Showing posts with label accident victim. Show all posts
Showing posts with label accident victim. Show all posts

Wednesday, 27 May 2015

Whether gross income of accident victim is to be considered for computing loss of dependency for grant of compensation?

We are of the view, that on the facts and circumstances of this case, the net salary of the deceased taken by the Tribunal and the High Court for determination of loss of dependency is erroneous as it is not in accordance with the principles laid down by this Court in this regard. Therefore the same is liable to be set aside as it has to be properly determined by taking gross income of the deceased. It is clear that the gross income of the deceased at the time of his death as per his salary slip was Rs.26,000/- per month. Therefore, we are of the view that a just and reasonable compensation under the head of loss of dependency has not been determined by the courts below. Thus, the impugned judgment and order of the High Court is vitiated both on account of erroneous finding and error in law. The gross salary drawn by the deceased at the time of his death was Rs.26,000/- per month. The High Court and the Tribunal have taken the net salary at Rs.21,168/- per month, thereby the Courts below have erred in making deductions from the gross salary of the deceased towards P.T. of Rs.200/- and other statutory deductions and therefore, arriving at Rs.21,168/- per month as the net salary of the deceased is erroneous in law. Therefore, we are of the view that both the Tribunal and the High Court have erred in not following the rules laid down by this Court in Indira Srivastava’s (supra) in not taking gross income of the deceased to determine the loss of dependency.

Supreme Court of India
Yerramma & Ors vs G. Krishnamurthy & Anr on 28 August, 2014

Bench: Dipak Misra, V. Gopala Gowda
Citation;AIR 2015 SC 1145
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