Case: New India Assurance Company Limited Vs. Rajni Harshwardhan Sharma &amp; Others

to prove the same. Thus, the statement of the employer Manoj Trivedi, that the statutory deduction of professional tax and TDS were deducted at the end of the year", has gone unchallenged. There is nothing on record to disbelieve the said statement, which has come in the cross-examination itself. It thus appears that the income of the deceased from salary was Rs.35,000/- per month. In light of the evidence of Manoj Trivedi that the TDS and Professional Tax were deducted at the end of the year and keeping in mind the ratio laid down in Vimal Kanwars case by the Apex Court, we do not find any merit in the submission of the learned counsel for the appellant, that the Tribunal has erred in not deducting the TDS and the Professional Tax, whilst quantifying the compensation. Even assuming that deduction of Income Tax ought to have been made from Rs.35,000/-for the purpose of calculating multiplicand, we must note here that the Tribunal has granted only 15% increase on account of further prospects of increase in earnings. Considering the fact that the deceased was a graduate from IIT, the said increase ought to have been more than 15%. Hence, taking overall view of the case, the Tribunal rightly held that the income of the deceased was Rs.35,000/- per month.19. The law regarding award of compensation in applications under Section 166 of the Motor Vehicles Act in fatal accident cases is well settled. The Apex Court in the case of Sarla Verma (Smt) and Others v/s Delhi Transport Corporation and Another, (2009) 6 SCC 121. has laid down the formula for Tribunals to calculate the compensation. It has also held that in cases of salaried persons additions have to be made depending upon the age of the deceased to the actual income of the deceased while computing future prospects. In Rajesh and Others v/s Rajbir Singh and Others, (2013) 9 SCC 54 , the Apex Court held that the formula set out in Sarla Vermas case, would also apply to cases, where the deceased was either self employed or on fixed wages, while computing future prospects.20. The Tribunal has rightly applied the said formula in arriving at the compensation. It has awarded 15% towards future prospects and after making the necessary deductions and applying the appropriate multiplicand; concluded that the respondent - claimants are entitled to compensation. The Tribunal has also rightly awarded compensation to the first and second respondents for loss of consortium and loss of love respectively and funeral expenses. We do not find any error or infirmity in the compensation awarded.21. The second submission of the learned counsel for the appellant is that the interest of 7.5% per annum which was granted on the said compensation was on the higher side and that the interest ought not to have exceeded 6% per annum, considering the interest rates prevalent now. The respondent - claimants although have not filed any cross appeal/cross objection, have filed an affidavit of the first respondent - claimant praying for dismissal of the appeal. The first respondent has stated in the affidavit that they are not in a position to file a cross appeal/objection, the same because of the huge debts and hardships that they have had to suffer. The respondents have prayed that this Court can by taking recourse to Order 41, Rule 33 of the Code of Civil Procedure, 1908 enhance the interest component, by directing the appellant to pay interest @ 9% p.a. from the date of the application, as the rate of the domestic term deposits at the time of the Award was 9% p.a. The first respondent has enclosed to her affidavit, a copy of the Circular issued by the Oriental Bank of Commerce in support of the same.22. We have perused the judgments of the Apex Court in this regard. The Apex Court in the case of Kaushnuma Begum (Smt) and Others v/s New India Assurance Company Limited and Others, (2001) 2 SCC 9 , noticed that the nationalised banks are granting interest @9% on fixed deposits for one year and held as follows :-"24. Now, we have to fix up the rate of interest. Section 171 of the MV Act empowers the Tribunal to direct that "in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as may be specified in this behalf". Earlier, 12% was found to be the reasonable rate of simple interest. With a change in economy and the policy of Reserve Bank of India the interest rate has been lowered. The nationalised banks are now granting interest at the rate of 9% on fixed deposits for one year. We, therefore, direct that the compensation amount fixed hereinbefore shall bear interest at the rate of 9% per annum from the date of the claim made by the appellants. The amount of Rs.50,000 paid by the Insurance Company under Section 140 shall be deducted from the principal amount as on the date of its payment, and interest would be recalculated on the balance amount of the