Summary
The Court partly allowed an appeal for enhancement of motor accident compensation. It used the deceased’s highest proved income-tax return rather than an estimate based on agricultural acreage, declined to add depreciation or an unproved reduction in income from inherited assets, and included prepaid licence charges in the particular circumstances. With future prospects and the applicable deductions and multiplier, compensation was fixed at Rs 42,29,534 with interest.
Issues
- How income disclosed in tax returns and income-producing assets should be treated in computing dependency.
- Whether depreciation and prepaid licence charges should be added to income and compensation enhanced.
Held
- The highest proved income-tax return was an appropriate basis for income. An estimate derived from land acreage and unrelated decisions could not replace that evidence. (¶¶ 9, 10, 11)
- There was no evidence of depletion in income from assets inherited by the dependants or expenditure on replacement management. Depreciation was not actual income to be added. Prepaid licence charges were included in the peculiar circumstances because the payment related to a future period. (¶¶ 11, 12, 13)
- For the deceased aged 49 and self-employed, the Court added 25% for future prospects, applied a 20% personal-expense deduction in this case and multiplier 13. The final award included dependency and the conventional amounts specified in the judgment. (¶¶ 14, 15)
Result
Appeal partly allowed. Compensation fixed at Rs 42,29,534 with interest at 9% per annum from the claim application until payment. No order as to costs; pending applications disposed of.