Summary
The Supreme Court added 40% future prospects to the established income of a twenty-one-year-old contract worker killed in a motor accident. With monthly income of Rs.4,000, a 50% personal-expenses deduction and multiplier eighteen, dependency compensation became Rs.6,04,800. Preserving the other heads, the total rose to Rs.6,74,300 with 9% interest. Deposit was directed within eight weeks of receipt of the judgment, with safeguards for the minor claimant’s share.
Issues
- Whether future prospects should be included for the young contract worker and how the compensation should be recalculated.
Held
- Applying Pranay Sethi, the claimants were entitled to 40% future prospects on the established Rs.4,000 monthly income of the deceased contract worker, aged about twenty-one. The High Court had erred in omitting that addition. (¶¶ 1, 2, 3, 4)
- The adjusted monthly income was Rs.5,600. After a 50% personal-expenses deduction and application of multiplier eighteen, dependency compensation was Rs.6,04,800. Other heads were preserved, giving a total of Rs.6,74,300 and an enhancement of Rs.1,72,800. (¶¶ 4, 5, 6, 7, 8)
- The Corporation had to deposit the award with 9% annual interest, less any amount already deposited, within eight weeks of receipt of the judgment. Apportionment followed the Tribunal; the minor’s share was to remain in a nationalised bank until majority, with the mother permitted quarterly interest withdrawals for the minor’s needs. (¶¶ 6, 8, 9)
Result
Appeal allowed without costs; total compensation enhanced from Rs.5,01,500 to Rs.6,74,300 with 9% annual interest and the specified deposit, apportionment and minor-share safeguards.