Summary
Answering a reference concerning motor-accident death compensation, the Constitution Bench standardised additions for future prospects for permanent employees, the self-employed and fixed-salary earners. It approved the Sarla Verma approach to deductions and multipliers and fixed conventional-head amounts with periodic enhancement. Individual matters were returned to the appropriate Bench.
Issues
- What future-prospects additions apply to permanent employees and self-employed or fixed-salary deceased persons.
- How deductions, multipliers and conventional heads should be standardised.
- How conflicting coordinate-Bench decisions should be treated.
Held
- A coordinate Bench cannot take a contrary view without referring the matter to a larger Bench. Santosh Devi should have made such a reference; Rajesh, having overlooked the earlier Reshma Kumari decision, was not binding precedent on a coequal Bench. (¶¶ 15–30, 61(i–ii))
- For a deceased permanent employee, add50per cent of actual salary below40,30per cent between40 and50, and15per cent between50 and60; actual salary means salary less tax. No future-prospects addition is prescribed thereafter. (¶¶ 60, 61(iii))
- For a self-employed or fixed-salary deceased person, add40per cent of established income below40,25per cent between40 and50, and10per cent between50 and60. Established income excludes tax. Standardisation cannot deny future prospects merely because income growth lacks a permanent employee’s certainty. (¶¶ 57–60, 61(iv))
- Personal and living expense deductions follow Sarla Verma paragraphs30–32, including its dependency-based distinctions and qualifications. The multiplier follows its table and paragraph42, with the deceased’s age determining selection. (¶¶ 39–47, 61(v–vii))
- The2017 judgment fixed loss of estate atRs15,000, loss of consortium atRs40,000 and funeral expenses atRs15,000, with10per cent enhancement every three years. It rejected the separate head for loss of care and guidance to minor children adopted in Rajesh. (¶¶ 48–54, 61(viii))
- The reference settled computation principles; it did not calculate final compensation in each connected matter. Those matters were directed to the appropriate Bench. (¶ 62)
Result
Reference answered with standardised compensation principles; connected matters directed to be placed before the appropriate Bench.