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National Insurance Company Ltd. vs Mannat Johal

Supreme Court23 April 2019Dinesh Maheshwari · Abhay Manohar Sapre

Ratio decidendi

The rule this decision rests on

1. Compensation under the Motor Vehicles Act, 1988 must be assessed as "just compensation"—meaning fair, adequate, and reasonable—with the primary objective being to recompense claimants for pecuniary loss through loss of dependency caused by the death of the victim, and the assessment must rest on establishing the monetary contribution the victim was likely to provide to dependents had the accident not occurred. 2. Where the deceased was in permanent employment below the age of 40 years, an addition of 50% of actual salary (less tax) towards future prospects should be made; where between 40 to 50 years, the addition should be 30%; and where between 50 to 60 years, the addition should be 15%. 3. For determination of the multiplicand, where the deceased was married with four to six dependent family members, the deduction towards personal and living expenses should be one-fourth; and the selection of multiplier shall be guided by the age of the deceased, with the operative multiplier commencing at 18 for ages 15 to 25 and reduced by one unit for every five years thereafter. 4. Conventional heads of compensation should be awarded at Rs. 15,000 for loss of estate, Rs. 40,000 for loss of consortium, and Rs. 15,000 for funeral expenses, with these amounts enhanced at the rate of 10% every three years. 5. An ex gratia payment made by a private employer to the legal heirs of a deceased employee, not received under any continuing statutory scheme or service rule providing ongoing financial assistance to the family, need not be deducted from the motor accident compensation awarded under the Motor Vehicles Act, 1988. 6. Where a court has already made a substantial upward enhancement to the award of compensation and the rate of interest fixed by that court is reasonable in comparison to ordinarily envisaged rates in such matters, no further modification of the interest rate is warranted.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.4079-4081 OF 2019 (Arising out of SLP (C) Nos. 742-744 OF 2019)

NATIONAL INSURANCE COMPANY LTD. ........APPELLANT(S)

VS.

MANNAT JOHAL & ORS. ETC. ETC. .......RESPONDENT(S)

WITH

CIVIL APPEAL NO.4082-4083 OF 2019 @ SLP (CIVIL) NO.10371-10372 OF 2019 @ DIARY NO. 9529 OF 2019

JUDGMENT

Dinesh Maheshwari, J.

1. The application for substitution of legal representatives in the petition filed

on behalf of the claimants is allowed; the named legal representative shall stand

substituted in the both the petitions. Delay condoned in the petition filed on

behalf of the claimants.

1.1. Leave granted in the both the petitions.

2. These cross-appeals relating to the vehicular accident compensation

claims, respectively by the insurer of the offending vehicle and by the claimants,

are directed against the common judgment and order dated 06.07.2018, as Signature Not Verified

passed in FAO No. 1136 of 2000 (O & M) and connected matters, whereby the Digitally signed by ASHOK RAJ SINGH Date: 2019.04.23 17:53:28 IST Reason:

High Court of Punjab and Haryana has allowed the appeal for enhancement of

compensation filed by the claimants and has modified the common award dated 1 27.01.2000 as made by the Motor Accident Claims Tribunal, Chandigarh in

MACT Case Nos. 80 of 1996 and 84 of 1996 that were filed respectively by the

parents and by the wife and children of the deceased Shri Rajpal Singh Johal.

3. In the impugned judgment and order dated 06.07.2018, the High Court

has made upward revision of the amount of compensation awarded by the

Tribunal and, in place of the amount of Rs. 37,71,000/- together with interest @

12% p.a. as awarded by the Tribunal, the High Court has awarded a sum of Rs.

48,00,000/- together with interest @ 7.5% p.a. from the date of filing of the claim

petition till the date of realisation. The High Court has allowed this enhancement

essentially with reference to the principles enunciated by this Court in National

Insurance Company Ltd. v. Pranay Sethi & Ors.: 2017 ACJ 2700 (SC) and in

Sarla Verma and Ors. v. Delhi Transport Corporation and Anr.: 2009 ACJ

1298 (SC).