principal sum from such date."23. The Apex Court in Abati Bezbaruah v. Deputy Director General, Geological Survey of India & Another, (2003) 3 SCC 148 , noticed the varying rate of interest being awarded by the Tribunals, High Courts and Apex Court itself. In the said case, the Apex Court held that the rate of interest must be just and reasonable depending on the facts and circumstances of the case and should be decided after taking into consideration the relevant factors like inflation, change in economy, policy being adopted by the Reserve Bank of India from time to time, how long the case is pending, loss of enjoyment of life etc.24. In Supe Dei (Smt) and Others v. National Insurance Company Limited & Another, (2009) 4 SCC 513 , the Apex Court held that the proper interest would be 9% per annum.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]18. Keeping in mind the aforesaid principle, the evidence and the salary certificate in the present case, show that the deceased was drawing a salary of Rs.35,000/per month. Manoj Trivedi, Proprietor of Tricon International in his cross examination has categorically stated that "the payments are made by cheques. The statutory deduction of professional tax and TDS is deducted at the end of the year". There is no further cross on this statement. There is no suggestion that the said statement is false nor is there any suggestion that no records have been produced by him to substantiate the said statement. Infact, in the absence of any suggestion challenging the veracity of the said statement, there was no occasion for the respondentclaimants to bring on record the documents to prove the same. Thus, the statement of the employer Manoj Trivedi, that the statutory deduction of professional tax and TDS were deducted at the end of the year", has gone unchallenged. There is nothing on record to disbelieve the said statement, which has come in theitself. It thus appears that the income of the deceased from salary was Rs.35,000/per month. In light of the evidence of Manoj Trivedi that the TDS and Professional Tax were deducted at the end of the year and keeping in mind the ratio laid down in Vimal Kanwars case by the Apex Court, we do not find any merit in the submission of the learned counsel for the appellant, that the Tribunal has erred in not deducting the TDS and the Professional Tax, whilst quantifying the compensation. Even assuming that deduction of Income Tax ought to have been made fromthe purpose of calculating multiplicand, we must note here that the Tribunal has granted only 15% increase on account of further prospects of increase in earnings. Considering the fact that the deceased was a graduate from IIT, the said increase ought to have been more than 15%. Hence, taking overall view of the case, the Tribunal rightly held that the income of the deceased was Rs.35,000/per month.19. The law regarding award of compensation in applications under Section 166 of the Motor Vehicles Act in fatal accident cases is well settled. The Apex Court in the case of Sarla Verma (Smt) and Others v/s Delhi Transport Corporation and Another, (2009) 6 SCC 121.   has laid down the formula for Tribunals to calculate the compensation. It has also held that in cases of salaried persons additions have to be made depending upon the age of the deceased to the actual income of the deceased while computing future prospects. In Rajesh and Others v/s Rajbir Singh and Others, (2013) 9 SCC 54  , the Apex Court held that the formula set out in Sarla Vermas case, would also apply to cases, where the deceased was either self employed or on fixed wages, while computing future prospects.20. The Tribunal has rightly applied the said formula in arriving at the compensation. It has awarded 15% towards future prospects and after making the necessary deductions and applying the appropriate multiplicand; concluded that the respondentclaimants are entitled to compensation. The Tribunal has also rightly awarded compensation to the first and second respondents for loss of consortium and loss of love respectively and funeral expenses. We do not find any error or infirmity in the compensation awarded.The Apex Court in Abati Bezbaruah v. Deputy Director General, Geological Survey of IndiaAnother, (2003) 3 SCC 148  , noticed the varying rate of interest being awarded by the Tribunals, High Courts and Apex Court itself. In the said case, the Apex Court held that the rate of interest must be just and reasonable depending on the facts and circumstances of the case and should be decided after taking into consideration the relevant factors like inflation, change in economy, policy being adopted by the Reserve Bank of India from time to time, how long the case is pending, loss of enjoyment of life etc.24. In Supe Dei (Smt) and Others v. National Insurance Company LimitedAnother, (2009) 4 SCC 513  , the Apex Court held that the proper interest would be 9% per annum.