NATIONAL INSURANCE COMPANY LTD. vs. BIRENDER

Case Type: Civil Appeal

Date of Judgment: 13-01-2020

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Full Judgment Text

1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 242­243  OF 2020 (Arising out of SLP (Civil) Nos. 976­977 of 2020) (Diary No. 47693 OF 2018) National Insurance Company Limited        …Appellant(s) Versus Birender and Ors.               …Respondent(s) WITH CIVIL APPEAL NO. 244 OF 2020 (Arising out of SLP (Civil) No. 978 of 2020) (Diary No. 17683 OF 2019) J U D G M E N T A.M. Khanwilkar, J. 1. Delay condoned. 2. Leave granted. 3. These civil appeals emanate from the common judgment and order   dated   8.8.2018   passed   by   the   High   Court   of   Punjab   and Signature Not Verified Digitally signed by DEEPAK SINGH Date: 2020.01.20 10:43:38 IST Reason: Haryana at Chandigarh (for short, ‘the High Court’) in cross appeals being F.A.O. Nos. 1341 of 2016 (O&M) and 4023 of 2016 (O&M), 2 questioning the correctness of the award dated 4.12.2015 passed by the Motor Accidents Claims Tribunal, Jind (for short, ‘the Tribunal’) in M.A.C.T. Case No. 205 of 2014.   The former appeal (arising out of S.L.P.(C)   Nos.   976­977/2020   @   Diary   No.   47693/2018)   has   been preferred by the insurance company and the latter appeal (arising out of S.L.P.(C) No. 978/2020 @ Diary No. 17683/2019) by the claimants­ respondent Nos. 1 and 2.   The parties are referred to as per their status in the former appeal for the sake of convenience. 4. The claim petition was filed by the respondent Nos. 1 and 2 herein, who are the major sons of Smt. Sunheri Devi (deceased).  The deceased was on her way to attend the office of Tehsildar, Uchana (where she was working as a Peon) from Dharoli Khera village on 20.10.2014   at   about   9.00   a.m.,   travelling   as   a   pillion   rider   on   a motorcycle bearing No. HR­32­G­8749.  At that time, a dumper/tipper bearing   registration   No.   HR­56­A­3260   coming   from   the   opposite direction, being driven in a rash and negligent manner, collided with the motorcycle, resulting in fatal injuries sustained to the deceased to which she succumbed. 5. The   respondent   Nos.   1   and   2   claimed   an   amount   of Rs.50,00,000/­ (Rupees fifty lakhs only) along with interest at the rate of 12% per annum on the assertion that the deceased was earning 3 Rs.28000/­ per month (Rs.21000/­ as salary and Rs.7000/­ as family pension of her husband), she was hale and healthy and was the only bread earner of her entire family and that they were largely dependant upon   her   income   and   have   also   been   deprived   of   her   love   and affection.   The appellant disputed the claim and pleaded that the accident did not occur with the offending vehicle (the dumper/tipper) or due to fault of its driver, and that the respondent Nos. 1 and 2 were majors and not dependant upon the deceased and as such not entitled for any compensation.  Further, the vehicle in question was being plied in contravention of terms and conditions of the insurance policy and the driver was not holding a valid and effective driving licence.  Resultantly, the insurance company­appellant was not liable to pay compensation. 6. After analysing the evidence on record, the Tribunal held that the   accident   of   the   deceased   occurred   due   to   rash   and   negligent driving of the offending vehicle.  The Tribunal further noted that the driver and the owner of offending vehicle have placed on record the driving licence of  the driver, valid insurance  policy,  public  carrier permit and the registration certificate of the offending vehicle and the appellant having failed to lead any evidence to prove that the terms and   conditions   of   the   insurance   policy   were   violated,   cannot   be 4 absolved   of   its   liability.   The   Tribunal   also   noted   that   though   the respondent Nos. 1 and 2 were major and earning hands, the fact that they were legal heirs of the deceased and have been deprived of the pecuniary benefits through the deceased cannot be denied. 7. Having decided the above issues in favour of the respondent Nos.   1   and   2,   the   Tribunal   while   determining   the   quantum   of compensation took note of the gross monthly salary of the deceased as on September, 2014, which according to her service record was Rs.23,123/­ and the net take home salary was Rs.16,918/­.   The Tribunal did not consider the family pension for computation, as the deceased was getting it in her own right as widow and the same could not be reckoned.   