4. In these appeals, on one hand, the insurer of the offending vehicle has

questioned the quantum of compensation so awarded, basically on the ground

that while making assessment of pecuniary loss, the ex gratia amount received

by the claimants from the employer of the deceased deserves to be deducted

while, on the other hand, the claimants have questioned the reduction of the

rate of interest by the High Court.

4.1. Therefore, the basic question for consideration in these appeals is as to

whether the amount of compensation as awarded by the High Court is that of

just compensation or the same calls for any modification?

5. The background aspects of the matter, so far relevant for the question at

hand, may be noticed, in brief, as follows:

2

5.1. The vehicular accident in question occurred on 30.12.1995, at about 1

p.m., near the police out post Bagari (Assam), when the deceased Shri Rajpal

Singh Johal was driving a car, taking his wife and children along, from

Kaziranga to Guwahati. The offending vehicle, being an oil tanker bearing

registration No. AS-01-9526, rammed into the car driven by the deceased while

coming from the opposite direction. The deceased succumbed to the injuries

sustained in this accident while his wife was also injured and their two children

suffered severe shock.

5.2. On account of demise of the victim Shri Rajpal Singh Johal due to the

injuries sustained in the accident aforesaid, two claim applications came to be

made before the Motor Accident Claims Tribunal, Chandigarh: one on

14.05.1996 by the parents of deceased, being MACT Case No. 80 of 1996; and

another on 22.05.1996 by the wife and minor children of the deceased, being

MACT Case No. 84 of 1996. The sum and substance of the allegations in claim

applications had been that the deceased met with his untimely end for the

accident in question that occurred due to rash and negligent driving of the oil

tanker in question. It was asserted that the deceased was 38 years of age; was

working as General Manager (Marketing) with Punjab Wireless System Limited,

Mohali; was drawing gross annual salary of Rs. 3,21,801.60 with perks just prior

to the accident; and he was due to be promoted as the Associate Vice President

in January 1996 whereby, his annual salary would have been enhanced to Rs.

3,50,000/-. While asserting their dependency on the deceased, the claimants

i.e., the parents, wife and children of the deceased claimed compensation

against the driver, owner and insurer of the offending vehicle. The cause of 3 action being the same, these two claim petitions were consolidated, and were

tried and decided together by way of the common award dated 27.01.2000.

5.3. Before the Tribunal, driver of the offending vehicle remained ex parte

while its owner denied any negligence on part of the driver and rather alleged

that the accident occured due to rash and negligent driving by the deceased.

On the other hand, insurer of the offending vehicle denied the factum of the

accident and also alleged that the driver of the offending vehicle did not possess

a valid driving license.

5.4. On the pleadings, the Tribunal framed as many as 9 issues. After taking

evidence, the Tribunal proceeded to determine the relevant issues in its

impugned award dated 27.01.2000. The Tribunal decided the basic issues

relating to the factum of accident and the responsibility for the same against the

non-applicants while holding that the accident in question occurred due to rash

and negligent driving of the offending oil tanker. The Tribunal also held that the

wife and children of the deceased were dependent on him and further that the

parents were marginally dependent on him.

5.5. On the question of quantification of compensation, the Tribunal took note

of the evidence led by the claimants as regards emoluments of the deceased as

on 01.12.1995; the fact that his colleagues were promoted as Associate Vice

President in the year 1995; that he too had the prospects of such promotion;

and that emoluments of the Associate Vice President were revised with effect

from the month of December 1996. Therefore, the Tribunal considered it just

and reasonable to assess the income of the deceased at Rs. 3,51,000/- p.a., as

per the revised emoluments for the post of Associate Vice President in the 4 employer company. Then, the Tribunal proceeded to deduct one-third towards

personal expenses of the deceased and in this manner, took the annual loss of

dependency at Rs. 2,34,000/- and, after applying the multiplier of 16, assessed

the pecuniary loss of the claimants at Rs. 37,44,000/-. The Tribunal further

awarded Rs. 25,000/- towards transportation of dead-body and Rs. 2,000/-

towards other expenses and thus, finally awarded a sum of Rs. 37,71,000/- to

the claimants. The Tribunal also allowed interest at the rate of 12% p.a. from the

date of filing of claim application No. 80 of 1996. The Tribunal allowed a sum of

Rs. 1,00,000/- each to the mother and father of the deceased while observing

that they were in the age group of 78 years and were only marginally dependent

on the deceased; and apportioned the remaining amount amongst the wife and

children of the deceased.

