicles Act, 1988 are filed by the insurance company and the claimants respectively, against the award, dated 26.09.2006 passed in O.P.No.1802 of 2004 by the III Additional Chief Judge, City Civil Court, Hyderabad, they are being taken up for disposal by this common judgment. 2. The facts, in brief, are as follows: On 03.05.2004 at 8.15 AM, one Earaiah, who was working as ‘Gang Mestry” in South Central Railways, was going on his bicycle and when he reached near Ahmednagar bus stand, a car bearing No.AP 10S 8899, driven by its driver in a rash and negligent manner and hit the bicycle from back side resulting head injury to him and he died on the spot. The claimants filed the above said O.P. claiming compensation of Rs.12,00,000/-. The insurance company opposed the claim petition by filing counter- affidavit. By the order impugned, the Court below awarded compensation of Rs.8,02,000/- payable by the owner and the insurer with interest @ 7.5% per annum from the date of the petition till the date of realisation, to the claimants. 3. Learned counsel appearing for the appellants-claimants in M.A.C.M.A.No.708 of 2007 contended that the Court below has committed error in deducting 1/3rd towards personal expenses of the deceased instead of 1/4th as his dependents are six in number and awarded less compensation to the claimants. He prays to enhance the compensation awarded by the Court below. 4. Learned Standing Counsel for the appellant-insurance company in M.A.C.M.A.No.666 of 2007 has not disputed the quantum of compensation awarded by the Court below and the liability, but he prays to reduce the rate of interest from 7.5% to 6% per annum on the compensation awarded by the Tribunal. 5. It is not in dispute that the accident occurred due to rash and negligent driving of the driver of car at the time of accident. The dispute is with regard to deduction of 1/3rd towards personal expenses of the deceased from his monthly salary. The deceased has wife and five children. The Apex Court in SARALA VERMA v. DELHI TRANSPORT CORPORATION[1] held as under: “Having considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one- third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six. In the instant case, the number of dependent family members of the deceased is ‘6’. Therefore, 1/4th should be deducted towards personal expenses of the deceased. 6. In SARALA VARMA’s case, cited 1 supra, the Apex Court held as under: “In view of the imponderables and uncertainties, it is favoured to adopt as a rule of thumb, an addition of 50% of actual salary to the actual salary income of the deceased towards future prospects, where the deceased had a permanent job and was below 40 years. (Where the annual income is in the taxable range, the words ‘actual salary’ should be read as ‘actual salary less tax’). The addition should be only 30% if the age of the deceased was 40 to 50 years. There should be no addition, where the age of the deceased is more than 50 years”. As per the said judgment, since the age of the deceased was 48 years and had a permanent job at the time of the accident, 30% can be added to his actual salary i.e., Rs.7,500/- by taking note of the future prospects. Therefore, his monthly salary comes to Rs.9,750/- and after deducting 1/4th from it towards his personal expenses, it comes to Rs.7,313/- and annual income comes to Rs.87,756/-. The suitable multiplier for the age group of 48 years is ‘13’ as per SARALA VARMA’s case, cited 1 supra, and thereby, the loss of dependency comes to Rs.87,756X13=11,40,828/- and it can be rounded to Rs.11,40,830/- . The compensation of Rs.10,000/-each towards loss of estate and loss of consortium awarded by the Court below should be added to that amount. In total, the compensation is determined at Rs.11,60,830/- Thus, the compensation is enhanced from Rs.8,02,000/- to Rs.11,60,830/- Insofar as the interest @ 7.5% per annum awarded by the Court below is concerned, it is reduced from 7.5% to 6%. The award of the Tribunal in all other aspects shall remain unaltered. 6. With the above modification, both the Civil Miscellaneous Appeals are allowed in part. No costs. _____________________ GHULAM MOHAMMED, J Date:19.08.2010 sj [1] (2009) 6 SCC 121