Her date of birth was 1.4.1967 and date due for retirement was 31.3.2027, for which multiplier of ‘13’ was applied. The deduction towards personal expenses was kept at 50% as the respondent Nos. 1 and 2 were major and earning hands. Thus, the loss of dependency was determined at Rs. 17,15,532/­.  In addition, an   amount   of   Rs.25,000/­   was   awarded   on   account   of   funeral expenses,   etc.   and   the   total   compensation   was   computed   at Rs.17,40,532/­ along with interest at the rate of 9% per annum from the date of institution of petition.   The driver, owner and insurer of the offending vehicle were held jointly and severally liable. 5 8. Against the award passed by the Tribunal, cross appeals were preferred being F.A.O. No. 1341 of 2016 (O&M) filed by the appellant and F.A.O. No. 4023 of 2016 (O&M) filed by the respondent Nos. 1 and 2.  The appellant (insurance company) primarily contended that the respondent Nos. 1 and 2 are not entitled to compensation for loss of dependency as they are major and earning and also because the family of the deceased was entitled to receive financial assistance under the Haryana Compassionate Assistance to the Dependants of Deceased Government Employees Rules, 2006 (in short, ‘the 2006 Rules’).  The respondent Nos. 1 and 2 contended that being major and also   earning   by   itself   cannot   be   regarded   as   ineligibility   to   claim compensation.   Further, the Tribunal has wrongly assessed loss of dependency on take­home salary instead of the drawing salary and without considering the family pension received by the deceased had she been alive.  They further claimed that the deduction of personal rd expenses should be one­third (1/3 ) instead of 50%. 9. The High Court by considering the monthly salary for computing compensation as Rs.23,123/­, benefits of future prospects at 30%, applying a multiplier of ‘13’ and deduction for personal expenses at 50% held that the respondent Nos. 1 and 2 were entitled to loss of dependency qua loss of income at Rs.23,44,672/­.  The High Court, 6 in addition,   while   considering  the   loss  of   dependency  qua  loss of pension   by   taking   monthly   pension   at   Rs.7,000/­,   applying   a multiplier of ‘13’ and deduction for personal expenses at 50%, held that   Rs.5,46,000/­   would   be   payable   towards   this   head.     The compensation   under   conventional   heads   was   also   increased   from Rs.25,000/­   to   Rs.30,000/­.     Therefore,   the   total   compensation payable was determined as Rs.29,20,672/­.  The High Court further noted that financial assistance available to the family of the deceased, under the 2006 Rules would be Rs.33,29,712/­ and deducted 50% of the said amount from compensation whilst relying upon a judgment of the same High Court in  New India Assurance Co. Ltd. v. Ajmero 1 and   others .     The   High   Court   then   deducted   that   amount   of Rs.16,64,856/­   from   the   compensation   amount   of   Rs.29,20,672/­ determined   by   it.     Resultantly,   the   High   Court   reduced   the compensation awarded by the Tribunal to the extent of Rs.4,84,716/­ and gave liberty to the appellant to recover the excess amount, if already paid. 10. The former appeal is preferred by the appellant on the ground that the High Court ought to have deducted the entire amount of financial assistance under the 2006 Rules, instead of deducting only 1 F.A.O. No. 2648 of 2016, decided on 31.07.2017 7 50% thereof.  Reliance was placed on the judgment of this Court in 2 . Reliance General Insurance Co. Ltd. v. Shashi Sharma and Ors. It is urged that claim for loss of dependency is unavailable to the respondent Nos. 1 and 2 in the facts of the present case, they being major   sons   of   the   deceased   who   were   married   and   also   gainfully employed.   Reliance is placed on   Manjuri Bera (Smt) v. Oriental 3 Insurance Co. Ltd. & Anr. .     It is urged that the respondent Nos. 1 & 2 may be entitled only to compensation under conventional heads as held in  National Insurance Company Limited v. Pranay Sethi 4 & Ors. .  11. The latter appeal has been preferred by the respondent Nos. 1 and 2, primarily on the ground that the High Court erred in deducting rd 50% of the amount from compensation instead of one­third (1/3 ). Further,   deduction   of   50%   amount   of   the   financial   assistance receivable   under   the   2006   Rules   on   the   assumption   that   the respondent Nos. 1 and 2 are eligible therefor is a manifest error. Reliance is also placed on the decision of the High Court in  Ajmero (supra).  