5.6. Against the award so made by the Tribunal, the claimants in MACT Case

No. 84 of 1996 preferred an appeal before the High Court of Punjab and

Haryana, seeking enhancement of the amount of compensation, while the

insurance company preferred two separate appeals questioning the findings in

the award and seeking reduction of the amount of compensation.

5.7. The High Court, in its impugned judgment dated 06.07.2018, in the first

place rejected the contentions urged on behalf of the insurer as regards the

factum and cause of accident and affirmed the findings of the Tribunal. As

regards quantum of compensation, the High Court proceeded to make

enhancement over the amount awarded by the Tribunal with reference to the

decisions in Pranay Sethi and Sarla Verma (supra). The High Court did not

accept the basis of assessment of loss of income with reference to the likely 5 enhanced emoluments of deceased on his expected promotion and subsequent

revision of pay-scale in the year 1996. The High Court, therefore, took the base

annual emoluments at Rs. 3,21,801.60 and, while deducting Rs. 20,000/-

towards income-tax, rounded off the figure to Rs. 3,00,000/-. The High Court,

thereafter, provided for enhancement of 40% towards future prospects and then,

looking to five number of dependents, deducted one-fourth towards personal

expenses of the deceased. In this manner, the High Court arrived at the

multiplicand of Rs. 3,15,000/- and, while applying the multiplier of 15 in view of

the age of the deceased at 38 years, worked out the pecuniary loss at Rs.

47,25,000/-. The High Court further awarded Rs. 40,000/- towards loss of

consortium, Rs. 15,000/- towards funeral expenses and Rs. 15,000/- towards

loss to estate. Accordingly, the High Court assessed the total compensation at

Rs, 47,95,000/- and rounded it up to Rs. 48,00,000/-. The High Court, however,

allowed interest at the rate of 7.5% p.a., while holding that the respondents

related with the offending vehicle were liable to make payment of compensation.

As regards apportionment, the High Court allowed a sum of Rs. 26,00,000/- to

the wife of the deceased; Rs. 8,00,000/- to the son of the deceased; Rs.

10,00,000/- to the daughter of the deceased; and Rs. 2,00,000/- each to the

mother and father of the deceased.

6. Assailing the impugned judgment of the High Court, learned counsel for

the insurer has strenuously argued that the High Court has erred in not

considering and applying the principles enunciated in Reliance General

Insurance Company Ltd. v. Shashi Sharma & Ors.: 2016 ACJ 2723 (SC) and

in not deducting the ex gratia amount received by the claimants from the 6 employer of the deceased. Learned counsel has also attempted to argue that

the High Court has taken into consideration certain payments like conveyance

allowance, performance linked special pay and company lease accommodation

while making the calculation of total annual gross salary, though such

allowances ought to have been deducted. Per contra, learned counsel for the

claimants would submit that a clear case for enhancement over the modified

award of the High Court is made out, particularly when the High Court reduced

the annual income figure of the deceased from Rs. 3,51,000/- to Rs.

3,21,801.60 and further slashed it to Rs. 3,00,000/- and then, reduced the rate

of interest at 7.5% p.a. as against the rate allowed by the Tribunal at 12% p.a.

According to the learned counsel, the rate of interest as allowed by the Tribunal

was in conformity with the lending rates at the time of accident in the year 1995

and should not have been reduced. The learned counsel has also argued that a

few components of allowances and benefits as taken into consideration for

assessment of the annual income had been the part of composite pay packet of

the deceased and the claimants were also the beneficiaries of such allowances

while being dependent on the deceased. The learned counsel for the claimant

has also countered the submissions as regards the ex gratia payment made by

the employer with the contentions that such an amount is not required to be

deducted from the total compensation, while relying on the decision in

Sebastiani Lakra & Ors. v. National Insurance Company Ltd. & Ors. : 2019

ACJ 34 (SC).

