01Facts
The deceased, a 47-year-old pedestrian engaged in the transport business, died after being run over by a tanker on 24 April 2008.
pp. 1–2 · ¶ 1–2, 6His legal heirs sought compensation. The Tribunal awarded Rs. 15,64,128, calculating the deceased’s annual income by averaging his income-tax returns for the three preceding years.
pp. 1–2 · ¶ 1–2, 6The insurer appealed, contending that the award was excessive; the claimants also appealed, alleging inadequacy.
p. 2 · ¶ 3–4The insurer argued that the latest income-tax return, filed after the deceased’s death, should be excluded.
p. 2 · ¶ 702Issues
i.1. Whether the Tribunal’s assessment of the deceased’s annual income, and the resulting loss-of-dependency award, required adjustment in light of the income-tax return filed after his death.
pp. 2–3 · ¶ 5–9ii.2. Whether the claimants were entitled to an enhanced award under the applicable principles for future prospects and conventional heads of compensation.
pp. 3–4 · ¶ 9–1103Law Applied
The Court applied the principles in National Insurance Company Ltd. v. Pranay Sethi, AIR 2017 SC 5157, adding 25% to the deceased’s income for future prospects given his age of 47, and applying a one-fourth deduction for personal expenses and a multiplier of 13.
p. 3 · ¶ 9–10It also relied on Reena v. Managing Director, Karnataka State Road Transport Corporation, 2026 (0) AIJEL-SC 77486, in assessing conventional compensation, awarding consortium collectively at Rs. 52,000 per claimant and Rs. 19,500 each for loss of estate and funeral expenses.
p. 3 · ¶ 1004Reasoning
The Court excluded the latest income-tax return because it was filed after the deceased’s death.
p. 2 · ¶ 7Noting an approximate 15% increase between the first two years’ incomes, it adopted Rs. 1,27,469 per annum, calculated by increasing the second-year income of Rs. 1,10,843 by 15%.
p. 2 · ¶ 7–8Applying the Pranay Sethi principles—25% for future prospects, a one-fourth deduction for personal expenses, and multiplier 13—the Court assessed loss of dependency at Rs. 15,53,526.
p. 3 · ¶ 9It added Rs. 2,08,000 for consortium for four claimants, and Rs. 19,500 each for loss of estate and funeral expenses, bringing total compensation to Rs. 18,00,526.
p. 3 · ¶ 1005Holding
The Court disposed of both appeals and substituted a total award of Rs. 18,00,526 for the Tribunal’s award of Rs. 15,64,128.
pp. 3–4 · ¶ 10–12The claimants were granted an enhancement of Rs. 2,36,398 with 9% interest from the date of the claim petition until realisation.
pp. 3–4 · ¶ 10–12The insurer was directed to deposit the enhanced amount within eight weeks of receiving the judgment, for disbursement to the claimants upon verification through NEFT/RTGS.
pp. 3–4 · ¶ 10–12Original Court PDF
RELIANCE GENERAL INSURANCE COMPANY LTDvsKALAMUDDIN KHETUKHAN PATHAN
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