The Commissioner of Income Tax-I vs. M/s. Chaya Lakshmi Creations Pvt. Ltd.,

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ITTA/77/2012HC TelanganaHBHC01017595201206 April 2016Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY3 pages
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What did the High Court hold?

The High Court enhanced the compensation by correcting the multiplier and deduction for personal expenses. It held the insurer of the dumper liable for 60% of the enhanced compensation, as the Oriental Insurance Company was not liable for the deceased owner-driver.

What were the facts?

Claimants sought enhancement of compensation for the death of Ashwani Kumar Jaiswal in a motor vehicle accident. The deceased was the owner-driver of a Maruti Gypsy involved in a head-on collision with a dumper.

What were the issues?

Whether the multiplier and deduction for personal expenses were correctly applied in calculating compensation. Determination of the liability of the insurance companies for the accident.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JHARKHAND AT RANCHI

Misc. Appeal No. 77 of 2012

1.

Dushyant Jaiswal 2. Smt. Smriti Jaiswal

…. …. Appellants

Versus

1.

The Oriental Insurance Company Limited, Divisional Office No.2, Raj Hospital Complex, 57/A, Main Road, PO GPO, PS Hindpiri, Ranchi 2. Rakesh Kumar Rai, son of late Ramnath Rai, House No.15, Road No.8, Ram Nagar, PO and PS Sonari, Town Jamshedpur, District East Singhbhum 3. The New India Assurance Company Limited, Sakchi Branch 540205 I.M.A. Bhawan, Damodar Road Sakchi, PO and PS Sakchi, Town Jamshedpur, District East Singhbhum 4. Monika Jaiswal, daughter of Late Ashwani Kumar Jaiswal, resident of Lake Avenue, Kanke Rd., PO Gonda, PS Gonda District-Ranchi 5. Ella Jaiswal, daughter of late Ashwani Kumar Jaiswal, resident of Lake Avenue, Kanke Rd., PO Gonda, PS Gonda District-Ranchi

.... .... Respondents

------ CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY

------ For the Appellants : Mr. Rohit Roy, Advocate

Mr. Rajesh Kumar, Advocate For the Respondents : Mr. Ganesh C. Jha, Advocate

Mr. Maihish Kumar, Advocate

Mr. Pratyush Kumar, Advocate

C.A.V. ON 02.12.2021

PRONOUNCED ON 18 /01/2022

1.

Claimants have preferred this appeal for enhancement of compensation amount awarded in Compensation Case No.120/1998 for the death of Ashwani Kumar Jaiswal in a motor vehicle accident while the deceased was on his way from Jamshedpur to Ranchi in his Maruti Gypsy bearing registration No. BR-14P-0111. 2. The enhancement of the compensation is claimed on the ground that there was manifest error in applying the multiplier of 11 to the deceased whose age was 43 and ½ years. Instead of taking 1/4 deduction towards personal and living expenses deductions @ 1/3 has been taken. 3. The learned Tribunal has recorded a finding of fact that it was a case of head on collusion between Maruti Gypsy bearing registration No. BR-14P-0111 and Dumper bearing registration No.MP-17C-2199. It has been held that both the vehicles had contributed to the accident and apportioned the liability on the Dumper and Maruti Gypsy in the ratio of 60 : 40.

4.

Judgment and award of compensation has been passed against the insurer of both the vehicles. 5. As per the claim application the deceased was proprietor of A.K. Movies and partner of Sujata Pictures having a monthly income of Rs.5,246/- and was income tax payee and had paid advanced income tax of Rs.4,000/- for the assessment year 1995-96. 6. The learned tribunal accepted Rs.62,550/- per annum as the annual income and accepted the age to be 43½ years for which the applicable multiplier will be 14 and not 11 as taken by the tribunal. Considering the number of the dependents, 1/5th shall be applicable deduction towards personal living expense. Accordingly, the annual dependency is worked out to Rs. 62,550/-12,510/- = 50,040/- Taking a multiplier of 14, the loss of future income will work out to Rs.50, 040/- x 14 = Rs.7,00,560/-.

An addition of 25% of the established income shall be applicable under the heading of future prospect which will be Rs.1,75,140/-

Apart from this the claimants shall also be entitled to compensation of Rs.77,000/- under the conventional head of loss of Estate, consortium and funeral expenses.

The final compensation will therefore work out to Rs.7,00,560/- + Rs.1,75,140/- + Rs.77,000/- = Rs. 9,52,700/-. 7. The learned tribunal has recorded a finding that since the deceased was the owner of Maruti Gypsy bearing registration No. BR- 14P-0111 and Insurance Policy did not cover the deceased owner, therefore the Oriental Insurance Company (O.P. No.1) was not liable to pay the compensation amount. This finding of contributory negligence has not been contested in appeal which has been established after discussion of the evidence at length by the Tribunal in Para-8 of the Judgment. 8. In view of the above, O.P. No.3 shall be liable to satisfy 60% of the total compensation amount. The O.P.No.3/respondent No.3, the New India Assurance Co. Ltd. is accordingly directed to make full and final satisfaction of the 60% of the total compensation amount of Rs.9,52,700/- with interest @ 7.5% per annum by making payment to the Tribunal within a month of this order from the date of claim application excluding the period the appeal/claim case was dismissed for default.

9.

The tribunal shall disburse the amount after proper verification and identification to the claimants in the following manner: a. 50% of the total awarded compensation amount to be paid to claimant No.1 individually. b. The balance amount shall be equally paid to claimants Nos. 2, 3, and 4 jointly with claimant No.1. c. In case of minor claimant the amount shall be deposited in term deposit scheme of a nationalized bank, till they attain majority.

The appeal is allowed as at above.

(Gautam Kumar Choudhary, J.) Jharkhand High Court, Ranchi Dated the 18th January, 2022 AFR / Tarun

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