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2019 (4) TMI 1930 - SC - Indian LawsVehicular accident compensation claims - quantum of compensation so awarded - offender claims 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 - whether the amount of compensation as awarded by the High Court is that of just compensation or the same calls for any modification? HELD 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 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 [2017 (10) TMI 1276 - SUPREME COURT]. Ex gratia payment received by the claimants from the employer of the deceased - HELD THAT:- An amount of ₹ 3,21,801/- was paid by the employer to the claimants, being one year's gross salary of the deceased - 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 - no deduction in the amount awarded by the High Court appears necessary. Enhancement towards future prospects - HELD THAT:- 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 Court remains reasonable and cannot be said to be either exorbitant or too low so as to call for any interference. Rate of interest - HELD THAT:- 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 there are no reason to allow the interest in this matter at any rate higher than that allowed by High Court. 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 - Appeal dismissed.
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