It is urged that the High Court ought to have considered that the respondent Nos. 1 and 2 were dependant on the deceased and 2 (2016) 9 SCC 627 3 (2007) 10 SCC 643 4 (2017) 16 SCC 680 8 that they have been deprived of her love and affection and income and thus entitled to compensation as claimed in the original application in that regard. 12. We have heard Mr. Amit Kumar Singh, learned counsel for the insurance  company  (appellant)   and   Ms.   Abha   R.   Sharma,   learned counsel for the respondent Nos. 1 and 2.  The principal issues which arise for our consideration are as follows: ­ (i) Whether the major sons of the deceased who are married and gainfully employed or earning, can claim compensation under the Motor Vehicles Act, 1988 (for short, ‘the Act’)? (ii) Whether   such   legal   representatives   are   entitled   only   for compensation under the conventional heads? (iii) Whether the amount receivable by the legal representatives of the deceased under the 2006 Rules is required to be deducted as a whole or only portion thereof? 13. Reverting to the first issue ­ that needs to be answered on the basis of the scheme of the Act.  Section 166 of the Act provides for filing   of   application   for   compensation   by   persons   mentioned   in clauses (a) to (d) of sub­Section (1) thereof.  Section 166 of the Act, as applicable at the relevant time, reads thus: ­ 9 “ (1)   An Section   166.       Application   for   compensation.­   application for compensation arising out of an accident of the nature specified in sub­section (1) of section 165 may be made­ (a)  by the person who has sustained the injury; or (b)  by the owner of the property; or (c) where death has resulted from the accident,  by all or any of the legal representatives of the deceased ; or (d)  by   any   agent   duly   authorised   by   the   person injured or all or any of the legal representatives of the deceased, as the case may be: Provided that where all the legal representatives of the deceased   have   not   joined   in   any   such   application   for compensation, the application shall be made on behalf of or for the benefit of all the legal representatives of the deceased and the legal representatives who have not so joined, shall be impleaded as respondents to the application. (2)  Every application under sub­section (1) shall be made, at the option of the claimant, either to the Claims Tribunal having   jurisdiction   over   the   area   in   which   the   accident occurred or to the Claims Tribunal within the local limits of whose   jurisdiction   the   claimant   resides   or   carries   on business or within the local limits of whose jurisdiction the defendant resides, and shall be in such form and contain such particulars as may be prescribed: Provided that where no claim for compensation under Section  140  is   made   in  such  application,  the  application shall contain a separate statement to that effect immediately before the signature of the applicant. (3) * (4)  The Claims Tribunal shall treat any report of accidents forwarded to it under sub­section (6) of section 158 as an application for compensation under this Act.” (emphasis supplied) 14. The legal representatives of the deceased could move application for compensation by virtue of clause (c) of Section 166(1).  The major married son  who  is   also  earning   and   not  fully   dependant  on the deceased,   would   be   still   covered   by   the   expression   “legal 10 representative” of the deceased.  This Court in  Manjuri Bera  (supra) had expounded that liability to pay compensation under the Act does not cease because of absence of dependency of the concerned legal representative.  Notably, the expression “legal representative” has not been defined in the Act.  In  Manjuri Bera  (supra), the Court observed thus:­
9.In terms of clause (c) of sub­section (1) of Section 166
of the Act in case of death, all or any of the legal
representatives of the deceased become entitled to
compensation and any such legal representative can file a
claim petition. The proviso to said sub­section makes the
position clear that where all the legal representatives had not
joined, then application can be made on behalf of the legal
representatives of the deceased by impleading those legal
representatives as respondents. Therefore, the High Court
was justified in its view that the appellant could maintain a
claim petition in terms of Section 166 of the Act.
