QUANTUM OF COMPENSATION UNDER MV ACT PART 4

 

QUANTUM OF COMPENSATION UNDER MV ACT PART 4

 

31Unborn Child death of amount of compensation guidelines.

2014 ACJ 353(Mad).

32Injury to Advocate Calculation of loss of Income.

2014 ACJ 617 (SC) – Manjegowda, 2014 ACJ 653

(SC) Sanjay Kumar v/s Ashok Kumar

33Quantum of – assessment of loss of Leave in the case

of government servant principles laid down.

2014 ACJ 1090

34Quantum – Assessment in the fatal case Ratio laid

down in the case of Rajesh v/s Rajbir 2013 ACJ 1403

(SC) qua consortium, funeral expenditure etc is

followed – 2014 ACJ 1261 (SC) Savita v/s Bindar

Singh. Also see 2014 ACJ 1565 (SC) – Anjani Singh v/s

Salauddin.

34. A Since issue with respect to assessment of compensation on the basis of future prospect income has been referred to the Larger Bench, what order should be passed?Heldassessment

of compensation should be based on the principle of the future prospect income and amount calculated under the head of the future prospect income may be order to be deposited in

FDR till the decision of Apex Court in the case

of NIC vs. Pushpa, reported in 2015 (9) SCC 166

and Shashikala vs. Gangalakshmamma, reported in

2015 ACJ 1239 is rendered. 2017

ACJ 475 (P&H)

35Whether 1/3 amount under the head of personal

expenditure can be deducted from the notional income

(of Rs.3,000/) of a housewife? Held

No. Good discussion.

2014 ACJ 1817

35AWhen notional income of the deceased is taken into

consideration for the assessment of the compensation,

whether in such situation, future prospect of the

deceased can be taken into consideration Held  Yes.

2014 ACJ 1441 (SC) – V. Mekala vs. Malathi. 2016

ACJ 2742 (Ker)

35BHon'ble Supreme Court in the case of Sunita Tokas

v/s. New India Insurance Com. Ltd, AIR 2019 SC 3921

has held that even in the case where notional income

has been taken into account for calculation of amount

of compensation, future prospect of the deceased

shall be taken into consideration.

36Public Document Income Tax Certificate issued by

C.A. (Chartered Accountant) whether same is admissible in evidence as same is public document? Held Yes.

2014 ACJ 2348 (Sikkim)

Provided same is ITRs filed during the life time of

the deceased – 2018 ACJ 1986

36AEven if ITR are filed after the death of the deceased, same can be taken into consideration for the purpose of calculation of compensation.

Rukmani Jethani v/s. Gopal Singh, 2021 ACJ 2683 (SC)

37Interest  –income taxTDS guideline

2007 ACJ 1897 (GUJ) Above referred guideline shall now not be

made applicable as there is an amendment in the Income Tax Act, Section 194A(3)(ix). 2016 ACJ 1231 (Chh).

But see – Order calling upon IC to pay TDS/deduct TDS

on the interest part of compensation is not

sustainable 2016

ACJ 1639 (P&H), 2017 ACJ 505

(Mad), Court on its Motion vs. H.P. State Cooperative

bank Ltd, reported in 2014 SCC online HP 4273 – 2017

ACJ 1727 (Guj) – N I A Com vs. Bhoyabhai Haribhai

Bharvad, 2017 ACJ 1775 (Bom) wherein Gujarat Judgment

has been followed. 2019

ACJ 376 (Guj) – 2022 ACJ

437 (All)

37ARelying on the Supreme Court judgment reported in the

case of CIT Belgaun Urban Develpoment v/s. CIT, 2017

(13) SCC 759 it has been held that IC has right to

deduct TDS if it exceeds 50,000/. 2020 ACJ 72 (MP)

38Income Tax Deduction from the amount of

Compensation interest received on the awarded amount

of compensation, amounting to more than 50,000/Tribunal

can deduct TDS on the said amount of accumulated interest? Held; No. Tribunal can deduct TDS only if the amount of interest for the financial year payable to each claimant exceeds Rs. 50000/ 2012 ACJ 1157 (MP).

In the year 2013, amendment came to made in Section 169 Income Tax Act, and now same is made taxable.

39Claimants are entitled for entire pay package, which

is for the benefit of the family is to be taken into consideration.

2008 ACJ 614 (SC)Indira Srivastava

2009 ACJ 2161 (SC)Saroj 40M.V. Act C.P.C.1908, u/s 2 illegitimate minor son is entitled to get any amount of compensation? Held Yes.

