Loss of dependency must be calculated on net salary after excluding arrears and overtime.

The claimants, comprising the deceased Ashoka’s wife, two minor children and mother, sought compensation for his death in a road accident on 23 June 2022.

The Motor Accident Claims Tribunal awarded total compensation of ₹43,03,180, including ₹40,73,280 for loss of dependency, with interest at 6% per annum.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement. The insurer appeared; notice to the first respondent was dispensed with.

1. Whether the Tribunal correctly assessed the deceased’s income and whether the claimants were entitled to enhanced compensation for loss of dependency.

2. Whether the claimants were entitled to interest for the 219-day delay in filing the appeal.

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988.

In assessing loss of dependency, the Court applied a multiplier of 16 for the deceased’s age of 35, added 50% to income for future prospects, and deducted one-fourth for personal expenses because there were four dependants.

The Court assessed income from the deceased’s May 2022 pay slip, deducting specified non-recurring or inadmissible components and professional tax.

No precedent was cited in the judgment.

The Court held that the Tribunal had correctly selected the multiplier and made the one-fourth deduction for personal expenses.

Because the deceased died in June 2022, it used his May 2022 pay slip: from gross pay of ₹28,729, it deducted ₹546 in DA arrears, ₹611 overtime and ₹200 professional tax, fixing monthly income at ₹27,372.

After adding 50% for future prospects, deducting one-fourth for personal expenses, and applying the multiplier of 16, the Court calculated loss of dependency at ₹59,12,352. This exceeded the Tribunal’s award under that head by ₹18,39,072.

The Court separately denied interest for the 219-day appeal delay, consistent with its earlier order on the relevant application.

The insurer was directed to deposit the enhanced amount with interest within six weeks.

The enhanced compensation was apportioned in the ratio 40:20:20:20; the minors’ shares were to be kept in fixed deposits until they attained majority, while the shares of the first and fourth claimants were to be released.