Summary
In a motor accident death claim, the Supreme Court held that the High Court was wrong to apply a split multiplier (salary until retirement, then pension) without special reasons, restored the Tribunal's multiplier-based assessment, added 15% future prospects, and awarded loss of consortium of ₹40,000 to each of the three claimants.
Issues
- Whether the High Court could reduce compensation by applying a split multiplier for the pre-retirement and post-retirement periods of a deceased aged about 57-58.
- Whether the claimants were entitled to future prospects and to what amounts under the heads of consortium, loss of estate and funeral expenses.
Held
- Compensation for loss of dependency is ordinarily computed with the multiplier fixed by age in Sarla Verma; a split multiplier may be used only for special reasons recorded by the court, and the fact that the deceased had only a short period of service left is not such a reason (following Sumathi and Puttamma). (¶¶ 11.2, 11.3, 11.4, 11.5)
- The High Court recorded no special reason for the split method and none existed: the deceased was a technically qualified BSNL employee, and people of that age are generally healthy and continue working after retirement. The Tribunal's multiplier of 9 on the post-tax annual income of ₹4,57,000, with a one-third deduction for personal expenses, was the correct calculation. (¶¶ 11.5, 12)
- Both the Tribunal and the High Court erred in not awarding future prospects; given the deceased's age, the claimants were entitled to an addition of 15%. (¶ 12)
- Loss of consortium is payable to each claimant: the widow, the dependent son and the daughter were each entitled to ₹40,000. The ₹15,000 each awarded by the High Court for loss of estate and funeral expenses was in accordance with law. (¶¶ 12, 13)
Result
Appeal allowed; High Court order set aside and the Tribunal's award modified; compensation recomputed at about ₹33.03 lakh (loss of dependency ₹31,53,300, consortium ₹1,20,000, funeral expenses ₹15,000, loss of estate ₹15,000), with interest at the rate awarded by the Tribunal (7.5% p.a.).