10.…..The Tribunal has a duty to make an award,
determine the amount of compensation which is just and
proper and specify the person or persons to whom such
compensation would be paid. The latter part relates to the
entitlement of compensation by a person who claims for the
same.
11. According to Section 2(11) CPC, “legal representative” means a person who in law represents the estate of a de­ ceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued. Almost in similar terms is the definition of legal representa­ tive under the Arbitration and Conciliation Act, 1996 i.e. un­ der Section 2(1)( g ). 12.   As observed by this Court in  Custodian of Branches of BANCO National Ultramarino  v.  Nalini Bai Naique  [1989 Supp (2) SCC 275 the definition contained in Section 2(11) CPC is inclusive in character and its scope is wide, it is not confined to legal heirs only. Instead it stipulates that a person who 11 may or may not be legal heir competent to inherit the prop­ erty of the deceased can represent the estate of the deceased person. It includes heirs as well as persons who represent the estate even without title either as executors or adminis­ trators in possession of the estate of the deceased. All such persons would be covered by the expression “legal represen­ tative”. As observed in  Gujarat SRTC  v.  Ramanbhai Prabhatb­ hai  [(1987) 3 SCC 234 a legal representative is one who suf­ fers on account of death of a person due to a motor vehicle accident and need not necessarily be a wife, husband, par­ ent and child.” In paragraph 15 of the said decision, while adverting to the provisions of Section 140 of the Act, the Court observed that even if there is no loss of dependency, the claimant, if he was a legal representative, will be entitled to compensation.  In the concurring judgment of Justice S.H. Kapadia, as His Lordship then was, it is observed that there is distinction between “right to apply for compensation” and “entitlement to compensation”.  The compensation constitutes part of the estate of the deceased.   As a result, the legal representative of the deceased would inherit the estate.  Indeed, in that case, the Court was dealing with the case of a married daughter of the deceased and the efficacy of Section 140 of the Act.  Nevertheless, the principle underlying the exposition   in   this   decision   would   clearly   come   to   the   aid   of   the respondent Nos. 1 and 2 (claimants) even though they are major sons of the deceased and also earning. 15. It is thus settled by now that the legal representatives of the deceased have a right to apply for compensation.  Having said that, it 12 must necessarily follow that even the major married and earning sons of the deceased being legal representatives have a right to apply for compensation and it would be the bounden duty of the Tribunal to consider the application irrespective of the fact whether the concerned legal representative was fully dependant on the deceased and not to limit the claim towards conventional heads only.   The evidence on record in the present case would suggest that the claimants were working as agricultural labourers on contract basis and were earning meagre income between Rs.1,00,000/­ and Rs.1,50,000/­ per annum. In that sense, they were largely dependant on the earning of their mother and in fact, were staying with her, who met with an accident at the young age of 48 years. 16. The next issue is about the deduction of the amount receivable by the legal representatives of the deceased under the 2006 Rules from the compensation amount determined by the Tribunal in terms of the decision of three­Judge Bench of this Court in  Shashi Sharma (supra).   This Court, after analysing the relevant rules, opined as follows: ­
23.Reverting back to Rule 5, sub­rule (1) provides for the
period during which the dependants of the deceased
employee may receive financial assistance equivalent to the
pay and other allowances that was last drawn by the
deceased employee in the normal course without raising a
13
specific claim.Sub­rule (2) provides that the family shall
be eligible to receive family pension as per the normal
Rules only after the period during which they would
receive the financial assistance in terms of sub­rule (1).
Sub­rule (3) guarantees the family of a deceased government
employee of a government residence in occupation for a
period of one year from the date of death of the employee,
upon payment of normal rent/licence fee. By virtue of sub­
rule (4), an ex gratia assistance of Rs 25,000 is provided to
the family of the deceased employee to meet the immediate
needs on the loss of the bread earner. Sub­rule (5) clarifies
that house rent allowance shall not be a part of allowance for
the purposes of calculation of assistance.
24.…..As regards the second part, it deals with income
from other source which any way is receivable by the
dependants of the deceased government employee.That
cannot be deducted from the claim amount for
determination of a just compensation under the 1988
Act.