7. Having given anxious consideration to the rival submissions and having

examined the record, we are clearly of the view that the modified award made 7 by the High Court in this case remains that of just compensation and no case for

interference is made out in either of these appeals.

8. It remains trite, and need not be over-emphasised, that while dealing with

the question of quantification in a claim for compensation under the Motor

Vehicles Act, 1988 ('the Act of 1988'), the endeavor has to be to ensure

awarding of just compensation to the claimant/s. In Shashi Sharma (supra), this

Court reiterated on the basics regarding meaning of the expression "just" in the

context of the Act of 1988 in the following:-

“17. ........ the term “compensation” has not been defined in the 1988 Act. By interpretative process, it has been understood to mean to recompense the claimants for the possible loss suffered or likely to be suffered due to sudden and untimely death of their family member as a result of motor accident. Two cardinal principles run through the provisions of the Motor Vehicles Act of 1988 in the matter of determination of compensation. Firstly, the measure of compensation must be just and adequate; and secondly, no double benefit should be passed on to the claimants in the matter of award of compensation. Section 168 of the 1988 Act makes the first principle explicit. Sub-section (1) of that provision makes it clear that the amount of compensation must be just. The word “just” means—fair, adequate, and reasonable. It has been derived from the Latin word “justus”, connoting right and fair. In para 7 of State of Haryana v. Jasbir Kaur, it has been held that the expression “just” denotes that the amount must be equitable, fair, reasonable and not arbitrary. In para 16 of Sarla Verma v. DTC, this Court has observed that the compensation “is not intended to be a bonanza, largesse or source of profit”. That, however, may depend upon the facts and circumstances of each case, as to what amount would be a just compensation.”

9. In a case like the present one, relating to the death of the vehicular

accident victim, any process of awarding "just" compensation involves

assessment of such amount of pecuniary loss which could be reasonably taken

8 as the loss of dependency suffered by the claimants due to the demise of the

victim. In other words, such a process, by its very nature, involves the

assessment of monetary contribution that the claimants were likely to receive

from the deceased had he not met with the untimely end due to the accident.

For the purpose of such an assessment, while some of the basic facts, like the

age, job and income of the deceased and the number of dependents with extent

of their dependency, could be reasonably ascertained from the evidence on

record, yet, several uncertain factors also, per force, come into play, like the

future prospects of the deceased coupled with various imponderables related

with a human life. As the process, by its very nature, involves a substantial deal

of guess-work, this Court, over the years, has evolved and applied several

principles so as to ensure that as far as possible, the methods for assessment

remain uniform, curbing against disparity in the amount of compensation to be

awarded in similarly circumstanced cases. It is not necessary for the present

purpose to traverse through the large number of past decisions, particularly for

the reason that the basic parameters stand explained and standardised with the

larger Bench decision in Pranay Sethi (supra), wherein this Court has partly

modulated the parameters enunciated in the two-Judge Bench decision in Sarla

Verma (supra), and has laid down the principles as follows:-

“59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.

9 59.4. In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.

59.5. For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paras 30 to 32 of Sarla Verma which we have reproduced hereinbefore.

59.6. The selection of multiplier shall be as indicated in the Table in Sarla Verma read with para 42 of that judgment. 59.7. The age of the deceased should be the basis for applying the multiplier.

59.8. Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years."

9.1. For completion of the principles above-quoted, appropriate would it to be

to take note of paragraphs 30 to 32 as also paragraph 42 in Sarla Verma

(supra) which read as under:-

“30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one- third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in 10 a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependant. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father.

32. Thus even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where the family of the bachelor is large and dependent on the income of the deceased, as in a case where he has a widowed mother and large number of younger non-earning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.

***** ***** *****

42. We therefore hold that the multiplier to be used should be as mentioned in Column (4) of the Table, which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for 26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years, and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years.”

10. Applying the principles aforesaid to the present case, we find that the

award made by the Tribunal suffered from a few fundamental errors and

shortcomings as regards the assessment of multiplicand. The Tribunal, instead

of taking the last drawn emoluments of the deceased, chose to proceed on his

enhanced projected emoluments after the expected promotion and pay revision.

However, thereafter, the Tribunal did not provide for any further future prospects.

The Tribunal also did not make any deduction towards the tax component.

