Summary
The dependants of a fifty-four-year-old accident victim challenged compensation calculated using separate pre-retirement and post-retirement multipliers. Applying Sarla Verma and Pranay Sethi, the Court held that the deceased’s age, rather than remaining service, determined the multiplier. It applied multiplier eleven, added fifteen per cent for future prospects and awarded Rs.24,33,064 with nine-per-cent interest from the claim application to realisation and costs throughout.
Issues
- Whether retirement justified splitting the multiplier for loss-of-dependency compensation.
- What multiplier and future-prospects addition applied to the deceased aged fifty-four.
Held
- The multiplier must be selected by the deceased’s age. Splitting the calculation into remaining service and a reduced-income post-retirement period conflicted with the governing rulings in Sarla Verma and Pranay Sethi. The contrary High Court decisions relied upon could no longer support that method. (¶ 5-11)
- For this fifty-four-year-old salaried deceased, the appropriate multiplier was eleven and the future-prospects addition fifteen per cent. The calculation used the assessed income after tax and a one-fourth deduction for personal expenses. (¶¶ 6-7, 11-12)
- The recalculated dependency award was Rs.23,63,064. Adding Rs.15,000 each for estate loss and funeral expenses and Rs.40,000 consortium produced total compensation of Rs.24,33,064. Interest was nine per cent from filing of the claim application until realisation, with costs throughout. (¶ 12-14)
Result
Compensation enhanced to Rs.24,33,064 with nine-per-cent interest from the claim application until realisation. Appeal disposed of with costs throughout.