25.The claimants are legitimately entitled to claim for the
loss of “pay and wages” of the deceased government
employee against the tortfeasor or insurance company, as
the case may be, covered by the first part of Rule 5 under the
1988 Act. The claimants or dependants of the deceased
government employee (employed by the State of Haryana),
however, cannot set up a claim for the same subject falling
under the first part of Rule 5—“pay and allowances”, which
are receivable by them from employer (the State) under Rule
5(1) of the 2006 Rules. In that, if the deceased employee was
to survive the motor accident injury, he would have
remained in employment and earned his regular pay and
allowances. Any other interpretation of the said Rules would
inevitably result in double payment towards the same head
of loss of “pay and wages” of the deceased government
employee entailing in grant of bonanza, largesse or source of
profit to the dependants/claimants…..
26.   Indeed, similar statutory exclusion of claim receivable under the 2006 Rules is absent. That, however, does not mean that the Claims Tribunal should remain oblivious to the fact that the claim towards loss of pay and wages of the deceased has already been or will be compensated by the employer in the form of ex gratia financial assistance on compassionate   grounds   under   Rule   5(1).   The   Claims   Tri­ bunal has to adjudicate the claim and determine the amount of compensation which appears to it to be just. The amount receivable by the dependants/claimants towards the head of 14 “pay and allowances” in the form of ex gratia financial assis­ tance, therefore, cannot be paid for the second time to the claimants. True it is, that the 2006 Rules would come into play if the government employee dies in harness even due to natural death. At the same time, the 2006 Rules do not ex­ pressly enable the dependants of the deceased government employee to claim similar amount from the tortfeasor or in­ surance company because of the accidental death of the de­ ceased government employee. The harmonious approach for determining a just compensation payable under the 1988 Act, therefore, is to exclude the amount received or receiv­ able   by   the  dependants   of   the   deceased   government   em­ ployee under the 2006 Rules towards the head financial as­ sistance equivalent to “pay and other allowances” that was last drawn by the deceased government employee in the nor­ mal course. This is not to say that the amount or payment receivable by the dependants of the deceased government employee under Rule 5(1) of the Rules, is the total entitle­ ment under the head of “loss of income”. So far as the claim towards loss of future escalation of income and other bene­ fits is concerned, if the deceased government employee had survived the accident can still be pursued by them in their claim under the 1988 Act. For, it is not covered by the 2006 Rules. Similarly, other benefits extended to the dependants of the deceased government employee in terms of sub­rule (2) to sub­rule (5) of Rule 5 including family pension, life in­ surance, provident fund, etc., that must remain unaffected and cannot be allowed to be deducted, which, any way would be paid to the dependants of the deceased government em­ ployee,   applying   the   principle   expounded   in  Helen   C.   Re­ bello  v.  Maharashtra SRTC , (1999) 1 SCC 90 and  United In­ dia   Insurance   Co.   Ltd.  v.  Patricia   Jean   Mahajan ,   (2002)   6 SCC 281 cases.       27.   A priori, the appellants must succeed only to the ex­ tent of amount receivable by the dependants of the deceased government   employee   in   terms   of   Rule   5(1)   of   the   2006 Rules, towards financial assistance equivalent to the loss of pay and wages of the deceased employee for the period speci­ fied.” (emphasis supplied) The learned Judge of the High Court has, however, after adverting to the decision of the same High Court in   (supra), went on to Ajmero   observe   that   50%   of   the   amount   receivable   by   the   legal 15 representatives of the deceased towards financial assistance under the 2006 Rules is required to be deducted from the compensation amount.   In the relied upon decision, the same learned Judge had occasion to observe as follows: ­ …   “ However, perusal of the judgment would reveal that the Court has not adverted to the issue that had the Rules   of   2006   extending   assistance   to   family   of   a deceased employee been not in existence, family would have been entitled to pension to the extent of 50% of the last drawn pay.   As per the settled position in law, the pensionary   benefits   available   to   family   of   a   deceased employee are not amenable for deduction for computing loss of dependency.  There is nothing on record suggestive of the fact that in addition to compassionate assistance under the Rules, family of the deceased is being paid pension till the age of superannuation.  