Moreover, the Tribunal deducted one-third towards personal expenses of the

11 deceased though he had had five dependents. Then, the Tribunal applied the

multiplier of 16. Apparently, the assessment made by the Tribunal could not

have been countenanced, for being not in conformity with the principles in

Pranay Sethi (supra).

11. The High Court, on the other hand, took the figure of the last drawn

emoluments of the deceased and made the deduction towards income-tax.

Thereafter, the High Court provided for future prospects at 40% and made the

deduction of one-fourth towards personal expenses. In this manner, the High

Court arrived at the figure of multiplicand at Rs. 3,15,000/-. On this multiplicand,

the High Court applied the multiplier of 15 in view of the age of deceased at 38

years and hence, worked out the pecuniary loss at Rs. 47,25,000/-. As noticed,

the High Court further awarded Rs. 40,000/- towards loss of consortium, Rs.

15,000/- towards funeral expenses, and Rs. 15,000/- towards loss to estate; and

finally assessed the total compensation at Rs, 47,95,000/-, rounded up to Rs.

48,00,000/-.

11.1. The assessment so made by the High Court stands more or less in

conformity with the principles enunciated in Pranay Sethi (supra). The only

doubtful area is that the High Court provided for enhancement towards future

prospects only at 40% on the last drawn emoluments of the deceased and not

at 50% though he was shown to be in a settled employment with future chances

of promotion as also pay revision. However, on the facts and in the

circumstances of the present case, we are not considering any modification in

the amount awarded by the High Court for a variety of factors, as indicated infra. 12

12. Taking up the question of ex gratia payment received by the claimants

from the employer of the deceased, it is noticed that an amount of Rs.

3,21,801/- was paid by the employer to the claimants, being one year's gross

salary of the deceased. While relying on the decision in Shashi Sharma, it is

contended on behalf of the insurer that the ex gratia amount so received by the

claimants is required to be deducted. Noticeable it is that in Shashi Sharma's

case, a three-Judge Bench of this Court was dealing with the payment received

by the legal heirs of the deceased in terms of Rule 5 of the Haryana

Compassionate Assistance to the Dependents of Deceased Government

Employees Rules, 2006 ('Rules of 2006') whereunder, on the death of a

government employee, the family would continue to receive as financial

assistance a sum equal to the pay and other allowances that was last drawn by

the deceased employee for periods specified in the Rules and after the said

period, the family would be entitled to receive family pension. The family would

also be entitled to retain the government accommodation for a period of one

year in addition to payment of Rs. 25,000/- as ex gratia1. 1 Rule 5 of the Rules of 2006 taken into consideration in Shashi Sharma's case had been as under:

“5. Criteria for financial assistance.—(1) On the death of any government employee, the family of the employee would continue to receive as financial assistance a sum equal to the pay and other allowances that was last drawn by the deceased employee in the normal course without raising a specific claim—

(a)for a period of fifteen years from the date of death of the employee, if the employee at the time of his death had not attained the age of thirty-five years;

(b) for a period of twelve years or till the date the employee would have retired from government service on attaining the age of superannuation, whichever is less, if the employee at the time of his death had attained the age of thirty-five years but had not attained the age of forty-eight years;

(c) for a period of seven years or till the date the employee would have retired from government service on attaining the age of superannuation, whichever is less, if the employee had attained the age of forty-eight years.

(2) The family shall be eligible to receive family pension as per the normal rules only after the period during which he receives the financial assistance as above is completed.

(3) The family of a deceased government employee who was in occupation of a government residence would continue to retain the residence on payment of normal rent/licence fee for a period of one year from the date of death of the employee.