2012 ACJ 2322 (Chh), 2017 ACJ 931 (Kar).

Even minor son living with his divorced mother is

also entitled for the amount of Compensation as LR of

the deceased father.

2017 ACJ 939 (Chh)

41Interest Penal interest whether imposition of higher rate interest with retrospective effect is legal? Held No.

If awarded amount is not deposited with in time allowed, reasonable enhanced rate of interest may be imposed, payable from the date till the date of payment but not retrospectively.

2012 ACJ 2660. SC Judgments followed.

42Loss of academic year what should be amount of compensation. Held; Rs.50,000/.

2012 AAC 3126.

43Deathof house wife quantum should be decided on the

basis of notional income i.e. 3,000/p.m.1/3 amount is not required to be deducted as notional income is assessed.

2013 ACJ 453 (Del)SC judgments followed.

43 Allowances like D.A., contribution of employer

towards P.F etc are part and parcel of the income of

deceased? Held ; yes.

2013 ACJ 504 (Del), 2013 ACJ 1441 (SC) – Vimal

Kumar v/s Kishore Dan.

44– Income certificate issued by Block Development

officer – is public document and can be relied upon

without calling upon BDO in the witness box.

2015 ACJ 2575 (Sik)

45 – Whether non payment of Income Tax would lead to the

conclusion that claimant was not earning the income

he claimed in the claim petition? Case of Advocate Held; No.

2016 ACJ 2277 (J&K)

46Injury Case – Where injured has suffered 100%

disability or amputation.

In the case of Rajan v/s Soly Sebastian, reported in

2015 (10) SCC 506, Hon'ble Apex Court has held that

when a professional like Driver suffers Permanent

Partial Disability (100% functional disability), 50%

enhancement for future prospect is required to be

made.

In the case of Govind Yadav v/s National Insurance

Com. Ltd., reported in 2012 (1) TAC 1 (SC) = 2012 ACJ

28 (SC) an active practising lawyer has become

paraplegic on account of the injuries sustained by

him, in the case of M.D. Jacob v/s United India

Insurance Com. Ltd. 2014 ACJ 648 (SC) (FB) injured

had experience of working as an Electrician and was

employed as such and on account of several serious

injuries sustained by him in the vehicular accident,

including amputation of complete left hand, severe

injuries in head, dislocation of bones in hip and

both knees and severe injuries in foot and Doctor has

assessed his disability at 100%, in the case of

Sanjay Kumar v/s Ashok Kumar 2014 ACJ 653 (SC) =AIR

2014 SC (Supp) 1584 injured claimant who was employed

as a skilled embroiderer received injuries in a

roadside accident and due to injuries sustained, his

right leg above the knee had to be amputated, and in

the case of V. Mekala v. M. Malathi, reported in AIR

2014 SCW 2973 a minor girl studying in the 11th

Standard holding first rank in her school sustained

grievous injuries and has become a permanently

disabled. Whereas in the case of Sanjay Verma v.

Haryana Roadways, reported in AIR 2014 SC 995 (FB)

injured who was a self employed person sustained

vehicular injuries and has become cent percent

paralyzed. In all the above referred judgments,

Hon'ble Apex Court has assessed the amount of

compensation after taking into consideration future

prospects of increase of income of the injured.

Also refer to AIR 2017 SC 2943 – Dixit Kumar vs. om

Prakash.

Kindly refer, 2018 ACJ 547 (SC) – Ankur kappor v/s.

OI Com

Injured a Security Officer – amputation of left legSC

granted future prospect – N. I. Ass. Com. V/s

Gajendra Yadav 2017 ACJ 2834.

Injure a Labourer – amputation of Right handSC

granted future prospect – Ankush v/s Hanmanta, 2017

ACJ 2878.

47Oral evidence of monthly income of the deceased not

believed by the Tribunal on the count that there is

no documentary evidence to support the case of

claimants – whether such findings are sustainable?

Held. No. As oral evidence has the same

evidentery value as documentary evidence.

2018 ACJ 880 (cal)

48 Claimant has pleaded that his monthly income was

7,000 but during inquiry it is proved that his

monthly income is 20,000. Under this circumstance

which income should be taken into consideration.

Held Rs.20,000/.

2018 GLR (2) 1321 NIC Ltd v/s. Rajeshkumar Ramanlal Soni

49Assessmentof income of the deceased – deceased

employed with FCI – income of deceased cannot be

assessed only on the basis of salary certificate of

the deceased – if income tax returns show high

figures than that of salary income, the income

shown in the income tax returns shall be taken into

account.

U I I Com. v/s Indiro Devi, AIR 2018 SC 3107