Syed Basheer Ahamed & Ors vs Mohd. Jameel & Anr

3. The appellants are the unfortunate parents and the three sisters of the deceased. The first respondent is the owner of the lorry, which was involved in the accident and the second respondent is the insurance company with which the lorry was insured. According to the appellants, on 3rd June, 1999 at about 10.00 a.m., the deceased aged about 20 years, was riding on a luna moped when the lorry dashed against it and ran over the deceased, killing him on the spot. It was claimed that the deceased was engaged in his own business under the name and style of Bharath Packing Cases Industry, and was also dealing in cut size timber. 2

4. The appellants filed a petition under Section 166 of the Act for award of compensation on account of the death of the deceased. In the petition, it was pleaded that the deceased had lucrative business and was earning a sum of Rs.20,000/- per month. A claim for compensation of Rs.68,30,000/- was made. Upon consideration of the evidence adduced by the parties, in particular the Income Tax Return filed by the deceased for the assessment year 1998-1999, wherein the total income from business was declared at Rs.43,000/, the Tribunal rejected the stand of the appellants/claimants that the earnings of deceased were Rs.20,000/- per month. The Tribunal took the monthly income of the deceased at Rs.7,000/- per month. Deducting therefrom half of the said income towards personal and living expenses of the deceased and taking the age of the younger of the parents as the basis for determining the multiplier as 14, the Tribunal quantified the compensation at loss of dependency as Rs.5,88,000/-. By adding Rs.10,000/- towards loss of expectation of life and Rs.10,000/- towards funeral expenses etc., it 3 determined the total compensation as Rs.6,08,000/-. As noted above, interest at the rate of 6% per annum was also awarded.

5. Being aggrieved, the owner of the vehicle, respondent No.1 in this appeal, preferred appeal to the High Court. Rejecting the plea of the owner of the vehicle that his lorry was not involved in the accident, the High Court came to the conclusion that on the basis of the Income Tax Return the income of the deceased could not be more than Rs.40,000/- per annum. The High Court, however, calculated the monthly income of the deceased as Rs.4,000/-. The High Court, however, did not interfere with the deduction towards the personal expenses and the multiplier applied by the Tribunal as also the other amounts awarded to the claimants. The High Court, thus, chose to reduce the compensation amount awarded to the appellants by the Tribunal from Rs.6,08,000/- to Rs.3,56,000/- on the ground that the monthly earnings of 4 the deceased had been taken on the higher side at Rs.7,000/-. Feeling aggrieved, the claimants are before us.

17.In the circumstances, having regard to the material on record, in our opinion, ends of justice would be met if the income of the deceased is taken at Rs.5,500/- per month or Rs.66,000/- per annum.

19.In view of the above discussion, the loss of dependency is determined as Rs.33,000/- per annum and by applying a multiplier of 14, the total loss of dependency is arrived at Rs.4,62,000/-. Adding Rs.20,000/- awarded under other heads, the quantum of compensation is determined at Rs.4,82,000/-. The amount shall also carry an interest at the rate of 6% per annum, as awarded by the Tribunal, from the date of the filing of the claim petition till the date of actual payment. If any amount has already been paid or deposited in terms of order passed by the Tribunal, the same shall be adjusted from the amount now being 1 awarded. The interest element shall also be worked out after the said adjustment.

20.In the result, the appeal succeeds in part and the judgment of the High Court stands modified to the extent indicated above. No order as to costs.