Rather Rule 5(2) of the 2006 Rules specifically denies family pension as per normal rules... ” (emphasis supplied) 17. The view so taken by the High Court is not the correct reading of the decision of three­Judge Bench of this Court in  Shashi Sharma (supra) for more than one reason.  First, this Court   was conscious of the fact that under Rule 5(2) of the 2006 Rules, the family pension receivable by the family would be payable, however, only after the period,   during   which   the   financial   assistance   is   received,   is completed.  In that context, in paragraph 24 of the reported decision, the   Court   clearly   noted   that   the   amount   towards   family   pension cannot be deducted from the claim amount for determination of a just compensation   under   the   Act.     Further,   the   High   Court   has 16 erroneously   assumed   that   the   family   of   the   deceased   would   be entitled for family pension amount immediately after the death of the deceased employee.   That is in the teeth of the scheme of the 2006 Rules, in particular Rule 5(2) thereof.   The said Rules provide for financial   assistance   on   compassionate   grounds,   as   also,   other benefits to the family members of the deceased employee and as a package thereof, Rule 5(2) stipulates that the family pension as per the normal rules would be payable to the family members only after the   period   of   delivery   of   financial   assistance   is   completed.     The validity of this provision is not put in issue.  Suffice it to say that the view taken by the High Court in  Ajmero  (supra) is a departure from the scheme envisaged by the 2006 Rules, in particular, Rule 5(2). That cannot be countenanced. 18. As   a   matter   of   fact,   in   the   present   case,   the   High   Court committed manifest error in assuming that the respondent Nos. 1 and 2 would be eligible to receive financial assistance under the 2006 Rules.   The eligibility to receive such financial assistance has been spelt out in Rule 3 of the 2006 Rules read with the provision of Pension/Family Pension Scheme, 1964.  It appears that major sons and married daughters are not included in the definition.  However, we need not dilate on that aspect in the present proceedings any 17 further.  It has come in the evidence of Gobind Singh, Clerk in SDM Office (PW­1) that the legal representatives of the deceased have not submitted   any   request   for   getting   financial   assistance   till   he   had deposed.  Indeed, respondent No. 1, who had entered the witness box, did depose that they had applied for getting salary of their deceased mother.  The fact remains that there is no clear evidence on record that respondent Nos. 1 and 2 are held to be eligible to get financial assistance or in fact, they are getting such financial assistance under the 2006 Rules.  The High Court, therefore, instead of providing for deduction of the amount receivable by the legal representatives of the deceased   on   this   count   (under   the   2006   Rules),   from   the compensation   amount,   should   have   independently   determined   the compensation amount and ordered payment thereof subject to legal representatives of the deceased filing affidavit/declaration before the executing Court that they have not received nor would they claim any amount towards financial assistance under the 2006 Rules, so as to become entitled to withdraw the entire compensation amount. 19. Reverting to the determination of compensation amount, it is noticed that the Tribunal proceeded to determine the compensation amount on the basis of net­salary drawn by the deceased for the relevant period as Rs.16,918/­ per month, while taking note of the 18 fact that her gross­salary was Rs.23,123/­ per month (presumably below taxable income).   Concededly, any deduction from the gross­ salary other than tax amount cannot be reckoned.  In that, the actual salary less tax amount ought to have been taken into consideration by the Tribunal for determining the compensation amount, in light of the dictum of the Constitution Bench of this Court in paragraph 59.3 of  Pranay Sethi  (supra).   20. Similarly,   the   High   Court   despite   having   taken   note   of   the submission made by the respondent Nos. 1 and 2 that the deduction for personal expenses of the deceased should be reckoned only as rd one­third   (1/3 )   amount   for   determining   loss   of   dependency, maintained the deduction of 50% towards that head as ordered by the Tribunal.    This  Court in   (supra),  in  paragraph 37, Pranay Sethi   adverted to the dictum of this Court in  Sarla Verma   (Smt.) & Ors. 5  with approval, wherein it vs. Delhi Transport Corporation & Anr. is held that if the dependant family members are 2 to 3, as in this case,   the   deduction   towards   personal   and   living   expenses   of   the rd deceased should be taken as one­third (1/3 ).   