13 12.1. The aforesaid decision in Shashi Sharma has been explained and

distinguished by another three-Judge Bench of this Court in Sebastiani Lakra

(supra) in the following:-

“10. In Shashi Sharma's case, 2016 ACJ 2723 (SC), this court was dealing with the payments made to the legal heirs of the deceased in terms of rule 5(1) of the Haryana Compassionate Assistance to the Dependants of Deceased Government Employees Rules, 2006 (for short 'the said Rules’). Under rule 5 of the said Rules on the death of a government employee, the family would continue to receive as financial assistance a sum equal to the pay and other allowances that was last drawn by the deceased employee for periods set out in the Rules and after the said period the family was entitled to receive family pension. The family was also entitled to retain the Government accommodation for a period of one year in addition to payment of Rs. 25,000 as ex gratia. In this case, the three-Judge Bench adverted to the principles laid down in Helen C. Rebello's case 1999 ACJ 10 (SC), followed in Patricia Jean Mahajan's case 2002 ACJ 1441 (SC), and came to the conclusion that the decision in Vimal Kanwar's case 2013 ACJ 1441 (SC), did not take a view contrary to Helen C. Rebello or Patricia Jean Mahajan cases (supra). The following observations are relevant:

"(12) The principle expounded in this decision in Helen C. Rebello's case that the application of general principles under the common law to estimate damages cannot be invoked for computing compensation under the Motor Vehicles Act. Further, the 'pecuniary advantage' from whatever source must correlate to the injury or death caused on account of motor accident. The view so taken is the correct analysis and interpretation of the relevant provisions of the Motor Vehicles Act of 1939, and must apply proprio vigore to the corresponding provisions of the Motor

Contd..

…contd.

(4) Within fifteen days from the date of death of a government employee, an ex gratia assistance of twenty-five thousand rupees shall be provided to the family of the deceased employee to meet the immediate needs on the loss of the bread earner.

(5) House rent allowance shall not be a part of allowance for the purposes of calculation of assistance.”

14 Vehicles Act, 1988. This principle has been re-

stated in the subsequent decision of the two-Judge Bench in Patricia Jean Mahajan's case, 2002 ACJ 1441 (SC), to reject the argument of the insurance company to deduct the amount receivable by the dependants of the deceased by way of 'social security compensation' and 'life insurance policy'."

However, while dealing with the scheme the court held that applying a harmonious approach and to determine a just compensation payable under the Motor Vehicles Act it would be appropriate to exclude the amount received under the said Rules under the head of ‘pay and other allowances’ last drawn by the employee. We may note that on principle this court has not disagreed with the proposition laid down in Helen C. Rebello or in Patricia Jean Mahajan (supra), but while arriving at a just compensation, it had ordered the deduction of the salary received under the statutory Rules.”

12.2. In the present case too, it has not been shown if the ex gratia amount

received by the claimants had been under any Rules of service and would be of

continuous assistance, as had been the case in Shashi Sharma (supra) as per

the Rules of 2006 considered therein. In an overall analysis and with reference

to the decision in Sebastiani Lakra (supra), we are clearly of the view that the

decision in Shashi Sharma would not apply to the facts of the present case and

no deduction in the amount awarded by the High Court appears necessary.

12.3 Apart from the above, as noticed, the High Court has even otherwise

provided for enhancement towards future prospects only at 40% though the

deceased was in a settled job and was not self-employed or on fixed salary. If at

all an assertion is made that the assistance received by the claimants or a part

of allowances received by the deceased need to be taken into consideration for

making certain deductions, the enhancement by way of future prospects at 50%

would be effectively setting off any such proposed deduction. In other words, in

the ultimate analysis, the amount of pecuniary loss as assessed by the High 15 Court remains reasonable and cannot be said to be either exorbitant or too low

so as to call for any interference.

13. The aforesaid features equally apply to the contentions urged on behalf of

the claimants as regards the rate of interest. The Tribunal had awarded interest

at the rate of 12% p.a. but the same had been too high a rate in comparison to

what is ordinarily envisaged in these matters. The High Court, after making a

substantial enhancement in the award amount, modified the interest component

at a reasonable rate of 7.5% p.a. and we find no reason to allow the interest in

this matter at any rate higher than that allowed by High Court.

14. The upshot of the discussion aforesaid is that in our view, the amount

ultimately receivable by the claimants in terms of the judgment of the High Court

remains that of just compensation and no case for interference is made out.

15. Accordingly, both these appeals fail, and are dismissed.

...............................................J. (ABHAY MANOHAR SAPRE)

..............................................J. (DINESH MAHESHWARI)

New Delhi, Date: 23rd April, 2019.

16

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