TMI Blog2007 (12) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... s produced in the said proceedings which is in the following terms : Earnings Amount Deductions Amount Basic 3420.00 CPF(S) 488.00 Special Pay 70.00 CPF (Add) FDA 350.00 GIS 3.75 VDA 1040.00 LIC/GIS 509.10 CCA 100.00 HRR HRA 1047.00 MSPI 60.00 Washing All. 75.00 Society 576.00 Conv. 225.00 Union 3.00 Cant.sub. 265.00 HBA 340.00 C.E.A. 2040.00 B.Fund 10.00 Total 8632.00 Total 1989.85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in that view of the matter, the High Court has committed a serious error in opining otherwise. The learned counsel contended that emphasis by this Court are being laid on computation of damages based on net income and not gross income. It was also contended that in any event the amount of compensation awarded by the High Court is on higher side. 7. Mr. Rao, however, submitted that apart from the basic salary, contributions made by the employee should also be taken into consideration for calculation of the amount of compensation, inter alia, on the premise that the same would have become payable to him at a future date as, for example, voluntary retirement, superannuation etc. which would be beneficial to the entire family. It was pointed out that the contributions towards Provident Fund, Life Insurance Corporation, gratuity etc. are includable in the definition of income. 8. The term 'income' has different connotations for different purposes. A court of law, having regard to the change in societal conditions must consider the question not only having regard to pay packet the employee carries home at the end of the month but also other perks which are beneficial to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were beneficial to the members of the family. 12. We have, however, no doubt in mind that medical reimbursement which provides for a slab and which keeping in view the terminology used, would mean reimbursement for medical expenses on production of medical bills and, thus, the same would not come within the purview of the aforementioned category. 13. The question came for consideration before a learned Single Judge of the Madras High Court in The Manager, National Insurance Co. Ltd. v. Padmavathy Ors. [CMA No.114 of 2006 decided on 29.1.2007], wherein it was held : Income tax, Professional tax which are deducted from the salaried person goes to the coffers of the government under specific head and there is no return. Whereas, the General Provident Fund, Special Provident Fund, L.I.C., Contribution are amounts paid specific heads and the contribution is always repayable to an employee at the time of voluntary retirement, death or for any other reason. Such contribution made by the salaried person are deferred payments and they are savings. The Supreme Court as well as various High Courts have held that the compensation payable under the Motor Vehicles Act is statutory a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in the salary while computing the net earnings of the deceased. The finding of the tribunal that the deceased was getting ₹ 1,401/- as net income every month is unsustainable as the deductions made towards vehicle loan and other deductions were also taken into consideration while fixing the monthly income of the deceased. The above finding of the tribunal is contrary to the principle of 'just compensation' enunciated by the Supreme Court in the judgment in Helen's case (1 supra). The Supreme Court in Concord of India Insurance Co. v. Nirmaladevi and Ors., 1980 ACJ 55 (SC) held that determination of quantum must be liberal and not niggardly since law values life and limb in a free country 'in generous scales'. Earnings Amount Deductions Amount Basic 3420.00 CPF (S) 488.00 Special Pay 70.00 CPF (Add) FDA 350.00 GIS 3.75 VDA 1040.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income tax or any other tax. What would be 'just compensation' must be determined having regard to the facts and circumstances of each case. The basis for considering the entire pay packet is what the dependents have lost due to death of the deceased. It is in the nature of compensation for future loss towards the family income. 16. In Rathi Menon v. Union of India [(2001) 3 SCC 714], this Court, upon considering the dictionary meaning of compensation held : In this context a reference to Section 129 of the Act appears useful. The Central Government is empowered by the said provision to make rules by notification to carry out the purposes of this Chapter . It is evident that one of the purposes of this chapter is that the injured victims in railway accidents and untoward incidents must get compensation. Though the word compensation is not defined in the Act or in the Rules it is the giving of an equivalent or substitute of equivalent value. In Black's Law Dictionary , compensation is shown as equivalent in money for a loss sustained; or giving back an equivalent in either money which is but the measure of value, or in actual value otherwise conferred; or rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iyar's Advanced Law Lexicon (3rd Ed.) has been defined as under : The value of any benefit or perquisite whether convertible into money or not, obtained from a company either by a director or a person who has substantial interest in the company, and any sum paid by such company in respect of any obligation, which but for such payment would have been payable by the director or other person aforesaid, occurring or arising to a person within the State from any profession, trade or calling other than agriculture. It has also been stated : 'INCOME' signifies 'what comes in' (per Selborne, C., Jones v. Ogle, 42 LJ Ch.336). 'It is as large a word as can be used' to denote a person's receipts '(per Jessel, M.R. Re Huggins, 51 LJ Ch.938.) income is not confined to receipts from business only and means periodical receipts from one's work, lands, investments, etc. AIR 1921 Mad 427 (SB). Ref. 124 IC 511 : 1930 MWN 29 : 31 MLW 438 AIR 1930 Mad 626 : 58 MLJ 337. 19. If the dictionary meaning of the word 'income' is taken to its logical conclusion, it should include those benefits, either in terms of money or otherwise, which are take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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