In other words, the deduction   towards   personal   expenses   to   the   extent   of   50%   is excessive   and   not   just   and   proper   considering   the   fact   that   the 5 (2009) 6 SCC 121 (para 30) 19 respondent   Nos.   1   and   2   alongwith   their   respective   families   were staying   with   the   deceased   at   the   relevant   time   and   were   largely dependant on her income.   21. Be   that   as   it   may,   the   Tribunal,   for   excluding   the   amount received by  the  deceased  as  family  pension due  to  demise  of  her husband, had noted in paragraph 26, as under: ­ “26. Learned counsel for the claimants further requested that about to family pension being drawn by the deceased also   be   calculated   for   the   purpose   of   assessing   the compensation.     This   contention   and   assertion   of   learned counsel for the claimants does not carry any conviction with the   Tribunal   because   the   deceased   was   getting   family pension in her own right as the widow of the deceased and cannot   be   termed   as   her   income   for   the   purpose   of computing the amount of compensation.” The   High   Court,   without   reversing   the   said   finding,   proceeded   to include the amount of Rs.7,000/­ per month received by the deceased as   pension   amount   after   demise   of   her   husband.     We   are   in agreement with the view taken by the Tribunal and for the same reason, have to reverse the conclusion recorded by the High Court to include the said amount as loss of dependency.  That could not have been   taken   into   account,   as   the   same   was   payable   only   to   the deceased being widow and not her income as such for the purpose of computing the amount of compensation. 20 22. Considering   the   above,   respondent   Nos.   1   and   2   would   be entitled   for   compensation   to   be   reckoned   on   the   basis   of   loss   of dependency, due to loss of gross salary (less tax amount, if any) of the rd deceased and future prospects and deduction of only one­third (1/3 ) amount towards personal expenses of the deceased.  As regards the multiplier ‘13’ applied by the Tribunal and the High Court, the same needs   no   interference.     As   a   result,   on   the   facts   and   in   the circumstances   of   this   case,   the   amount   payable   towards compensation will have to be recalculated on the following basis: ­ Loss   of   dependency   due   to   loss   of   income   calculated   at Rs.31,26,229.60/­ [(Rs.23,123/­ x 12 x 13) + (30% future rd prospects)  –  (1/3   deduction for  personal  expenses)].    In addition,   the   claimants   would   be   entitled   for   a   sum   of Rs.70,000/­ towards conventional heads in terms of dictum in paragraph 59.8 of   (supra).   Thus, a total Pranay Sethi   sum of Rs.31,96,230/­ (Rupees thirty­one lakhs ninety­six thousand   two   hundred   thirty   only),   as   rounded   off,   is payable to the claimants. However, this amount alongwith interest at the rate of 9% per annum from   the   date   of   filing   of   the   claim   petition   till   payment,   will   be 21 payable   subject   to   the   outcome   of   the   application   made   by   the respondent  Nos.   1  and   2  to  the   competent  authority  for  grant of financial assistance   under   the   2006   Rules.     If  that  application  is allowed   and   the   amount   becomes   payable   towards   financial assistance under the said Rules to the specified legal representatives of the deceased, commensurate amount will have to be deducted from the   compensation   amount   alongwith   interest   component   thereon. The respondent Nos. 1 and 2, therefore, can be permitted to withdraw the   compensation   amount   only   upon   filing   of   an   affidavit­cum­ declaration before the executing Court that they have not received nor would claim any amount towards financial assistance under the 2006 Rules and   if   already   received   or   to  be   received   in   future   on   that account, the amount so received will be disclosed to the executing Court, which will have to be deducted from the compensation amount determined   in   terms   of   this   order.     The   compensation   amount, therefore, be paid to the respondent Nos. 1 and 2 subject to the above and   upon   giving   an   undertaking   before   the   executing   Court   to indemnify the insurance company (appellant) to that extent. 23. The appeals are partly allowed in the aforementioned terms with no order as to costs.  Pending interlocutory applications, if any, shall stand disposed of. 22 ............................, J   (A.M. Khanwilkar)     ............................, J (Dinesh Maheshwari)                     New Delhi; January 13, 2020.